Nearly all retailers plan to offer same-day delivery by 2025, compared to just 35% today, according to a survey conducted by last-mile delivery platform Bringg. The December survey of 500 retailers from the U.S., Canada, the UK, Germany, France and Italy found 99% of respondents planned to offer same-day in the next three years.
While UPS buys its way into last mile and on-demand delivery with Roadie, the U.S. Postal Service is piloting a same/next-day delivery service in Texas, geared toward local business-to-consumer orders that companies bring to a local USPS office to get a discounted rate. Experts questioned its value and market relevance.
AxleHire, a last-mile solutions company powering delivery for HelloFresh, Deliverr, Freshly and Pet Food Express, has closed a $20M funding round aimed at increasing its sortation capabilities, expanding its network and moving more into general ecommerce. It also hopes to create a national network to compete with regional carriers.
Ware2Go, a UPS-owned provider of fulfillment on demand through partnership with warehouse owners, via an integration with Google Shopping, lets merchants offer free shipping early in the search and discovery process on Google, aimed at increasing conversion. Ware2Go handles fulfillment through its partner network.
Amazon Air is projected to have 200 cargo jets in its fleet by 2027 or 2028, bringing it close to parity with UPS if the latter doesn’t expand significantly, according to a study from DePaul University. The study said Amazon Air has grown to 42 planes since its launch in 2016, with plans to expand to 70 by 2021, putting it on par with DHL.
The Office of Inspector General at the USPS found the USPS isn’t threatened by the rise of same-day delivery, determining it is a niche, costly model appealing mostly to urban millennials and only represented 2% of all parcel deliveries in 2018. The IG report also recommended the USPS continue to focus on next-day delivery services.
In our latest MCM CommerceChat podcast, we talk to Robyn Meyer, partner, enterprise solutions at Transportation Insight, about challenges and opportunities in this disruptive environment, as well as some strategy, process and system changes companies can make to improve profitability and performance.
Best Buy is getting into the holiday spirit early and pushing back on major competitors, offering free next-day delivery on thousands of items from Thanksgiving through Christmas, and free standard shipping in the few areas where next day isn’t available. The company says it’s available in 42 U.S. markets, covering 99% of its customers.
Amazon just turned up the heat in the three-way battle for dominance atop ecommerce sellers, announcing more than 10 million items eligible for its new one-day delivery standard via Prime. This compares with 220,000 items available for free next-day delivery from Walmart, announced in mid-May, and 35,000 from Target ReStock.