One industry that faces drastic changes during the 2020s is transportation and delivery. For individual transportation, self-driving vehicles will change people’s daily lives forever. However, it still will be a long time before self-driving cars become a part of our everyday lives.
The portion of transportation that will truly see a boom in the next decade is last mile delivery. The reason last mile delivery is primed to change is because of the industry that boomed in the last decade: eCommerce.
Last year, during a quarterly earnings call, Amazon announced that it would be investing $800,000,000 to provide Prime members with one-day shipping. Within two hours, Walmart tweeted that they were going to provide a similar offering to their customers but without a membership requirement. Retail giants are pushing every limit and the efficiency possible when it comes to same-day and next-day delivery. In many major metro areas across the US, items can be delivered within 1-2 hours.
Most traditional retailers don’t have a supply chain that can accommodate a delivery within two hours from the time of purchase. Retailers must react to find fast, nimble, and reliable delivery solutions to keep up with new shipping standards. Freight companies and last mile delivery services are adapting to fit the retailer’s needs and push the last-mile industry forward.
Sign of the Times
We’ve seen Uber and Lyft rise as global brands for moving people. Grubhub, DoorDash, and UberEats are dominating the food delivery space. Grocery shopping and delivery services like Instacart are changing how people get their food home. These brands are disrupting industries and proving the effectiveness of virtual fleet models. Large item delivery is next.
According to Stifel’s report on Transportation & Logistics, consumers are becoming more comfortable with delivery of large-item retail, specifically buying big & bulky items online. Because of improved comfort buying online, the percentage of all retail sales that include large item home delivery is up to 9%, which is up 50% since 2015.¹
Consumers buying large items state they look for convenience, “Will the delivery arrive when it’s a good time for me to be home?”, and added services, “Will they bring my products into my house or location of my choosing?”. Retailers are depending on something to change as customers are no longer accepting the constraints of traditional big and bulky delivery. They’re actively looking for creative solutions to meet new consumer expectations when it comes to last-mile delivery of large items.
Invesp’s research shows that more than 51% of retailers offer same-day delivery to their customers. And that number is expected to grow to 65% percent over the next 2 years.² In order to keep up, businesses need to find their own solution to get their product in the hands of their customer easier and more affordably.
How Is Last Mile Delivery for Large Items Changing?
Freight companies and last-mile delivery services are changing their business models, pushing the last-mile industry forward to match consumer expectations. Consumers want greater efficiency, transparent tracking, and scheduling convenience. No more “cable company” arrival windows that mean items show up somewhere between a 4-6 hour window. Consumers expect same-day or next-day delivery with a delivery time that won’t force them to waste a day wondering when their new purchase will arrive.
So how are retailers stepping up their game?
Legacy brands are adapting by buying startups to help improve their logistics plans for the future. Target bought Shipt for groceries and small items, and Ikea contracted with Task Rabbit to offer a small item delivery. This is happening because last-mile delivery makes up 40% of delivery costs on average and startups are finding innovative ways to cut overhead costs while providing a better, customer-oriented service compared to traditional delivery.
Although Shipt and Task Rabbit aren’t designed for large item, same-day delivery, they serve as examples that major brick and mortar retailers are willing to invest in a new model for delivery.
This is where Bungii comes in. Bungii is a delivery platform specifically designed to take on the last mile portion of a supply chain. Our virtual fleet of delivery professionals paired with our ability to integrate easily with any retailer helps us fill the gap of last mile logistics and exceed our partners’ and our customers’ expectations.
Contact our team and let us help your company get ready for the future of delivery, today. We can get you started in three easy steps:
- Fill out the form below.
- Connect with our business partnership team so we can better understand your needs and answer any questions.
- From there, our team will build a custom solution, catered to your business. This features flexible pricing, real-time delivery tracking, a tailored analytics dashboard and a dedicated support team, available seven days a week. On average, going live takes less than a week.