We live in a world where products are constantly being delivered and businesses are trying to deliver faster than the competition. This has resulted in establishing creative solutions to win the delivery race. Businesses that traditionally utilized a delivery service such as UPS or FedEx, are now looking to enter the delivery space. The race is on to see who will master home delivery first.

Delivery is for Everyone

Amazon plans to hire entrepreneurs to begin delivering packages in Amazon Prime-branded vans in an attempt to stay ahead of the competition. They recognize that delivery is the future of retail and that in order to stay successful they need to stay ahead. On the other side, Kroger recognizes that they need to be in the delivery business to continue to be a successful grocer. They are taking a different approach to delivery by partnering with an autonomous vehicle company to begin delivering groceries to consumers more efficiently and without the need of staff. Autonomous vehicles in the delivery space are closer than we think and Kroger is jumping on the chance to get ahead of the technology. Restaurants are even beginning to deliver food. In Europe, McDonald’s is delivering food to people, and in the U.S. they are utilizing Ubereats to deliver.

Logistics Nightmare

While delivery is the future of retail, it’s logistically harder than we think. Walmart, who has mastered the logistics of delivery to stores, failed at delivering products locally. They even tried using Uber and Lyft to deliver, but couldn’t promise free or  quick delivery for their consumers without having to raise prices substantially. The third party company, the driver, and Walmart all had to make money while still keeping prices low. In the end it didn’t work out, leaving Walmart behind in the delivery race.

 

Delivery is evolving to fit the on-demand environment we live in. As small and midsize businesses, we have to be aware of how delivery is changing so we can continue to adapt and change so that we don’t get left behind.

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