FedEx is diverting some Express deliveries into its less expensive Ground network to drive efficiency and build ecommerce package density after parting ways with Amazon in 2019, according an internal memo obtained by the WSJ. FedEx will redirect residential Express packages to Ground as they get close to their destination.
E-grocery penetration in the U.S. reached 4.5% of the overall food/beverage market in 2019, according to figures from Deutsche Bank cited by e-fulfillment technology provider Fabric, after hovering around 2% for years. It’s expected to exceed 10% by 2024 and hit 12% the following year.
UPS and self-driving technology company Waymo are running a pilot program for autonomous vehicle package pickup in the Phoenix area, using Waymo’s minivans to shuttle packages from UPS stores to a UPS sorting facility. Last year, UPS took a minority stake in TuSimple, an autonomous trucking company.
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.
Walmart is expanding its fleet of shelf-scanning robots, adding 650 this year for a total of 1,000 as it looks to address nettlesome grocery out-of-stock issues and battle competitors with the technology like Ahold Delhaize’s Stop & Shop, Giant Eagle and Schnuck’s. It has also launched a micro fulfillment center at a New Hampshire store.
A seeming disconnect between fewer last-order promise dates and faster holiday delivery times is explained by the rising popularity of buy online, pickup in store, according to an annual survey from Kurt Salmon. This season, 53% of retailers didn’t offer a last order promise date to avoid disappointing customers.
Amazon is telling 3P sellers they can’t use FedEx Ground for Prime deliveries this holiday season, citing performance issues, according to the Wall Street Journal, saying the policy will remain until there are improvements. UPS and other carriers stand to benefit in the short term if they can find room in their networks.
Amazon is enabling Prime customers in eligible areas to shop millions of products on Christmas Eve, and receive them in time for gift exchanges with free same-day delivery if ordered by 9:30 a.m. local time. Amazon Fresh and Whole Foods Market purchases on Christmas Eve in those eligible areas offer free two-hour delivery.
Walmart is testing autonomous grocery delivery in Houston with robotics partner Nuro to a select group of shoppers that opt into the pilot program, the company announced. The test will involve Nuro’s R2 robotic vehicle as well as some autonomous Toyota Priuses, also powered by Nuro’s technology.
Old Navy is partnering with Postmates to provide same-day delivery in 4,000 U.S. markets as it competes with Amazon, Walmart and Target for the holiday retail joy of robust sales driven by aggressive delivery fulfillment.
Delivery will be free from Dec. 21-23 as an incentive for last-minute consumers to buy its casual clothing.