NOW THAT THE FEDERAL AVIATION ADMINISTRATION (FAA)
has at least temporarily grounded plans by Amazon (and others) to use
drones as small couriers, what alternatives are there for solving the problem of last-mile delivery?
As any shipper can tell you, that last mile is the most difficult and
expensive leg of a package’s journey. For retailers in particular, keeping
delivery costs in check is a growing concern. The surge in e-commerce
orders has greatly expanded the number of parcels heading to an ever-increasing number of destinations. And those volumes only look to grow
exponentially—especially as Amazon and others move into same-day
delivery services.
Drones seemed promising, as they would be able to fly over traffic
and other obstacles in cities. Amazon also saw the use
of drones as a way to reduce its parcel spend, which
is considerable. While most of the national media
pronounced delivery drones dead before arrival, it’s
probably too soon to write their obituary. We have to
admit that using drones in urban areas has been suspect from the beginning. There are simply too many
people, wires, cars, and similar obstacles.
While these obstacles may make unmanned aircraft
infeasible in urban settings, drones may make sense for
rural areas that present fewer risks. Traditional delivery in rural areas is very expensive, as trucks have to
travel farther between stops. Obviously, the drones still
need to launch from somewhere reasonably close by,
but in many rural areas, limited delivery with drones
may make economic sense. It will take the FAA and industry to come up
with rules that everyone can abide by.
While drones may be a possibility in the future, I believe they will be
only one part of the solution to the last-mile puzzle. Another might be
greater reliance on the U.S. Postal Service for small-package delivery, as
it already delivers to nearly every address in the country daily.
Retailers should also encourage customers to pick up at a store,
possibly offering discounts and incentives to do so. Uber-type delivery
services will also spring up, with ordinary citizens serving as part-time
delivery people.
I also believe there will be greater use of kiosks, which have been successfully deployed in Europe and Asia. The kiosks are typically located
at places where people gather regularly—transit stations, city centers,
supermarkets, big box stores, etc. Customers might be able to place their
orders online, possibly from work, and then pick them up at a kiosk on
the way home.
With a bit of creativity, shippers can meet consumers’ demands for
same-day delivery while keeping the service affordable for all involved.
bigpicture
Chief Editor
What’s the future of last-mile delivery?
David Maloney
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