Augmenting Amazon Delivery with Bikes?
It seems Amazon wants people to take on their deliveries as independent contractors by investing $10,000 in buying their delivery vans.
Amazon wants you to start a business to deliver its packages My first thought was why not use bikes for the deliveries? Then my critical mind went to work questioning the viability of using bikes: won't it delay deliveries? what about rain? will the delivery addresses be dense enough to make it efficient to carry several packages into the same neighborhood on a bike? Here is the solution I came up with: One van can act as a 'mother-ship' for a large load of packages. Then, cyclists make deliveries and return to the mothership as it moves through a general route central to the deliveries. This way, one van could potentially suffice where multiple vans would be needed in the absence of cyclists. Obstacles to achieving this idea: 1) will you have to hire the cyclists and pay personnel costs for them, which will make it too expensive to run the business? 2) will Amazon say no because what this deal is really about is selling the vans, so doing the job of multiple vans with one van and multiple helper-cyclists would mean lower van sales? What do you think? Is there a way for Amazon to use cyclists as part of their delivery system? Why or why not? If they did, do you think many people would want to pick up a few packages and deliver them if they could choose a time that fits into their schedule and allows them to make a few dollars while biking for exercise? |
Amazon, Uber, PostMates, UberEats, and the trucking industry love the gig economy because it shifts a portion of the salary back to the laborer.
Suppose you have a salary of 40K per year. It probably cost the company around 60K if you include the rest of compensation such as medical. Amazon wants to make a one-time investment in you in order to shift that cost to you for all time. A broken arm costs 50K. Medical insurance is easily 1K per month. Have a couple of employees? The temptation is also to gig them (Amazon gigs you, you gig your riders). Amazon is the master of shifting costs from themselves; more likely they have done their homework while us (the entrepeneurs) will by trial and error figure out if this work. |
Originally Posted by LanghamP
(Post 20417327)
Amazon, Uber, PostMates, UberEats, and the trucking industry love the gig economy because it shifts a portion of the salary back to the laborer.
Suppose you have a salary of 40K per year. It probably cost the company around 60K if you include the rest of compensation such as medical. Amazon wants to make a one-time investment in you in order to shift that cost to you for all time. A broken arm costs 50K. Medical insurance is easily 1K per month. Have a couple of employees? The temptation is also to gig them (Amazon gigs you, you gig your riders). Amazon is the master of shifting costs from themselves; more likely they have done their homework while us (the entrepeneurs) will by trial and error figure out if this work. https://www.bbc.com/news/uk-england-37912858 |
Why couldn't they just pay by the parcel and if you take 50 or 100 parcels to deliver instead of 150 or 200, make less money but the amount of time you take, when you take breaks, and what kind of vehicle you use is your business, so long as the delivered parcels satisfy customers?
Basically this translates into piecework instead of hourly-wage work, but that's actually a good thing because it means you can manage your own time instead of being held accountable for your choices because you're on the clock. |
Bicycle delivery persons... Sounds great for letters/documents, and such... Oh wait, they already have those...
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Originally Posted by tandempower
(Post 20418410)
Why couldn't they just pay by the parcel and if you take 50 or 100 parcels to deliver instead of 150 or 200, make less money but the amount of time you take, when you take breaks, and what kind of vehicle you use is your business, so long as the delivered parcels satisfy customers?
Basically this translates into piecework instead of hourly-wage work, but that's actually a good thing because it means you can manage your own time instead of being held accountable for your choices because you're on the clock. Look at the article and see how you would work it out. It doesn't matter what I think until you do the math. |
Originally Posted by tandempower
(Post 20418410)
Why couldn't they just pay by the parcel and if you take 50 or 100 parcels to deliver instead of 150 or 200, make less money but the amount of time you take, when you take breaks, and what kind of vehicle you use is your business, so long as the delivered parcels satisfy customers?
Basically this translates into piecework instead of hourly-wage work, but that's actually a good thing because it means you can manage your own time instead of being held accountable for your choices because you're on the clock. http://www.abc.net.au/news/2015-03-2...en-age/6350802 |
Sweatshop on wheels...Just ask any bike courier about the realities of being a bike delivery person...TP wouldn't understand because he lives in alternate reality.
