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Businesses The Almighty Buck United States

Walmart Is Turning Its Employees Into Delivery Drivers To Compete With Amazon (qz.com) 175

Walmart, which is aggressively investing in e-commerce to better compete with Amazon, is unveiling a new strategy: turning its army of 1.5 million US employees into delivery drivers. From a report: The tactic is being tested at three stores in New Jersey and Arkansas, and designed to shave costs out of the "last mile" of distribution, the most expensive part of getting goods to customers. Under the initiative, store employees will be given the option to deliver packages on their way home after work, in exchange for extra pay. They'll be given an app that allows them to input their routes, and an algorithm will plot the most efficient path. To take part, the employees will have to pass a background and vehicle check.
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Walmart Is Turning Its Employees Into Delivery Drivers To Compete With Amazon

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  • Even though it didn't come out quite the way the book had it, at long last we will have - the deliverator [technovelgy.com].

    • by thsths ( 31372 )

      I agree, I am surprised it took this long to make this happen. There are clearly efficiency savings to be made, and I would not mind driving a different route every once in a while.

      Of course Uber also started as a "ride sharing" app, with the same idea. And just like there, I wonder whether this is just once again an excuse to pay less than minimum wage.

  • Or... (Score:5, Interesting)

    by clonehappy ( 655530 ) on Friday June 02, 2017 @02:16PM (#54536811)

    Wal-Mart could just hire a miniumum-wage delivery driver for each store and have deliveries all day long. If every pizza and Chinese restaurant can do it, so can Wal-Mart.

    • by slew ( 2918 )

      Wal-Mart could just hire a miniumum-wage delivery driver for each store and have deliveries all day long. If every pizza and Chinese restaurant can do it, so can Wal-Mart.

      I suspect the difference would be that your Wal-Mart driver (like the Amazon/OnTrac driver) won't be expecting to make any tips, so you'd have to pay them more than minimum wage. Also, Wal-Mart already has a bunch of minimum wage employees that probably aren't normally scheduled for 40hours/week because they work multiple jobs, making them ideal candidates for this task...

      • What does Domino's or Pizza Hut do for delivery drivers? Should be an apples to apples comparison. Except for business hours. Plus most WalMarts can deliver groceries and will pay the local sales tax.

        • What does Domino's or Pizza Hut do for delivery drivers? Should be an apples to apples comparison.

          No, it isn't. As the OP pointed out, pizza driver get tips. Wal-mart delivery drivers wouldn't (do you tip the UPS man?)

          • What does Domino's or Pizza Hut do for delivery drivers? Should be an apples to apples comparison.

            No, it isn't. As the OP pointed out, pizza driver get tips. Wal-mart delivery drivers wouldn't (do you tip the UPS man?)

            No, but I probably should... maybe a holiday gift card... It's been forever since I stepped into a mall to buy anything...

    • by lucm ( 889690 )

      Their approach is better, for the following reasons:

      1) it provides an extra income to employees with no major additional labor (i.e. win-win)
      2) it keeps the costs low, which is a must when the business model is rock-bottom prices
      3) a minimum wage delivery driver is unlikly to afford a reliable car so Walmart would have to acquire a fleet of vehicles or a fleet of drivers to mitigate the risk
      4) having many employees in the delivery pool increases the odds of packages being delivered, as opposed to having a h

  • Flexibility (Score:4, Interesting)

    by bondsbw ( 888959 ) on Friday June 02, 2017 @02:16PM (#54536817)

    Curious if the employee has the flexibility to sign up for (or to reject) deliveries after each shift, and how much flexibility they have in time and direction.

    When I am not going home after the shift, I shouldn't have to go out of my to deliver a package to my neighbor.

  • I ordered six small boxes of granola bars from Walmart a few months ago. Since it got shipped by FedEx, I had the box diverted to a FedEx Store. The store clerk brought out a 24" x 24" x 6" box. Packing paper took up most of the space inside. All six boxes fit inside my backpack. I told the store clerk to recycle the box and packing paper for another customer.
    • You ordered six small boxes of granola bars from Walmart and had it shipped via Fedex?
      • You ordered six small boxes of granola bars from Walmart and had it shipped via Fedex?

        My purchase qualified for free shipping. Walmart sent via FedEx Post to my PO box. Since it was sent via FedEx, I had it diverted to the FedEx Store.

    • You shouldn't eat so much granola bars.

      • You shouldn't eat so much granola bars.

        I eat five granola bars per week. Six boxes is a three-month supply.

        • Look at how much sugar is in a single granola bar. They may taste great but they're barely more healthy than a chocolate-covered candy bar like Mr. Big [wikipedia.org]. Except the Mr. Big tastes a lot better.

