I was an owner operator for a major bread company. Owned my route and it was similar to this Amazon thing except I was the only employee and I just needed one box truck. But, you are right. They will squeeze your profit margin and your business expenses stay the same. Getting a loan for 40 vans is nuts. Stay away
I was considering opening a DSP and worked at an Amazon facility for a while. The initial investment is anywhere from 10 grand to $30,000 in liquid assets. Though they do help you get set up you are responsible for leasing your vehicles and also taking care of all the wrecks your drivers are probably going to get into which are going to raise your premiums through the roof. There's other delivery partners that their profit margins are a lot higher. Amazon has it set up so that way you take all the risk and they have no liability. If you start doing poorly they can easily cut your routes or bring in another DSP to replace you. Amazon does not care about the people or the employees, only profit. And also they have launched their Amazon flex program who's to say they don't just get rid of the dsps all together and just have a slew of a bunch of people driving Honda accords around delivering packages.
Amazon pays for the vans your real cost is liability, which is why Amazon is doing it, and your sanity with managing all of the employees, but its a great opportunity.
Simple answer is the delivery drivers pay for the vans, not the DSP. DSP sets the rental price and deducts it on a weekly basis from the driver`s gross wage and I am guessing that they build in a substantial profit margin too. On 40 vans that means they are getting over £8000/week back off their drivers. That is how it works in the UK.
The margins are tight, but because he obviously doesn't have any real knowledge on the situation its somewhat irresponsible for him to make these statements.
I don't know about this. I don't see myself wanting to start a delivery service. Also, I don't like Uber's model either. They don't cover you from wear and tear on your car. Yeah, you can keep your car, but once it's wrecked it doesn't really matter if it's mine.
I was an owner operator for a major bread company. Owned my route and it was similar to this Amazon thing except I was the only employee and I just needed one box truck. But, you are right. They will squeeze your profit margin and your business expenses stay the same. Getting a loan for 40 vans is nuts. Stay away
Dave S he a moron hasn’t done his research!!!!
I was considering opening a DSP and worked at an Amazon facility for a while. The initial investment is anywhere from 10 grand to $30,000 in liquid assets. Though they do help you get set up you are responsible for leasing your vehicles and also taking care of all the wrecks your drivers are probably going to get into which are going to raise your premiums through the roof. There's other delivery partners that their profit margins are a lot higher. Amazon has it set up so that way you take all the risk and they have no liability. If you start doing poorly they can easily cut your routes or bring in another DSP to replace you. Amazon does not care about the people or the employees, only profit. And also they have launched their Amazon flex program who's to say they don't just get rid of the dsps all together and just have a slew of a bunch of people driving Honda accords around delivering packages.
What are those other good businesses that you mention?
My brother does this. He’s leaving out so many details and subsidies. It’s an opinion but it’s just not accurate.
Roadhouse Doubleduece Explain...
Amazon pays for the vans your real cost is liability, which is why Amazon is doing it, and your sanity with managing all of the employees, but its a great opportunity.
You lease the trucks of course. As I understand it, first $10K invested gets you access to 5 trucks. And so on, as you grow.
Simple answer is the delivery drivers pay for the vans, not the DSP. DSP sets the rental price and deducts it on a weekly basis from the driver`s gross wage and I am guessing that they build in a substantial profit margin too. On 40 vans that means they are getting over £8000/week back off their drivers. That is how it works in the UK.
Sadly my dsp is closing shop due to high cost . Not worth it
The margins are tight, but because he obviously doesn't have any real knowledge on the situation its somewhat irresponsible for him to make these statements.
I don't know about this. I don't see myself wanting to start a delivery service. Also, I don't like Uber's model either. They don't cover you from wear and tear on your car. Yeah, you can keep your car, but once it's wrecked it doesn't really matter if it's mine.
I think motorcycles might be better for things like uber eats and postmates. That's what I see in other countries.
I love the data in this video. Buyer Beware... Insurance? Vehicle maintenance? Driver health?
Have you actually done this? Just wondering if you are just pointing things out or if you are speaking from experience being an Amazon DSP. Thanks
Hi Sharon, we're just pointing things out.
Very sage advice... Thank you!
You said you don't even know anything about it. Why is he talking then? You don't know what they are offering or not. Shhhh
Profesional pizza delivery driving subcontractor.