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How does Amazon manage same day groceries and charge less than Morrisons direct?

29 replies

Compey · 14/10/2020 21:49

It's not available in all areas but -- how does Amazon manage to delivery Morrisons groceries the same day when I have to wait 4 days to get them from the Morrison's web site?

If it's over £40 the delivery is free on Amazon but Morrisons charge £3 or £4.

Are Amazon and Morrisons losing money on this?

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Msmcc1212 · 14/10/2020 21:52

No idea but Amazon treat their workers appallingly so that might have something to do with it?

wegetthejobdone · 14/10/2020 21:55

I thought it was pretty common that supermarkets lose money on deliveries.

Amazon aren't exactly known for good treatment of staff - their deliveries are made by (presumably self employed) drivers in their own cars. Morrisons pay staff a decent wage and deliver in branded vans. Plus less other overheads, Amazon deliver out of a warehouse about an hour from us - one warehouse for most of the county.

Compey · 15/10/2020 11:56

@Msmcc1212

No idea but Amazon treat their workers appallingly so that might have something to do with it?
It still costs Amazon something to pay its workers but Amazon doesn't charge anything for it. As I understand it, it's Morrisons staff who do the picking in the supermarket so there's no saving to be had there.
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BarbaraofSeville · 15/10/2020 13:11

Have you compared the price of the groceries as well as delivery?

They could be charging more than Morrisons do, just like it being more expensive to get takeaway from Deliveroo than it is sometimes when going direct.

StarCat2020 · 15/10/2020 23:44

No idea but Amazon treat their workers appallingly so that might have something to do with it?
Everybody always says this but I absolutely loved working at our local Amazon distribution hub.

I am weird though

1dayatatime · 16/10/2020 00:10

By routing all payments through Amazon Luxembourg and therefore not paying company tax in the UK, might just give them an advantage over Morrison's.

AgeLikeWine · 16/10/2020 01:12

Amazon are so big and so rich that when they enter a new market (eg grocery deliveries) they can afford to trade at a loss for as long as it takes to build up a significant market share.

Lifeisabeach09 · 16/10/2020 04:18

The lack of corporate tax paying aside, I know two delivery drivers who work (self-employed) for Amazon. They get a flat rate of £150 a day, 12-hour shift, I think. Lots of work at present. And, of course, being self-employed can tax-deduct expenses. That's more than many HCPs get for the same or longer hours.
No idea what warehouse staff get.

Lifeisabeach09 · 16/10/2020 04:21

Just to add, Amazon have the know-how, capacity, and infrastructure to be able to cater to same-day online deliveries unlike Morrisons, for instance. After all, online delivery is what they do.

cabotstove · 16/10/2020 05:07

Amazon are so big and so rich that when they enter a new market (eg grocery deliveries) they can afford to trade at a loss for as long as it takes to build up a significant market share.

This is their model, flood the market with cheap offers. Once they dominate they change the prices.

Buckwheat80 · 16/10/2020 05:25

Amazon have a massive delivery infrastructure. Their whole business is delivering stuff. Not the case for Morrison's.

CaptainMarvelDanvers · 16/10/2020 07:08

@Lifeisabeach09

The lack of corporate tax paying aside, I know two delivery drivers who work (self-employed) for Amazon. They get a flat rate of £150 a day, 12-hour shift, I think. Lots of work at present. And, of course, being self-employed can tax-deduct expenses. That's more than many HCPs get for the same or longer hours. No idea what warehouse staff get.
More than the other warehouses around. I can’t remember the exact amount, but I’ve recently started doing warehouse work (desperate for money) and I lamented that maybe I should have gone to Amazon....Though I expect their standards for quickness are higher.
raviolidreaming · 16/10/2020 08:20

By routing all payments through Amazon Luxembourg and therefore not paying company tax in the UK, might just give them an advantage over Morrison's

Indeed.

