Walmart has put a new delivery method which calls for his employees to deliver orders on their way home from work.
The purpose of the program
Walmart executives explained the idea on Thursday saying that it will cut expenses on deliveries, when orders are driven to clients’ homes; this last step of delivery is usually the most expensive.
“It just makes sense: We already have trucks moving orders from fulfillment centers to stores for pickup,” Marc Lore, Chief Executive of Walmart’s E-Commerce Business said Thursday afternoon. “Those same trucks could be used to bring ship-to-home orders to a store close to their final destination, where a participating associate can sign up to deliver them to the customer’s house.”
Testing the program
Last month, the company started testing the package-delivery program in three of its stores; two of the stores are in New Jersey and the third is in northwest Arkansas.
Walmart staff will surely take extra money for the program which is voluntary. Employees can also be paid overtime to make the deliveries, Walmart spokesperson Ravi Jariwala announced Thursday.
“Walmart is uniquely qualified, uniquely positioned, to be able to offer this,” Jariwala said. “There is really strong overlap between where our associates are already heading after work and where those packages need to go.”
As well as cutting costs on delivery, this new program will open doors for Walmart employees to earn more money.
The program risks
However, Jariwala didn’t specify how exactly they would pay the staff.
Additionally, with implementing this program, employees will face risks such as cost and delivery’s duties.
“The practice seems ripe for abuse if the company does not compensate workers for the full cost of their journey, the expenses related to gas, car depreciation, and potential problems like accidents, tickets or parking expenses,” labor professor at the City University of New York Stephanie Luce noted “Like other ‘gig economy’ type jobs, there is a potential to benefit workers — but in reality, most of the benefits accrue to the employer, not the employee.”