Page 20

THE UBERIZATION OF PARCEL Increasingly, the lines between retailers, carriers, technology providers, and group-sourced passenger vehicles appear to be blurring. Uber-like same-day delivery networks seem poised to change the parcel industry forever.

By Bob Malley

20 PARCELindustry.com  JULY-AUGUST 2018

E

-commerce is driving parcel shipping growth at a rate of 10% per year, and rates are increasing at twice the rate of inflation. And it’s just the beginning: e-commerce currently represents only eight percent of the $5 trillion US retail market ($23 trillion globally). This growth means that everyone with access to a vehicle is competing to meet the demand for last-mile delivery. Regional carriers are seeing more residential shipping volumes. Amazon, Target, and Walmart are building out their own parcel delivery networks. Even the ocean carrier Maersk recently announced a five-year plan to move inland and compete with UPS and FedEx. Now, same-day delivery networks are emerging that use mobile technology to group source part-time drivers. Today, the “Amazon Effect” is shifting free and fast shipping from locations ever closer to the end consumer. Amazon continues to raise the bar, opening over 140 fulfillment centers nationwide to service 100 million Prime

PARCEL July/Aug 2018  

PARCEL July/Aug 2018

PARCEL July/Aug 2018  

PARCEL July/Aug 2018