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It sounds like Amazon has already been building a fleet to do the main distribution of their goods, but have been contracting with USPS, Fedex, and UPS for the "last mile" delivery.
They must have decided that this semi-franchise business would save them money and be more reliable for that last mile delivery. The bicycle (and E-Bike) delivery scheme is unique. Benefits of Bikes/E-Bikes:
Some kind of a hub delivery system would make a lot of sense for bikes. [MENTION=346408]tandempower[/MENTION]'s idea of a mobile hub sounds like a unique idea. It eliminates the cost of maintaining a fixed hub, and could move with the delivery vehicles, whether they are small vans, or bikes. However, if I was doing the bike thing, I'd probably start at one of the major hubs/fulfillment centers. Whew, Amazon has quite a few of them. https://en.wikipedia.org/wiki/List_o...nd_warehousing Although, looking at the two Portland centers, they are apparently on opposite ends of the city... not bad for van delivery, but pretty bad locations for bike delivery (too far from the city center). ' Other cities in Oregon would need some kind of truck service, and likely the truck would have to drop and run, hitting a half dozen cities. Say the I-5 Corridor, Portland to Salem/Albany/Corvallis/Eugene/Roseburg/Grants Pass/Medford (and a few smaller cities/towns). Actually, I wonder how many packages a small town of say 10,000 would get a day. It might make a unique part-time job for a truck to drop in the AM, then a bike to do in-city deliveries of say 100 packages. Then do a couple of close-in rural deliveries, and dump the rest of the rural deliveries to the post office. Have a backup system for Christmas and major holiday deliveries. |
Originally Posted by Mobile 155
(Post 20418594)
Looking at the article I posted they already use this method in England. So we can easily do the math. The article said they get to the warehouse at about 8;30 in the morning and they get back as late as 8:30 in the evening. They get 12 pounds an hour for 150 to 250 parcels expected to be delivered in that time frame. now do the math. 12 pounds and hour is 15.72 and hour for the one driver and van. Reduce the number of packages and increase the number of delivery people and the hourly rate drops like a stone.
Look at the article and see how you would work it out. It doesn't matter what I think until you do the math. 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. |
Originally Posted by Machka
(Post 20418818)
Have you not heard of bicycle couriers/messengers?
Melbourne's bicycle messengers reflect on golden age before competing in world championships - ABC News (Australian Broadcasting Corporation) . . . but thanks for the linked article with some history. It looks interesting. I'll check it out.
Originally Posted by wolfchild
(Post 20418844)
Sweatshop on wheels...Just ask any bike courier about the realities of being a bike delivery person...TP wouldn't understand because he lives in alternate reality.
Originally Posted by CliffordK
(Post 20418904)
It sounds like Amazon has already been building a fleet to do the main distribution of their goods, but have been contracting with USPS, Fedex, and UPS for the "last mile" delivery.
They must have decided that this semi-franchise business would save them money and be more reliable for that last mile delivery. The bicycle (and E-Bike) delivery scheme is unique. Benefits of Bikes/E-Bikes:
Some kind of a hub delivery system would make a lot of sense for bikes. [MENTION=346408]tandempower[/MENTION]'s idea of a mobile hub sounds like a unique idea. It eliminates the cost of maintaining a fixed hub, and could move with the delivery vehicles, whether they are small vans, or bikes. However, if I was doing the bike thing, I'd probably start at one of the major hubs/fulfillment centers. Whew, Amazon has quite a few of them. https://en.wikipedia.org/wiki/List_o...nd_warehousing Although, looking at the two Portland centers, they are apparently on opposite ends of the city... not bad for van delivery, but pretty bad locations for bike delivery (too far from the city center). ' Other cities in Oregon would need some kind of truck service, and likely the truck would have to drop and run, hitting a half dozen cities. Say the I-5 Corridor, Portland to Salem/Albany/Corvallis/Eugene/Roseburg/Grants Pass/Medford (and a few smaller cities/towns). Actually, I wonder how many packages a small town of say 10,000 would get a day. It might make a unique part-time job for a truck to drop in the AM, then a bike to do in-city deliveries of say 100 packages. Then do a couple of close-in rural deliveries, and dump the rest of the rural deliveries to the post office. Have a backup system for Christmas and major holiday deliveries. |
That would be cool to have my 55" TV delivered by bike during a raging thunderstorm that pops when it's en route to my house. Seriously TP? You really never think this stuff out.
