delivery business bid

Hi everyone! I want to become an Amazon Delivery Service Provider in NJ, NY or nearby but am not familiar with the process. Is there anybody who can do related consulting for me ? Please contact me [email protected]

 

I have run my business for about a decade. At Amazon highest bid rate of $250.00 for 10.5 Hrs or (23.80/Hr) you'll lose about $20-25Hr, even if one would hire someone at minimum wage. Considering the economy at 4.0 unemployment hiring people at a minimum wage without benefits it's nearly impossible. Raising fuel cost is another concern, most likely fuel will continue its way up. The total operating cost of having an employee on the road at 14/Hr is somewhere around $50-55/Hr. To that, you'd have to add your profit margin.

I wouldn't count in my vans to last 20 years, maybe if I drive them. At best I can get 5 years if I get lucky. Most likely the vans will get destroyed before I am done paying for them, I wouldn't expect an underpaid employee to take care of your vehicle.

Consider this
Pay rate = $14.00 +
Labor burden cost = vacation days, paid sick leave, public holidays, payroll tax, workers comp.

Overheads = general liability insurance, vehicle insurance, vehicle maintenance, fuel, dispatcher wage, cell phone, and let's not forget that all profits at taxed at the end of the year at 25-30%

An employee which wage is 14/hr quickly becomes $50.00 YOUR COST. Count on your employees getting into accidents 100% -- that isn't into the equation, but insurance most likely go up, vehicle downtime (if not totaled), employee downtime due to accidents and depending on the case you could get sued, if your employee at fault.

Amazon maximum bid rate is mathematically impossible to sustain any business. Most likely anyone doing it is having the boiling frog effect, losing money without realizing it until cooked.