The Trusted Experts In Transportation


Last mile delivery – The battle for home deliveries

Same-day delivery and control of all last-mile deliveries is a battle currently being waged by internet retail heavyweights Amazon, Google, Walmart and eBay. They will compete with entries made by smaller retailers and logistics companies – 3PL. This battle will play out with the winner(s) being the companies that create true competitive advantage through its execution. Execution can involve great risk and investment, as Amazon recently announced that it will operate its own fleet of trucks driven by contract drivers in major urban markets and this strategy is underway. Apparently Amazon doesn’t want to hand over control to FedEx or UPS and they think they can operate cheaply. It will be very interesting to see how this plays out. The challenges to successful implementation are major and some are obviously cost, time, staffing and manpower management, and making significant investments in systems, to name a few. to name a few. Will Amazon’s strategy work, will its door-to-door delivery be more efficient than FedEx and UPS, which have strong track records and have already made the investment. Will the battle benefit local and regional parcels, couriers and courier service providers… most likely. Will non-Amazon attendees continue to use FedEx and UPS and perhaps supplement with local couriers? What will FedEx and UPS do, sitting on the sidelines? Not likely.