Amazon got a “last-mile delivery problem,” and it’s solving it by offering employees $10,000 of startup capital plus three month’s salary to quit. That’s right, to quit working for the company so that they can turn around and open up their own local delivery service.
Seeming similar to Uber’s business model, Amazon would be then contracting its former employees, who would now be self-employed, to lighten their local delivery load (pun intended).
So what is Last Touch delivery, and why is it a problem for Amazon?
First, let’s define the term last-mile delivery. It is the movement of goods from a retailer’s transportation hub, the final delivery destination–the consumer’s home–with the goal of items being delivered as fast as possible. (Source.)
So basically, by pushing itself to deliver packages in one day, Amazon essentially created it’s “ last-mile delivery problem.”
Because 75% of Americans shop online, the demand for last-mile delivery is constantly increasing. Retailers and their transportation and logistics providers have to consistently evaluate their service offerings and capabilities.
People are using phones, mobile applications, computers and going in-store to shop, and ultimately they want an experience that is easy, fast and tailored to their habits. So do retailers.
This means business owners are looking for last-mile delivery transportation providers that are technologically savvy, cost-effective, and customizable.
Local delivery is designed to solve the problem of delayed deliveries for consumers, with a company like Amazon offering same-day delivery, and now incentivizing final mile delivery startups, the demand will only continue to grow.
Embedding technology and properly training staff help provide that target service while minimizing overhead.
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