Tuesday, September 27, 2022

How Much Do Amazon Van Drivers Make

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How much money you can make with your cargo van depends on the type of service you offer and how much business you can get.

For example, if you earn $50 per hour with GoShare but only get a gig or two per week, youre probably looking at a few hundred dollars per month.

But, if you take on more serious work like driving for a P2P delivery app or starting your own business with a cargo van, you can potentially earn thousands of dollars per month.

So, in short, the earning potential for a cargo van is quite high, but you need to have enough business to work a full work week.

Organize Your Packages Ahead Of Time

Too many drivers show up at the fulfillment center, throw all of their packages into the car, and head off on their way.

But, you can save a lot of time by organizing your packages before you hit the road.

Unfortunately, Amazon doesnt organize the packages for you. So, they may hand you 20-25 packages in no particular order, even if some of those boxes are going to the same house.

This presents a problem especially if you have a large vehicle. When you show up to the house, its a big time-waster to have to search through every box to make sure you didnt forget any.

If you make sure to organize them by address as you load them into your vehicle, youll be able to pull up to each house, grab the packages, and pull out the full order all at once.

Yes, it does mean youll spend a few more minutes at the fulfillment center before you can head out on the job. But, its much easier than digging through the back of your SUV trying to find a few boxes that are buried under other boxes.

We also recommend that you keep your first order in the front seat with you. That way, youll have it ready to go as soon as you arrive.

How Much Do Amazon Drivers Make

All standard Amazon drivers including those who work for local delivery service partners instead of directly with Amazon make a minimum of $15 per hour with opportunities for higher earnings based on experience.

This excludes those who work for .

This already exceeds minimum wage in the vast majority of United States cities, but if you live in an area with a higher cost of living, theres a good chance youll earn more.

For example, Amazon delivery driver job listings in San Francisco offer a starting wage of $20 per hour. In New York, wages start at $17 per hour.

These minimum hourly earnings can help you make a comfortable living even if you have no prior experience.

Since all part-time and full-time Amazon drivers are traditional employees, Amazon drivers have the perk of a stable income.

As a full-time driver, you can always depend on your offered rate for every hour youre scheduled to work, even if its a slow day.

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On The Job: Whats It Like Being An Amazon Delivery Driver

As online shopping continues to skyrocket with every passingyear especially during the current pandemic Amazon is increasing itsdistribution networks across the country. Theyre often hiring drivers, and if theeconomic crisis has hit you as hard as its hit everyone else, youre probablyconsidering becoming an Amazon delivery driver. If youre interested in knowingwhat the job involves and if its a good occupation for you, heres a quick glimpseinto being an Amazon delivery driver.

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Survival Of The Fittest

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Its hard to look at these jobs as long-term given the environment, where job security is next to none, and youre very much an insignificant cog in a ginormous global wheel. Where you technically work for yourself, as a self-employed courier, meaning Amazon has no real obligation to supply you with the jobs necessary to make a worthwhile wage. So if youre paying for weekly van hire, you may barely be breaking even on half-day shifts. This mean, if you are underperforming, the service providers can just reduce your supply of shifts, and ultimately forcing you to quit the contract. Which may be why theres such a high turnover in jobs in the industry. But again, there are also recorded concessions, where if you fail to follow the strict instructions of Amazon you will be penalised. Where a handful of these can see your supply contract ended. And once youre out of Amazon, I really have no idea how to get back in. However, if Amazon delivery drivers perform professionally, and well, they can pull together a decent wage, and this can hopefully help create more secure opportunities in the future.

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Amazon Delivery Service Partners Profit Margins And Other Details

Amazon made news in Summer 2018 when it revealed Amazon Delivery Services Partners. This program, sometimes known as a last mile delivery service, allows entrepreneurs to run independent companies that partner with Amazon to make deliveries happen.

Although the new structure made waves , this business structure is nothing new. This is how FedEx Ground delivers packages: with a network of independent service providers.

While we will monitor the Amazon route opportunities closely, we currently see no reason to consider them a threat to FedEx Ground routes. Moreover, we still strongly believe FedEx Ground routes are a better business opportunity for most investors.

Navigating The Amazon Flex App

The Amazon app is fairly straightforward. It does have a menu of components.

The main jobs the app performs are: keeping track of items which need to be delivered, recording deliveries by location, and getting money to drivers.

The app is also a great resource, especially for new drivers. There are many tutorials that cover all the factors involved in being a delivery driver. If you have any additional questions, you can reach an Amazon flex associate.

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What Type Of Car Do I Need For Amazon Flex

If you are delivering Amazon.com orders, youll need to use a 4-door, mid-sized sedan or larger vehicle, such as a truck with a covered bed, SUV, or a van. Small 2 door cars, and also trucks with open beds do not qualify because they may not be big enough to fit all the packages assigned for delivery.

