Amazon Will Hire 100k Warehouse Workers Amid Pandemic-Driven Surge in Online Shopping
Amazon is planning to hire an additional 100,000 warehouse workers to keep up with the volume of orders placed by customers amid a global COVID-19 outbreak.
Amazon said Monday it will spend more than $350 million to increase wages for workers in fulfillment centers, delivery operations, and retail stores. The wage increases will be approximately $2 per hour in the U.S., £2 per hour in the U.K., and approximately €2 per hour in other European countries.
"Getting a priority item to your doorstep is vital as communities practice social-distancing, particularly for the elderly and others with underlying health issues," said Dave Clark, head of Amazon's worldwide operations team, in a blog post. "We are seeing a significant increase in demand, which means our labor needs are unprecedented for this time of year."
The plans would grow Amazon's global workforce to nearly 900,000. The company said it had 798,000 workers around the globe in January, up 23 percent year-over-year.
Thousands of Americans are telecommuting and self-isolating to slow the spread of COVID-19, the novel coronavirus that quickly escalated to a global pandemic. Amazon's Prime and Fresh delivery services are grappling with high demand and inventory issues, as warehouse workers report increased order volumes.
"We also know many people have been economically impacted as jobs in areas like hospitality, restaurants, and travel are lost or furloughed as part of this crisis," Clark said in the blog post. "We want those people to know we welcome them on our teams until things return to normal and their past employer is able to bring them back."
Amazon is out of stock on a number of household staples and popular items, according to the company's COVID-19 response page.
"You will also notice that some of our delivery promises are longer than usual," the site says. "We are working around the clock with our selling partners to ensure availability on all of our products, and bring on additional capacity to deliver all of your orders."
The Amazon Fresh website warns grocery deliveries "may be temporarily unavailable due to increased demand." Amazon Fresh did not have any delivery windows available in the Seattle area as of Monday morning.
Amazon expanded its sick policy to provide two weeks of paid time off to all employees last week and advised telecommuting for any workers who can. That isn't a possibility for the warehouse workers and delivery drivers that power Amazon's e-commerce business, though.
Amazon launched a $25 million fund to help its network of independent delivery drivers, Amazon Flex workers, and seasonal employees deal with disruptions caused by the outbreak last week. The Amazon Relief Fund will provide grants equal to about two weeks' pay for workers who have the virus or are quarantined. Grants are also available to workers facing financial or other hardships.
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LA Venture: Plug and Play Founder Saeed Amidi on How His Real Estate Company Became One of Tech’s Most Prolific Investors
It started as a real estate company for startups. Today, Plug and Play operates what it calls an “innovation platform” that offers young companies office space, an accelerator program and — in some cases — invests in them.
On this episode of LA Venture, Plug and Play's CEO and founder Saeed Amidi talks about how he evolved the company into an accelerator and investment firm, and how he uses his platform to introduce many of the world’s largest corporations to startups that are re-envisioning their industries.
Amidi initially started Plug and Play as a space for startups to build the companies, providing them with office space, in-house servers and infrastructure that could help them expand. After talking to his startup clients, Amidi realized what they really needed was money. Amidi saw an opportunity to serve as an intermediary to help his real estate clients grow.
"When we find a great entrepreneur, team and technology, we generally show them to 10 VCs and 10 corporate partners, and we capture their thoughts" on where the startup could improve — and whether they might want to invest, said Amidi.
Plug and Play now has about 540 corporate partners, including Walmart, McDonald’s and Pepsi.
“They are some of the incredibly successful companies around the world that would like to use the [Plug and Play] platform to help them understand the future of commerce,” he adds.
Today, Plug and Play’s accelerator programs — there are 17 of them — host over a thousand startups in the United States alone, including one that recently launched in Downtown L.A. Internationally, that number is about double.
“We are really planning and hoping that with our location in L.A., we would have major content producers, major advertisers, join the platform,” he said.
Plug and Play invests in about 250 startups a year, many of them in the automotive industry.
"The whole world is going through digital transformation so fast, that all of these large companies may be Mercedes or Ford or Chrysler, they are all hunting startups that can help them electrify faster, you know, beat Tesla in their autonomous race," said Amidi.
Amidi said people always ask him whether he considers retiring.
"I tell them if I find something else to do that I will have more fun. I will do it. But, in general, what drives me is how many entrepreneurs or startups use the platform to build their dreams,” said Amidi.
dot.LA Engagement Intern Joshua Letona contributed to this post.
While you can’t drink an NFT, that isn’t stopping some beverage startups from looking to capitalize on the blockchain-enabled craze.
Non-fungible tokens have gained traction in the art world, where artists and creators are using the digital assets to create closer connections with fans and collectors.
The idea of building a creative community around a product is not unfamiliar to beverage brands. After all, generations of beverage aficionados gave us the concepts of the bar, the tea house and the coffee joint.
As brands increasingly take to the digital world to increase their exposure, many beverage companies are now experimenting with NFT technology to build interest around their products. Budweiser, for instance, recently signed a deal to mint collectible tokens, as have Bacardi, Fountain Hard Seltzer and the Robert Mondavi Winery.
Three new L.A.-based beverage brands–Bored Breakfast Club, Yerb and Leisure Project–are also using the blockchain to build their companies and engage with customers in different ways. Each is using NFTs to kickstart their direct-to-consumer businesses and build interest in their brands.
