Google is creeping more and more into the logistics space
and now appears to be targeting Amazon for a lead within the ecommerce space.
This past week, the IT Company acquired BufferBox for $17m.
BufferBox, a Canadian-based company, developed an automated,
self-serve kiosk for parcels which allows for 24/7 pick-up
deliveries. The kiosk supplies the user with a unique BufferBox address to have
their parcel delivered to. Upon the arrival of a parcel, the user is emailed a unique,
one-time-use PIN code for the kiosk to retrieve their purchase on their schedule.
The company offering the service for free this year to help build up a user
base. Eventually it plans to charge $3 or $4 per package delivered to its
boxes.
The parcel drop box phenomenon appears to be growing in the
North American market as Amazon, USPS and Canadian start-up Kinek have all
introduced their own versions. Reduced shipping costs, reduced mis-deliveries and
the security these kiosks offer are among the appeal to both shippers and
customers.
When asked why Google acquired BufferBox, the company stated
"We want to remove as much friction as possible from the shopping
experience, while helping consumers save time and money, and we think the
BufferBox team has a lot of great ideas around how to do that."
Indeed, the company has made some interesting investments that
have many wondering what Google’s logistics plans may be. For example, in 2011,
the company received a patent for shipment notifications and in 2012 another
patent was granted for shipment tracking and monitor. In another interesting
move, the company introduced its Blue Dot service in 2010. If an item is out of
stock at one location, this mobile app service allows the user to locate
alternative locations. Best Buy, Sears, Williams-Sonoma and Pottery Barn are
part of this service by providing local inventory details to Google.
Its acquisition of Motorola’s patents may also play a major
role in its move into logistics. Google’s patents as well as it Blue Dot
service are designed for mobile commerce. Mobile commerce is growing quickly.
While still in its infant stage, Forrester estimated mobile commerce grew 80%
in 2011 and is likely to double that in 2012.
The use of mobile devices is also growing within the
logistics industry – tablets, smartphones – are all being utilized to track
goods, manage inventory and more. Perhaps Google is looking towards this
opportunity as it continues to build out solutions for visibility and
collaboration?
For more information on Google, Amazon and e-commerce
logistics, check out Ti’s latest report: North America e-Commerce Logistics.
This is the first in a series of e-Commerce reports with Asia and Europe market
reports scheduled for publication in early 2013.
