Will Same Day Delivery be a Niche or Disruptive Option?
One of the main businesses to look at when considering the prospects of same day delivery companies is Uber. There are many possibilities for Uber, or similar services, modeled to leverage small, same day, local deliveries.
However, there many myths surrounding this, which must be identified. Some people seem to think that these applications somehow change the basic principals of the basic costs of running a logistics business, and this simply is not the case. They are subject to the same market forces as other logistics companies, plus the fact that same day deliveries are not their specialty. That being said, the Uber did change their brand mantra in 2013, from “Everyone’s private driver” to state that they now represented “Where lifestyle meets logistics,” and has been called the future of logistics. So, should FedEx, or any other big logistics provider, be worried about this change?
Perhaps the threat is not from Uber and Lyft, but new local logistics companies such as Deliv who are creating a specific same day local delivery service based on a similar model to Uber and Lyft. FedEX changed the game in the seventies with their promise of overnight delivery, which everyone thought was impossible at the time. Now Deliv hopes to have the same impact with their promise of same day deliveries.
This means that same day deliveries need to be more than a niche market, if Deliv is to have the same impact. There is certainly enough demand for parcels to be delivered on the same to mean that it can become a truly disruptive development. The scale of disruption is still hard to gauge. At the time of writing, low cost and free delivery is more appealing to consumers than paying extra for same day delivery. But perhaps the important factor is not speed, but predictability, or having the ability to know exactly when the parcel is going to arrive, and the flexibility that this knowledge affords the consumer.
Retailers who offer same day delivery are making the process of purchasing from them much more convenient. Shipping and the supply chain have become a way to greatly increase customer satisfaction, and this is important for all retailers, but an app like Deliv can make this happen at a good price.