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"Ideas" that are the product of an electronic outpouring of stream of consciousness untethered by the bonds of reality do not require much thinking, just a vivid imagination in combination with extreme naivete. Might be useful for self published Sci Fi books.
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Originally Posted by prj71
(Post 20419019)
That would be cool to have my 55" TV delivered by bike during a raging thunderstorm that pops when it's en route to my house. Seriously TP? You really never think this stuff out.
There are already big companies experimenting with bike deliveries. https://pressroom.ups.com/pressroom/...1114356396-572 https://hips.hearstapps.com/hmg-prod...1500128077.jpg Assuming your TV fits, there is no reason why it can't be done by bike. I suppose if the per package shipping cost for the TV is greater than for bicycle brake cable, then it may still be economical to deliver by bike. |
Originally Posted by tandempower
(Post 20418999)
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. 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. |
Originally Posted by tandempower
(Post 20418999)
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. They are looking for sub contractors that improve delivery times and cost from what they now have. They will determine the area that van and driver services. Their scanning and computer software will route the packages. And they will pay that driver and van based on the packages. If that driver has 180 packages they will only get the money if the packages are delivered. So the driver and the van mich have an hours driving time to get to their assigned delivery area. That driver will get paid the full amount based on deliveries registered on the Amazon scanner. You can trace your package today on your home computer or smart phone. When it is dropped at your front door it shows up on your computer within seconds. Now if you pass off part part of your deliveries as you origionally suggested the cyclist would need a scanner as well. What then happens to their routing? But for arguments sake let’s say you figure that part out the first hour out is still making nothing from deliveries. The transfer time from the van to the bicycle is still time taken away from deliveries. Remember the van will have a one hour return trip take out of your delivery time. So if your cyclist does deliver 100 packages who will deliver the other 80 packages? If the van and driver make the 80 deliveries how does the cyclist get their second shift? All in all if if you were getting 180 packages delivered at one dollar a package you would have to split the 180 bucks between two people making it 90 bucks each. 90 bucks for 12 hours work for the van driver isn’t minimum wage. It is 7.50 an hour. |
Originally Posted by Mobile 155
(Post 20419625)
I looked at you link on what Amazon was looking for did you read what they are doing and how it works now in England as I posted? They are looking for sub contractors that improve delivery times and cost from what they now have. They will determine the area that van and driver services. Their scanning and computer software will route the packages. And they will pay that driver and van based on the packages. If that driver has 180 packages they will only get the money if the packages are delivered. So the driver and the van mich have an hours driving time to get to their assigned delivery area. That driver will get paid the full amount based on deliveries registered on the Amazon scanner. You can trace your package today on your home computer or smart phone. When it is dropped at your front door it shows up on your computer within seconds. Now if you pass off part part of your deliveries as you origionally suggested the cyclist would need a scanner as well. What then happens to their routing? But for arguments sake let’s say you figure that part out the first hour out is still making nothing from deliveries. The transfer time from the van to the bicycle is still time taken away from deliveries. Remember the van will have a one hour return trip take out of your delivery time. So if your cyclist does deliver 100 packages who will deliver the other 80 packages? If the van and driver make the 80 deliveries how does the cyclist get their second shift? All in all if if you were getting 180 packages delivered at one dollar a package you would have to split the 180 bucks between two people making it 90 bucks each. 90 bucks for 12 hours work for the van driver isn’t minimum wage. It is 7.50 an hour. One possibility is that the van would spend all its time going back and forth to the warehouse. The driver would probably want to load the packages directly into crates that could be moved from the van to the bikes directly and secured without rearranging them. Somehow they're going to have to be organized in a way that's logically efficient for the bike couriers, which could probably be done by how the packages are coded, e.g. by the four digit add-on of the zip code (i.e. zip+4), which I'm hoping would correspond with an ideal number of packages for a cyclist to carry, at least. As for splitting the $180, that doesn't really make sense because the $180 is the amount of packages a single van can deliver without cyclists helping. With the van going back and forth to the warehouse only and passing organized crates to the cyclists, the number of packages per day goes up. The question is whether it would go up enough to pay everyone enough for their time, as well as paying for the van, fuel, etc. And of course the cyclists have vehicle expenses too. Those could be offset by giving them discounted bikes and parts, though, the same way the cost of the van seems to be discounted. Anyway, I think the ultimate question is whether more packages can be delivered per hour with a system of vans making runs between a warehouse and bike couriers, or whether more get delivered by the van-driver doing the door-to-door deliveries as well. I think the answer is probably with the cyclists involved, but they might get the work done so fast they'd run out of packages and then some people would want them to slow down to make Amazon pay out more hours-per-job. |
The design for incorporating bikes would have to come down from the top.
