Amazon’s Next-Day Delivery System Has Brought Chaos to America’s Streets
buzzfeednews.com
buzzfeednews.com
At a minimum, without even shipping more items, the result of gig couriers vs. fedex/ups is 2.7x the number of vehicles on the road (due to size difference).
It also gets around legal liability costs, since you can just create and destroy hundreds of gig courier corporations around the country when issues arise from "pushing the envelope" in terms of safety and policy.
Can you imagine the world we would live in if 90% of current retailers went to the Amazon ecommerce + gig courier model? Our infrastructure (primarily roads) would immediately fail.
Splitting the same total purchases in many separate "shoppings" is the fragmentation problem that causes much more "delivery events".
I'm sure they could do a better job of batching deliveries for a single drop off per day but I don't think that's as bad as it might seem considering the overall reduction in consumer-to-store travel.
Apartment complex with loads of items delivered each day? Makes sense, though packaging is still environmental overhead. Lots of single family homes ordering individual items distributed across suburbia? Less efficient than customer driving to the store once a week to get everything they need.
Implement a carbon tax and watch the market reconfigure itself.
Also: let's re-legalize corner stores!
Electric vehicles might complicate things some (they still present some other negative externalities despite using less carbon); perhaps at that time we can look at other incentives or taxes.
Amazon would deliver to the trunk of their cars.
Amazon operates two fulfillment centers in my city. Target has something like 30 stores.
If I get in my car and drive 3 miles to buy some aftershave, how is that more efficient than a truck with 500 individual items, distributing them from house to house, sometimes driving no more than a few hundred feet between drops?
Maybe we should make it illegal to drive to the store for anything, and have people use delivery services because of the reduced environmental impact.
The only question is whether people buy so much more due to convenience that the maybe 50x efficiency gain gets offset by 50x more items ordered. But I don't think that's the case.
I don't think I buy significantly more stuff than I otherwise would just because it's convenient from Amazon, but perhaps I do.
Small items easily available via Amazon are much easier to hoard.
USPS has failed at taking advantage of its network effect.
Sending a few letters from Manhattan to Nome for 50 cents snuffs out the profits from a lot of Amazon packages.
induced demand, and somehow they didn't make it up in volume.
For a brick a mortar store (and this is a little oversimplified), it goes manufacturer>warehouse/distribution center>store>customer drives to store. Note too, that the last step is usually store(s) plural unless you're doing all your shopping at a place like Walmart.
For Amazon, they cut out that entire last step and replace it with a model where a multitude of people can have their needs fulfilled with efficient routes.
The revenue generated could be used to help pay for other transit and transportation infrastructure though, so on the whole could be quite positive.
[1] https://www.scmp.com/tech/apps-social/article/3025295/meitua...
[2]: https://www.prnewswire.com/news-releases/jdcom-speeds-packag...
I get that real estate is expensive in SF, but it's a little insane we can't do local pickups. It would be cool if Amazon could make an arrangement to drop packages off at USPS post offices; there's one a few blocks from me. Not as convenient as delivery to my apartment, but eliminates problems around package theft and delivery drivers unable to get into my building.
Here is a search on Google Maps.
https://www.google.com/maps/search/Amazon+Lockers/@37.758045...
>Amazon says its role is to lend entrepreneurs a hand as they build small businesses and not to control their companies, equipment, or labor force. It said it does not make personnel decisions for them, and while it offers them the opportunity to lease vans, purchase insurance, and manage payroll through its preferred programs, they are free to use whichever vendors they choose.
That sounds alot to me like the relationship that Uber/Lyft/Instacart/etc. have with their drivers, but at the business level.
That being said, I don't think it's too unique. For example, if you take a close look at a FedEx Ground delivery van (not FedEx Express, FedEx Ground), there'll be a note that the vehicle is actually being operated by a separate company, under contract to FedEx. Comcast, AT&T, et al also use contractors for end-user work; you'll see their vehicles have some sort of company logo, but also some text like "under contract" or "installers for".
