« When people see the logo of a large company on your van, they don`t hesitate to make a claim and make a claim more aggressively than if they think they`re dealing with a small business with limited resources, » he says. « The challenges of delivering for Amazon have surprised dozens of delivery owners, » Schlactus says. « My reading is that Amazon is doing this to deal with a diminishing supply from independent delivery companies that are willing and able to work with them. » « When an independent contractor has an accident, they cover the damage and liability from their own insurance, » Schlactus explains. « If it`s your employee, you`re responsible. » Then, to make the kind of money Amazon is talking about, an extraordinary amount of work is required. You need to find 20-40 fit and responsible people with a good driving history to drive your vans, conduct background checks and edit work papers, and then accomplish the incredible task of planning not only their time, but also the delivery of thousands of packages per month within tight deadlines. The cost of working with Amazon is so high that independent delivery companies are increasingly turning away Amazon`s business, says Peter Schlactus, co-founder of the Association for Delivery Drivers. The reason: Amazon requires delivery companies to hire their drivers as employees instead of working with independent contractors. With an initial investment of just $10,000, the company says it can get you leased vans, insurance, gas cards, and training to launch your own delivery fleet. The website also promises to be your first – and perhaps the only – customer. An owner of a delivery fleet of 20 to 40 pickup trucks can potentially make $300,000 a year, Amazon says. Solo delivery drivers can make $30,000 to $50,000 a year with nothing more than a passenger car, he says.
If you have a van, you can earn twice as much. Worse, he says, if your van is adorned with an Amazon logo, it can put a target on your back. Why is Amazon`s requirement to hire drivers and not contract with them so expensive? Because it subjects the delivery company to a variety of expenses, ranging from payroll taxes, workers` compensation contributions, and unemployment insurance levies to significant additional liabilities. In particular, you can even drive for Amazon without starting a business. Amazon Flex hires independent contractors to deliver packages and pays between $18 and $25 per hour, depending on the job evaluation and review page SideHusl.com. The catch? There is no guarantee that you will make a profit of $300,000 – or any other profit. In fact, you might be able to earn more on an hourly basis by simply delivering packages yourself without investing the time and money to start your own business. Market data from ICE Data Services. ICE Restrictions. Supported and implemented by FactSet.
News provided by the Associated Press. Legal. Commenting on Amazon`s offer, Schlactus said: « My advice would be to approach this with caution. Do your homework. Join professional associations such as ours and the Customized Logistics and Delivery Association and talk to people. Many current and former Amazon service providers are part of it and can tell you what it looks like. However, Schlactus says there`s never been a better time to be a delivery driver or run a delivery business. As more and more sales take place online and more and more companies try to compete in both service and sales, delivery people are in high demand.
« It`s a 24/7 management commitment, » he says. « It would be interesting to see what your hourly wage would look like. » « There is a shortage of commercial drivers, which means they can have better conditions and better conditions than ever before in the recent past, » he adds. View all of Kathy Kristof`s articles on CBS moneyWatch » Kathy Kristof, editor-in-chief of SideHusl.com, is an award-winning financial journalist and author of Investing 101. If you`ve always dreamed of starting your own business, Amazon (AMZN) has an offer for you. But you may want to think twice before accepting it. To ensure that the Seattle-based company can meet its increasingly demanding product delivery schedule, Amazon offers to set you up in the delivery store. « Individual owners can grow their business if they know they will have delivery volumes from Amazon, access to the company`s sophisticated delivery technology, hands-on training, and discounts on a range of assets and services, including vehicle rental and comprehensive insurance, » Amazon said in a press release Thursday. .