HelloMissus · 16/10/2020 08:31

Amazon enter a new market without thought of initial profit.
The idea is to disrupt the space.

Plus of course they work their people like dogs.

notevenat20 · 16/10/2020 08:35

Amazon is just the world's most extraordinary logistics company. They have spent years focussed on this one goal, hiring PhDs and experts in mathematics and computer science. Those jobs are in Seattle I think so we don't hear about that side so much.

ExpectBetter · 16/10/2020 09:46

I assumed the Amazon grocery thing (prime now?) was in partnership with Morrisons, so Morrisons fulfilled it?
I certainly noticed my normal Morrisons deliveries being much later from the precise time that this Amazon service start in my area and presumed it was due to the Morrisons online shopping team also having to handle (prioritise) the Amazon orders?

viccat · 16/10/2020 09:54

I had an Amazon Fresh delivery last week (I could have chosen a same day slot but chose next day) and it was delivered by a guy in a normal car, he just had the paper bags on his back seat and the freezer item in a small cool bag! Confused

I live in London and the delivery tracking map on the Amazon app showed he drove to me from the other side of the river and had a couple of deliveries before mine. It felt a lot more like an Uber Eats or Deliveroo delivery than a supermarket delivery, so I assume they contract a lot of drivers to do the deliveries at a low wage...

notevenat20 · 16/10/2020 10:23

I live in London and the delivery tracking map on the Amazon app showed he drove to me from the other side of the river and had a couple of deliveries before mine. It felt a lot more like an Uber Eats or Deliveroo delivery than a supermarket delivery, so I assume they contract a lot of drivers to do the deliveries at a low wage.

Amazon's delivery system business is normally more cut throat than that. They normally have a number of small companies doing the delivery and then, after measuring how well they do, just fire those that aren't doing what Amazon want them to.

unmarkedbythat · 16/10/2020 10:30

Exploitation of workers.

midgebabe · 16/10/2020 10:32

And tax payments?

Compey · 16/10/2020 10:37

@1dayatatime

By routing all payments through Amazon Luxembourg and therefore not paying company tax in the UK, might just give them an advantage over Morrison's.
Is Amazon still doing this? I heard about Amazon's tax loophole years ago but thought the taxman had struck a deal and stopped it. I think it was to do with VAT.
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Compey · 16/10/2020 10:42

@unmarkedbythat

Exploitation of workers.
Some Amazon workers do find it tough but they don't have to work there. They choose to and are paid the market rate. I wouldn't do that work but others clearly find it suits them. They have a job and customers get good servce - what's not to like?
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yetea · 16/10/2020 10:47

I worked for Amazon as a self employed driver (Amazon Flex) . Just choosing to pick up shifts when I wanted to and doing this as self employed and in my own car. I absolutely loved it and the flexibility suited my needs at the time. I was paid £52 for 4 hours, generally finishing in 3, occasionally 2. I have a fuel efficient car so sometimes my fuel costs were in the region of £2.
Amazon also contracted courier companies too, I'm guessing for some reliability so they definitely had a certain amount of drivers per day (these advertised as paying £150/£200 daily, probably 12 hour). By the looks of it they have their own staff now too with uniforms and branded vans.

Everyone always talks about how terribly Amazon treats their employees and I'm sure they do in some places. However I loved the job I did, the flexibility and the pay for what was unskilled work was great. The warehouse staff always seemed happy enough and certainly not being worked to the bone.

BTW, the prime now deliveries were picked up from the same hub whether Amazon Fresh or Morrisons so I don't think it's got any cross over with Morrisons store staff unless there has been a change since I was there.

unmarkedbythat · 16/10/2020 11:15

Compey I can't work out whether you are being sarcastic, goady or serious. If it's not former you could Google and find out just "what's not to like".

MrMeeseekscando · 16/10/2020 11:20

I dated an Amazon worker. He loved it and pretty much said the so called bad treatment that everyone goes on about is bullshit.