      • He has a problem staying "regular".

    • by gnick ( 1211984 )

      I ordered six small boxes of granola bars from Walmart a few months ago. Since it got shipped by FedEx, I had the box diverted to a FedEx Store.

      This presents more confusing questions than the size of the delivery box...

      • This presents more confusing questions than the size of the delivery box...

        In what way?

        • Like: why did you order granola bars from Walmart and have it shipped to Fedex and THEN complain about the excessive packaging? If you are worried about the environment why not just to the local grocery?
          • Like: why did you order granola bars from Walmart and have it shipped to Fedex and THEN complain about the excessive packaging?

            I qualified for free shipping. Walmart sent it FedEx (their choice). I wasn't expecting a big box for something that they previously shipped in a smaller box.

            If you are worried about the environment why not just to the local grocery?

            Walmart has better prices. I used to order these from Amazon before I figured out that the third-party store ordered them from Walmart and charged me an extra $0.50 per box.

            • So what is the complaint here? That they used excessive material? If you cared, wouldn't you just go to the grocery store and pay a bit extra? Did you think shipping boxes of granola bars to a store to a Fedex store in a truck was environmentally friendly or something?
              • So what is the complaint here?

                Oversized box.

                Did you think shipping boxes of granola bars to a store to a Fedex store in a truck was environmentally friendly or something?

                The granola bars would have gotten shipped by truck no matter what carrier Walmart selected for free shipping.

                • The granola bars would have gotten shipped by truck no matter what carrier Walmart selected for free shipping.

                  But the bars would've been shipped in a much more efficient and environmentally friendly way if you'd bought them at a store. That was the poster's point.

                  • But the bars would've been shipped in a much more efficient and environmentally friendly way if you'd bought them at a store.

                    For twice the price than ordering direct from Walmart.

                    • And now we know what's more important to you. Complaining about the environmental waste of it all doesn't sound that convincing when you don't care either.

                    • Complaining about the environmental waste of it all doesn't sound that convincing when you don't care either.

                      I don't know why people keep bringing up the environment. If you're going to ship something, it should be in the appropriately sized box. This past weekend I had to ship a small box via the postal service. I needed a tracking number and $100 insurance. The initial tally was $40. I had to ship a small box inside a much larger medium Priority Mail box to get the price down $16.

                • Why do you care? It didn't impact you, and yet you say "no thanks" to using their service over a non-issue?
                  • It didn't impact you, and yet you say "no thanks" to using their service over a non-issue?

                    I take public transit. What I ordered fit inside my backpack. I'm not going to carry an oversized box on the train, especially when that box was nothing but packing paper.

          • Like: why did you order granola bars from Walmart and have it shipped to Fedex and THEN complain about the excessive packaging?

            Are you being deliberately obtuse? creimer explained this in a post replying to you, 20 minutes before you posted this.

    • Only one layer of excess oversized boxes...pikers.

      I believe it's the Register that keeps a excessive packaging hall of shame. HP shipped a piece of paper with a license key in a typical software box. That was packaged in a more or less typical for Amazon shipping box (big enough for a large book), which was in turn packaged in a large cardboard box, big enough for a medium sized appliance like a microwave.

      The whole thing was overnighted.

      • by bongey ( 974911 )

        Yep HP did that to me. 24 license keys of vsphere. Co-workers had the shipper fill my entire cube so I couldn't get to my desk.

        • Co-workers had the shipper fill my entire cube so I couldn't get to my desk.

          At one job I worked at, management taped up the opening to a supervisor's cube and filled it up with packing popcorn (~384 cubic feet). The HR woman gave the supervisor a bag of microwaved popcorn and wished him a happy birthday when he came in the next morning. He spilled his popcorn when he saw his cube. Took him four days to dig it out.

    • I guess you've not ordered from Amazon very much, because they have the exact same issue - small items in absurdly large boxes.

      In fact, YOU at least got padding as I've also had items loose in a large box that arrived kind of messed up.

      The last straw for me was a one-day order I placed for something I needed for a trip. It arrived two days late, long after I had gone... I am pretty much done ordering from Amazon and going to order directly now from most vendors like NewEgg or BHPhoto. At least they take u

      • by torkus ( 1133985 )

        Anecdotal evidence on both sides...but I've had prime for years and order at least a couple things a month.

        It's very rare that something shows up late.

        The only exception is the stupid USPS Smartpost thing they used for a while. A package would be 'delivered' per tracking but what they really meant was delivered to the local post office. It almost always was at my door a day later, 2 at most. But that's 1-2 days over their guaranteed 2-day delivery. Luckily they don't seem to be using that anymore (or at

      • I guess you've not ordered from Amazon very much, because they have the exact same issue - small items in absurdly large boxes.

