Same-day delivery provider’s expansion may help retailers combat Amazon (AMZN)
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Deliv, a same-day delivery startup based in Menlo Park, California, announced today that it is expanding to 14 new markets, according to a press release seen by BI Intelligence.
It will now offer its services in 33 markets, nearly doubling its footprint to more than 1,400 cities across the US. Deliv handles last-mile delivery for companies like Best Buy, Bloomingdales, Macy’s, The UPS Store, and more, using their stores as fulfillment centers. Customers can select a one-, two-, or three-hour delivery window directly through the retailer’s app or website.
Deliv can help retailers meet consumers’ increasing interest in speedy delivery. A quarter of shoppers will abandon their online shopping cart upon learning that same-day delivery is not available, and 80% of shoppers want a same-day option, according to Deliv. That likely means same-day delivery will soon become a staple in retail, rather than a perk, and companies will need to act quickly to make sure they have the right processes in place. However, providing same-day delivery is extremely expensive, particularly when it comes to the last mile, which makes up more than half of all delivery costs. Deliv allows companies to provide the service without the need to invest in their own asset-based delivery fleet, according to Daphne Carmeli, CEO and founder of Deliv. This could help eliminate lost sales from consumers who expect same-day delivery, and might even result in new sales as the speed widens the appeal of online orders.
Partnering with companies like Deliv could allow retailers to rival Amazon’s Prime Now same-day delivery service, possibly luring back customers who turned to Amazon because of its delivery capabilities. As retailers look to ramp up their delivery options to keep pace with Prime's fast and free delivery, turning to third-party logistics providers is looking like an increasingly promising option. That’s because these companies’ specialization in fulfillment enables them to offer widespread delivery at a fraction of the cost of establishing a nationwide logistics network. Amazon’s vast logistics network gives the company a huge advantage over many retailers. However, as more third-party providers such as Deliv spring up, retailers may be able to replicate Amazon’s logistics strengths, potentially evening the retail playing field.
Stephanie Pandolph, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on free shipping that:
- Provides an overview of how consumers' demand for free shipping is shaping the retail and logistics industries.
- Examines the technologies that may be implemented as a result of companies seeking to lower shipping costs.
- Discusses various strategies to implement with free shipping for small and large retailers.
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