Will Same-Day Delivery Survive This Time?

Same-day delivery is really the talk of the e-retail world right now. You will not find any of the big name retailers conducting any business online without some form of the service. Whether it is Wal-Mart, eBay, Amazon, Target, and more, these companies are making huge investments into making the service thrive. However, even with all of the trending and uproar, some experts are wondering will it work this time?

MIT Technology Review wrote a report questioning whether same-day courier services will succeed and examined some of the retailers new services out there to see if it will make it. Google’s new same-day delivery service is called Google Shopping Express. With this service, you can really buy anything, from gum to a phone charger, and have it delivered to your front door for $5. Google and others usually launch same-day delivery in the San Francisco Bay Area because it has the right ingredients for the service. With all of the e-retail companies offering same-day delivery, the question is why are they pushing for this service now?

When the internet first began to grow, there were companies like WebVan and Kozmo.com, which put a lot of money into same-day delivery as well. These companies were hoping that online sales were going to grow rapidly and make the service sustainable, yet it did not. This could prove to be quite different right now since the consumer environment has changed. This is especially true because of increased usage of technology, such as smartphones, ipad, iphones, tablets, and more. This is not to mention the US population is becoming more centralized, meaning there is more time being spent at home.

Jeremy Levine, a venture capitalist at Bessemer Venture Partners, stated in the report, “Everything in retail revolves on price and availability. Price is price, and availability is a measure of how fast I get it after I click on my phone. A lot of the big guys are trying to crack that code.” Currently, online sales in the US are at $262 billion. The growth shows no signs of slowing down either. This is another reason retail giants are acting swiftly, seeking to be innovative and offer some form of same-day delivery.

Google's Shopping Express charges $5 for each store a customer order from and delivers within 2 hours. eBay has their same-day service with a $25 minimum purchase. It's service is currently available in New York, San Francisco and Chicago. EBay plans on expanding the service to 25 more US cities as well. Online leader Amazon offers Amazon Fresh, its' same-day grocery service in Seattle, and now in the Los Angeles area. This service is actually free for orders over $35. Regarding packages, Amazon created Amazon Lockers, which consist of a customer having their online orders shipped to their nearest locker location and picked up from there at their convenience.

The best option for online retailers to go with is to partner with a same-day courier like A-1 Express to perform the deliveries. A-1 Express has a national footprint and can prove to be exactly what online retailers are looking for to make same-day delivery work. The San Francisco Courier has the courier expertise to create an optimal delivery solution and can provide quick implementation as well. As e-commerce grows continues to grow in the coming years, we will see if same-day delivery will survives.

Reference: 11.14.13, MIT Technology Review, Rachel Metz, Can Same-Day Delivery Succeed This Time?

Amazon Looking To Launch Same-Day Delivery Groceries In Bay Area

A lot of retailers are getting involved with same-day delivery for all types of products. Google is testing the service with everyday products from Target, American Eagle Outfitters and more. Wal-Mart is doing various items of same-day delivery in US cities and China, even offering same-day grocery delivery. This is a service retail giant Amazon is currently offering in its’ hometown Seattle, yet they now have their sights on launching the service in the San Francisco Bay Area.

The San Francisco Business Times has reported some recent findings via the Wall Street Journal that Amazon is preparing to begin same-day grocery delivery in the Bay Area. This same-day grocery service is known as AmazonFresh. The company now has a warehouse about 60 miles from San Francisco and San Jose. It appears they have positioned a location within a close proximity in order to provide the service. Amazon has had this service for over five years in Seattle and has recently launched same-day delivery in Los Angeles. It is no surprise the well-known retailer is expanding there.

Amazon has mentioned a number of job listings as the company gears up to operate in the Bay Area. They have positions available for quality assurance and research & development, which the company mentions that candidate will have to manage a large fulfillment network. To successfully tackle a new service such as this, Amazon is going to need some great people. The question is will they partner with  like A-1 Express to perform the actual grocery deliveries or will Amazon hire its’ own drivers.

