Thank you for Subscribing to Retail Business Review Weekly Brief
Retail Business Review | Thursday, February 24, 2022
Looking ahead, the eCommerce business is likely to continue to grow, resulting in a higher demand for quick and effective last-mile delivery.
Fremont, CA: It's not very difficult to see why eCommerce has grown in popularity. Nothing beats ordering something online and delivering it right to the customer's door. Considering that the ongoing COVID-19 pandemic has produced a new housebound economy, eCommerce will likely remain dominant for many years. The increased popularity of eCommerce and rising consumer expectations have put further pressure on shops to improve delivery times without raising prices. This has rekindled interest in order fulfillment, particularly last-mile delivery.
Here are some of the latest and amazing last-mile delivery trends:
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
Crowdsourcing
Startups backed by venture capitalists like Uber, Airbnb, and TaskRabbit have already transformed the labor market, contributing to the emergence of the gig economy, and now they're coming for last-mile delivery. A rising number of business units and businesses have popped up that provide crowdsourced delivery services, from Amazon Flex to Postmates to Roadie. Customers have the flexibility to schedule deliveries according to their convenience and availability, and GPS/telematics devices allow for real-time traceability with a crowdsourced delivery model.
Robotic delivery
Labor is the most expensive of the numerous expenditures connected with last-mile delivery, accounting for almost 60 percent of costs. When it comes to labor, pricing isn't the only limiting issue; availability and timing are also factors to consider. For these and some other reasons, an increasing number of shops are experimenting with robotic delivery using self-driving trucks, drones, and autonomous delivery bots. Though this technology is yet to be thoroughly tested and proved, it appears to be the way of the future, particularly in the post-COVID-19 era.
Insourced deliveries
Instead of outsourcing last-mile delivery, several shops have chosen to handle everything themselves, using their own fleet of cars or a hybrid fleet to fulfill orders. Despite the fact that outsourcing is still the norm, some retailers have chosen to collaborate with competitors in their region to share assets and save final mile logistics costs. To compete with insourcing, some 3PL providers have developed their own local delivery services, including cars and technicians available for local deliveries.
More in News