|
|
|
|
|
by KillahBhyte
1817 days ago
|
|
There may be some sampling bias as you point out, but it is still crazy from my perspective. I would suspect that UPS and the other major carriers have optimized this task to death. With the right bundling and route optimization for a specific city or set of parcels I could see some level of improvement due to the things you mention. But 200-300% efficiency gains over businesses that have been profitably providing this service for years? Its exceptional enough to warrant being called crazy at first glance. From the article, "The two Portland delivery companies are demanding a cap at 250 packages and 150 stops per 8.5 hour route" Which seems to indicate that they realize that some bundling will occur and accept it as long as there is an upper bounds on both metrics. |
|
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.