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faux saint laurent bag was founded with the intention of helping people worldwide discover their unique heritage In June 2018, Amazon began advertising that almost anyone could become an entrepreneur, so long as they had $10,000 in cash. The company would take applications from individuals - not groups - who were willing to start their own LLCs. Once accepted into the program, Amazon would teach how to hire drivers, lease vans, pay taxes and get insurance. It was like a Blue Apron meal kit, but for your own small business.
After the DSP owner is paid by Amazon, the owner then has to pay the drivers, taxes, leases on the vans, repairs to the vans, new clothing (the physicality of the job means some drivers go through gear every couple of weeks), worker's comp and other costs. Though Amazon directly pays the LLC for its drivers' regular wages, it does not always explicitly compensate them for overtime hours. For DSPs where the warehouse location is far from both the headquarters and route - this is more common in rural delivery areas - the drivers usually rack up many overtime hours driving to and from the route, and Amazon doesn't pay for those extra hours (though it does provide bonuses for excellent delivery scores, which owners could choose to use to pay the overtime), according to some owners.
When the routes are plentiful, drivers experienced and accidents few, the DSPs can rake in hundreds of thousands of dollars based on the financial bonuses that come with "Fantastic Plus" or higher. But if a dog bites a driver or if the driver crashes a van; if the routes mysteriously disappear in the slow season; if drivers are scarce; or if new drivers can't hack the speed and diligence required for a good score: any of those problems could immediately wipe out most of the revenue.
Making it work
One of the managers for a successful, urban DSP company told Protocol that they believe city locations are inherently more profitable, because there are always packed routes in very small radii, eliminating the overtime hours that accumulate when drivers have a long distance between themselves, the warehouse and the route location.
But cities pose their own problems, too. The narrow, windy streets of Portland and Seattle's hills were difficult for drivers to navigate in the traditional vans. Schmutzer and the other LLC owner knew other types of delivery vehicles would be more appropriate for the terrain but were not allowed to switch. And some drivers described the very high number of tightly packed stops to be very physically difficult to manage, especially on tight streets.
The conflict over the vans revealed to him what he believes is one of the central problems with the structure of the program: It was designed to serve Amazon's needs regardless of whether it made money for the DSP owners.
Amos, the woman suing Amazon Logistics in North Carolina, alleged the same in her complaint, claiming that she believes the company designed the program so that DSPs couldn't afford to leave unless Amazon forced them out. "Amazon, through Element [the van rental company], charges $6,000 on average per Amazon-branded vehicle upon termination of DSP contracts. As such, many DSPs are left with over $120,000 in 'exit fees,'" her attorneys wrote.
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