So I'm genuinely curious, especially when thinking about FedEx Ground, how is Amazon different here?
They're an entire step down market, they run cheaper crappier trucks with cheaper and crappier drivers. This means they can offer cheaper prices but the downside is they make mistakes more and are generally less professional.
It's like the difference between the low class landscaper who shows up in a 30yo truck and lets loose half a dozen felons with week whackers in the industrial park and the high class landscaper who shows up in the kind of truck that won't make the secretary clutch her pearls with a crew who've only been arrested for misdemeanors to cut the grass outside your office.
They both do the same job. One of them does it cheaply. The other looks professional doing it and is probably more consistent and actually has something you can sue them for if they really F up. Everyone says they prefer the latter one but the former isn't lacking for business.
(Yes, I'm stereotyping here but you get the picture.)
And for groceries in general, walmart delivery on items like cangoods can be a big difference. Soups can be a dollar more on amazon. Jet.com (now owned by walmart) is free shipping of you fill out a box, i find spices cheaper on jet, but can goods can be hit or miss.
Amazon is handy, but its far from cheapest on many things.
I (intentionally) don't have a car, and I like buying certain staples (like toilet paper and detergent) in bulk, so having Safeway do the delivery is great. They use their recyclable plastic bags, which I can either reuse, or return to the driver (though that doesn't refund the ~¢2 bag feee); those bags are put into plastic bins (the kind you see when doing a corporate move), which are then put on a cart (my building has an elevator).
So yeah, for scheduled stuff, Safeway delivery is vastly preferable to Amazon (or even Instacart).
The competition is catching up; especially Walmart, and Target is the gold standard in omnichannel retail now. How long can Amazon's cloud business subsidize their retail ambitions?
I suggest you read this for more details: https://www.vox.com/recode/2019/8/21/20826405/amazons-profit...
Amazon is only struggling if you combine being extremely short-sighted with taking an extremely shallow look at their finances.
>All these investments have led to lines of businesses like AWS cloud computing and advertising that are relatively much more profitable than its e-commerce segment.
I do not claim that Amazon has negative cash flow, and I do not know why you would assume I claimed that.
The growth argument is going to get very weak eventually, because Amazon face resurgent competition at home, and regulatory hurdles & Alibaba abroad. Amazon is riding high on investor confidence, they have very little actually space for growth.
Free cash flow has nothing to do with positive or negative cash flow, it is the payment cycle of AR vs AP that gives them a very big buffer to work with. Also you can't claim that they have very little space for growth and then discount the very subsidiary that's growing fastest.
Reinvestment isn't some made up argument, the company has been taking gross profits and reinvesting into expansion for decades. It's what they do best and it's crystal clear in the financial performance. Claiming that Amazon is insolvent (do you know what that means?) except for a single subsidiary is ridiculous and seems to indicate a failure in understanding the business or accounting.
Being forced to not take a bathroom break seems like it would break a lot of laws, not just labour laws.
There are very few. Research how few protections a US "at will employee" has and then know that workers considered to be "contractors" have even fewer.
Yesterday, I saw one Amazon delivery courier walk around my neighbourhood housing estate for a whole 20 minutes looking to drop off one package. He didn't look panicked, if that says anything. Maybe it helps that London is a bit denser than the average American suburb?
I'm increasingly convinced that there's an effect of how US stories are reported and then spread that amplifies negativities, possibly to do with the size of population with a common language, it's easy to come up with enough anedotes to make something seem like a big problem. The spate of vaping related issues is a good example. The number of cases is tiny as a proportion of vapers, but sounds big when talked about in absolute numbes.
And engine idling is not a huge deal compared to the amount of thrust that must be expended constantly to keep a drone in the air (along with it's payload).
You'll gain a little on pathing straighter and then lose everything on upward thrust and repeat trips.
Bear in mind, the most efficient way to freight things: Trains. Trains are bigger and heavier, but they are the most efficient at moving things from one place to another.
The benefit you get from a drone potentially is package delivery in the time it takes to order a pizza, because it's automated direct shipping of one item at a time. But drones do not, in any way, offer the promise of fuel efficiency.
