UPS and FedEx have dominated the US logistics industry — in particular, the last mile of delivery, where a courier brings a customer their order. FedEx estimates that more than 95% of all e-commerce orders in the US are delivered by itself, UPS, or the US Postal Service (USPS).
But e-commerce sales are on the rise, leading to a surge in package volume — and legacy shippers don’t have the capacity or network to quickly deliver parcels. This has opened cracks in the space and presented a significant opportunity for last mile delivery startups to emerge.
From crowdsourcing to drones, here’s how 14 legacy companies and startups are evolving to tackle e-commerce’s growing delivery problem.
FedEx offers door-to-door delivery service for time-sensitive packages through FedEx SameDay. Users can apply for accounts to use exclusively for same-day services 24/7/365 in all 50 US states. The logistics giant also offers SameDay Freight services for shipments greater than 150 lbs.
FedEx Freight has plans to run five pilot programs for last mile delivery service, called “FedEx Freight Direct,” in the first half of 2019, first in the Dallas/Fort Worth market, followed by Atlanta, Tulsa, Oklahoma City, and Omaha. “Standard” service will include drivers bringing shipments to a residence’s first point of entry, while “premium” service would include the white glove treatment of carrying shipments to the customer’s room of choice, unpacking boxes, and possibly assembling products if necessary,
Learn about FedEx same-day delivery.
During the 2017 holiday season, UPS struggled to bring consumers their parcels on time due to higher than expected volume, which upset its high-volume retail partners like Macy’s and Walmart. And with the shadow of Amazon steadily encroaching, the pressure is on UPS to offer faster service.
In addition to standard ground and 2-day shipping, UPS provides a range of urgent and same-day delivery services with UPS Express Critical. Options include Air, Surface, Charter, Hand Carry, International, Secure, Inside Precision, and Value Added Services depending on the sender’s shipment needs.
It’s worth noting that, despite the 2017 holiday delivery pains, consumers like UPS’ tracking features best and consider it the leader of all logistics companies in customer service, according to Business Insider Intelligence’s 2018 Delivery Trust Survey.
Learn about UPS same-day delivery.
Greenwich, Connecticut-headquartered XPO Logistics has over 1,500 locations in 32 countries. It had an impressive Q2 2018, largely aided by introducing an online freight marketplace to help its customers find carriers to move their shipments, and its 2015 acquisition of UX Logistics has improved last-mile delivery capabilities by offering a broader network of truck brokerage, expedited transportation, intermodal, technology-enabled contract logistics, and freight forwarding services.
XPO also offers expedited deliveries globally, and same-day courier services completing orders 24 hours a day, 364 days a year in the Tri-State areas of New York, New Jersey and Connecticut. XPOs courier service is comprised of uniformed employees, fleets of vehicles, and flexible options: same-day, next-day or pre-planned (routed and scheduled). For businesses employing …read more
Source:: Business Insider