With e-commerce rapidly evolving , retailers are beginning to feel the pressure to offer ’the best’ delivery option for customers. If Elon Musk can send a sports car into space playing ‘Space Oddity’ by David Bowie on repeat, surely it’s plausible that retailers can offer their customers delivery how and when they want. According to a report done by Barclays, 30% of retailers would use Click & Collect as their preferred delivery option, yet less than 20% of consumers chose this service in the past 12 months.
A study explored the utilitarian shopper and what tactics retailers could use to ensure the sale is processed. Consumers with a utilitarian view were mainly concerned with purchasing products quickly and efficiently and reducing sources of irritation during their e-commerce journey. Utilitarian shoppers only purchase items they need, they do not spend time browsing which item they want or browsing through items they may want, they simply purchase what they need. The checkout process for these types of shoppers should be as simple as possible. Often offering click and collect can add to the source of irritation for many shoppers, particularly when there is a charge for this, or it takes 3-5 working days to reach the store.
Transparency is a large factor in a consumer’s e-commerce experience, offering customers a time slot in which the package will be delivered by, or offering same-day trackable delivery ensures retailers lessen the sources of irritation. Many retailers offer tracking on packages within the 3 to 5 days, but often these do live up to customer’s expectations. The customer must click on a link that will take them to a shipping website, where they must copy and paste the tracking number into the new site. Once they have reached this website, they are often met with the message “This package contains no scans.”, which for many customers defeats the purpose of offering the option to track a package. These experiences will often damage a consumer’s relationship to a brand, they may search for alternative options in the future when shopping online, particularly if another store offers faster and more transparent delivery options to their customers.
Although last mile can seem like a large cost for many retailers, there are many companies who specialize in last-mile logistics *Cough WeBringg Cough* and can offer retailers an affordable fee for deliveries close to their store. In the same report by Barclays, over 70% of customers chose the option to have their deliveries delivered by courier, with 70% believing couriers should also deliver on Sundays, when most people are at home to accept their package. Almost 45% of consumers said they would order online more often if delivery services were improved to suit their busy lifestyles.
Integrating systems is often the best option to ensure retailers’ meet their customer’s demands and it allows them to cope with logistical complexities of newer delivery systems. Outsourcing their needs to external companies who specialize in the last-mile logistic market can take the pressure from retailers and allows them to focus on their customer’s e-commerce experience.
Pressure is placed on restaurants to offer digital ordering and delivery:
According to NPS, half of all dinners bought from restaurants are eaten at home, with figures expected to grow in 2018. Bonnie Riggs, NPD said, “the most popular place to eat out this year will be our home.”
Speed and efficiency are large factors in this shift in human behaviour. Not everyone has time to sit down at a restaurant and eat, and technologies have made it possible for people to order food with the click of a finger. Digital ordering has seen rapid growth in the past five years, according to NPR, the most recent data shows an increment from 33 percent to 53 percent.
With price still at the forefront of customers’ decisions, restaurants are under pressure to offer digital ordering and delivery options to customers at a good price point. For some restaurants, online ordering and delivery may not seem like an easy option, in fact, the process can seem quite daunting, time-consuming and costly. For restaurants who do not wish to source their own fleet of drivers, they are urged to search for a third party service who can help them to meet customers’ demands.
Crowdsourcing drivers for restaurant deliveries is often the answer to solving the delivery problem. Perhaps the highest importance to restaurants, owning a flexible fleet allows the company to offer customers a delivery service that fixed-fleet carriers traditionally find too expensive to provide. It also means drivers are always at hand, so deliveries may be done at any time of the day.
The amount of food sold by restaurants is not set to increase, but rather the amount of home deliveries sold. This means there is more pressure than ever for restaurants to offer digital ordering and home delivery.
Many companies now offer the technologies and platforms for restaurants specifically for home delivery, with a rise in companies offering driver management for restaurants. If the figures continue to increase, digital ordering will become a must-have for most.