Delivering For Amazon Logistics

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  • 1Apply to become a seasonal or full-time delivery associate. Check the Amazon website to look into the location of the Amazon warehouses in your area, and consider about how often you want to be a delivery driver for Amazon. Amazon Logistics delivery associates generally make less money than Amazon Flex drivers, so be aware of your financial needs when determining if this is the right position for you.
  • Amazon Logistics delivery associates typically make between $13 and $19 per hour, depending on the location, time of year, and whether the delivery driver is a seasonal or full-time driver.
  • As an Amazon Logistics delivery associate, you do not need your own vehicle. Delivery associates are expected to drive an Amazon van weighing up 10,000 pounds .
  • Delivery associates must be able to lift heavy packages, and climb in and out of the van with ease.
  • While associates are given a daily schedule, Amazon expects delivery associates to be flexible to potential schedule changes due to weather, traffic, seasonal demands, and other unanticipated factors.
  • 2Meet the requirements for Amazon Logistics delivery associates. The requirements may vary depending on the location and type of position, but in general, Amazon requires that delivery associates have a valid driverâs license, speak English, and have a high school diploma or GED. Finally, you must be at least 21 years old.
  • To search for Amazon job openings, visit .
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    The Specifics Of A Delivery Business Under Amazons Care

    The idea is that you are in charge of one group of 40 trucks, you hire drivers, and make the business decisions. Basically, I would put it as you are running your own last-mile delivery Amazon branch. You do not need to make your own software as you are using Amazons. You also do not need to push advertising or sales, as they are sending you packages to deliver, so you are pretty much doing this one thing: delivering packages for Amazon.

    Your group is ran out of one of their 75 warehouses, so you need to be able to travel there every day. You are going to be purchasing supplies, hiring people, and running the business. They pay you per truck, length of route, and per package successfully delivered.

    This is a map that Amazon listed as the warehouses, but the application shows many more locations . So dont base the availability off of this map.

    Amazon is basically handing you a delivery business and they will be your client , while holding your hand through the whole process.

    Amazon will be hiring a few hundred in the next few months but ultimately, they want to grow to 10,000 business owners.

    Recovering Damages From Amazon: Is It Possible

    After an accident caused by negligence with an Amazon delivery van, you may assume recovering damages is as simple as filing a claim against Amazons accident insurance policy. Well, the truth is slightly more complex. Despite rigidly controlling their delivery drivers, Amazon does not count them as employees. Nearly all of the delivery drivers dropping off packages for Amazon work under a third-party company that Amazon hires, including competitors like Fed-Ex, UPS, and DHL Express.

    This means that a claim directly against Amazon following an accident with one of their vans is likely to fail. However, you may still be able to file a claim against the third-party company that hired the driver. FedEx, for example, offers a $1,000,000 accident liability policy for all drivers, even if they are handling Amazon orders.

    There is one caveat to Amazon not offering compensation after an accident, however. If your accident was with an Amazon Fresh, Amazons grocery delivery service for Whole Foods, then the driver does count as an Amazon employee, and you can file a claim against the company. In that case, they, like FedEx, offer a $1,000,000 accident liability policy.

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    Is A Cargo Van A Good Investment

    Cargo vans can easily cost $25,000 to $40,000, so buying a new cargo van to start a business or side hustle is a serious investment.

    Additionally, if you buy new, your cargo van loses so much value the second you drive it off the lot.

    In my opinion, Id try making money with a cargo van if I already owned one, but I wouldnt buy one outright to start a new side hustle since its a serious amount of cash to spend.

    Amazon Flex Driver Expenses

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    On the flip side, Amazon Flex drivers are never eligible for benefits.

    As a contractor, youre legally considered your own boss.

    That means you must pay for your own time off, insurance needs, and more. Here, well describe some of the expenses Flex drivers cover:

    • Vehicle expenses: Whereas standard delivery drivers work from company-supplied cargo vans, Flex drivers work from their own vehicles. This means you can expect to pay more for your car maintenance needs like oil changes and gas.
    • Car insurance: If you use a separate car for your Amazon Flex gig, youll need to budget for a new car insurance policy as well as registration fees and car loan payments.
    • Self-employment taxes: As is standard across the gig economy, Amazon contractors can expect to pay 15.3% of their income in Medicare and Social Security taxes on top of their income taxes for other revenue streams. Part-time and full-time Amazon drivers, on the other hand, only pay 7.65%. This is because they have a separate employer to cover the other half, whereas contractors are their own employers.

    On the plus side, your hourly earnings will almost always be higher than standard Amazon driver wages.

    Plus, you can choose to work during your free time. This flexibility may make the responsibilities that come with the Flex gig worth it for you.

    Most Amazon Flex driver expenses are also tax-deductible.

