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Old 06-29-18, 12:14 PM
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CliffordK
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Originally Posted by tandempower
Ok, so let's say they are paid 12 hours at $15, which amounts to $180. Now for simplicity's sake, let's say they deliver 180 packages, which translates to $1 per package. Now let's say you want to make $100 in a day as a cyclist. Depending on the size of the packages, you could fit 10 to 30 in a bike trailer at a time. So in approximately five two-hour shifts, you could make $100. That wouldn't be a bad way to keep warm and healthy in the winter, though it would be tiring. I think it would really depend on the geography of the delivery area(s).

Of course, with driverless delivery drones coming, I'm not sure what the relevance of couriers will be, whether in vans, on bikes, on foot, or any by any other mode.
I was trying to imagine the economics.

Assume 8 hour shifts...

Nonetheless, that $180 a day won't go far if it includes paying for the vehicle, vehicle maintenance, fuel, insurance, depreciation, and the mini-franchise owner.

The "last mile" delivery costs would have to be quite a bit higher.

And your cycle delivery person likely has every fixed cost reduced by a lot.

Then, a lot would depend on the route. An urban USPS mail person might do well with a bicycle that they could either pedal from mailbox to mailbox, or pedal, park, and walk.

But, Amazon may not have the necessary delivery density... yet.

Amazon has already stated an interest in drones. I wouldn't be surprised if other organizations follow too. It might not be a good time to dump a lot of capital into one's mini-Franchise. Although, the drones are still probably 5 to 10 years out, if not more. So, if one is talking delivery van, it will have taken a beating during that time, and would be ready to be replaced.

This may well be something that Amazon is looking at building the delivery network, and building the drone fleet simultaneously. So, these delivery vans would likely be an excellent investment for them, but shouldn't necessarily be considered long term for the proprietors.

Even slow moving cycle delivery vans might be comparable to the drones, and would be worth incorporating into their net.
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