The new DSP program was part of Amazon's efforts to solve its problems with last-mile delivery. The company wanted to move faster than the two-day Prime standard, and subcontractors made delivery both cheaper and more flexible. And it worked: Less than a year after first advertising for the program in 2018, one-day delivery made its first appearance in a 2019 earnings call, the beginning of a ramp-up in delivery speed that continued until the pandemic began in March 2020. By August 2020, more than 1,300 DSP companies had launched across the U.S., Canada and Europe.
But cities pose their own problems, too. The narrow, windy streets of Portland and Seattle's hills were difficult for drivers to navigate in the traditional vans. Schmutzer and the other LLC owner knew other types of delivery vehicles would be more appropriate for the terrain but were not allowed to switch. And some drivers described the very high number of tightly packed stops to be very physically difficult to manage, especially on tight streets.
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