Monthly Archives: February 2015

Technology Making Same-Day Delivery Become Big Business

Online ShoppingIf you would have told 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

Same-Day Delivery Grows, But Will The Drivers?

Courier ServicesA number of companies have a lot riding on all of their same-day delivery efforts.  It does show that no matter how big you are, the cost to implement the service on a mass scale, and be profitable, comes at a hefty price.

The Huffington Post spotlighted Amazon in an article regarding its’ same-day delivery growth.  Amazon has experienced a huge spike in shoppers utilizing the service this holiday season, and it is rightly so concerning all of the investment and expansion the web-based retailer did months prior.  The holiday sales figures are paying off, as in one of its’ latest press releases, Amazon announced it had 10 times more items shipped via same-day delivery than last year for the holidays.

There were 8 more major US cities that Amazon added to its’ mix of same-day delivery programs, including Atlanta.  It went without question that clearly the 50 strategic distribution centers for order fulfillment aren’t enough.  Same-day delivery is becoming a strong staple for Amazon to get those last-mile deliveries performed from their warehouses.  E-commerce is expected to increase close to $500 billion in 2018 also.  However, amid all the growth, will the delivery driver gain from all of the frenzy and grow also.

It’s hard to comprehend that Amazon could ever yield any massive loss, but it did this year.  Amazon had a net loss of $437 million in the third quarter of this year, so the high holiday numbers certainly brought the retailer some good cheer.  However, Huffington spotlighted a case where everyone involved in same-day delivery doesn’t win; the one that that may be lossing out is the driver.  “It’s like they want us to be employees, but they don’t want to pay for it,” Myron Ballard said, driver for Amazon delivery partner LaserShip.

Below is a quote from Huffington about Ballard’s experience being a same-day delivery driver.  “Ballard had to purchase the cargo van he drives for work. He doesn’t get reimbursed for the wear and tear he puts on it; for the gasoline he pours into it on a near-daily basis; for the auto insurance he needs to carry; or for the parking tickets he inevitably racks up downtown. He doesn’t even get reimbursed for the LaserShip uniform he’s obliged to purchase and wear”.  It really brings exposure to the importance of making the independent contractor satisfied, not just the shopper with low prices for same-day delivery to not implode.

This is merely an example of how drivers can’t get lost in the same-day delivery pursuit, or they’ll get lost in the shuffle.  Same-day delivery will continue to break the mold and flourish, as physical retailers implement the service in hopes to downsize their physical store costs.  If shoppers are at home, retailers are making the investment to get their products to them instead.  A same-day courier like 1-800 Courierhas a national footprint and the courier expertise to assist e-retailers and brick-and-mortar stores thrive with last-mile deliveries.  The Seattle courier can create a same-day delivery solution fixated on profiting the shopper and its’ drivers as well.

Reference:  12.26.14, Huffington Post, Alexander C. Kaufman, Amazon’s Enormous Same-Day Delivery Growth Comes At A Price

EBay Expands EBay Local Pilot Delivery Program In Brooklyn

Courier ServiceThe race for same-day delivery became intense this year, as Google, Amazon, Wal-Mart, and Macy’s led the way with a number of moves to position themselves to master the service.  On the other hand, EBay recently decided to rethink its’ service, pulling eBay Now as a standalone app and integrating it into its’ main website.  It appears eBay was hanging up the gloves with same-day delivery, but think again.

EBay announced that it will be expanding its’ eBay Local pilot program in Brooklyn with an additional 80 small businesses that will offer scheduled and same-day delivery.  It also will provide in-store pickup to area customers.  It’s now clear that eBay Now is still functioning under eBay Local.  The e-retailer had released plans to expand eBay Now into 25 different markets, partnering with UK-based delivery start-up Shutl to get it done.  However, per an eBay spokersperson, the company is “moving to core” and the new eBay Local expansion could be signs of starting from the ground floor again to find what is sustainable long-term.

Tech Crunch discussed in the article how eBay Local is essentially the re-branding of eBay Now, yet it offers pickup options for shoppers as well.  EBay Local is being offered in limited US markets, including Brooklyn, Queens, San Francisco and parts of the Peninsula, San Jose, Chicago, and Dallas.  It also has local programs in Germany, UK and Australia.  There is a shift with eBay focusing in on smaller sellers who have customers that prefer online store pick up.  This is what Shutl’s “click and collect” delivery model is based from.  Shutl also uses a same-day courier like 1-800 Courier to perform the deliveries for them.

