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The program, which debuted in 2015 and is now active in 50 cities, helps Amazon complete the "last mile" for customer orders - the final stretch of a delivery that is short in distance, yet often the most expensive part of the e-commerce supply chain. It's becoming increasingly important as Amazon's shipping costs could balloon to $7 billion this holiday quarter while the tech giant meets growing customer expectations - in particular from its Prime members, who pay $99 per year to receive free 2-day shipping on millions of items, among other benefits.
My job was done after 71 minutes and 20 miles of driving, with a burger break in between - not bad for $60. Amazon asked a few survey questions at the end of the shift as a way for me to provide feedback.
The attendant told me that 15 packages per hour was the average workload, so I prepared myself for a full 3-hour shift.
When I had an issue, the app seemed to have an answer. For example, sometimes my GPS wouldn't detect that I was at a particular address and the app wouldn't allow me to continue with a delivery. However there was an option in the app - "I'm at the address but my GPS isn't working" - that let you continue, which was clutch.
I also wondered if people thought I was a porch pirate, given my attire and how I was walking around carrying Amazon boxes. This article notes Amazon drivers being confused for thieves.
Amazon Flex is just one part of the company's expansive logistics network. As it continues to make more first- and third-party products available on its site, many of which are eligible for 2-day shipping, Amazon is looking at new ways to manage and deliver the inventory.
"Handling more deliveries itself would give Amazon greater flexibility and control over the last mile to shoppers' doorsteps, let it save money through volume discounts, and help avoid congestion in its own warehouses by keeping merchandise in the outside sellers' own facilities," Bloomberg reported in October.
Amazon's rising shipping costs and related initiatives to manage delivery logistics also demonstrate the larger shift toward online shopping. For the first time this year, shoppers surveyed by Deloitte say they are planning to spend a majority of their holiday budgets online - 51 percent - compared with 42 percent in store, and 7 percent through catalogs and direct mail. Adobe reported that a record $6.59 billion was spent online in the U.S. on Cyber Monday, an increase of 16.8 percent year-over-year - the largest online shopping day in history.
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