I think you just described the potential usefulness of drones in terms of energy used for a delivery. A drone only has to carry itself and it's package - compared to a car that has to carry it's weight, the driver's weight, the packages in the vehicle, etc.
I think it boils down to this: How many/weight of items being delivered to energy efficiency is on a curve. Sure trains are the most efficient method of transporting goods, but there's a reason a train doesn't deliver our packages to our doors. Building such an infrastructure would be insane.
That's why current delivery is tiered to the quantity/weight of the goods you're shipping.
I have a feeling drones will be more efficient for small packages, but larger ones will still be best by car.
As you say, the problem with trains isn't efficiency, it's infrastructure for last mile to our doors. However, we already have that for vans: Roads and driveways to our door are already built.
If I need a cell phone delivered to my front door, which is going to be more efficient: The van that already is delivering a larger box two doors down dropping it off, or a separate trip from the warehouse to my house from effectively, a small aircraft?
I was going to make a sarcastic comment about my 1 sq ft amazon box carrying my pair of 2 AA batteries crushing someone, but I see that heavy lifter drones can carry up to 500 lbs. I have no idea why someone is next day ordering a large fridge from amazon, but a drone could both carry it and easily kill someone with it.
Now imagine some terrorist hacking Amazon network and doing that deliberately. I can even imagine a not-so-US-friendly country, like Russia, or North Korea doing that.
Personally I'd like to see a truck that drives around the neighborhood like a little drone-aircraft-carrier, launching drones with packages for a short flight so that the truck doesn't have to stop. I don't think the technical challenges of that are any more complex than simple drone delivery.
If there's one thing drone delivery is not, it's "simple". All of the work we did taming and mapping roadways and navigation has to be re-implemented for aerial flight. Every address needs to be mapped to a correct "spot" for a drone to offload it's package. Drones from competing companies need to figure out how to not collide with each other.
Everyone with basic knowledge in physics knows that this won't work except for a very small slice of the last-mile delivery use case (light packages below a certain, very limited size), and even in that small slice it won't be cost-competitive given any currently known technology. Oh, and don't even start to think about the safety problems in densely populated areas.
But hey, DRONES!!!
And more flexible: not everyone lives in a standard American suburb home with a garden, a veranda and doorsteps in front of it. Lots of people live in multi-tenant houses without gardens, even without doorsteps - or if there are doorsteps, they end directly on the street, so anything left there is stolen within minutes. Hypothetical drones would have to ring the bell, fly through the staircase (without chopping off anyone's head in the process), find the right flat, maybe ring again, leave the package and find back to the car.
This task gets fully automated as soon as someone is able to produce an affordable and reliable human-like robot (in terms of extremities) and outfits it with an actually working AGI. Before that happens, it's cheap labor exploitation galore, and if the government should intervene in that reckless exploitation, maybe coupled with people shifting some of their deliveries away from their doorsteps and to delivery to pick-up stations (because of incentives like that being the only free delivery option, or being the fastest one).
I’d much rather drive/walk a few miles once a week than hear a fleet of drones at all hours of the day.
All logistics companies have accidents.
Edit: Oh right. https://www.nytimes.com/2019/06/18/business/media/buzzfeed-n...
Second, even if the reporters are unionized, the managers, who are the ones who greenlight stories, especially ones that involve a yearlong investigation, certainly are not.
Third, of course all logistics companies have accidents. Maybe you failed to read the article because it spent plenty of time detailing the differences between UPS and these 3PL companies.
That said, the Teamsters Union specifically has been putting a ton of money into bad PR for Amazon.
They've directly funded staged protests at AWS Summits in NY the last few years. They are a powerful union with deep pockets and connections.
Also with the economic realities of journalism in this era, many news articles are literally PR pieces written and provided to journalists for publication. Most of this is undisclosed.
I think it's perfectly valid to call out what this article looks like and at least ask questions, as there are folks out there with more resources than I have to follow up on this. It isn't an attack, because I didn't make a statement -- I asked a question.