Report: Faster deliveries open the market for tech startups to reshape the logistics industry
If you live in a city, chances are you’ve had packages delivered hours after you ordered them online. Same-day or next-day shipping is popular for obvious reasons and Amazon’s estimated 65 million Prime customers are proof of that.
Customers are getting their packages faster and online retailers are making more money, but what’s happening to the middle man as delivery times decrease?
In other words, the shift into same-day and next-day delivery is literally reshaping how warehouses look. In order to fit into to urban areas, fulfillment centers are getting smaller and more prevalent.
“Customers expect speed and convenience, and logistics operators are compelled to give them what they expect in order to survive in this competitive business,” CBRE writes. “This is where technology comes into play.”
Tech startups such as Bringg and Deliv have responded to this demand. Bringg offers consumers real-time tracking information for their package, while allowing distributors to dispatch and manage orders from the web. With the service, drivers can interact directly with both customers and distributors. The same way you track your Uber or Lyft, you can now watch your package arrive.
Deliv also taps into the ride-hailing industry’s crowd-source model. With this startup, companies can mobilize a team of drivers when they schedule deliveries in a city. Much like ride-hailing, it’s both cheaper and more efficient than traditional delivery methods.
With shipping times continuing to shorten, there’s a new market for innovation in logistics within the city, CBRE concludes. Growth in e-commerce has spotlighted a market for startups to disrupt.
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