Will Deliv Win Out In Same-Day Delivery?

With all of the hype regarding Google, Amazon and eBay, it's tough for shoppers and retailers to hear news of an underdog like Deliv with its' crowd-sourcing approach to win out in same-day delivery. The Washington Post recently discussed how Deliv could become the frontrunner in the last-minute delivery race.

Deliv's founder and CEO Daphne Carmeli started the company in 2012 with a different core objective than her predecessors like Kozmo and Webvan. Her take on what should be driving what shoppers want may even be in contrast to Google and Amazon. “The market opportunity for same-day delivery has very little to do with meeting the needs of people who want things fast,” Carmeli said. Others in the same-day delivery race are indeed after making the service cheap, hence attractive to shoppers. From Carmeli's standpoint, customization is what will ultimately attract and keep shoppers.

She touted in the article that shoppers desire flexibility and predictability. A shopper can have their items delivered within a two-hour window between their haircut and their kid's soccer game. Also, its' for shoppers who have to change their delivery time for whatever reason and Deliv gets it done. This is definitely a high level of service, even the type of first-class service that a hotel provides its' guests. If it is built right, it is a service that shoppers will pay for, especially if the service is inexpensive.

Currently, Deliv is making a lot of head way relative to growth within its' primarily partner markets. Deliv has amassed 250 retail partners, including Macy's, Foot Locker, Brooks Brothers and Neiman Marcus. It also has expanded to 8 metropolitan areas throughout the US. When Carmeli first began conceptualizing Deliv, she found that the majority of the stores of the top 200 retailers were in malls. “I can walk around Disneyland, buy stuff, and have it show up at my hotel. Why can’t I do that at the mall?”, Carmeli told mall owner and Macerich operator Art Coppola.

To Coppola, it makes sense for malls to get on board. Shoppers don't have to be concerned with totting heavy bags around the mall all day. If the customer lives in one of Deliv's service zones, for a $5 fee, they can have Deliv transport those bags to the front door of their home while they stay at the mall. Macerich vice president Kurt Ivey stated in the article, “we are not making money on this. We are not trying to generate revenue, we are trying to enhance the [shopping] experience.” Ivey mentioned this service keeps the shopper at the mall, instead of going to their cars to drop off their bags, because many shoppers don't come back afterwards.

Deliv could have a same-day delivery system that works, however, one downside is the company has no control of merchandise pricing. Pricing is totally set by the retailer. Also, what if the retailer decides to offer same-day delivery itself like Wal-Mart. Retailers can partner with a same-day courier like A-1 Express and offer the same level of service, even for item returns. The Chicago courier also has a national footprint, which is ideal for mall retail chains to have a one-stop source for all of their locations.

Reference: 12.12.14, Washington Post, Sarah Halzack, Will the same-day delivery war be won by a competitor you’ve never heard of?