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Amazon Bows To Pressure To Bring Same-Day Deliveries To Poor Areas (fortune.com) 178

An anonymous reader quotes a report from Fortune: After pressure from lawmakers, Amazon is revamping its same-day delivery service in response to complaints that it failed to provide service to poor, minority neighborhoods. The retail giant said it would bring its same-day delivery service to all Zip Codes in the 27 cities where its offered, not just in the wealthier areas, according to a Bloomberg report on Friday.
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Amazon Bows To Pressure To Bring Same-Day Deliveries To Poor Areas

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  • I honestly think things like this is the best for society. Not because it hurts the retailer because its exposed to theft or vandalism. But because it forces society to actually deal with no go zones.
    Once they actually exist, they are mapped, and they should be dealt with.
    Even if it ends with a escort of armed police to the no go zones to get the package delivered, its a start. I agree that a start isn't a means or a end, but its a start.

    • by Anonymous Coward
      It's usually not the company that makes the decision to avoid no go zones, it's the drivers who refuse to go there...and for good reason.
  • by Anonymous Coward

    omg had to wait extra days, that's like oppression

  • fewer choices (Score:4, Insightful)

    by Kohath ( 38547 ) on Saturday May 07, 2016 @11:10PM (#52069223)

    There are no Maserati dealers in poor areas either. I wonder why not?

  • It seems to me the biggest cost of providing same-day delivery is the actual cost of delivering the items. If we presume that this delivery cost goes down as the volume of deliveries to a specific area goes up (more items delivered per trip, less travel time, less gas, etc..), then it would stand to reason that the service would be much less profitable in areas with a low concentration of same-day orders, ie poorer neighborhoods. Does Amazon not have the right to make a business decision on which tiers of s
  • by BlueCoder ( 223005 ) on Sunday May 08, 2016 @01:17AM (#52069457)

    Same day delivery is a luxury. As a business you want to please as many of your customers as possible as it correlates to making a profit.

    Wealthier neighborhoods order more stuff. Those customers in effect do get (and rightly so) more of a consideration when it comes to service. Smaller areas that correspond to more business. You need fewer drivers than for servicing an entire city. Those customers are paying for better service by doing more business with amazon.

    I will give better service to customers that deserve it. Period.

    • Some questions (Score:5, Insightful)

      by Okian Warrior ( 537106 ) on Sunday May 08, 2016 @01:26AM (#52069471) Homepage Journal

      Same day delivery is a luxury. As a business you want to please as many of your customers as possible as it correlates to making a profit.

      Wealthier neighborhoods order more stuff. Those customers in effect do get (and rightly so) more of a consideration when it comes to service. Smaller areas that correspond to more business. You need fewer drivers than for servicing an entire city. Those customers are paying for better service by doing more business with amazon.

      I will give better service to customers that deserve it. Period.

      Out of curiosity, does that position include other luxuries such as cable and internet service?

      I bet those companies could roll out good service to "selected" areas that give a great profit, and ignore the marginal profit areas.

      Or how about phone service? The per-person infrastructure cost for people in rural areas is staggering!

      Maybe we should let the phone company dial back their service in unprofitable areas.

      Or how about electricity? Same thing.

      • Oh please (Score:4, Insightful)

        by Sycraft-fu ( 314770 ) on Sunday May 08, 2016 @05:17AM (#52069841)

        If you can't see the difference you are being deliberately dense. If Amazon offered NO service to an area, that's one thing, however same day delivery service is a pure luxury. Not only is it not necessary to get something same day, you can always get it next day or later, it is something you cannot get in all areas period, or on all items. Not every city or state has same day delivery, and even if your area does, only some items have it as they have to be stocked at the local warehouse.

        So trying to argue that not bringing it to some area is somehow the same as not having electricity is asinine.

        Further, you discover that in fact some services are NOT available in all areas. Move to a really rural area and try to get cable service. You'll find out the cable company will just flat out say no. The cost is too far in excess of the returns, they won't run the wire. You have to settle for satellite.

