Will Amazon's Pay-per-day Plan Influence The Industry?

Amazon is taking a revolutionary approach to paying drivers who will be hauling their cargo … changing the way drivers have been paid since about the 1930s. Amazon has been using a method for the past couple of years to pay drivers by the day, eschewing the almost century-long method of paying drivers by the mile.

Will Amazon's pay-per-day plan influence the industry?

Those $600-800 per day numbers have to be wrong unless its just for owner operator's. Who wouldn’t jump on that deal? $3k-4k a week for 5 days, $150k per year on low end? Even if they didn't offer health insurance or 401k and you had to get your own, you would still be making a small fortune after taxes

The guy in article says his pay went down as a result of set pay per day system. Even if he was at 60 cpm , at 3000 miles previously he should be bringing more $$$ home at $600 a day

Of course they throw out blanket statements. If it was such a great deal more companies would be jumping on it, and it doesn’t appear they are. And those rates are O/O rates, not company driver rates.

That deal is for owner operators , they dont let them drive more than 400 miles which is why they are on set pay.... that sector is booming somehow ....i have clients with the Amazon contract and they went from 1 owner operator to 50 within a year.... Amazon pays for the fuel, does the dispatching and a lot more so a lot of owner operator run to them

Those $600-800 per day numbers have to be wrong unless its just for owner operator's. Who wouldn’t jump on that deal? $3k-4k a week for 5 days, $150k per year on low end? Even if they didn't offer health insurance or 401k and you had to get your own, you would still be making a small fortune after taxes

The guy in article says his pay went down as a result of set pay per day system. Even if he was at 60 cpm , at 3000 miles previously he should be bringing more $$$ home at $600 a day

This won't last. You can't agree to a per day pay rate in this industry because it's performance based. What if I'm supposed to take a day to drive 400 miles, but now I take 2 or 3?

Also, those you're creating issues for employers by making this public. People assume this all profit and they never consider operating costs. "You're making this much so I should get that much" will be very common here.

i have clients with the Amazon contract and they went from 1 owner operator to 50 within a year.... 

That's a lot of eggs in one basket. I hope it works out for them.

Amazon is all about profit. Lots of it! And they prefer to achieve that with as little human capital as possible.

If they can’t beat their competition, they either purchase them for a fraction of what they are worth or put them out of business. Read the book The Four’. It describes exactly what makes Big A tick.

Let’s see what this model looks like in two years...

This won't last. You can't agree to a per day pay rate in this industry because it's performance based. What if I'm supposed to take a day to drive 400 miles, but now I take 2 or 3?

Simple - in Amazon's carrier contracts if you don't show up on time you get NOTHING! The last time I hauled an Amazon load (~3 years ago) that's the deal we had.

Take anything sourced from Business Insider with a grain of salt. They're the same source for the supposed huge day cab order from Volvo & Kenworth. Has anyone seen an Amazon branded day cab? Has anyone seen an ad for Amazon hiring company drivers?

I seriously doubt the rates are as generous as what the article claims. I haven't seen a rate from Amazon > 97 cpm yet. That's about 11 cpm less than I make plus diesel for the truck. DEF, oil, tires and wear and tear not included!

Has anyone seen an Amazon branded day cab?

I've seen quite a few.

Has anyone seen an Amazon branded day cab?

I've seen quite a few.

Same here.

I don't know which Amazon I drove by but I saw about 200 brand new day cab's, no joke. I remember thinking to myself wow, there's not any sleepers.

This article was probably written by someone in the media who has no idea how the trucking industry works because the numbers don't make any sense.

They're obviously not going to pay a company driver $600 a day when they don't have fuel, insurance, maintaince, etc. So this rate is for o/o's, I guess. So, let's see $600 for 400 miles that's $1.50 a mile. No thanks, that's a cheap rate.

Amazon tries to bully everyone because they think they're special with their big name but with o/o's like mercenaries hauling for the highest bidder, your no more special than the next guy.