Buying and returning on Amazon may seem extremely easy, but that simplicity comes at a cost.
Amazon has more than 115,000 drivers working under independent small businesses – Delivery Service Partners, or DSPs – who deliver Prime packages to doorsteps with one-day shipping. This is a large part of how Amazon delivers packages so quickly. CNBC talked to current and former Amazon DSP drivers about the pressures of the job. From urinating in bottles to running stop signs, routes that lead drivers to run across traffic, dog bites and cameras recording inside vans at all times – some of the 115,000 DSP drivers have voiced big concerns.
But once you receive your Amazon order, if there’s any reason you are on happy, more than likely it can be returned. Sending back an online order has never been easier. It’s often free for the customer, with some retailers even allowing customers to keep the item while offering a full refund. Amazon returns can be dropped off at Kohl’s, UPS or Whole Foods without boxing it up or even printing a label.
But there’s a darker side to the record number of returns flooding warehouses after the holidays.
“From all those returns, there’s now nearly 6 billion pounds of landfill waste generated a year and 16 million metric tons of carbon dioxide emissions as well,” said Tobin Moore, CEO of returns solution provider Optoro. “That’s the equivalent of the waste produced by 3.3 million Americans in a year.”
Moore says online purchases are at least three times more likely to be returned than items bought in a store. In 2021, a record $761 billion of merchandise was returned, according to estimates in a new report from the National Retail Federation. That report says 10.3% of those returns were fraudulent. Meanwhile, Amazon third-party sellers told CNBC they end up throwing away about a third of returned items.
At the head of the pack, Amazon has received mounting criticism over the destruction of millions of items. Now the e-commerce giant says it’s “working toward a goal of zero product disposal.” Last year, it launched new programs to give sellers like Clausen new options to resell returns, or send them to be auctioned off on the liquidation market.
This record number of online returns has created a booming $644 billion liquidation market. As supply chain backlogs cause shortages of new goods and Gen Z shoppers demand more sustainable retail options, pain points for one sector of retail are big business for another.
The nation’s only major public liquidator, Liquidity Services, resells unclaimed mail, items left at TSA checkpoints, and outdated military vehicles. It also refurbishes highly sought after electronics, from noise-canceling headphones to the machines that make microchips.
CNBC takes you on an exclusive tour inside a Liquidity Services returns warehouse outside Dallas, Texas, where unwanted goods from Amazon and Target are stacked to the ceiling before being resold on Liquidation.com or a variety of other marketplaces.
Uber Eats has enlisted Kris and Kendall Jenner to help launch the brand’s new positioning as it transitions away from its long-running ‘Tonight I’ll be eating positioning”.
The delivery platform, which launched in Australia in 2016, has enlisted the Jenners, along with a handful of Aussie celebrities, to showcase the brand’s expanded delivery offering, which now includes food, groceries, alcohol and more.
The new brand platform ‘Get almost almost anything’ aims to highlight the expanded service while acknowledging that Uber Eats still can’t deliver some things.
The campaign, which Special Group created in collaboration with Hello Social and MediaCom, features the brand’s trademark mix of celebrities employing self-deprecating humour.
Andy Morley, director of marketing at Uber ANZ, said: “This year we will continue to deepen our get “anything” offering across Uber Eats – building on our already rich range of restaurants, greengrocers, supermarkets, fishmongers, butchers, florists, to add even more retail items. While takeaway food will remain a hallmark, as our selection deepens and evolves we believe it’s time for a new brand platform to capture that. Get almost, almost anything absolutely does that job for us.”
Julian Schreiber, CCO & Partner of Special, said, ‘Being confident enough to discuss what you can’t do is a great way to create entertaining cut through about what you can do, particularly when it’s a huge new diverse offering. It delivers the message but also makes fun of all the over promises that marketing is constantly guilty of.”
The campaign comes as Australia’s food and grocery delivery market undergoes significant changes as it matures. Last year, British-owned delivery giant, Deliveroo, pulled out of the Australian market after six years in operation, citing “challenging economic conditions”. Meanwhile, food delivery service VOLY also withdrew from the market in November, blaming economic uncertainty.
The high concentration of big players in the Australian market has created a competitive landscape. Figures from last year revealed Uber Eats remained the market leader with around 53% market share, ahead of rival Menulog at 20%. Deliveroo held about 12% share, which is believed to have been shared among rivals, including Door Dash and HungryPanda.
Research from Roy Morgan revealed over 7 million Australians use food delivery services, which equates to almost one-third (33.4%) of the population aged 14-plus; this has increased from 3.6 million in 2020. According to the same research, Uber Eats is used by 3.5 million Australians, up from 2.3 million in 2020, confirming its position as the clear market leader.
