5 Reasons to NOT Invest in the Amazon Delivery Franchise (DSP Business)

[@joshuapickett8095]

I work for a DSP and this is all true. All of it. You nailed it perfectly. I actually feel bad for my boss considering how much he risks every day and how little he stands to gain. Since day one it is clear that Amazon uses my boss and other DSPs as what I call “shells” to protect them from accidents, injuries, damages and health care. At the end of the day I feel like I have it better than my boss and trust me my days can be pretty bad too.

[@angelgjr1999]

Points of view from a delivery driver. Being a DSP can be stressful because you have to find reliable people that are willing to come to work everyday and meet Amazon’s very high expectations. Expect people to call out everyday. Profits are razor thin once you think about all the towing of the vans when they get stuck , and they get stuck VERY easily on grass and mud. Also consider maintenance, tires, and gas you have to pay for. Employee benefits and paying if a driver gets bitten by a dog or animal which happens a lot in rural deliveries. Amazon uses “mentor” which rates how safe drivers drive, but it also rates you badly if your drivers have to drive through gravel and dirt roads because it’s bumpy. If your DSPs score is low your benefits can be eliminated and your contact can be revoked. There’s ups and downs to starting any business I hope my two cents help.

[@1JimmyL]

Are you still working there now in 2021 ?

[@Jc34759]

@@angelgjr1999 what do you mean by contact can be removed?

[@funnyallen4769]

@@Jc34759 he means contract can be canceled by Amazon, since Amazon only gives the DSP contract one year long everytime they sign it. You have to renew your contract with Amazon every single year.

[@happybird9280]

@@funnyallen4769 so you pay Amazon $10k a year every year?

[@MarkSmith-vu9gc]

They lost me at 100 employees. I can barely keep track of my cat. Lol

[@richardscathouse]

Try fifty cats! 🤭😹😹😹😹

[@KevinP32270]

HAAAA LOLOL. good one.

[@MartyHealthy]

@ Mark Smith so true lost me at 40 trucks really and 100 employees come on.

[@THEREAL_WOLSON]

🤣🤣🤣

[@JTScott-rf7io]

😂😂 Literally almost snorted when I read that....too funny

[@momentumproductions6290]

I'll echo what most people said here, you're spot on with most everything. There is a reason Amazon is not interested in completing the last mile delivery - and you have to keep in mind Amazon as a whole is very controlling and secretive about what they do. So farming out the deliveries means that Amazon saw no dollar signs and a whole bunch of liabilities with this portion of the delivery chain. Our DSP told us that Amazon expects most DSP owners to be in the warehouse 9-5 at the bare minimum, so this is by no means a passive business. If you're a military veteran and can get in for $10,000 it might be worth it, but remember this is like Chickfila. You have no equity in the business, you can't sell it, you can't pay someone else to run it. Amazon can also pull your DSP license at any time for any reason!

[@benrocklyfe8789]

Brilliant. This is one of the best channels on youtube.

[@FranchiseCityOnline]

Thank you!

[@FortyGritSandpaper]

Thank you for your time. It is appreciated.

[@Farrell0208]

I'm a truck driver, and this sounds very similar to a lease purchase program that slot of the big carriers offer to their drivers. You "lease" (read: rent) the truck from the company. You get all your loads from the company but in almost all cases can't get loads from anywhere else other than the company you work for. Your considered a owner operator, so you have to figure out your own taxes, healthcare, SSI, etc. Also since your an "owner operator" you don't get any benefits from the company that actual employees get or as their known in the industry, company drivers. You "own" the truck so your responsible for not only a weekly truck payment but any related expenses that you incur, anywhere from a 300-500 tire that blows but also a $20,000-$40,000 engine rebuild if you were to throw a rod or something of that nature....and everything in between that can go wrong on a truck ( trailer not included) that cost around $150k - 200k brand new on average. They will throw big numbers at you to tell you how you'll make more money than a company driver because of the higher pay bracket due to the ownership of the truck, but for the VAST majority of drivers, they're lucky to make just as much as a company driver who has NONE of the responsibility of liability, and alot end up in a hole they spend years getting out of. So many drivers are a month payment away from their truck being repo'd. A major breakdown that sets them back a week because they can't drive since the truck is in the shop, becomes a domino effect of monetary issues that puts them out of a job. Not everyone is like this. There are plenty who DO make it and are successful, however it's like anything else, and the ones who don't make out significantly outweigh the ones who don't. Take your time, do your research, and when you think you've done enough, do some more research. Don't take out loans to start a business, have the cash upfront or don't do it at all. I'm sure there will be people who can figure out how to make it work, but the reality is the majority of people won't.

[@kexia]

Man. You totally changed my mind on this DSP. I was thinking about selling my current business which profits about 150k easily a year. I was hoping to jump on the wagon. It is a once in a lifetime opportunity because there is a massive potential with Amazon dominating the market. I guess I dreamt a little for a moment.

[@kadnan6111]

Well dreams should be in dreams only

[@micksibs8069]

What’s your current business?

[@papiK0NG]

@Trader X the expenses is what affects everything

[@Binaryprof]

​@@papiK0NG What business do you do?

[@lewisburton1852]

Late to the comment but hope everything is going well for you. Give us updates! lol

[@TechnicalsMatt]

I ran all the deliveries for 1800Flowers in Charlotte for years. Including Valentine's and Mother's day when I had to hire(convince) 50-100 people to work for a few days using their own car, own gas, etc etc for no guarantee of good money. Logistics like this is a F*cking nightmare. When you showed the estimated earnings of 75-300k with 40-50 employees with 40 vans I audibly laughed, take my word for it lol. Anyone interested in that deal should call me i've got some land to sell you. And they want drivers hired on employees instead of 1099? LOLOLOL Another example of an "opportunity" where you're just buying yourself a job. Another killer video, thanks

[@FranchiseCityOnline]

Thanks for the comment! And today - lowest unemployment rates in ages. Not a challenge I would wan't to take on.

