How crowdsourcing is helping to improve the troublesome last mile of e-commerce delivery

Business Insider | 7/12/2018 | Business Insider Intelligence
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As the steady rise of e-commerce pushes logistics companies and their retail partners to deliver more parcels, faster, speedy delivery is becoming a major competitive advantage.

Company - Opening - Amazon - Name - Fulfillment

And no company has capitalized on this opening like Amazon, which has made a name for itself in fulfillment with its Prime and Prime Now delivery offerings. Now, Amazon's retail competitors — and their logistics partners — are exploring new models and technologies in a race to meet consumers' growing demand for faster delivery. Crowdsourced delivery is one model gaining popularity — it leverages local, nonprofessional couriers to get packages to customers' doors, sometimes in less than an hour.

This model allows companies to satisfy consumers' growing demand for faster online deliveries. Younger consumers, in particular, who have grown up in a digital, on-demand economy have high expectations for fast delivery. A survey released earlier this year by American Express and Forrester found that 57% of North American internet users aged 23-27 said same-day delivery would make them more loyal to a retailer's brand, and 56% of respondents aged 16-22 said the same.

Gen - Z - Gen - Y - Consumers

These Gen Z and younger Gen Y consumers will make up the bulk of shoppers within the next decade, with Gen Z alone expected to be the largest generation by 2026, according to A.T. Kearney. Additionally, 25% of online shoppers surveyed in a study by research firm L2 said they'd abandon a shopping cart if a retailer didn't offer same-day delivery. This growing demand will drive up same-day delivery volumes to account for $200 billion in US online sales — about 25% of the US e-commerce market — by 2025, according to McKinsey.

Many crowdsourced delivery startups, like Postmates, Instacart,...
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