A strange phenomenon has emerged near Amazon.com Inc. delivery stations and Whole Foods stores in the Chicago suburbs: smartphones dangling from trees. Contract delivery drivers are putting them there to get a jump on rivals seeking orders, according to people familiar with the matter.
Drivers are competing for fast-delivery Instant Offers, which are dispatched by an automated system that detects which drivers are nearby through their smartphones, according to two people familiar with the technology. When drivers see an Instant Offer, they have only a few minutes to accept the delivery or lose it to someone else.
In an urban area with good cell tower coverage and plentiful WiFi hotspots, the system can detect a smartphone’s location to within about 20 feet. That means a phone in a tree outside Whole Foods’ door would get the delivery offer even before drivers sitting in their cars just a block away.
The phones in trees seem to serve as master devices that dispatch routes to multiple nearby drivers in on the plot, according to drivers who have observed the process. They believe an unidentified person or entity is acting as an intermediary between Amazon and the drivers and charging drivers to secure more routes, which is against Amazon’s policies. source