[@RussellD11]

hum, im starting to figure you out lol..... What else do you traffic? :p Thats why u go to Vegas a lot! :)

[@futurevspast32]

For someone who also works In the transportation industry if I couldn’t hire my drivers on 1099 I would be out of business. That alone is a deal breaker for me.

[@SpiceyKy]

Wooooowwww. Thank you so much for your comment. I really needed a reality check. I have the application open right now. Not sure exactly what made me click on this video. But I sure am glad I did.

[@tamaranewton2904]

@@SpiceyKy Exact same situation here.

[@TheLofiDragon]

If it wasnt a high risk thing Amazon would do it themselves.

[@carboy101]

Facts. Major companies are always trying to out source risks to the general population.

[@mydispenser]

Exactly. Amazon compete with its own seller for the items sold in the Amazon plate form.

[@DayzahVoo]

They do now, I am part of the first actual amazon delivery drivers, we get paid more than the dsps too

[@mbm94619]

True , but they’re also doing it bc amazon is growing exponentially and cannot keep up with the workload by themselves .

[@IBKNW]

@@DayzahVoo it depends on which DSP you drive for...there is one in Chino, CA paying 22 hr..and one at only 14..00 the others range between 15-16.00 AMZ is only at 16.25.... all of which he just let go Jan 3.

[@向你祖母問好]

Franchise city destroyed Amazon delivery with facts and logic

[@mydispenser]

Amazon deserves it. because they deceive the people with no experience in the Logistics fields.

[@carlosbravo1912]

Agree !! Thank you Franchise City 👍👍👍

[@manwindersinghbrar6550]

I worked there both in warehouse and as a delivery driver. He is telling truth.

[@10lauset]

Your thoughtful explanation of the intricacies of franchising is very clear and concise and are firm stepping stones for further investigation. I always enjoy the videos. Thank you.

[@FranchiseCityOnline]

Thank you!

[@marioalvarezvilla2464]

I'm an independent contractor with Amazon and I been doing it for over a year, if you come 30mins late they will not hesitate to take your route even if you where constantly early for months, and give it to another person. Good routes are hard to get and there's allot of competition that will not hesitate to under cut one another. Only Amazon win.

[@FranchiseCityOnline]

Wow - that is crazy.

[@rkalla]

I think this is fair given their commitment is ONLY to the bottom line and the customer - BUT the point you made is so important and such an awesome one: “only amazon wins” - there is a reason their stock is up 2200% in the last 10 years and you nailed it. Nothing is sacred except the bottom line.

[@asadb1990]

well if you show up 30min late on a clear day, its probably your fault.

[@truth.speaker]

You may want to erase your name from your profile before they see it. Just change your name in settings. Be anonymous

[@davidhatch7603]

@@asadb1990 life happens guy

[@Miguelruiz20]

FINALLY! A video from someone who has nothing to lose or gain. Just the facts. Appreciate it!

[@FranchiseCityOnline]

Thanks for the comment!

[@chadly1337]

Excellent video. Looked into the delivery business at a point and turned and ran as fast as I could when I saw the margins and liability

[@mosestsorai2487]

Great video with mind opening insights . I like how you looked at the numbers , the highest potential annual earnings to daily earnings . It makes sense why they want to distance themselves from all the trouble . I have just leant a lot on how to make a sober risk assessment and analysis for a new business venture .

[@FranchiseCityOnline]

Thank you for watching!

[@Islanders83]

I heard about this business opportunity a few months ago. Seemed interesting. I did the math ($300k divided by 40-50 vans= $20-28 profit per van/day) and immediately moved on to other ideas. Such a ripoff. Roadside service for a flat tire means you lose all profit for the day.

[@workingshlub8861]

running any kind of fleet is extremely expensive....i run 3 plow trucks and some other equipment and it can be a pain and i have been doing it for years....no way is a rookie with no clue gonna run 40 trucks year round and not lose his shirt.... sounds to good to be true ..it usually is

[@williamgilchrist9514]

You don't have the facts.

[@Islanders83]

William Gilchrist uhh actually I do. I went to their website and looked up the numbers and did the math.

[@dogan6070]

Your smart person

[@evil116falcon]

RSA is covered under your lease for the vans - this cost is covered by Amazon

[@cruzintheraw]

The best take away from this video is that you have only ONE client (Amazon) and if they bail on you then you are stuck with a heavy financial burden... Talk about all your eggs in one basket...

[@HollywoodConnection-jast]

exactly right, imagine being stuck with 40 vans. You break leases, the office space, the yard which store the vans, let all employees go, all because you piss off someone in an email you sent to Amazon's dealer relations team about something legit. or underperformance. One client can bring everything to a screeching halt. Life-changing. No Thank you Then again, perhaps breaking away from Amazon could be a God send for you.

[@Jhorne84]

I work for a DSP and Amazon is a pimp.

[@mbm94619]

That’s only if you get an amazon prime van. You have the choice to get you own vans which opt you out of the contract of only delivering amazon packages

[@arjunapatel3366]

Mik33, so what incentive is there to pay for an Amazon wrap on the sprinter?😳

[@mbm94619]

Arjuna Patel they say the incentive is that bc amazon is an established company they have generated deals on vans, devices, data plans etc for a cheaper budget. I’m guessing they got some sort of contracts with the companies they buy their shit from so they can get it discounted and then prob apply a tax when they lease or sell them to the third party. Most independent companies purchase their own vans

[@TheCrazyCartModChannel]

This kind of business model I always find sketchy. Trucking companies do the same thing. You kind of have to ask yourself in all cases like this, if there's so much money to be made, why aren't you doing it all on your own? Trucking companies offer lease-to-own programs basically to offset risk and use people who want their own business but don't take the time to run the numbers.often the rates that are passed on to the owners with the actual financial responsibility are not significant enough to warrant the risk.