In a post regarding the new Brooklyn expansion, senior director of eBay’s Local initiatives Tom Allason, mentions briefly about offering the options customers want.  “We find that our customers like having choice, based on when they need the item and how much they want to pay to get it”, stated Allason.  Even if eBay expanded into the 25 markets it had planned, it could not succeed without the order volume, which is one of the key components for same-day delivery to work.

Online store pick up is a viable direction to go in, as mobile commerce continues growth.  Recent numbers from Black Friday and Cyber Monday show that shoppers are becoming more comfortable shopping on-the-go.  It was found that 37% of e-retail transactions from Black Friday through Cyber Monday were made from a smartphone or tablet.  It means that it would be quite easy for a customer to buy online and make a store pick up, opposed to having to wait in line.  It is a service that makes sense, and it could be why eBay is showing a more extensive interest in offering it.

Costs will always be the bottom line for same-day delivery.  EBay Now was being offered for a $5 fee.  Macy’s, newcomer to the same-day delivery bout, is currently charging only $5 for all orders over $99.  Wal-Mart, Google and Amazon have comparable pricing also.  Since a number of retailers need a delivery partner, 1-800 Courier is a New York courier that has courier logistics expertise and can create a same-day solution that is cost-effective.

Reference:  12.16.14,, Sarah Perez, Ebay Expands Local Pilot Program Offering Same-Day Delivery, In-store Pickup In Brooklyn

Thundercakes Shows Any Business Can Do same-day delivery

Bakery PhotoThe big boys are not the only types of companies and businesses rolling out same-day delivery.  Small businesses are seeing the benefits of being able to get their products into their customers’ hands fast.  Yet, it isn’t stopping there.  Bakery companies are diving into same-day service also and the owners of this bakery aren’t your average business owners.  At this rate with this level of business savvy, who knows where it will be in a few years.

Thundercakes is a student-run baking company.  That’s right, and it just rolled out same-day delivery reported The Daily Orange in Syracuse, New York.  The delivery-only bakery normally offers two or three day delivery time frames.  However, November 11th will mark its’ new Thunderous 5 promotion, while providing customers with same-day delivery.
Courtnee Futch, a senior communication and rhetorical studies major and CEO of Thundercakes, comments on the same-day time frames in which customers will receive their fresh dainties.  “This is people having the ability to place their order by 2 p.m. and receive it no later than 7 (p.m.) on the same day, which is definitely unheard of,” Futch said.

Futch discussed in the article how Thunderous 5 Promotion consists of promotions targeting impulse buyers.  She stated that when customers are thinking of something to eat, they don’t want to wait.  This is impressive, as Futch understands business and she is offering the promotions to back this up, as they will be held all year.  The Thunderous 5 promotion will involve a rotation of flavors seasonally.  During the first week of every new rotation, each dessert will be 15 percent off.  Some of the items stated will include the gold ganache cake, chocolate pecan turtle cookies, maple bacon cinnamon rolls, Georgia, Honey! cupcakes and chai tea cupcakes.

Just to think, Futch started the business three years ago in her dorm to make some extra cash.  Now, she racks up 70-80 orders weekly.  Gabriela Carrero, friend of futch, commented on her abilities to make this business happen.  Carrero stated in the article, “She is very successful when she does her promotions.  Even when she started I remember it was her promoting her baked goods as, ‘I know you’re tired of studying right now and you need that little pick me up.’ That’s what she did freshman year in the dorms, and a lot of people obviously went and bought her stuff.”

Thundercakes has it all and proves that any startup can gain ground with the right innovation and knowledge of its’ target market.  Retail giants have the right products and have set themselves up for holiday sales, as they implement same-day delivery in major US cities nationwide.  Google, Amazon, Macy’s, Barnes & Noble, Wal-Mart, and more, are all using same-day delivery to make shopping with them more attractive.

Thundercakes proves you don’t have to be robust, but savvy and have the people to get it done.  A same-day courier like 1-800Courier can partner with any web-based retailer and/or brick-and-mortar retailer to implement same-day delivery to increase sales before the holiday shopping season hits.  The New York courier can deliver fast, on-time and various hours to give you the competitive advantage you need to increase sales now.

Reference:  11.10.14, The Daily Orange, Renee Cherry, Thundercakes to offer same-day delivery