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Guy Jumps at Amazon's Delivery Business Offer - 8 Months in, 112 Employees and 50 Trucks

reedracer

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MJ DeMarco

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Impressive although it somewhat of a hype headline because it implies success has to do with number of employees or routes or some other metric other than profitability.

I will assume that he has been profitable enough to spur the scale and growth.

Ironic he mentioned his desire to escape the 9-5 ... I doubt he's done that.

With 100+ employees, he's probably now 6am-9pm.

UPS can't like it !!
 

JAJT

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Ironic he mentioned his desire to escape the 9-5 ... I doubt he's done that.

With 100+ employees, he's probably now 6am-9pm.
I have to imagine it's hard to scale like that without learning a thing or two about entrepreneurship, business, and success along the way.

I'd be willing to bet there's a lot of cross-transferable skills he's picked up with this decision.

Hopefully he breaks free from Amazon and does something himself going forward.
 
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reedracer

reedracer

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I have to imagine it's hard to scale like that without learning a thing or two about entrepreneurship, business, and success along the way.

I'd be willing to bet there's a lot of cross-transferable skills he's picked up with this decision.

Hopefully he breaks free from Amazon and does something himself going forward.
My fear he's over-leveraged and owes Amazon for the trucks, etc. more than the company is worth.
 

BrawnyBrain

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My fear he's over-leveraged and owes Amazon for the trucks, etc. more than the company is worth.
My concern would be the lack of control. Having multiple friends/colleagues at AMZN they really couldn't care less about some of the downstream impact on their suppliers/vendors. This is starting to happen with FBA
 

MJ DeMarco

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Hopefully he breaks free from Amazon and does something himself going forward.
My "head scratcher" is it just seems he swapped out one corporate boss (8 hours in corporate America in a 9-5) for another corporate boss (12 hours with Amazon). I watched the video to see if he had any other customers or distribution channels. No mention of any. When Amazon decides to cut fees per package, he probably has little to no recourse. IOW, Amazon has him by the balls ... not really different than being employed by Amazon as an employee.

That said, I don't want to discount his accomplishment. Running an operation this large is no small feat.

It's impressive and I hope it works out well for him.
 

404profound

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I have to imagine it's hard to scale like that without learning a thing or two about entrepreneurship, business, and success along the way.

I'd be willing to bet there's a lot of cross-transferable skills he's picked up with this decision.

Hopefully he breaks free from Amazon and does something himself going forward.
Or even better, Amazon could buy them out. Though probably not for too much.
 

MHP368

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Ironic he mentioned his desire to escape the 9-5 ... I doubt he's done that.

With 100+ employees, he's probably now 6am-9pm.
Maybe not, I used to deliver pharmaceuticals. We had the company that signed my check, the company that company had hired to manage us drivers (who were all 1099) and then the pharmacy itself, a couple dozen drivers just in tucson but the same gig running in multiple states.

Maybe less margin on delivering an amazon package (the fellas who do it late afternoon / evening here in sahuarita have a beater cargo van , 2 man operation) but you never know.
 

MJ DeMarco

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Maybe not
True, poor assumption on my part to assume that he's clocking 12 hour days. Maybe's he's a master delegator and works very little and the company is run on auto-pilot by competent management. Truth is, we may never know.
 

Veloman

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I ran the numbers on this partnership deal and the profit margins were tiny. Lost interest right away.
 

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Lee H

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Happy for this guy's success but if he only has the one customer his business is always on the line. Amazon can cut the budget, use another supplier or transition to using drones at any time. And if they do his enterprise disappears over night.

I have seen similar issues before when consulting. The company I worked for had about 10 staff, 6 of which were all embedded with one client. They cut the budget and our company lost 60% of its revenue overnight.
 

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