As I mentioned, it appears as if Portland has two Amazon warehouses that are quite distant from the majority of the population, although there likely would still be some local population accessible by bike around the warehouses. Oh, Hillsboro is bigger than I thought. :) One could probably do palatalized/containerized cargo for bikes. So, fill the bike containers at the warehouse, then load them into a truck, and head off... then just load the containers directly onto the bikes. The transfer could be quick and efficient. One could even design the cargo containers to contain a battery for e-bikes. Recharge at the warehouse, then when one loads the bikes, they also get fresh batteries. Even at the warehouse, load up the containers while the bikes are buzzing around, then when they return, drop the empty container and snag a full one for the next delivery. I could imagine an agreement with a local shopping mall for off-peak access to the parking lot. Roll the truck into the parking lot. Offload onto bikes like little worker bees, and send them out. Then take the truck to either the next destination, or back to the warehouse to refill. Everything would have to be above board, but it could be made to work. And, might be good PR for Amazon, especially in so-called bike cities like Portland. |
I think the big question is whether the package density would be enough to support bikes.
Say for a city of 100,000. If every citizen orders on average one item from Amazon a year, that is 100,000 packages a year to deliver. Say at 300 working days, that is 333 packages a day (likely weighted towards holidays). Or, 41 packages an hour for an 8 hour shift. :P Likely the Post Office can hit close to 1 mailbox every 2 minutes, but that would really push it for almost any vehicle delivery, but again, it depends on how close they are, or people receiving multiple packages (different origins?). |
Originally Posted by tandempower
(Post 20419848)
I enjoy these kinds of logistical challenges. We should discuss this kind of thing more and bicker less about philosophical differences.
One possibility is that the van would spend all its time going back and forth to the warehouse. The driver would probably want to load the packages directly into crates that could be moved from the van to the bikes directly and secured without rearranging them. Somehow they're going to have to be organized in a way that's logically efficient for the bike couriers, which could probably be done by how the packages are coded, e.g. by the four digit add-on of the zip code (i.e. zip+4), which I'm hoping would correspond with an ideal number of packages for a cyclist to carry, at least. As for splitting the $180, that doesn't really make sense because the $180 is the amount of packages a single van can deliver without cyclists helping. With the van going back and forth to the warehouse only and passing organized crates to the cyclists, the number of packages per day goes up. The question is whether it would go up enough to pay everyone enough for their time, as well as paying for the van, fuel, etc. And of course the cyclists have vehicle expenses too. Those could be offset by giving them discounted bikes and parts, though, the same way the cost of the van seems to be discounted. Anyway, I think the ultimate question is whether more packages can be delivered per hour with a system of vans making runs between a warehouse and bike couriers, or whether more get delivered by the van-driver doing the door-to-door deliveries as well. I think the answer is probably with the cyclists involved, but they might get the work done so fast they'd run out of packages and then some people would want them to slow down to make Amazon pay out more hours-per-job. You will have at least two people splitting the money for the packages. More cyclist will be more splitting. The driver being the contractor only pays the sub contractors after they get paid. Even if they could unload all of their packages to the cyclists they will get a share of the money even if they head back to the warehouse. But that could easily be an hour out and an hour back plus loading and unloading time. Remember the van driver is on the hook for 10k up front. Any assistance on parts for bikes would come from the contractor or the sub contractors not the company. To make money someone has to increase the deliveries without increasing increasing labor costs. by the way, the orders are routed at the warehouse and delivered in order. That is how USPS and UPS and all of the express services do it. The driver has an area and they are routed for that area. If that driver has a downtown area only cyclists that can meet him in that area need apply. Read about the drawbacks in getting to the area in England. You beat the system or you work for work for less than minimum wage. |
I think you need a certain density to make last-mile-bike-delivery to work. If it's 2000 deliveries per square mile (i.e. very dense), then the current model of human-in-van is more efficient. If it's sparse, say 5 deliveries in 50 square miles, then the human-in-van is also the more efficient model. In between there is a sweet spot where the van + bicyclists becomes more efficient.
