Yuma Sun

Faster delivery of nearly everything is the next big thing

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NEW YORK — Waiting is so yesterday.

Shoppers increasing­ly want their orders to arrive at their doorsteps as soon as they click a button, whether it’s a hot meal, groceries or a sofa. In response, retailers are betting big on delivery services to drop off packages faster.

In the latest developmen­t, online leader Amazon, which played a crucial role in raising shoppers’ expectatio­ns for near-instant gratificat­ion in recent years, announced plans Thursday to assemble its own fleet of delivery vans that would be operated by independen­t contractor­s.

Other companies are also thinking of radical new initiative­s to get their products into customers’ hands more easily, helping to transform shopping as we know it.

Here’s a look at the shifting environmen­t for deliveries:

WHAT ARE RETAILERS DOING TO DELIVER PRODUCTS TO SHOPPERS’ HOMES FASTER?

Many have been expanding services that let online shoppers pick up their orders at the store. But the latest strategy? Delivering products to customers’ homes on the same day.

Walmart plans to expand same-day grocery delivery to more than 40 percent of U.S. households, or 100 metro areas by year’s end. It will continue to use ride-hailing services but is also testing the use of store employees to drop off merchandis­e at homes at the end of their work shifts.

With its $550 million acquisitio­n of logistics startup Shipt, Target plans to roll out same-day delivery nationwide this year.

Walmart is testing smartlock technology that allows delivery people to enter a shopper’s home and restock the refrigerat­or. And some Amazon Prime members can have packages dropped inside their homes or car.

Meanwhile, startups like Deliv are working with retailers such as Best Buy and Macy’s to deliver products to homes on the same day.

WHAT KIND OF A CHALLENGE DOES THIS POSE TO THE LIKES OF FEDEX and UPS?

Amazon uses the big parcel delivery services, along with smaller firms and the post office. But it has also started its own air fleet of 40 planes, rolled out a convoy of trucks and built its own distributi­on centers.

UPS and FedEx leaders have long scoffed at the idea that Amazon could turn from a customer to a competitor, and most analysts have agreed — and still do so.

Losing more of Amazon’s business would hurt the delivery giants but not crush them. Analysts estimate UPS gets up to 6 percent of its revenue from Amazon deliveries, and FedEx about 3 percent.

UPS, for example, uses about 117,000 trucks and 500 planes and employs 2,700 pilots to deliver 20 million packages a day on average worldwide.

WHAT ARE THE RISKS FOR AMAZON?

Right now, when parcels are delivered late or not at all, or when they are left out in the rain or otherwise damaged, Amazon can blame the delivery companies. If the company switches to its own delivery vans, customers will have no one to blame but Amazon.

WILL THIS HURT THE POST OFFICE?

It’s unclear if Amazon will cut back on its postal deliveries in favor of its own and how quickly that could happen. But it’s no secret that the U.S. Postal Service is struggling financiall­y because of high pension and health care costs and a slump in revenue from first-class letters and other mail, and that one bright spot has been packages.

The post office’s revenue from shipping and package services, which includes boxes from Amazon and other e-commerce companies, rose 12 percent to $19.5 billion in fiscal year 2017 from the year before.

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