Amazon Is Running Out of Contracted Drivers to Fire: Another Cautionary Tale of Outsourced Delivery
In February, roughly 3,200 delivery drivers working for companies contracted by e-commerce giant Amazon.com (NASDAQ: AMZN) were told they'd be out of a job come April since Amazon was terminating their employer's contract. Those drivers will be able to apply for a position with whichever new logistics name Amazon chooses to replace the ones being dropped, of course. But there are no guarantees.
Were it the first time consumers, drivers, and even investors had seen such a headline, they might dismiss it. But it was all-too-familiar news. Over just the past few months, Amazon has severed ties with no fewer than seven logistics companies, many of which are responsible for the "last mile" service that places packages at consumers' doorsteps.
It's becoming more than a minor nuisance, too. Delivery service providers and their drivers may now be so distrustful of working with Amazon that they no longer will. Some are also entangled in legal battles resulting from their contracts with the company. Yet now that Amazon has made one-day shipping the norm for Amazon Prime orders, the company needs drivers more than ever.
Source Fool.com