    So as long as you log your receipts and mileage, your annual taxes may not be as high as youd expect.

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    Amazon Delivery Van Accidents: More Prevalent Than You May Think

    It seems Amazon is everywhere. The e-commerce site is in our grocery stores, our smart TVs, and in nearly every pop-up add we see while browsing the internet. Sadly, that prevalence can be incredibly dangerous. An accident with an Amazon van or truck, like an accident with any delivery truck, can be debilitating both for your health and for your wallet. But unlike other vehicle accidents, it can be much harder to recover damages from Amazon.

    How Much Do You Make With Amazon Flex

    For a side hustle, flex jobs give you the opportunity to make more than youd make in a typical part-time work. Youll make more than minimum wage.

    You are responsible for your own vehicle expenses, including gas. Drivers can deduct expenses when you file taxes as independent contractors.

    An Amazon Flex driver typically makes from $18 to $25 per hour. Youll also be in line to qualify for special perks that give you buying power. More on that later.

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    I Would Say About 60% To 70% Of The Drivers I’ve Talked To Are Interested In Unionizing

    I stay up-to-date on Amazon news through employee social-media forums on Facebook and Reddit.

    A lot of Amazon workers are paying attention to what happens in Alabama with the union vote and believe unionizing is the way to go for better pay and better working conditions.

    In a statement to Insider, Amazon spokesperson Deborah Bass wrote: “Like most companies, we have performance expectations for every Amazon employee and we measure actual performance against those expectations. Associate performance is measured and evaluated over a period of time as we know that a variety of things could impact the ability to meet expectations in any given day or hour. Netradyne cameras are used to help keep drivers and the communities where we deliver safe. We piloted the technology from April to October 2020 on over two million miles of delivery routes and the results produced remarkable driver and community safety improvements accidents decreased 48%, stop sign violations decreased 20%, driving without a seatbelt decreased 60%, and distracted driving decreased 45%. Don’t believe the self-interested critics who claim these cameras are intended for anything other than safety.”The thoughts expressed are those of the subject. Insider confirmed he is employed as an Amazon driver through a DSP.

    Who Is Good For This Business Of Delivering Packages For Amazon

    How Much Do Amazon Flex Drivers Make??

    As you need to be there every day, you need to be able to dedicate yourself to this every day as your day job. This is not a side hustle, it will be all of your work. $10,000 minimum for starting costs is needed, but Amazon recommends that you have at least $30,000 in liquid assets, and you need to be able to hire people and find people you can trust, as hiring is completely in your hands. It also greatly benefits people to have business experience. However, on the delivery and day-to-day operations, you do not need to have experience with starting your own software, as Amazon handles that. You need to be a people person to manage everyone, as that is your main responsibility. Basically you just need the ability and understanding to run a successful business and keep it going with perhaps a bit of passion too. Amazon holds your hand through the rest.

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    How To Make Money With A Cargo Van

    Cargo vans are obviously larger than your average sedan, so this has some inherent benefits and drawbacks from a side hustle perspective.

    Since cargo vans are larger, theyre excellent vehicles for gigs like helping people move or making large deliveries.

    But, since they arent so great on gas, working for food delivery companies like DoorDash probably isnt too viable because your gas costs will eat into your earnings.

    So, with this in mind, lets look at some of the best ways to make money with a cargo van you can use to increase your monthly income.

    How Does The Amazon Flex Job Work

    Lets review:

    Make sure you have the right equipment needed by Amazon flex drivers, such as the right kind of phone and car.

    Use the Amazon app to find an available block or blocks to deliver. Using the app is like interacting with a supervisor.

    Pick up packages at an Amazon delivery station near your location. The station may be a warehouse.

    Take images of deliveries, proving packages left at the correct location.

    Work with a smile, knowing you are making money as the deliveries are completed.

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    Some Amazon Drivers Have Had Enough Can They Unionize

    the Netradyne cameras were the last straw. For the past year, Casey had been working as a driver for one of Amazons Delivery Service Partners , the companys network of last-mile delivery contractors. On busy days, shed cart nearly 300 packages to 200 stops in a 10-hour shiftone stop every three minutesskipping lunch and limiting her water intake so bathroom breaks wouldnt cause her to fall behind. If her icon turned red on the dispatchers tracking screen, indicating a delay, she knew she might get a call.

    Casey was sick of the group stops, multiple nearby stops marked as one, despite sometimes falling blocks apart. She was sick of the cattywampus routing, making her retrace her tracks to accommodate individual delivery windows. She was sick of the oppressive monitoring app docking points from her safety score for hard braking or speeding up, even to avoid a collision. Low scores meant potential lost hours or even termination. Now her boss was about to stick an AI camera in her face that would record her every expression, potentially dinging her for yawning. When the app asked for permission to do just that, she declined. She put in her two weeks notice.

    Aarian Marshall

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