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In reply to the discussion: Amazon's Next-Day Delivery System Has Brought Chaos And Carnage To America's Streets -- But The [View all]MineralMan
(151,287 posts)with the contractors Amazon engages. Most often, they are using their own vehicles, or leasing a vehicle from the contractor they work for. Either way, that comes out of that $160. Then, they are also responsible for fuel, maintenance, tires and other costs associated with that vehicle. If it is leased from the contractor, those costs are assessed as well. Then there's commercial-grade comprehensive, liability, and property damage insurance on the vehicles, which also comes out of that $160. I know a guy who drives as a courier for a courier company. At the end of the month, he earns less than $10/hr., because of those charges that come out of his compensation. Worse, he was at the mercy of the dispatcher to provide enough profitable runs to earn even that much. Gig economy.
At every level above the guy who drives the vehicle and delivers the packages, someone is taking a cut from everything, including Amazon.