[@bradcoddington1679]

BINGO hit the nail on the head Francisco D'Anconia

[@chchi675]

I’m so glad I watched this video. Amazon just accepted my application and I was really excited... Not anymore. I won’t be moving forward with the process 🙏🏻

[@mark22732]

So let me get this right. You made a business decision and a single youtube video can change your business plan? Working with you sounds like the real mistake.

[@minorityreport7783]

@@mark22732 The video is correct. Ch Chi used common sense and logic. Just because truth is provided through a video on You tube does not negate its value. Its no different than if the presenter in the video gave the same advice face to face.

[@donotlike4anonymus594]

Yes but it emphasis what a poor decision was it that one very basic video that shows some logic saved this man's money... Some basic logic and thinking before risking anything or everything.... BTW sorry c chi if I'm hurting you/... By criticizing you but hopefully you've learned your lesson and look a bit closer next time instead of risking your savings/... And you wont make a stupid mistake like that again... Good luck when you do invest in something and... (and on this subject my comments may sound a bit aggressive/... But I don't mean to offend you I want to help people like you to not make mistakes like that... I already see too much of that all around me...) @@minorityreport7783

[@acmerentals]

Ch Chi one video without any real facts about the actual Amazon dsp doesnt sway my decision any. I've been researching this for awhile and have found critics and supporters but I have not yet seen any real comments from people who actually have tried it and failed or people who have tried it and succeeded. Those are the comments I will take in consideration when I make a final decision.

[@donotlike4anonymus594]

@@acmerentals just look at the comment's section for a bit... i saw a few people who actually worked with amazon posting here... Man it's not about the business it's about making smart educated choices and not trowing away your money for a slim margin that must people don't realize... and with risks and... u know... the problem is that most people are stupid... and act emotionally... and in rush... (a specially millennials this days...) if you think it's a good idea to invest ... go for it no matter what it is... But when it comes and bites you in the ass don't complain you were mislead/... no one showed you any "facts"/...... this channel is here to help you make better educated decisions but the burden of research is on you so just don't bitch about it... it's about trying to help you....

[@jeanalexandre1105]

Why Amazon don't just hire Courier Service. Because they know the price is at a premium. They are not looking for professionals, but suckers.

[@anthony_sasquatch8056]

Jean Alexandre well the post office was the original carrier for them

[@perezident13]

They say on the Amazon site that you don't have to have experience not that you can't. UPS makes 41k a truck a year and they make the driver buy the truck gas and uniform. That's the reason the big companies don't want to work with Amazon, Amazon is making companies that want to deliver to take care of their staff. I don't see the issue.

[@pierlouis7325]

Amazon is a slave job.

[@UseThatGreyMatter]

@@perezident13 Making someone your employee is not Amazon being a good corporate citizen. It puts all liability on you if something goes wrong. They get all the benefits and none of the risk...

[@marcoperez4712]

@@perezident13 ups doesn't make drivers pay for gas, or uniforms, read up on ups drivers pay, most tenured drivers make over 100k a year with free healthcare for entire family, pension and 401k,

[@DE028]

Great info, i've been in the transportation industry for 30 yrs and understand the risk that comes with the job. I was interested at first when I started getting emails with regard to the Amazon DSP opportunity. The emails were long on the revenue hype but very short on the marginal details which was a huge red flag for me. So, I decided against it and by doing a little research your video only confirms my decision not to venture into this opportunity. Thanks, once again. I'm sure this will help many others in understanding the pros and cons of the Amazon DSP program.

[@Zoom.x9]

The DSP I work for is definitely stressed out. High turnover. Lots of people calling in sick or no call/no show. Damage to the vans happens often. I haven't missed a day and I love the exercise but the routes with a lot of apartments can be ridiculous. No way you can get those done in time without skipping both of your 15 min breaks and your 30 min unpaid lunch. Lots of overtime from some of these bad routes. There are way too many issues that are eating into their profits.

[@davidbeaulieu4815]

You might want to read the NDA you signed when you got hired. They also own anything you create like ever.

[@Zoom.x9]

@David Beaulieu I don't remember signing an NDA. Is that something the owner of the DSP signs? I’m just a driver.

[@hanasukekkonshiki6544]

I hate how all these new apartments don’t have elevators. They cheap out on construction and charge a premium for massive profits. Just leave the packages at the front office.

[@Zoom.x9]

@@hanasukekkonshiki6544 Most of the offices do not accept the packages. I always try the office first if I have a lot of packages for that complex so that I can ask for a map and use the restroom. Amazons GPS usually makes weird routing decisions like grouping together apartments that are nowhere near each other or it will take me to the wrong place.

[@acmerentals]

High Level do you actually have a Amazon prime dsp business now and is it the program that started within the last 10 months or so? I am looking for info on it and all I can find is people who have applied and haven't finished the process, waiting on Amazon to finish up or people who weredenied. .

[@lll.l-k6q]

You are like the dad that we all really need. Great advice about risk.

[@FranchiseCityOnline]

Lol! TFW you are grounded forever for getting a B in economics tho.......

[@arjunapatel3366]

Wish I had a dad 😞

[@genrevfilm]

Wow great video. Many local stores and businesses offer a direct online purchase option as well to be shipped to your door. I really would love to see Amazon stop worrying about growing bigger and start treating their staff better. Maybe they'll slow down if we put our money elsewhere.