        Also things like electricity and phone are different in that they are public utilities, specially regulated and subsidized. You generally have no choice in who your electric transport provider is, there's only one grid, and so the government regulates it. Part of that regulation can be provisions for access to difficult areas, paid for by taxes and fees. Part of your phone bill is fees to pay for phone service to remote locations where there is tens of thousands of dollars in radio links and long-haul lines so that the person who gets the service can pay the same as you.

        So if you are arguing Amazon should be a regulated utility ok, but that is a different argument, also a pretty nonsensical one given that they are a retail goods store, just one of many.

      • Out of curiosity, does that position include other luxuries such as cable and internet service?
        [...]
        Maybe we should let the phone company dial back their service in unprofitable areas.

        Or how about electricity? Same thing.

        Nobody will argue that necessities for a modern lifestyle shouldn't be made available to all.

        They will however argue that same-day delivery from Amazon is not a necessity for a modern lifestyle. OP opened with, "same day delivery is a luxury." Not sure where you get off implying

      • by DogDude ( 805747 )
        You're right. Utilities are important to everybody. But same-day delivery of overpriced commodity consumer items from a money-losing fake Internet company isn't critical to anybody at all.
      • Extreme arguments are not 'the same thing'.

        Whenever things like this come up, I always defer to the idea of what is 'reasonable' for a person to do.

        Yeah electricity, phone, cable... what would a rural person have to do if the electric company didn't provide service to their area? Yeah, their ability to use appliances and communicate drops dramatically... maybe even disappears.

        What does a person do if Amazon doesn't offer same day shipping? They umm... you know... wait a day. The 'cost' not just in terms of

      • by Kohath ( 38547 )

        People who do valuable things for others can afford to hire others to do valuable things for them. Meanwhile, people who just sit at home watching TV during the day, doing nothing for anyone, have fewer opportunities.

        You seem to think non-workers should have a whole range of valuable service choices to choose from, even when they don't provide any service to anyone themselves. Why is that?

    • by twistedcubic ( 577194 ) on Sunday May 08, 2016 @04:12AM (#52069731)
      Look at the map of Boston in the article. The missing service area, Roxbury, is dead in the center of the city, completely surrounded by areas serviced by Amazon. Don't assume this is a simple "it's not cost effective" reason, for you don't know.
      • Chances are it's not cost effective due to the impact of crime on business.

        That the area happens to be an area filled with black people likely never crossed anyone's mind. Chances are whoever (could well be an algorithm) made the decision to serve or not server certain areas did so based on profitability. Chances are also good that whoever made the decision lives in another part of the country, or could even be in a different country altogether. If you aren't a local, how are you going to know?

      • by Kohath ( 38547 )

        A better question is why do people stay in Roxbury if it's run down and crime-ridden and hopeless?

        If you look around for a new place, there's always somewhere else to go eventually. My only guess is that the people there are trapped by subsidy checks that will be taken away from them if they improve anything. Perhaps you have a better guess?

      • I would expect that it was simply analytics. Take the ZIP codes in a city. Amazon knows the number of prime subscribers in each ZIP code. They know the dollars worth of sales in every ZIP code. Divide either figure by the square mileage of the ZIP code, and you get an easy metric. If it's above a certain threshold, add same-day. If it's not, don't. I'm sure in reality, the metrics are more complex... a combination of the two I mentioned, plus travel speeds on the roads in each ZIP code, distance from

    • by AmiMoJo ( 196126 )

      If you want to live in a mertiocracy, then everyone has to have the same opportunities. While same day delivery might seem frivolous, like many important things you can't arbitrarily pick what counts and what doesn't. For example, bus and taxi services refusing to go to certain areas to clearly going to disadvantage those areas.

      • by Lumpy ( 12016 )

        And when taxi drivers keep getting robbed there, they have a full right to not send them.

        Sorry, but fuck the part of the city where crime is the highest and you risk the lives of others to provide service. Pizza places that refuse to deliver to the poor parts are smart. You don't have your employees killed over a pizza and $40, It's the smartest thing to do.

