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fundamentally improves the economics
of distribution,” giving many businesses—and their customers—the benefit of
optionality, flexibility, and scalability.
He adds it is also a great model for
handling surges in business, such as
peak season shopping, when forecasting
demand—and need for delivery resourc-
es—can be problematic at best. “Our
crowdsourcing model succeeds because
… we can deploy just-in-time resources at
the time of need because that latent capac-
ity in our network is already on the road,”
Gorlin explains. “As delivery volume goes
up, the number of active drivers in our
system goes up as well—while delivery
times and costs remain the same.”
Roadie says it covers 89% of all U.S.
households, is able to make deliveries to
11,000 U.S. communities, and has some
150,000 drivers in its network.
TIPPING POINT?
But is same-day delivery a growth market
that has legs, or is it destined to be a niche
service used sparingly to solve an emergency need or to satiate the consumer’s
occasional thirst for instant gratification?
And what about the sustainability of it all?
Tom Enright is a London-based analyst
for research firm Gartner Inc., where he
serves as vice president, global retail supply chain research. He talks continuously
with retailers about their needs and wants,
and the challenges of changing consumer
demands and different fulfillment models
in the fast-paced age of e-commerce.
He thinks consumers and retailers are
approaching a tipping point that could
foreshadow a new era of what he calls
“responsible retailing.”
“Consumers [still] want to avoid pay-
ing shipping if they possibly can,” he says.
“We’ve seen for many years now that 70%
[of consumers] will take action, such as
opting for the slowest delivery [or adding
to their order value], to avoid shipping
charges.” And while studies reveal that
many consumers say they want same-day
delivery, the numbers for those who actu-
ally pay the upcharge are minimal.
Enright says market research also is
uncovering an emerging trend: Half of
retail e-commerce shoppers are willing
to consider a greener shipping option,
as long as it still saves them money.
“Consumers recognize that one per-
son on a motor bike delivering one
package, then another a few days
later, is not the best for the environ-
ment,” he notes.
There now seems to be move-
ment in another direction: incen-
tives that encourage customers to
limit the number of online orders
that become “one-off” parcel ship-
ments and avoid parcel shipping
entirely. Enright notes that consum-
ers respond favorably when offered
an extra discount on their online
purchase if they agree to pick up the