[@datboidominican]

thank you for this comment, took me a while to find but glad I'm not the only one

[@fleeroybrown]

Even going into this video I knew there was going to be solid reasoning on why NOT to invest but that selling point at the beginning still had my mouth watering. A great, free lessoned learned to keep my emotions under contol.

[@drachirreisset]

You always have great videos, great presentation style.

[@StayFit4Life321]

Thanks for this video. I was about to apply for this Amazon DSP platform until you helped me realize it’s not worth it!

[@adaml2932]

If you have 40 trucks leaving daily you need minimum 44 drivers on payroll and 42 vans available. People call out, get sick, get hurt, need days off etc. Vans break down, need maintenance etc.

[@fixitfelix718]

Isn't this any business of this size?

[@richardscathouse]

Minimum 3 mechanics, one office girl, (Better make that a boy, you'll be alone in the office a lot. Don't want any #metoo allegations!!) 1 maybe two cleaners, three maybe four sorters! A dock manager, a lic/safety guy! Must be something I'm missing? Expenses go up like a Soyuz rocket!

[@gingerramsey9620]

I own and operate a courier delivery service for ten years. thanks for the info! i was considering this as my next investment

[@FranchiseCityOnline]

Thanks for visiting!

[@VinicioLiquey]

Franchise city is right. I recently spoke with a dear friend of mine whom has been in the delivery biz for over 20 years. As a matter of fact, I today deliver gas to gas stations thanks to the opportunity he gave me. He pointed out how the delivery biz is dying due to all the high costs of operating in Manhattan, including tolls, parking tix, fuel and more. I suggested him to try Amazon and he said NO. Too much work and no profit. FC, you also made a video on how gas stations don’t make much and you’re totally right. I’ve been driving a fuel tank for almost 3 years and I can say with most certainty that Wawas, Quickcheks and Costco’s here in NJ are the companies making the money. They go for terminal with cheapest gas whereas the rest of stations have their contractual terminals. There’s a town here in Jersey where a Wawa store just recently opened and killed the Speedway we do (actually, we deliver to both stations).

[@FranchiseCityOnline]

Thank you very much for the comment and the feedback!

[@vickhones9961]

That town is Hackettstown. Speedway is dead.

[@nutzzu5734]

I worked before for an Amazon DSP in Germany, Europe.I can confirm all of things you said.And yes,all the time i urinate in a can inside the van because no time.

[@ed0078]

My little pinky clicked on this video by accident. I found his explanation so well done that I watched the whole thing - and I was never considering having Amazon as a partner or pursuing any business adventure. My little pinky might be trying to protect me of any future stupid adventures

[@pc1967]

Thank you for the info... I read their website & was excited for this opportunity with low cost startup but you hit on everything I did not consider & now see the reality why this is pass for me. Thx again.

[@georgegarner1425]

And people wonder why unions where started years ago

[@dudeman8989]

So they could suck the blood out of the working man

[@ashleyleverett8185]

So they can keep minorities out of automobile and skilled labor jobs.

[@sandiatek7201]

I remember when I start of may T-Mobile franchise, I used to get $350 commission per line for a two years’ contract sign by a customer. After five years selling for T-Mobile I have to close down my business as commission drop down to $50 per line. I lost $150K my blood money to start of the business and five years of my valuable time. My suggestion, start of getting a hot dog stand for $10K and grow your own business from there, as all successful entrepreneur did, started from their garage.

[@ArslanJumayev]

thanks bro you saved someones 5 years

[@a_coh]

wow, thanks. if I didn't see this I'd let my emotions take over. Very good video. Thanks for the awareness.

[@kmg501]

I've been working with one of the largest package handling companies in the world since 2010. Trust me when I tell you it is a tough business to make money in. There is a learning curve and you need to be able to handle many things on your own if you want trim expenses. A person of no experience going into this Amazon agreement is a BAD idea.

[@FranchiseCityOnline]

Thank you for the insight!

[@MsBetty-lq1xn]

Omg...I gathered my family together and convinced them that this was an amazing opportunity to start a business...and he was so right we were completely going on pure emotions of what the end result could be never looking at it from this perspective...let's just say it totally changed my mind...I learned a very valuable lesson...look both ways before crossing the street...wow

[@MsBetty-lq1xn]

My family and I are going to engage in this opportunity...I will post the results after 6 months of starting...of course I'm not saying I will know how truly successful or disastrous it will be in 6 months...but I should be able to gauge some kind of insight on pros and cons...see you then...

[@richardscathouse]

@@MsBetty-lq1xn Opportunity? Like The SS offering free showers! IMO

[@MsBetty-lq1xn]

Well Ms. Kim....there are always 2 sides to every story...for every negative there is a positive....and I have insight with someone who did it like less than a year ago and he has prospered beyond his expectations...I have ppl that are currently working in mgmt doing the exact same job...besides you never know unless you try...

[@RaviSingh-fv4sh]

@@MsBetty-lq1xn how much profit margin you are making.

[@themoneyteamsanchez3505]

Ms. Betty any updates on the dsp experience yet? I’m currently in the application process with amazon...

[@alexandera412]

Thank you for the great advice, I was considering starting with this DSP opportunity but I have my doughts, and this video was an eye-opener for me. Thank you very much

[@FranchiseCityOnline]

Thanks for visiting! be sure to balance the negatives and the positives before making a decision.

[@Yewon2001]

NEVER work for amazon!! I was a web affiliate for them and then one day they just cut the affiliate's commissions in half under the guize of 'simplifying' the commission structure. Luckily I never put too many eggs in the amazon basket but I have friends that got hurt real bad. One guy almost lost his house. Amazon is great if you're a customer but horrid if you're an employee or work for them in any capacity.

[@FranchiseCityOnline]

Sorry to hear that. I have heard stories from business associates along the same lines in their Amazon stores.

