> I would suspect that UPS and the other major carriers have optimized this task to death.
In the end a great deal of it comes down to volume per delivery location. If UPS is delivering 1 package per day per location, there's nothing they can do to optimize (except skip locations certain days, which nobody wants). It sucks for them.
Then Amazon comes along with 5 packages per day per location, and it changes the economics completely. By 200-300% is not unreasonable at all.
There's a fact that blew my mind when I first learned it -- that apparently UPS actually loses money delivering packages for Amazon, but makes more profit in the end because the added scale makes it even cheaper to deliver packages for other people. E.g., if it's already dropping off an Amazon package at a location, then it's suddenly much cheaper to drop off the non-Amazon package at the same time.
Agreed on your first point of volume and we're not given enough detail around 2 separate and only tangentially related metrics to make any real conclusions. That said; I did consider this briefly but even then the math to make that work still seems extreme. Are Amazon packages making up that much of our parcel these days? 3-to-1 or 5-to-1 would certainly change the economics for this to make more sense, but are they truly responsible for 75%-85% of all parcels these days? Even if we select for residential only I feel like that is super high.
Then again my monkey brain sucks at statistics and considering the last year or so of my own home usage it is probably close to 1-to-1. And we try to avoid Amazon. So probably a lot closer to those numbers above than I'm comfortable to admit.
In my apartment building in NYC, Amazon packages are absolutely at least 75% of total deliveries, no question. Everything's left in the lobby so it's easy to see.
Probably not higher than 85% though. And of the rest, the next biggest category is packages from clothing stores like J. Crew, Nike, Madewell, etc.
(Also this isn't including groceries or DoorDash, just talking about traditional packages.)
Dang. Then consider that the 400+ packages was self selected by Portland carriers as some of the worst examples, and 120 deliveries a route is a national average.. It gets murky quick trying to pull anything useful from this especially with it being Vice looking for an editorial angle.
As with most things like this, the numbers seem scary until you peel back the layers. Not a pass to Amazon as the rest of the article is damning in its own right, but a little less crazy than my initial thoughts.
In the end a great deal of it comes down to volume per delivery location. If UPS is delivering 1 package per day per location, there's nothing they can do to optimize (except skip locations certain days, which nobody wants). It sucks for them.
Then Amazon comes along with 5 packages per day per location, and it changes the economics completely. By 200-300% is not unreasonable at all.
There's a fact that blew my mind when I first learned it -- that apparently UPS actually loses money delivering packages for Amazon, but makes more profit in the end because the added scale makes it even cheaper to deliver packages for other people. E.g., if it's already dropping off an Amazon package at a location, then it's suddenly much cheaper to drop off the non-Amazon package at the same time.