If you would have told Kozmo.com to wait a little longer for technology to catch up with what it was attempting to launch, maybe the company would have made it to the finish line. Technology has helped innovation to make same-day delivery feasible. With the advanced use of tech gadgets by shoppers, from smartphones to tablets, online shopping is more attractive and last-mile deliveries more appealing than ever.
USA Today recently released an article discussing how home delivery business is becoming something very profitable. E-commerce is estimated to reach $500 billion by 2018 and online retail has consistently increased 16% annually. With the rise of technology, the atmosphere is ripe for same-day delivery to become a more powerful and sustainable role in generating revenue for web-based and physical store retailers.
The climate for business is to use technology to work smarter, not harder. The article pointed out how companies like Instacart with 70 employees, is able to offer one-hour grocery delivery services in 12 cities utilizing its’ network of personal shoppers to pick up and deliver to homes. These shoppers aren’t among its’ direct employees, but rather contracted as a same-day courier like 1-800 Courier. Instacart’s employees consist of engineers and administrators, in addition to the company not owning any warehouses or distribution centers for product. This is essentially sound and effective use of technology to create a seamless delivery system.
Amazon’s model includes numerous of technology-driven, fulfillment centers in the US as a part of its’ implementation of same-day delivery. The e-retail leader has had its’ sights on same-day delivery all along, launching the service in multiple US cities, including ending last year with adding New York City, Baltimore, Indianapolis, Washington DC, Philadelphia, Dallas, and Atlanta to its’ list. Amazon opened its’ very first physical location its’ 20-year history, to aid with same-day delivery and online order pick up in Manhattan, New York. Bike service is offered in New York as well.
The article mentions how technology has enabled start-ups and large business to utilize various sophisticated frameworks to ultimately logistically optimize on same-day delivery. Now, storage and computing costs decrease and the service becomes more manageable. Algorithms are being used to help couriers pick up and deliver faster, and at the same time, maximize the completion of orders. This type of technology was not as enhanced and refined a decade ago. For same-day delivery to work, the numbers have to be right and technology is allowing companies to obtain the figures to make targeted decision making.
It helps retailers like Google, Macy’s, eBay, Wal-Mart and others to partner with a same-day courier like 1-800 Courier, which has the courier technology to maximize on last-mile deliveries. The Houston courier has a national footprint and the logistical expertise to create route optimization for volume, consolidated order fulfillment. As technology continues to excel, same-day delivery will grow with it.
Reference: 1.6.15, USA Today, Michael Moe, There’s big money in the home delivery business