[@whatevergoesforme5129]

And that is why I have never used Amazon. I believe in capitalism with a heart.

[@RaviSingh-fv4sh]

thats how he make customer happy by sucking employees.

[@silveriosierra1258]

exactly the UBER model, great for consumers, terrible for drivers, the middle road isn't here yet...

[@achillesfury]

Thank you for providing and analyzing this opportunity with such precision and professionalism. Very informative and as always, great work.

[@RaminShamoon]

11:12 amazons working conditions, I can say this is very true. I work as a driver and they do put us under pressure to get packages delivered. I’ve been with the company over a year now and not one single call for my yearly review nor compliment for such good job. I think if all drivers stick together and demand rights things will change quick.

[@markmodzelewski5314]

I heard about this business and was going to look into it. Not so much now. Thank you Franchise City and the people that commented below.

[@FranchiseCityOnline]

Thanks for watching! It wouldnt hurt to hear Amazons story as well before you make a final decision. While the risks noted are still valid, since the making of this video we have heard that some operators are happy with their business.

[@joetan4125]

I will continue my Amazon Flex job. Thanks for saving my time applying for DSP. I can't even manage 1 employee.

[@justme.53]

I wish Amazon flex was in my state. I filled out the application yesterday but the nearest Warehouse is in Houston, Texas. I'm in Mississippi. 😞

[@alvi78]

Awesome...this guy is teaching us stuff which the best business schools would never give you.

[@SuperRoycethe59]

So you’re telling me Amazon doesn’t have our best interest at heart with this operation? I feel shocked.

[@joshshrayda867]

Isn’t projected profits found after considering maintenance and fuel costs from total revenue?

[@robertlong7033]

Recently Fedex settled out of court a number of multi state class action law suits without having to admit any liability or wrong doing. Shortly after the settlement was announced Bezos rolls out his version of the same business model. The entire model is designed to allow the company to divest itself of as much risk liability and variable costs as it can get rid of.

[@seansaxon9423]

I was a FedEx Ground contractor for 8 years, and saw it go from a wonderful opportunity/relationship to a nightmare in which we were required to grow, assume more risk, work 6 days a week, and wound up making less per truck/route st the end than I did years ago. If I could have remained an owner/operator, I wouldn't have thought twice about leaving to pursue something different. Anytime you are beholden to the whims of an onsite manager of your "only customer", you are in a position to get the short end of telhe stick time after time.

[@robertlong7033]

@@seansaxon9423 You got it friend I was a contractor for 23 years. As long as X's DOT numbers are on the side of your bank financed truck and X bar coded freight is going in it they control everything. I'm glad I stayed a single route contractor and turned down taking additional routes (ISP/CSP) . Of those who did at my station half have either sold at "take it off your hands" prices or defaulted altogether .

[@TheArslan2076]

An excellent detailed video, and true facts. I 100 % agreed on all points discussed here. 75k-300k profit for a business where you have to operate 20-40 trucks and 100 EMPLOYEES, are you kidding me... These is a joke. Amazon is trying to find some naive people who wants to put their head into that rope for hanging...

[@drivingfreak]

I've worked in transportation for well over 15 years, as a driver, salesman, warehouseman, light mechanic, customer service rep, training instructor, and a business owner. It is a very cutthroat racket with profit margins so unbelievably thin, considering the high costs of insurance, vehicles, fleet upkeep, and complying with all laws (local, state and especially federal). Major companies like Amazon, FedEx, and even the United States Postal Service are only looking after themselves and their bottom line. The only reason I stay in is that I genuinely love what I do. I love the open road and the mentality of drivers you get to meet, whether they work short haul or long haul.

[@StraitClownin909]

You sound like a true American

[@attackhelicopter2900]

Hello fellow driver 🚛

[@jenniferhoward9958]

Your getting paid though right?

[@nilsonmatos7984]

That’s why I don’t buy from amazon and don’t use Uber

[@fernwehcentraloregon6100]

Why?

[@johnaspinall4096]

If anything its great for the consumer

[@amisner2k]

The 40-50 trucks is what Amazon recommends for making the top-end $300K/yr figure, yes? I could see this being something nice to start out with small, like with one or two trucks and then build on over time...gradually adding more trucks to your fleet as you gain familiarity and experience. This could be a great starter franchise to get your feet wet. It really does seem like Amazon's pitch is targeted at first-timers who've never owned/operated a business before. I see the risk being manageable as long as you start out small.

[@buicklincoln]

The problem is, Aaron, they don't let you stay small. They pressure you to get bigger as others fail.

[@kennethsouthard6042]

I think you have to start with 10. I also get the feeling that even though you are leasing the trucks, they are probably not new, as you get the last guys trucks that Amazon terminated his contract. I'm also not sure if this is legally considered a franchise or not.

[@WesoJR]

Can you do a review of burgerim franchise i saw a lot of advertising.

[@chizhny]

Senk you very much. I was about to become rich owner of the delivery company . Now what do I do? You broke my American dream

[@FranchiseCityOnline]

Look at both sides not just the negative! There are also people who are happy owners. Weigh both sides then determine if the opportunity makes sense for you.

[@yettyscott6039]

@@FranchiseCityOnline nice video, I was only waiting to print out my statement of account and upload it, I have finish filling out the forms, thank you to bringing out more lights into this, can you advice me about running a food delivery business?

[@FranchiseCityOnline]

@@yettyscott6039 Thanks for watching. Keep in mind since we made this video some Amazon operators have communicated they are happy with their decision. Just weigh both sides before you make any investment. Details on the food delivery business here: kzbin.info/www/bejne/pXK8ZYqPmbCjhNk

[@FranchiseCityOnline]

​@Georgetown Vintage Very true! Thank you for the comment.

