Retailers Hoping for Record Cyber Monday to Follow Friday Windfall
US retailers set all-time records on Thanksgiving and Black Friday, wracking up $11.6 billion in online sales. Adobe predicts that Cyber Monday will also set a fresh record of $9.4 billion, pushing the Thanksgiving weekend total to nearly $30 billion.
The increasing importance of online sales has forced traditional retailers to compete with e-commerce natives like Amazon not only by offering their own robust set of deals but also by investing in delivery infrastructure and reducing friction for consumers ordering online.
5 Business Models for On-Demand Delivery
In the on-demand food delivery vertical alone, revenue is expected to reach $94 billion this year. Other verticals, like beauty, parking, health, shipping, and marijuana, are seeing significant gains, as well. Although the space is maturing, investors are still seeing great growth opportunities. Any number of on-demand delivery startups has the potential to take over the space if it continues to grow as its current pace.
To understand where that growth might occur, we need to take a step back and examine which business models are proving most successful in the on-demand delivery space and how startups are implementing those business models for financial gain.
FedEx Stops Ground Deliveries for Amazon, Signaling Delivery War to Come
For FedEx as for the many other companies and industries Amazon has decimated over the past 20 years, the problem in confronting Amazon may turn out to be one of margins. While FedEx needs a profitable delivery business to survive, Amazon can afford to lose money on delivery and make it up with relatively free-flowing profits from Amazon Web Services and its booming ad business.
In fact, Amazon can afford, thanks to the faith and generosity of investors, to make no profits at all. No easy task, competing with that.
6 Companies Reimagining Last-Mile Delivery
There’s a renewed push in Silicon Valley to tackle last-mile delivery. The use of autonomous vehicles, drones, and artificial intelligence is what more and more vendors are pushing for. Last-mile delivery is the most expensive part of shipping, and increasing fees mean prices are only going higher. The company that can get goods from a transportation hub to the customer’s doorstep in the shortest amount of time will win the retail game, and technology firms are hoping that their innovative solutions will be the answer that retailers are looking for.
Here are six examples of companies that are working to innovate in the last-mile delivery space.
LBMA Vidcast: Zeta Global and PlaceIQ, Amazon’s Delivery Innovation
On this week’s Location-Based Marketing Association podcast: U.S. Army #InOurBoots VR recruiting, Transport for London using WiFi tracking, Havaianas shoppable boardwalk, McDonald’s Sweden’s QR picnic blanket, Zeta Global takes over PlaceIQ’s ad business, Amazon’s employee incentive for creating delivery start-ups.
LBMA Vidcast: Sam’s Club and Instacart Partner on Alcohol Delivery
On this week’s Location-Based Marketing Association podcast: Brands form “Voice Coalition”, CherryPicks navigation + translation app, Paytronix + FriendShip loyalty, Signify’s new LiFi, Coca-Cola Italy drives recycling, Sam’s Club + Instacart for alcohol delivery. Special – new white paper from Digital Element.
What’s a Cloud Kitchen? Amazon’s Next Move to Revolutionize a Major Shopping Sector
Jeff Bezos likes to say, “Your margin is my opportunity.” Like with Whole Foods and grocery, Amazon moves into new verticals and applies its logistics-first approach to carve out margins, then undercut competitors. It is even getting into shipping, in a move to own its delivery infrastructure.
The next local conquest could be restaurants. For Amazon, it’s not just about serving food, but doing so in a way that aligns with its forte: delivering things to your home. The biggest clues and synergies lie in its established delivery and logistics playbook as well as its recent $575 million investment in Deliveroo.
Enter the cloud kitchen.
This Largely Brick-and-Mortar Industry Is Resisting Digital Disruption
Despite Amazon’s high-profile acquisition of Whole Foods in 2017, grocery is the bastion of brick-and-mortar shopping proving unusually resistant to a takeover by digital channels. At least, that is the vision of consumers, only 15% of whom say they are excited about the technical “revolution” in grocery, according to a new report on the future of retail by Walker Sands.
Outsourced or In-House Delivery? We Did the Math
Local delivery is rapidly becoming a must-have for all kinds of businesses—people have become accustomed to online ordering and speedy delivery. According to a Go People survey, 65% of retailers will offer same-day delivery by the end of 2019, and according to Technomic, food delivery volume will grow by 12% year-over-year from 2019 to 2023. The question isn’t whether your business should offer delivery, but how.
Word of Mouth Remains Vital for Loyalty in Digital Age
Pundits have speculated that loyalty is becoming less and less important as mobile and especially voice search drive the consumer toward the most convenient purchasing options. That may be true, but the report indicates loyalty remains a powerful factor, with 53% of consumers saying they are more likely to buy from a retailer they know and trust.
Allset Redefines Its Position in the Mobile Ordering Space
Standing out in the mobile ordering space isn’t easy. GrubHub, Uber Eats, Door Dash, and dozens of other mobile ordering platforms are competing for business in what’s already become a tight market. So how does an outsider break into the business, and break away from the competition?
For companies like Allset, the answer is to create entirely new services that competitors aren’t offering.
LBMA Vidcast: Factual, Walgreens, Burger King
On this week’s Location-Based Marketing Association podcast: Factual partners with Airship & Braze, Class action against all 4 U.S. mobile operators, Decathalon opens first U.S. store, Burger King delivers in Mexico City traffic jams, Para’Kito goes AR with Georgia Pacific, Walgreens teams with Narvar.
7 Delivery Trends You Should Know in 2019
Greater customer expectations and technological advancements are driving big changes in delivery. What’s more, the delivery experience has emerged as a differentiating factor for customers when choosing one retailer over another. eCommerce retailers that operate solely online and omnichannel retailers that offer a physical and digital presence are both beginning to expand their delivery options to meet customer demand. Here are seven trends that will define retail delivery during 2019.
DoorDash Will Put an End to Old-School Delivery—And Smaller Rivals
What does the big money for DoorDash mean for the crowded on-demand delivery space? The market is growing as a whole, but there isn’t all that much growth share to go around. DoorDash CEO and founder Tony Xu has said as much. “If you look at where the U.S. is, there’s two players gaining share. It’s DoorDash and Uber. And DoorDash is growing 65% faster,” Xu said in a conversation with Recode editor-at-large and co-founder Kara Swisher earlier this year.
In Test of On-Demand Economy’s Durability, Postmates Files to Go Public
There’s nothing more hyperlocal than the on-demand class of startups, which feed off the everyday use cases spurred by a mobile-first world: whipping one’s phone out to order food from a local restaurant (Postmates, GrubHub, DoorDash), hail a ride (Uber and Lyft), or cut out a trip to the grocery store (Instacart, Shipt). Postmates’ founding ingenuity was to apply the convenience of ride-sharing to product delivery. Eight years later, it’s a food-delivery powerhouse, and its value may strike nearly $2 billion.
What’s Ahead for Last-Mile Delivery in 2020
Delivery is emerging as a competitive advantage for local retailers. In fact, in September 2019, Onfleet surveyed 1,000 US consumers to gather their impressions on online versus local store shopping and delivery expectations. Seventy-six percent said they would be more inclined to order from local stores rather than from Amazon if they could get same-day delivery.
With that in mind, here are some delivery trends we’re expecting for 2020.