Being able to deliver quickly is an e-commerce advantage and no one has taken advantage of this like Amazon has. Many of Amazon’s competitors are scrambling to get new models and technology to meet the growing demand for faster delivery of products.
Our younger consumers, who grew up in the digital age, are driving up the demand for these faster deliveries. Over 50% of young Americans surveyed by American Express and Forrester said they would be more loyal to a retailer if same-day delivery were offered.
Could crowdsourcing become a popular solution to this?
This means locals and nonprofessional couriers could be delivering packages to customers more quickly than ever before.
Around the world, many crowdsourced delivery startups like Deliv, Postmates, and Instacart have sprung up and are attracting several billion dollars in investments.
So how do all these work?
They are all slightly different but they all have the same general idea.
An order is placed on a crowdsourced delivery company’s app, by the customer or a retailer, delivery is assigned to a part-time courier using the app. Couriers can bid to accept a delivery, or can automatically be assigned one based on their proximity to the pickup location.
After the order is packed, an assigned courier delivers it to the recipients, using their own means of transportation. The pickup and delivery can be made “on-demand,” meaning right away or scheduled for a specific time window, such as between 5 p.m. and 6 p.m.
The recipient or courier then confirms that the order has been delivered, and the courier receives compensation from the delivery company.
With many reviewing this, ways of making it better are already being talked about.
What are some problems and solutions?
Retailers are looking for ways to deliver goods faster to a customer’s front door like Amazon.
Because of this, retailers and delivery providers are zeroing in on the “last mile” of fulfillment.
Startups like Postmates, Instacart, and others are looking to disrupt the last-mile delivery space by leveraging the “Uber model,” by connecting businesses to nonprofessional couriers who can deliver goods faster.
Urban areas could see a lot more crowdsourcing. These areas have a higher density of deliveries and potential couriers to be matched, making it all a faster process.
With increased delivery volumes, these crowdsourced delivery startups will need to be optimized to increase cost efficiencies.
Many of these delivery startups will likely be changed in the future to a more automated process. These startups will need to incorporate new technologies like delivery drones or self-driving delivery vehicles to keep up.
Let’s see who will be knocking on your door next…