Amazon isn’t the only company implementing same-day delivery for groceries in the Bay Area. Wal-Mart is doing it already. Also, Instacart and PostMate have their hand in the jar and offering same-day grocery deliveries. Amazon is leading the pack regarding the emergence of online retail and is growing at a fast rate. Physical retailers like Target, Best Buy, Macy’s, Staples, and others have all jumped in as well to increase their store sales by creating an outlet for selling online. The e-commerce industry is growing at 16% per year and may growing at 17% by year’s end. There is the reason for investing in producing sales where most people hang out, which is online.

One thing is for sure, retailers must have found a certain niche that same-day grocery service will provide in the coming years ahead. Same-day delivery is an innovative service; however, some experts do not think it is sustainable. The price to make it attractive to shoppers can not continue and will end up costing retailers a lot more than they’ll end up making. This will result in inevitable service cost increases for the customers, which will in turn, drive shoppers back to brick-and-mortar retail store locations.

Regardless, same-day delivery of groceries appears to be a great fit because it benefits the customers relative to their time and having to commute to the physical store themselves. Customers may not mind paying an additional charge along with their grocery bill because it makes sense. A-1 Express is a San Francisco Courier that can team up with retailers to implement a sound same-day delivery grocery solution.

Reference: 10.8.13, San Francisco Business Times, Renee Frojo, Amazon moves toward same-day grocery delivery in Bay Area

Shutl Announces Two Hires For Same-Day Delivery Launching In US

Many companies are showing they are serious about same-day delivery in the US. From Wal-Mart to eBay, retailers are stepping into the arena to help their sales grow by venturing out into the service. It is changing the way we do business here and appears to be creating great opportunities for untapped growth. London-based delivery company Shutl is now showing just how serious it is about becoming a key player in the same-day delivery US market.

Internet Retailer has reported well-known shipping company Shutl has hired two executives in preparation for its’ launch of same-day delivery in the US. This is expansion for the company, which already provides same-day shipping in the United Kingdom. Their new chief operating officer will be Sean Cornwell. Mr. Cornwell’s experience includes managing director and vice president of international and mobile for eHarmony.com. He also worked with Google within its’ global markets as a group product marketing manager.

Shutl also hired Mike Fiorito, who has been named their head of North American operations. The focus of his position will be to build Shutl’s courier network. Fiorito’s background consists of being the president and CEO of same-day delivery courier Urban Express according to his LinkedIn profile. It appears Shutl has chosen Fiorito, having the US courier service market experience it takes to create a solid foundation in North America. Shutl CEO Tom Allason stated in the report, “We are delighted for Sean and Mike to join Shutl. They bring a wealth of experience developing and scaling consumer-internet and courier businesses across U.S. and globe.”

Shutl has big plans for expansion once it dives into the US market. The company stated in the report it is beginning its’ launching in the major cities of New York, San Francisco, and Chicago. After these cities, Shutl plans to launch services in others such as Boston, Atlanta, Detroit, Denver, Dallas, Houston, Phoenix, Seattle, Tampa, and more. Shutl also plans to launch same-day delivery in Canada in Montreal and Toronto. Shutl has given no timetable for its’ roll-out in the US. "The timeline for the launch has been pushed back about a month," a spokeswoman says without giving more detail. Even without detail, it appears the launch will be soon since Shutl is moving at such a fast pace.

Some of the moves Shutl is making involves retail partnerships, which the company isn't disclosing right now. There will be no surprise regarding any partnerships they have made due to so many retailers pursuing same-day delivery. Retailers can partner with A-1 Express to implement their same-day delivery solutions nationwide. The San-Francisco Courier has the US expertise and courier network to help any retailer thrive. From physical location deliveries to e-commerce shipments, A-1 Express is the best choice for any of your same-day courier needs.

Reference: 8.14.13, Internet Retailer, Thad Rueter, Same-day delivery service Shutl makes two hires in advance of U.S. launch