[@kennethsouthard6042]

Well at least you can still dream in your sleep. I get the feeling that many Amazon DSPs no longer get much of that.

[@claudiodiniz7412]

i loved your business advise 100% from the get go. Greatly appreciated !!!

[@FranchiseCityOnline]

Thank you for watching!

[@nhonphan6266]

I almost signed on the dotted line to partner up with Amazon but something told me it might be too good to be true so I didn’t do it.

[@FranchiseCityOnline]

Thanks for the comment! It will be interesting to see how things work out.

[@andreslosa4759]

an idiot driver kills someone on the road....who gets sued?? u guessed it...YOU!!... Amazon wants to go in house .... because the DSPs are sick of their shit.

[@josephfooddriverguy3562]

Uff that was a close call for your financial doom. Do you have idea how hard is to keep up with the drivers and those Van's. Dont believe me, oh well just visit your nearest distribution center. You will find most of those Van's scratched and dent it everywhere. Check it out. I will be a flex driver but never a van driver.

[@naimladson3977]

Being sued for wrongdoing from your employee is part of being a business owner.

[@redhawkcrescentstudios7208]

@@andreslosa4759 facts lol

[@nicolasmonzon4168]

Great video! Glad I watched it in its entirety

[@FranchiseCityOnline]

Thanks for watching!

[@Justify4935]

WOW, I thought about this. Nevermind. Thank you, sir.

[@marig1972]

Thank you for sharing this info and writing all the info the description..(Helps with hearing impairment)...Everything you said makes lots of sense and helps to educate and prevent the despair of investing hard earned money on waste of time and money deals. Thank you again. :))

[@FranchiseCityOnline]

Thank you for visiting and the comment! Unfortunately KZbin limits 5000 characters in the description so a lot of the text is cut off but usually we have closed captions also.

[@JB-yb4wn]

Amazing insight! This is the sort of stuff that should be taught at every business school on the planet.

[@FranchiseCityOnline]

Thanks for the comment!

[@dreamrunner4680]

You can hire from agencies on contract. That's what my previos DSP place did where I worked and it was great. It's high turnover but agencies can quickly recycle and go through workforce that needs quick cash, usually students.

[@hockeynutt9434]

What a great channel! Every person who has the "dream" for any business, should watch many of your videos to get a feel for what they could be in for. I am sure you have saved many People from making a life long financial mistake. Congratulations!

[@connorhayes4966]

This pretty much nailed it. I am currently an ops manager at a logistics company whose primary customer is Amazon. There is no "other side" to this business model. The margins require you to run a perfect operation in order to be profitable, which is next to impossible given the nature of the business (accidents WILL happen, often) and the caliber of people you can afford to hire. It is in your best interest to exploit your drivers and keep turnover relatively high since the job never gets any easier and you cannot afford to give out raises greater than $1-2/hr - there is effectively no possible upward mobility. GREATLY looking forward to exiting the industry at the end of the month. As someone else said in the comments here, if it made sense from a risk/reward standpoint for Amazon to do this themselves, they would. I think the only way Amazon starts handling deliveries in-house is when fully autonomous delivery is possible, and even then I'm sure they will find a way to outsource any risk onto the companies providing the autonomous technology. Intelligent (and moral) people would do well to stay as far away from this industry as possible - the cognitive dissonance I encounter on a daily basis is maddening.

[@domesticatedhasbeen4573]

I just finished convincing my wife that we should invest in this. She finally approved. I have NO IDEA why i decided to search "Amazon Logistics business" on youtube...but I cam across this video. I have scrolled through probably 400 of the 700+ comments here...not a single positive comment. Time to rethink those margins because the preliminary info says 75-300k...but says nothing about 40 trucks and 100 employees. Thank you kindly for this video, and the constant reminder to do our proper due diligence.

[@FranchiseCityOnline]

Thanks for visiting and taking the time to comment!

[@craig-3799]

Thanks Franchise City for giving honest coverage.

[@themysticsupreme5946]

Thanks for the video. I would also add that Amazon will be using drones to deliver some products in the near future, and that that may result in a declining need for DSP's and or smaller profits.

[@FranchiseCityOnline]

Good point - thanks!

[@therealnowyouknow]

I'd like to see a drone deliver one of those fifty or seventy-pound boxes. Drones aren't quite ready to do what a human being can. We got at least twenty years before the robots totally take over.

[@dhoomkartikbaba]

Franchise without money & expereance ony look after the work if there any opportunity......thanks

[@REALenvizible]

Amazon hires contractors to deliver products but will not allow DPS business to hire contractors, that's why I don't like the deal.

[@blairbeardsley4764]

Thank god there’s people like you to wake us up! Thanks

[@cmill7272]

Great Video. It's nice to see informative content on KZbin. Subbed

[@FranchiseCityOnline]

Thank you! Welcome to the channel.

[@ethanchabert]

Thanks for the quality videos & opinions! Love your channel...

[@Hallahanify]

Scamazon

[@Jimraynor45]

There scamming businesses to help consumers. And it's not actually a scam, it's a mutual agreement.

[@FranchiseCityOnline]

More like the Robin Hood of commerce in that example.....

[@tylerdurden1217]

have been using the same name, for about two years. so many questionable business practices. great site, but like all big companies, they get greedy. Do no evil, sure Google tried and failed.

[@tylerdurden1217]

The Hollanesian I hate Walmart for 2 reasons, typically uneducated patrons and staff, as well as I have to pay taxes on crappy Chinese goods. At least with ScAmazon I can search for out of state sellers on better non-Chinese made goods.

[@Pernection]

Make that a t shirt

[@robertsmith8535]

Excellent, concise, and pretty accurate analysis. I’m sold and subscribed!

[@wkdravenna]

Even FedEx didn't want to deal with Amazon anymore.