        My problem with Amazon is that they send six items in six boxes. Never mind that I selected the "group everything together" checkbox on the order form.

  • by Alain Williams ( 2972 ) <addw@phcomp.co.uk> on Friday June 02, 2017 @02:25PM (#54536909) Homepage

    other than their route home, what else will that app monitor about the employee. "Mr Smith we notice that you did not leave the bar until 23.30 last night ... please report to room 101 for an alcohol test"

    • Given the general helpfulness of Walmart employees would you consider a 0.0% bac a pass or a fail?

  • Just ask Dominoes - you can put a company uniform on any 17 year old kid and have them deliver from store to home in "30 minutes or less," all profit, no headaches.

  • by rsilvergun ( 571051 ) on Friday June 02, 2017 @02:44PM (#54537117)
    is this an April Fools Joke? There's so much wrong with this I don't know where to begin? What about insurance? What if they hit somebody? What about mileage? There's no way Walmart will pay enough to account for that.

    And what happens if they don't get enough "volunteers"? After all, the Walmart employees with Cars are the better off ones. I'm guessing pressure, hours cut, etc, etc.

    Dear lord the working class is pooched. I mean, if it's come to this what next? I don't even have the words... We're no longer racing to the bottom, we've drilled through, struck oil and it's leaking into our ground water.
    • Flaws aplenty, but also an opportunity for some extra cash and a "free" trip home, which is inherently more efficient for a small number of deliveries per person.

      In the flyover states, I can imagine many walmart employees are driving over 20 miles to get to work based on past experience.
    • What about insurance?

      How do Domino's, UPS, FedEx, etc. deal with it? I suspect the company buys coverage. Note that UPS and FedEx employees occasionally do deliveries in their own vehicles, and AFAIK all Domino's employees do. This has been figured out a long time ago.

      • at least that's what the article says. If Walmart wanted delivery drivers they've got 'em already. They're planning on doing an Uber style gig economy thing where you punch out at Walmart and then you're no longer a Walmart employee, you're an independent contractor. That's the only way this kind of thing can work and be any different than hiring a run of the mill delivery driver. And that way all of the risk gets pushed onto the employee, who's probably desperate enough to take that risk...
        • I don't see anything in the article to indicate that Walmart is going to try to argue that they aren't employees. And I think that would be basically impossible to get past employment regulators. Uber has something of an argument given the flexible work schedules, etc, but these *are* employees, no question about it.

          That's the only way this kind of thing can work and be any different than hiring a run of the mill delivery driver.

          Nonsense, unless you think you can hire a bunch of drivers to do just one run per day, and pay them only for the deviation between their delivery route and their normal drive home.

        • by King_TJ ( 85913 )

          Honestly, I see a whole lot of FUD up here - slamming this idea as horrible for American workers, etc. etc. Betting it would be a completely different response if the employer offering it was someone more liked than Wal-Mart.

          A LONG time ago, I worked for a small computer store .... probably only a few years after I had my drivers' license and a car. I used to beg the owner to let me do runs occasionally, dropping off computers for his larger business clients. It was a nice change of pace instead of getting

  • So wait, does this mean they don't have to pass a background check to work at the store in the first place? And what constitutes "passing?"

    • probably no DUI's, carrying car insurance, and having a valid license.

      compared to simply having a pulse for the regular employment screening.

  • by hyades1 ( 1149581 ) <hyades1@hotmail.com> on Friday June 02, 2017 @03:30PM (#54537535)

    Given Walmart's legendary addiction to corporate welfare, you can bet this program won't be genuinely voluntary for long. Ways will be found to "encourage" employees to participate that have nothing to do with the few bucks they'll throw at them for using their personal vehicle for commercial purposes.

    And given what I've seen of Walmart employees who are virtually out on their feet by the end of a shift, it would probably be safer to hold a "Drunk Drivers 6000" through residential neighbourhoods than to have them looking for some random house after working a 12-hour split shift broken up over 18 hours.

    • by labnet ( 457441 )

      I'm interested as why your governments don't intervene for workers rights more in the USA. Things like your absurdly low minimum wage and the ability to fire people at will. It is such an uneven one sided relationship and seems immensely unfair, especially in walmarts case where the family are Billionaires.

      • "I'm interested as why your governments don't intervene for workers rights more in the USA."

        One of the principals in labor law in the USA is that worker conditions are better left to unions and management to negotiate a locally preferable standard rather than have a one-size-fits-all solution imposed from the top down. Of course, the same people that promote that then turn around and undermine unionization.

  • Is this before or after it punishes them for taking sick days (just 2 articles above on /.). It must be beat up wally world day.

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