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.
Then again my monkey brain sucks at statistics and considering the last year or so of my own home usage it is probably close to 1-to-1. And we try to avoid Amazon. So probably a lot closer to those numbers above than I'm comfortable to admit.
Probably not higher than 85% though. And of the rest, the next biggest category is packages from clothing stores like J. Crew, Nike, Madewell, etc.
(Also this isn't including groceries or DoorDash, just talking about traditional packages.)
As with most things like this, the numbers seem scary until you peel back the layers. Not a pass to Amazon as the rest of the article is damning in its own right, but a little less crazy than my initial thoughts.
In cities, an Amazon delivery driver might be delivering 5, 10, or 20 packages to the same building.
And in those areas where Amazon is using its own delivery network, UPS packages (non-Amazon) will be far fewer -- often just 1 or a couple or none per day.
So it's not crazy. The Amazon driver might be elivering far more packages but making fewer stops. Also, a lot of those packages are the little white-and-blue padded envelopes, almost more like large letters than packages.