[@garthlocklin6355]

I always worked as a delivery driver since I was 21. Vans, lumber trucks, box trucks and limousines in NY/NJ for a few years back in the 90's. All Limo companies back then were independent contractor jobs. 20% of the fare plus a 15% tip if they own the car and pay expenses. Most gave the drivers the option to incorporate themselves and get 40% plus the tip if you absorbed the expenses. I eventually went that route but didn't make any more money because gas went from $1.25 a gallon to $1.45 a gallon in 2 weeks. A Lincoln TC uses $60-70 a day in gas. Today I drive a Prius. Lots of "Opportunities" to be a courier or delivery driver in some capacity as an Independent Contractor. Every "Gig" or job I find along those lines of work (I'm 59 and half crippled now) works out to $10 an hour or less and I pay all expenses including depreciation on my nice car. Americans want to work but the employers are seeking those who are "desperate" to deliver food for GrubHub" or Papa Johns pizza. I know one guy who does well in the ritzy section of ATL at PJ's and he averages $20-25 an hour. They also pay mileage. I applied at another location but the guy interviewing me was maybe 25 and didn't want to hire Grandpa. I drove by the other day and that store is "Looking for drivers!" Every semi skilled job is a gyp these days.

[@FranchiseCityOnline]

Thank you for taking the time to share your info!

[@johna9634]

me: Wonder if this guy is smart? *sees all the books in the background me: Checks out.

[@FranchiseCityOnline]

Imagine, having books in an office. Crazy huh.

[@arnohart1351]

How does the DSP company owner get paid? Not the driver on hourly but the company owner. How do they paid? Is it a daily flat rate or per delivery how does it work?

[@ZydecoSoul]

Arno Hart thats what i’m trying to figure out

[@jakp8777]

Why would amazon do this rather then run the trucks themselves? Something seems fishy. I wouldn’t put all my eggs in amazons basket, what happens if amazon stops using you to deliver packages?

[@Jimraynor45]

It's because of the highly Litigious society with numerous regulations and laws. If a delivery truck so as much as splashes water on some rich person's poodle, they'll probably be sued for thousands of dollars. Why take that risk, when you don't have to?

[@jeffw1267]

Amazon simply can't handle the parcel load by themselves, and they'll never be able to.

[@susanmcevilly5435]

Very helpful to have this perspective. Thank you for taking time to create this module and share your thoughts.

[@FranchiseCityOnline]

Thanks for watching!

[@bluejedi723]

Once again, thank you for your brutal honesty!

[@FranchiseCityOnline]

Thanks for visiting!

[@brotherjohn4400]

You just described UPS, their drivers also use bottles for what you described and they also are under a lot of pressure.

[@dallasryder8125]

In 2015, back when Prime Now was in it's infancy(in my area). I got linked to Dallas, Texas early invite. While finishing my last year in college. It was great for about less than a year. Around the summer of 2016, it became more of a rat race. An constantly, having to refresh your phone on the flex app to get a shift vs early days. When you would get maybe 25-50 hrs pre programmed. It cut down to sometime 10hrs or less a week if you didn't "root" your phone or have "trigger fingers". Luckily, I had other streams of income while using my Post 911 GI Bill and such. I felt bad, for folks whom put everything in it. It's like folks, whom put everything into Uber as just being a regular driver. When I heard this story, on WSJ. I begin to crack up, from hearing all the folks whom were like "I'm going to be rich". Oh boy... Amazon can cut you off with no warning, and the appeal process is similar to like "selling" on it's marketplace. ETA on decision "Neveruary". Oh, and I see these new "Franchise owners" advertising for slaves. All on Indeed, paying like $110-$120 a day. Starting at 7am-8pm LOL. I'll let you guy's do the math on that. Seriously, it was better with Flex at the beginning. I could have a 2-10pm shift, and be done at 8:30 and get paid for the whole 8, plus tips. These new folks getting all the dry, no spit or lube.

[@dallasryder8125]

@@FranchiseCityOnline No. Thank you, for creating such amazing content!

[@FranchiseCityOnline]

I don't think you're using your properly. @Morahman7vnNo2

[@normmac953]

Thanks for this info. Very informative and helps to avoid a potential tragedy.

[@Reaper1947]

I built a profitable business from scratch over a 40 year period, built 50 locations with a little over 300 employees so I have a little experience. This is a really good deal FOR AMAZON, for the delivery company it's the road to ruin. If you think I'm wrong search right here on youtube for Amazon drivers who have one truck, then try to imagine trying to keep 40 of them on the road every day. This is no exaggeration, I think you would have much better odds at making money in a casino. Don't do this to yourself and your family. TheReaper!

[@FranchiseCityOnline]

Thanks for the comment!

[@kjcarter100]

You dont think I should do it then Joe?

[@Reaper1947]

@@kjcarter100 Absolutely NOT!

[@kjcarter100]

@@Reaper1947 ok

[@janpimentel6539]

completed the interview process of Amazon dsp. Definitely wont go past that after i saw this video thank you for this.

[@gass1472]

Did you bring up any of these points to them during the interview?

[@janpimentel6539]

No I didn’t, I saw this after I did the interview.

[@kennethsouthard6042]

Amazon wants to see financials for a couple of reasons. Yes, they want to make sure that you have enough cash and a good credit history to handle this. However, they also want to make sure that you don't have too much money. For example, suppose you are 60, have 800K in a 401K and your home is paid for or close to it. You are not ready to retire and see this is as a potential opportunity. Guess what, Amazon probably does not want you. Why not? The reason is that while you are not rich, you are comfortable enough that once you get into this and realize the job is a heart attack waiting to happen, that you will just chalk the 30K as a loss and walk away. Their ideal candidate is a dude who probably has about 50K, and a significant mortgage. Someone who losing that 30K will hurt. Someone who will hang on to the bitter end even long after it becomes a losing battle.