So you need to find that density sweet spot and the squad of bicyclists to make it work. I don't think it's feasible. |
Lots of questions...
Are paperboys obsolete now? https://carfreedays.files.wordpress....erboy_full.jpg At one time, it was efficient for the newspaper companies to drop a pile of papers in a drop box for the paper boys, then the kids would go pick them up from the drop box, and deliver them to the local houses. Packages are somewhat different, but perhaps not that different. |
Originally Posted by CliffordK
(Post 20419997)
Lots of questions...
Are paperboys obsolete now? I wonder if it's because of reduced density. |
Originally Posted by CliffordK
(Post 20419997)
Lots of questions...
Are paperboys obsolete now? https://carfreedays.files.wordpress....erboy_full.jpg At one time, it was efficient for the newspaper companies to drop a pile of papers in a drop box for the paper boys, then the kids would go pick them up from the drop box, and deliver them to the local houses. Packages are somewhat different, but perhaps not that different. |
Originally Posted by Walter S
(Post 20420046)
I think packages are Very different. Not a uniform size, weight, and weather sensitivity. Easily an order of magnitude difference in common use. |
Originally Posted by CliffordK
(Post 20419997)
Lots of questions...
Are paperboys obsolete now? https://carfreedays.files.wordpress....erboy_full.jpg At one time, it was efficient for the newspaper companies to drop a pile of papers in a drop box for the paper boys, then the kids would go pick them up from the drop box, and deliver them to the local houses. |
I disagree. I think there is some commonality with between parcel delivery and paper delivery.
The paper boy flourished when 9 out of 10 houses on the block got papers. I'm not sure why a similar method wasn't used for mail. Security concerns? But, those could be overcome, especially today with better tracking methods. But, the model dies when say 1 out of 10 get the newspapers. Perhaps there is also a shift away from newspaper companies supporting the kids, and neighbors supporting them. Drivers doing the job for years, and consolidating routes. |
Originally Posted by Mobile 155
(Post 20419966)
no, they aren’t paying by the hour. They are paying by the piece. Hence you origionally piece work. The driver is the contractor. He gets paid by the delivery. If he has a van load routed by computer, to keep track of the deliveries he has to deliver the packages before getting paid. Hence the scanner connected to Amazon and their computer.
Even if they could unload all of their packages to the cyclists they will get a share of the money even if they head back to the warehouse. But that could easily be an hour out and an hour back plus loading and unloading time. Remember the van driver is on the hook for 10k up front. Any assistance on parts for bikes would come from the contractor or the sub contractors not the company. To make money someone has to increase the deliveries without increasing increasing labor costs. You beat the system or you work for work for less than minimum wage. In fact, you could even make it a better deal for Amazon by paying people to pickup extra packages for their neighbors by giving them shipping discounts, free shipping deals, etc. Then, whenever someone goes to pick up their own package, they pick up a couple extra and get rewarded with free shipping on future purchases. |
Originally Posted by tyrion
(Post 20420042)
It's interesting they are obsolete where I live. I used to be a paperboy in this same neighborhood a long long long ago, but now they're delivered by cars.
I wonder if it's because of reduced density. |
Originally Posted by tandempower
(Post 20420154)
In fact, you could even make it a better deal for Amazon by paying people to pickup extra packages for their neighbors by giving them shipping discounts, free shipping deals, etc. Then, whenever someone goes to pick up their own package, they pick up a couple extra and get rewarded with free shipping on future purchases.
I'd often rather just go pick up a package at the post office than being bothered with signature verification. I doubt relying on neighbors to do common delivery would be practical. It might work for some close friends, but not in general. |
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