Multiple factors are driving continued greater demand for smaller warehouse facilities vs. big-box fulfillment centers, as companies scramble to position inventory closer to customers and trim ecommerce supply chain costs, according to a new report from CBRE. Vacancy rates are dropping further and rents growing faster for smaller FCs.
Walmart is launching an in-the-fridge e-grocery delivery service it announced this summer, starting in Pittsburgh, Vero Beach, FL and Kansas City, similar to Amazon’s own delivery service launched last year. Walmart customers can choose either kitchen or garage fridge delivery and pay $19.95 per month with a $30 minimum.
Online e-grocery ordering and delivery platform Mercato has announced a subscription offering that provides unlimited free same-day deliveries for members in 25 states, a direct shot at the AmazonFresh program and other competitors. The program comes in Neighborhood and City flavors and uses DoorDash as its delivery partner.
Wing, the drone company owned by Google parent Alphabet, is piloting a drone delivery program starting next month in Christiansburg, VA in partnership with FedEx and Walgreens, the first time a retailer will offer this kind of service in the U.S.
California Gov. Gavin Newsom signed into law a new measure that will require many companies using independent contractors to hire them as employees and provide benefits, dramatically changing the economics of the gig economy in ecommerce delivery. Deliv got ahead of the law in June by hiring its California workers.
Walmart’s answer to Amazon Prime on the grocery side, Delivery Unlimited, is expanding nationwide, the company said, reaching 1,400 U.S. stores now and 1,600 by the end of the year. The program had been piloted in Houston, Miami, Salt Lake City and Tampa, and will now be in all 200 markets where grocery delivery is available.
Amazon and Home Depot will become tenants of a new state-of-the-art, three-story warehouse and fulfillment center in Seattle from logistics giant Prologis, part of the huge push to fulfill ecommerce within a day in major urban markets, according to the Wall Street Journal. Three other such buildings are going up in New York City.
Walmart is offering three-hour delivery for certain home goods and technology products in Mexico, as it battles Amazon in the major Latin American market, according to Reuters. The new service covers 12,000 items including laptops, cell phones, televisions and clothing irons and is supported by two new ecommerce fulfillment centers.
Residents of a North Carolina town will be able to get meals delivered by drone as part of a limited test program sanctioned by the Federal Aviation Administration, as it takes baby steps toward broader approval of drone operations. Israeli drone service firm Flytrex is hoping the test program will expand to all kinds of deliveries, even to backyards.
If we’re looking to turn deliveries into a catalyst for environmental change, drones and autonomous vehicles will help, but we’re not quite there yet. In the meantime enterprises should focus on improving delivery efficiency, which means providing drivers with the most efficient routes and the maximum number of packages per run.