1-its cheaper for the paper to pay one currier to deliver what it took two or three "paper boys"
2-its a liability issue. For instance, in our county, the paper went from a morning and evening paper to a morning only. Its a huge liability to have a bunch of kids riding their bikes around at 3, 4, 5am. In today's lawsuit happy society, w/ the drop in newspaper subscriptions, I just don't think having that kind of liability is one that newspapers are willing to take anymore.
I frankly hate doing it. It kills you on gas, it's a pain in the butt getting up that early EVERY SINGLE DAY of the year, and its exhausting. Between my full time job, going to college, and raising a family, it leaves me with no energy. I need the money though.