Spatula, the Perth based logistics technology company has been acquired by WeBringg. Spatula (a spinout of the University of Western Australia) helps companies give their customers and their team a fabulous ‘last mile’ experience. Uber, Dominos and other big players in last mile services have raised expectations of live tracking, and Spatula brings that to every company – small, medium or large, with low cost and no hassle.
WeBringg, the start-up same-day delivery service has been serving the e-commerce market since it’s debut in Ireland in April 2016. WeBringg has developed a technology and process that has turned traditional 3-5 day delivery into 90 minutes. WeBringg uses a fleet of crowd-sourced drivers to provide businesses with fast and effective last-mile delivery. WeBringg operates in Ireland, the UK, Australia and has recently began operating in New Zealand. Sean Murray, Co-Founder and CEO of WeBringg said “We are delighted to welcome Spatula to the WeBringg family. The acquisition of Spatula by WeBringg strengthens our offering to the market. Andrew, Founder of Spatula and his team have developed a world-class SAAS product and our teams joining forces is a statement of our intent to become the last mile market leaders.”
Spatula provides technology to provide world-class, on-demand delivery services direct to restaurants along with other vendors. Spatula is designed for delivery teams to provide B2B delivery services for restaurants and vendors, helping them to provide efficient delivery to their customers. With advanced AI capabilities and the opportunity for continual growth, the partnership between Spatula and WeBringg will help to service the growth for both companies. Andrew Walker, Founder and CEO of Spatula commented on the recent partnership, “WeBringg is a fast-moving company with a dynamic leadership team and great culture. We are excited to join the group. Spatula’s deep technology capabilities together with WeBringg’s proven last-mile excellence will set a new bar for delivery for the customer, the retailer and the brand.”
Spatula has been working tirelessly with WeBringg Ltd. to meet WeBringg’s complex data integration and customers common needs to ensure seamless real-time tracking for customers. WeBringg Ltd’s newly announced partnership and integration with Spatula helps perfect their infrastructure as they grow, accelerate and expand the business worldwide.
Startups are bringing retailers a ray of hope in improving the last mile problem.
The last mile often poses the most problems for many retailers. There are many examples of this, if the customer is not at home at the time of the delivery it exposes the goods to theft, damage and loss. When goods are not delivered, it can be costly and time consuming for all parties involved. With a large increase of online orders, instances such as these will continue to increase and become more of a threat to company profit.
In logistical terms, this final struggle for delivery is known as the ‘last mile problem.’ Considering the extent of online e-commerce growth, opportunities have arisen for budding start-ups to change the game when it comes to technology and driver management. The growing number of startups focusing on this issue brings a ray of hope to many retailers worldwide.
Last mile delivery startups are focusing on creating a value ecosystem, becoming the crucial link to improve logistical cost and time efficiency. For many retailers, in-sourcing last-mile delivery can be expensive, it is difficult to forecast the amount of delivery drivers needed to fulfill consumers’ expectations in a cost effective manner. Last mile delivery startups are using revolutionary technologies and processes to maximize company profit and offer high class customer service.
Crowdsourcing is an efficient process in which many startups are using. Drivers are given access to an ‘app’ in which they can choose when and where they want to work. When they are ‘on the clock’ and active, they will be directed to a location near them in which they can pick-up a package and deliver it within a local radius. This ensures all packages are safely transported in an extremely efficient manner. Crowdsourcing can also ensure packages are delivered one by one, meaning goods will not be stacked in a large truck with little care for their handling.
Startup companies are also looking at bettering the technology and tracking of individual packages. With these ground breaking breakthroughs in technology customers will know exactly when and where their package will be delivered. These processes decrease the ‘last mile problem’ substantially, meaning overall e-commerce companies will be less likely to lose millions on lost and broken packages each year. Thus, improving the logistics ecosystem worldwide.
The logistics ecosystem is poised for change as budding entrepreneurs are now focusing on creating and bettering technologies that will allow retailers to outsource their last mile deliveries. These technologies will ensure customers receive high class customer service, with the option to track their deliveries in real time.