Retailers Need a Fresh Perspective on Crowd-Sourced Delivery

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4Q 2018 | IN-5310


Great Expectations


Amazon has confirmed plans to supplement its existing last-mile delivery strategy by directly hiring thousands of temporary in-house drivers to cope with peak demands this holiday season. In addition to its existing group of independent Delivery Service Partners (DSPs) using Amazon Flex and external providers such as UPS and FedEx, Amazon will be forking out as much as US$19 per hour for each new driver within this seasonal reserve fleet. Also, each driver will be provided with an Amazon Prime–branded van.

This decision is largely motivated by the need to take back control of logistics operations at a time when the e-commerce giant is also downgrading its revenue forecasts for this holiday season. But Amazon is nearly always a special case in the world of e-commerce. For most retailers frantically preparing for the e-commerce holiday rush, being able to deploy their own fleet of last-mile couriers to cope with increased demand is simply not possible—partly because most retailers do not own a fleet of vehicles, as Amazon does. They must therefore spend even more on c…

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