It’s a position this latest campaign aims to solidify as the brand showcases its ability to deliver more than takeaway meals.
Amazon has more than 115,000 drivers working under independent small businesses – Delivery Service Partners, or DSPs – who deliver Prime packages to doorsteps with one-day shipping. We talked to current and former Amazon DSP drivers about the pressures of the job. From urinating in bottles to running stop signs, routes that lead drivers to run across traffic, dog bites and cameras recording inside vans at all times – some of the 115,000 DSP drivers have voiced big concerns.
While indoor dining has dropped way down during the pandemic, food delivery has grown considerably. DoorDash and Uber Eats, the two largest delivery apps by market share both saw their sales double from the end of 2019 to the end of 2020.
But while it might be an easy decision for customers to use these third-party delivery apps, the decision for restaurants is not so easy. There is a lot to consider, and it’s not a one-size-fits-all solution.
To find out more, watch CNBC’s deep-dive into the pros and cons of third-party delivery apps for restaurants.
If employees actually had to pee in bottles, Amazon said, “nobody would work for us.” That’s a lie.
In anticipation of Sen. Bernie Sanders’s scheduled trip to Bessemer, Alabama, to support the unionization drive by Amazon workers there, Amazon executive Dave Clark cast the $1 trillion behemoth as “the Bernie Sanders of employers” and taunted: “So if you want to hear about $15 an hour and health care, Senator Sanders will be speaking downtown. But if you would like to make at least $15 an hour and have good health care, Amazon is hiring.”
Rep. Mark Pocan replied via tweet: “Paying workers $15/hr doesn’t make you a progressive workplace when you union-bust & make workers urinate in water bottles,” echoing reports from 2018 that Amazon workers were forced to skip bathroom breaks and pee in bottles. Amazon’s denial was swift: “You don’t really believe the peeing in bottles thing, do you? If that were true, nobody would work for us.”
But Amazon workers with whom I spoke said that the practice was so widespread due to pressure to meet quotas that managers frequently referenced it during meetings and in formal policy documents and emails, which were provided to The Intercept. The practice, these documents show, was known to management, which identified it as a recurring infraction but did nothing to ease the pressure that caused it. In some cases, employees even defecated in bags.
Amazon did not provide a statement to The Intercept before publication.
One document from January, marked “Amazon Confidential,” details various infractions by Amazon employees, including “public urination” and “public defecation.” The document was provided to The Intercept by an Amazon employee in Pittsburgh, Pennsylvania, who, like most of the employees I talked to, was granted anonymity to avoid professional reprisal.
The employee also provided an email sent by an Amazon logistics area manager last May that chastised employees for defecating into bags. “This evening, an associate discovered human feces in an Amazon bag that was returned to station by a driver. This is the 3rd occasion in the last 2 months when bags have been returned to station with poop inside. We understand that DA’s [driver associates] may have emergencies while on-road, and especially during Covid, DAs have struggled to find bathrooms while delivering.”
“We’ve noticed an uptick recently of all kinds of unsanitary garbage being left inside bags: used masks, gloves, bottles of urine,” the email continues. “By scanning the QR code on the bag, we can easily identify the DA who was in possession of the bag last. These behaviors are unacceptable, and will result in Tier 1 Infractions going forward. Please communicate this message to your drivers. I know if may seem obvious, or like something you shouldn’t need to coach, but please be explicit when communicating the message that they CANNOT poop, or leave bottles of urine inside bags.”
Halie Marie Brown, a 26-year-old resident of Manteca, California, who worked as a delivery driver for an Amazon delivery contractor, Soon Express, until quitting on March 12, told The Intercept that the practice “happens because we are literally implicitly forced to do so, otherwise we will end up losing our jobs for too many ‘undelivered packages.’”
An email that Brown received from her manager this past August has a section titled “Urine bottle” and states: “In the morning, you must check your van thoroughly for garbage and urine bottle. If you find urine bottle (s) please report to your lead, supporting staff or me. Vans will be inspected by Amazon during debrief, if urine bottle (s) are found, you will be issue an infraction tier 1 for immediate offboarding.”
While Amazon technically prohibits the practice — documents characterize it as a “Tier 1” infraction, which employees say can lead to termination — drivers said that this was disingenuous since they can’t meet their quotas otherwise. “They give us 30 minutes of paid breaks, but you will not finish your work if you take it, no matter how fast you are,” one Amazon delivery employee based in Massachusetts told me.
Asked if management eased up on the quotas in light of the practice, Brown said, “Not at all. In fact, over the course of my time there, our package and stop counts actually increased substantially.”
