Wouldn't this result in increased risk of delivery failure, package damage, or even non-professional delivery-driver injury? If anything, this is low-end, but yes, it sounds cheap.

I think it'd be a good practice to examine competitive offerings for delivery per area, e.g., offerings such as Postmates and similar. If there's someone willing to pay them more, then I feel that the employee may have enough options for fair treatment. However, if Walmart is the only game in town, then I agree with a lot of your apprehensions.