[@lewisburton1852]

Late reply but still stands today very well put. They want people with no leverage and nowhere to go until the wheels fall off (pun intended) LOL!

[@luisgomez7173]

A short while back I do recall seeing articles about Amazon not wanting to pay the shipping rate and we're looking for ways to lower costs. Then they came up with this program. Yes red flags went up in my mind as I thought wow that's a sneaky way to save money. I also agree with the many fine points you made. Thanks again for another great video.

[@m1030100]

Just to put things in perspective: As Yesterday I just got hired on as an Amazon prime delivery accosciote. I'm paid $16 per hour with full benefits after 90 days. Now times that by 100 other ememployees.

[@troylynjohnson5641]

Everything he said is absolutely true to the core I’m a driver for a contractor & we are pushed daily to deliver fast but driving safe but that’s doesn’t make any since

[@FranchiseCityOnline]

Thank you for the comment!

[@Tyweezy84]

Exactly! “Hey follow the speed limit and drive safe” but finish these 195 stops in 4 hours 😂

[@philstone5195]

I currently drive for an Amazon DSP, and have for 9 months. It's a tough and stressful job, but my DSP has rewarded me with two generous raises. I can see the stress they go through in terms of metrics (Amazon keeps track of everything the drivers do), and it's the DSP's drivers that help or hinder the DSP owners. Since they hired a manager to do their day-to-day tasks, they're more relaxed. I don't think I would ever become an Amazon DSP, because I couldn't handle all the pressure from Amazon, and managing the workforce that has a very high turnover rate.

[@danielcastro4818]

First video I came across on this channel, thanks for the free game! Subscribed ☑️ just got a job as an amazon driver through a logistics company but not sure if i should take it considering the end of this video!!!!

[@Thetradingtrucker]

I smell a class action lawsuit...eventually

[@jhill6033]

Wow great information, at this point I think it's better to just buy trucks at your own pace, go through Amazon relay and contract with various companies. Another important point that wasn't mentioned in this segment was having the owner tied to the day to day activities. As a business owner I need to keep multiple streams of income rolling and don't want to be tied contractually to just one venture. I also prefer to deal with subcontractors vs employees.

[@FranchiseCityOnline]

Thanks for watching!

[@clallen2000]

This sounds like a perfect recipe to get yourself into a personal bankruptcy and lose everything that you have. Any company that would lease you a fleet of trucks is going to make you personally sign which means that if your company goes bankrupt then they will come after you personally and take your house, all your assets, and possibly part of your future earnings. Since you will have only one major client this makes your company vulnerable to a single point of failure. If that company decides that you are not performing to their standards they will terminate their business with you.

[@IBKNW]

Thank you for this video.. I am so in sync with your info. I drove 7 mos with Amazon in 2019...Amz fired all drivers Jan 2020. Basically eliminating all the liability. Many of us got picked by the DSP companies....I have had 5 months to research, watch and see just how the business is ran. they start them with 5 trucks they have to work their way up to the 40 truck. and yes hire 100 people. The turn over rate is massive. Average accident with the DSP I work for is 3 a week. This is the biggest clincher.. DSP is also charged for packages that are not delivered. They can be charge for other issues, like certain type of customer delivery issues..If a driver is not dressed properly, the route can be taken away.. GOD forbid you are not liked by the logistics of Amazon( who control and watch and monitor the DSP daily. (so does that sound like this is your own business. Hell! no) Amazon is controlling every aspect the the DSP operation... Hmmm! So after I witnessed many scenarios of the operation, I decided not to apply. i have been in business myself, owning my own retail business. So Doing my diligence is always my motto before jumping into anything. I agree with FRANCOISE CITY. the LIABILITY is not worth the risk in this one.

[@Gr8thxAlot]

Run away! The worst paying work of my life involved delivery. Add in the terrible weather and traffic. No way. The FedEx contractors that have it relatively good still look ragged on Saturday mornings when they're delivering.

[@krishnaprasadk5836]

Thanks a lot, this was amazing advice. Always suspected that Amazon was trying to dump the risk and liabilities to individual business owners

[@FranchiseCityOnline]

Thanks for watching!

[@buicklincoln]

There is a billion dollar company that's well known for renting box trucks also has a driver staffing business. About 5 years ago, they were a DSP for Amazon. They quit working with Amazon because Amazon wanted the billion dollar truck company to use smaller delivery vehicles for its drivers so the truck company would charge less. The truck company figured if they used smaller trucks and charged less, it wasn't worth the effort. So, the truck company, worth billions already, told Amazon to go fly a kite. It's good to be worth billions. However, I saw a small staffing company take over the billion dollar company's routes. In the beginning, they were happy getting those hundred thousand to a million dollar checks. But the problem was the operating costs as the guy in the video said and some he didn't mention: parking tickets, towed vans for parking infractions, etc. When a vehicle is stolen, the DSP must pay for all the merchandise that was taken..that can average 5 to 7 thousand dollars and if the route is in bad neighborhood, more stolen vans or drivers that are robbed. About 2 years ago, Amazon sent their lawyers nationwide to fight off unionization attempts so they can continue with their current owner/contractor/driver relationship. Amazon doesn't care about their vendors. I wish the public would stop shopping at Amazon until they treat them with the respect they deserve.

[@patrickp992]

Well said.

[@misaza26]

I know someone that applied and the information they received is that Amazon would reimburse them for all expenses like liability insurance, Workmen's Comp and fuel. Is that not the case?

[@FranchiseCityOnline]

Interesting. It is possible - although reimbursing does not remove the liability.

[@raymiller3267]

Correct , they will!