This has gotten even more intense, employees say, as Amazon has seen an enormous boom in package orders during the coronavirus pandemic. Amazon employees said their performance is monitored so closely by the firm’s vast employee surveillance arsenal that they are constantly in fear of falling short of their productivity quotas.
One email, provided to The Intercept by a Houston-based driver associate who works for an Amazon contractor, alludes to company cameras that can find workers who leave urine bottles behind in the vans. “Data from these cameras can be sent to Amazon in the event of any incident on the road. (We have had several bad accidents, a stolen van, drivers leaving piss bottles etc in the vans).”
The employee said, “Every single day of my shift, I have to use the restroom in a bottle to finish my route on time. This is so common that you’ll often find bottles from other drivers located under seats in the vans. … The fact that Amazon would tweet that is hilarious.”
Public reports that Amazon employees skipped bathroom breaks originated in a 2018 book by the British journalist James Bloodworth. That book, “Hired: Six Months Undercover in Low-Wage Britain,” alleged that Amazon workers at a warehouse in Staffordshire, U.K., resorted to urinating in bottles in order to meet production quotas. While most of the employees I spoke to were drivers who delivered products, workers said the practice was commonplace in factories as well.
The vote by Amazon warehouse workers in Alabama on whether to unionize has become a flashpoint for organized labor. While Amazon has publicly criticized Sanders, he is far from the only prominent politician to voice support for the employees’ right to form a union. Last month, President Joe Biden released a video statement saying, “Every worker should have a free and fair choice to join a union,” which “should be made without intimidation or threats by employers.”
The election, which ends on March 29, would determine if the more than 5,000 warehouse workers will join the Retail, Wholesale and Department Store Union. None of Amazon’s 800,000 employees in the U.S. are currently unionized.
Instacart started as a grocery delivery service. But it’s increasingly moving into delivering office supplies, sporting goods, televisions, makeup and drug store essentials.
Its latest move: Instacart announced a partnership with Walgreens (WBA) Tuesday for same-day delivery on over-the-counter medications, beauty items and other drug store purchases. The partnership will start in Illinois and expand across the United States in the coming weeks to nearly 8,000 Walgreens stores.
The tie-up is happening as online shopping accelerates during the pandemic, and both Instacart and Walgreens are looking for ways to reach new customers.
Instacart is competing against Amazon (AMZN) and other delivery platforms like Postmates, DoorDash and Shipt, which is owned by Target. Teaming up with Walgreens helps Instacart continue to try to become an alternative to Amazon.
“Adding another big retail name to its roster is a win for Instacart,” Neil Saunders, managing director at GlobalData Retail, said in an email. “Given Walgreens’ massive store footprint, this expands choice for a lot of Instacart users.”
Instacart mainly uses independent contract workers, not its own employees, to deliver orders, and its contract workers will shop for the items at Walgreens stores and then deliver them.
Since the pandemic began in March, Instacart has added hundreds of thousands of new contract workers. The company has also struck partnerships since then with Best Buy (BBY), Dick’s Sporting Goods (DKS), Sephora and Staples as it seeks to deliver a wider range of goods from top retailers. In August, Instacart partnered with Walmart (WMT), one of Amazon’s biggest competitors, to deliver groceries, home decor and electronics items.
CEO Apoorva Mehta told CNN Business in 2019 that an IPO for Instacart is “on the horizon,” and Instacart was valued at $17.7 billion in its latest round of funding in October.
In addition to the Instacart partnership, Walgreens offers delivery through Postmates and DoorDash and curbside pickup on online orders.
Drug stores have been focused on being local and convenient options for customers to grab essential items, but the rise of online shopping and home delivery has threatened that position, said Saunders. “Being on a platform like Instacart helps to remedy the weakness.” And since Walgreens does not have a delivery infrastructure of its own, it is partnering with companies that do, he said.
A viral video shows a furniture and home appliance delivery driver being held against his will in a neighborhood, blocked in by a HOA president who demanded information from him regarding why he was there.
“I want to know where you’re going?” a man named David Stewart is heard saying on a viral Facebook live.
“It’s none of your business. I’m going out, that’s where I’m going,” Travis Miller said.
“All we want to know is why you’re in here and who gave you the gate code. That’s all we need to know,” the man said.
Miller told News 4 he did not want to share his customer’s personal information.
Amazon is shipping out food products from third-party sellers that are expired, stale, or tampered with. Four months after CNBC first reported the problem, a new analysis found the sellers are still shipping expired food, even as regulation begins to catch up.
Amazon told CNBC that this happens in very isolated incidents, and that it will suspend or terminate a seller’s account for violations of its strict policies. Still, the CNBC analysis found expired hot sauce, beef jerky, granola bars, Doritos, coffee creamer and baby food being sold by third-party sellers, which can impact consumer trust of the brands and Amazon itself.