    • by Tom ( 822 )

      So true. Business needs to make profit, and limited resources need to distributed so that it maximizes shareholder value. For example, if you are the water company, wealthier neighborhoods use more water, and in effect rightfully get more of a consideration when it comes to services, quality and whether or not you will repair that broken pipe. You need less pipes, just thicker ones. These customers are paying for better water by filling their pools with lots and lots of it, while the poor just drink it and

  • by OpenSourced ( 323149 ) on Sunday May 08, 2016 @03:00AM (#52069613) Journal

    As a next step, they will be forcing Starbucks to open the exact same number of stores in poor, depressed areas as in the center of the city.

    Also, city servants will have to spread their living quarters evenly across the cities.

    In related news, touristic tour operators will change their sightseeing routes so that an appropriate amount of time is devoted to the dreariest parts of the city. The legislature is divided on the issue of forcing the tourists to take an equal amount of photos in every area, because the egalitarian push will clash with the desire not to offend inhabitants of the slums with the feeling that they are into some kind of zoo. The delicate balancing of these opposing traits is what keep your tax dollars at work.

  • by PeteJanda ( 1481299 ) on Sunday May 08, 2016 @07:47AM (#52070081)
    Any subject can be viewed through a racial or economic lens, but does that mean the argument has legitimacy or merit? Methinks not. Step 1: Pick a historically disadvantaged minority or a currently underperforming group. Step 2: Data mine some negative, unique aspect of said group. Step 3: Start a crusade to right the perceived wrong. Example: Pick a group like Native Americans. Point out that they don't have the same access to the myriad varieties of pasta sauce as everyone else. Write a Bloomberg article about the injustice of Prego's distribution strategy and then watch the ad dollars roll in from the click bait piece. This absurd example is effectively what Bloomberg did with its analysis. Good grief. Amazon would be happy to make money off of quadriplegics if it could. Race has nothing to do with its strategy. Leave the company alone.
    • Re: (Score:2, Funny)

      by Anonymous Coward
      I like Fritos BBQ corn chips... The regular ones, not the shitty twists or honey BBQ ones. But Fritos stopped distributing them to the west coast areas of the USA decades ago. Yes, I could order them from Amazon, but they are marked up 300%. I think this is racist against western USA. Any SJW lawyers want to fix this for me? I want my Fritos BBQ corn chips in S Cali!
  • How many ghetto denizens use Amazon to begin with, much less wanting to/being able to pay extra for same day delivery?

  • by ooloorie ( 4394035 ) on Sunday May 08, 2016 @08:50AM (#52070253)

    This means that Amazon is effectively going to subsidize delivery business into areas where they are making a loss. But now that they are forced to deliver there, they are effectively going to compete with local businesses at those subsidized prices, and they are likely going to skim off their most profitable customers. It's the local equivalent of what politicians always complain about in international trade: dumping.

    The net effect is going to be that these areas are going to be more dependent on a corporate behemoth, small businesses are going to disappear, and poorer people are going to have even less choice. Progressive lawmakers like Ed Markey are really doing everything they can to drive up prices, kill minority businesses, and generally impoverish minority communities.

    • by eWarz ( 610883 )
      Not really, their 2 hour delivery service was always merely a partnership with local (primarily) grocery stores. Amazon doesn't lose a dime regardless of where they provide this. Grocery stores (in my area...nashville) like publix (vs a much cheaper kroger or wal-mart) set the prices and the cost of delivery is built into the total cost of the service. No real 'poor' person will use it anyway. I don't mean to insult amazon, in some 'loss leading areas they provide quite a bit of value, but when I can ta
      • Fact is: Amazon didn't consider it profitable to go into these areas. That means that other businesses there (perhaps locally and minority owned) meet the demand that exists there more efficiently. If forcing Amazon to deliver to those areas has any effect, it's going to be that Amazon is now going to compete with those local businesses. And if they have to expand their business to those areas anyway, they are going to make sure that they are minimizing their losses, which means that they will try to drive

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