The explosive growth of ecommerce is creating many
opportunities for the transportation and delivery industries. Customers are
increasingly expecting free shipping, quicker delivery options and alternate
delivery points. The advancements in IT, the rise of mobile devices such as
smartphones and tablets are all assisting with this changing mindset. For
transportation and delivery companies to respond to these changes, the ability
to think creatively and to be flexible is vital for success.
While UPS SurePost and FedEx SmartPost have benefited
greatly, it appears that same day delivery is of particular interest to not
only providers but also to retailers. However a couple of months ago, Amazon’s
CFO noted “We don’t really see a way to do same-day delivery
on a broad scale economically.” Still, Amazon is
testing the same day delivery concept in select markets such as Seattle. Not to
be outdone, EBay and Walmart are also testing this concept as is the USPS. Startup
companies such as Postmates and Shutl are utilizing advancements in IT and
mobile devices and are also providing same day delivery mostly via courier services.
Not only
is same day delivery an option but delivery to lockboxes typically located in high
traffic locations such as within physical retail stores. Amazon has been
testing this concept through its Amazon Locker service with 7-Elevens for a
while. USPS is also testing the idea as is several startup companies such as
BufferBox and Kinek. BufferBox and Kinek are both Canadian companies. While
BufferBox provides lockbox services within Canada, Kinek offers Canadians an
option to sign up for a US Shipping Address to save on international shipping
and brokerage fees. Dropboxes for this option are located along the US – Canada
border in US cities.
Additional
startups within the delivery space include Shoprunner, a startup led by former
Yahoo chief Scott Thompson. Shoprunner provides unlimited two-day shipping for
a consortium of more than 60 retailers looking to compete with Amazon. Slightly
different but one with great potential, TaskRabbit is reminiscent of reverse
auctions in which users post a delivery request and the maximum they are
willing to pay for the service. Uber is another interesting startup. Currently
it transports people however it has expressed interest in delivering goods and
is currently working towards this.
Ecommerce
has spurred not only new concepts and ideas within the supply chain but also
new companies are popping up to address logistical challenges resulting from
the rise of ecommerce. Next month, Transport Intelligence will launch the first
report in its eCommerce series, North America Ecommerce Logistics, that
will look at these challenges as well as new companies and how traditional
logistics providers such as UPS, FedEx, DHL and others are responding to these
changes. Europe Ecommerce Logistics and Asia Ecommerce Logistics will follow in early 2013. For more information, please contact Cathy Roberson at
croberson@transportintelligence.com
