Uber Dropped Same-Day Delivery, Will Sidecar?

While some companies have found what they are looking for, others simply missed the mark. It just didn't work as expected, and an even robust online retailer eBay stopped to rethink its model for same-day delivery. Ridesharing companies are jumping into same-day programs, like the latest Sidecar. It has been testing out same-day delivery in the San Francisco Bay Area for the last six months and it has been successful.

In a Vantor News article, Sidecar stated, "During our test period, Sidecar drivers earned 75% more when they delivered both people and packages. Riders also reap the benefits of this people and packages combo because there will be more drivers available, lower wait times and even lower prices." The company expects the service to be 50% of their business this year. Sidecar touts that it has found the model is the fastest and lowest cost approach. Deliveries are even cheaper then other providers due to application programming interface, which cuts the cost down to a fifth of the price, and delivery time by half.

Within the article, Sidecar mentions EAT24, one of its pilot partners, utilized the service and experienced double in revenue. The restaurant's food delivery time was also cut 50% and in the end, Sidecar drivers even made more money. In essence, it's as simple as Sidecar put it in the article, "By combining people and packages, Sidecar offers companies same-day delivery at prices that are 80% cheaper than traditional services, and cuts delivery times in half."

With these testing phase results, Sidecar Deliveries has been launched, a new program that allows third party companies to use Sidecar vehicles to deliver their items. "Same-day delivery will represent half of our business by the end of 2015. Our vision is that one day any business will be able to take an order and get it to the customer in an hour, and Sidecar will be the service that powers this capability," Sidecar stated. Sidecar currently has ride-sharing services in San Francisco, Los Angeles, San Diego, Seattle, Chicago, Charlotte, Boston and Washington, DC. More than likely, these are the first cities to experience the roll out.

Uber, another ride-sharing transporter company, tried its' hand at same-day delivery. Uber currently offers car service in 250 cities in 50 countries. It's app is available in Asia, North America, and Europe. The easy-to-use app links drivers and customers that need rides, acting as a convenient taxi service. Uber ESSENTIALS was launched August of last year in parts of Washington, DC, offering shoppers over 60 items, such as chips, deodorant, batteries, and popcorn. It was only an experiment in the area, which didn't not last. Uber pulled back on the service. Same-day delivery helps retailers move their products online and even partner with a Washington DC Courier to perform fast deliveries for them.

Uber didn't last, yet will Sidecar? Time will tell whether Sidecar will have the same results any where. There are many key performance indicators Sidecar has located, namely costs, to help the service be sustainable. Every city offers new demographics and economies of scale as well. Sidecar has its' model. Some e-retailers and brick-and-mortar companies use a same-day courier like A-1 Express for same-day delivery also as a service model. Regardless, same-day delivery will continue to boom as long as online retail thrives.

Reference: 2.9.15, Vator News, Steven Loeb, Sidecar launches its own same-day delivery service