Urban Deliveries As Easy As Hailing An Uber
As the highest-valued start-up in history Uber has erupted into the taxi market and torn it apart from the inside, using the latest technology to completely revolutionise an out-dated industry and become a market leader in a matter of months. So now the app-innovators have announced their intentions to move into the world of deliveries what could that mean for the future of logistics?
In 2015 Uber demonstrated clear intentions to move into the logistics market with the trial launch of its delivery service UberRUSH, combining its ride-hailing technology with an industry worth over $242 billion. Potentially great news not just for consumers, but also urban sustainability and cleaner streets.
Trialled initially in cities like Washington and New York, UberRUSH has already proven to be popular. The app became an instant hit as consumers could easily access 'essentials', like toothpaste, painkillers and food from partner restaurants and retailers. Uber created this service off the back of its highly successful ride-sharing app by allowing drivers to become couriers between fares.
The 'Sharing Economy' puts local goods at the forefront of Uber's approach and even allows customers to choose how much they pay. By roping in other orders, customers can essentially share costs – an option totally unavailable with traditional delivery services.
Uber wishes to expand this operation in the UK and this is great news for overly-congested cities like London. By utilising Uber's fleet of already in-use vehicles, it removes the need for many traditional couriers to perform the final mile of delivery for small items, potentially taking extra traffic off the roads. Although there will always be a need for the larger carriers, Uber has a real shot at taking a significant slice of the delivery market.
ParcelHero's the Uberfication of Deliveries report shows that if Uber replicates its success in the taxi market it stands to make as much as $24.6billion with the company's move into logistics. At what length Uber will disrupt the industry, it is too early to tell, but if we analyse how logistics in urban settings has changed over recent years, eco-friendly alternatives to the traditional delivery van are becoming increasingly favourable.
As the report suggests, there is significant potential for Uber to work with Amazon, Google or Microsoft on offering a delivery alternative. All three companies are in need of a logistics partner and are known to be exploring alternatives to the traditional carriers as they develop their retail capabilities. Uber's unique position as a possible provider of this service is feasible due to their capability of mobilising a localised logistics fleet, without once having to purchase a delivery van.
Although UberRUSH in the UK could be a breathe of fresh air for congested cities, the real positives here are for the consumers. Uber prioritises consumer accessibility above all else, and a success in London would prompt the logistics industry to adhere and adapt. Local retailers will jump at the chance for cheaper and quicker delivery for their customers, while a customers own bills are reduced and their items delivered promptly.
With the possibility that Uber could be working with the likes of Amazon and Google, the ride-sharing app is on course to shake up yet another industry to its core. The Uberfication of logistics won't be easy, but ordering a pick-up and delivery could soon be as simple as hailing a cab.