The goal is to use the transparency and equity inherent in blockchain technology to attract early adopters—giving them an opportunity to test ideas and products before they’re finalized—and encourage them to invest in a community built around their drinks.
Time will tell if each brand can deliver on that promise.
Bored Breakfast Club's NFT tokens feature the Bored Ape characters and serve as a subscription membership.
Bored Breakfast Club
One L.A.-based effort, Bored Breakfast Club, has looked to leverage the popularity of Bored Ape collectible NFTs to help jump start a new coffee subscription service.
Frogtown-based marketing agency Kley is leading the effort to use Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) intellectual property to build direct-to-consumer coffee subscription memberships that are sold as NFTs on the Ethereum blockchain. The tokens themselves feature a breakfast scene that include BAYC and MAYC characters, and each functions as a coffee subscription membership.
BAYC and MAYC are considered two of the most popular and expensive NFT collections, according to OpenSea, a secondary NFT marketplace that also tracks their value. BYAC NFTs are valued at approximately 74.69 ETH ($244,041) on the platform.
Kley co-founder Brad Klemmer said the idea was to parlay the success of the Bored Apes brand into a new direct-to-consumer offering. Owners of the NFTs get two free coffee shipments and the possibility of more, if the project is a success.
Klemmer said the idea is to build a regular clientele for his coffee brand by shipping it directly to consumers, rather than relying on them to go to a coffee shop or grocery store. “You need a brand and community that puts their product on [consumers’] doorstep on a weekly basis,” he said.
Bored Breakfast Club launched the project on Jan. 10, offering 5,000 NFTs for .08 ETH (approx. $250) each, and promising token holders they would receive a 12-ounce bag of a different variety of coffee for each of two NFT sales thresholds the company surpassed. The NFTs have since sold out, meaning that the project will ship two bags of coffee to each token holder by the end of the month. The company has also created a “community coffee wallet” that could entitle token holders to still more coffee.
A graphic explains Bored Breakfast Club's "wallet" concept.
That’s because the “wallet“ collects funds from a 5% royalty on its NFTs that are bought and sold on the secondary market. Once it collects enough funds, the company will send additional blends to its 5,000 token holders. (Klemmer said they’re waiting to get data from their initial shipments to determine how much it will cost to ship additional bags). That communal “wallet“ will also pay to produce extra bags of coffee and Bored Breakfast Club merchandise to sell to non-NFT holders.
Klemmer said he sees the NFT offerings as a “fun way to buy coffee.” Also, there were “similarities around NFT communities engaging with each other and what the DTC subscription model is trying to be.”
Bored Breakfast Club works with Yes Plz Coffee, which sources, roasts, packages and delivers the coffee to NFT holders.
Yerb was born out of entrepreneur Brett Fink's habit of drinking yerba mate with friends, many of them creatives who were looking for a coffee alternative. The traditional South American drink is said to provide a calmer caffeine-imbibing experience than coffee.
Like Bored Breakfast Club, Fink is hoping to use NFTs to drum up interest in his business early on. But instead of relying on the popularity of a particular NFT brand, Fink sees an opportunity to use the blockchain to heighten awareness of his own brand and, hopefully, develop buy-in for its first product.
Fink, who has past experience building and growing consumer-packaged good (CPG) brands, including cannabis brands, thinks NFTs can help build a creative community around a product.
“If you believe what we believe, and want to create a product for the creative process, you can benefit from it, as there is a massive untapped opportunity in NFT and CPG projects,” Fink said. “You need to get people to believe what you believe, then have them be involved and take ownership of that product.”
Yerb’s first yerba mate drink will be bottled in 12-ounce cans but sold through NFTs that cost 0.039 ETH (approx. $77 USD). The company started offering the tokens in February of last year; each entitles the holder to six cans of Yerb’s first release, as well as an additional six-pack of cans every year that they hold the NFT. Yerb is hoping that the offer will help it identify early adopters who will buy-in to the brand as repeat customers.
Non-NFT holders will be able to purchase the drinks once token holders receive the first shipment. Yerb is targeting April 2022 for that release after hitting supply chain issues last year.
Venice-based Leisure Project is taking a similar approach to Yerb by targeting creatives with an emphasis on community development.
The startup, which bills itself as “the world’s first co-created beverage brand,” hopes to market a kind of natural Gatorade for entrepreneurs, creators and innovators.
Leisure Project was started by former NCAA Division I athletes and brothers Steve Michaelsen, who works at Nike LA, and Alex Michaelsen, who works at TikTok marketing agency GO Ventures in Beverly Hills. The brothers, who have been bootstrapping the project themselves, have spent almost two years creating the brand’s first three flavors.
In December, the Michaelsens announced plans to experiment with minting NFTs that would provide token holders with the first run of their beverages, cheaper pricing on additional flavors and the opportunity to pitch new products. Leisure Project has been sampling its drinks at local NFT events to drum up publicity.
Down the line, the company hopes to use the blockchain to give token holders access to a yet-to-be-defined “creator database” of potential partners and grants.
Leisure Project is in its early stages, but its founders hope establishing buy-in through NFTs and social platforms like Discord will help build an authentic community for their brand, and give them a potentially vital advantage over more-established competitors. “Big brands can’t go backwards and do something community-orientated after the fact,” Steve Michaelson said.
Correction: An earlier version of this post said Bored Breakfast Club would ship four bags of coffee to early NFT holders as sales thresholds were met. The company has since changed that number to two.
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