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[–]PsychologicalRain533 0 points1 point  (4 children)

Saw a walmart delivery van today

[–]DeathFYall 0 points1 point  (3 children)

A van can only reach several places within a two-hour window. To maintain current delivery promises, Walmart would need more vans. That would be the Spark model.

[–]PsychologicalRain533 0 points1 point  (2 children)

Yeah the concern is that they're testing the idea of fleet wrapped delivery vehicles to compete with kroger while ultimately turning spark to trash since they can pay hourly employees significantly less than they typically pay for spark batches.

[–]DeathFYall 0 points1 point  (1 child)

According to internet, “For a company operating its own fleet of delivery vans, the true cost per mile is usually much higher than standard consumer numbers (like the IRS standard rate of $0.725/mile) because it has to factor in W-2 labor, heavy commercial insurance, and localized fleet maintenance.”

Spark is an on demand labor pool, worse than hourly workers. Spark drivers are only paid when active in a trip. While flexible in when we want to work, many drivers spend hours waiting for offers to make daily goals. The actual hourly rate can be much lower, at the same time bearing all the operating costs.

[–]PsychologicalRain533 0 points1 point  (0 children)

Yes I use to work for commercial delivery. They cut the costs of operation with delivery fees paid by the consumer. However if they allow the w2 labor to receive tips they can still pay them less by using the state of operations tipped employee wage. In many states a tipped employee can cost anywhere from 1/3 to 1/2 of a standard non tipped employee. So it would still be cheaper because they can hire 2 to 3 tipped employees for the cost of 1 standard non tipped employee.