Loss and damage obstacles to Amazon ‘Uber’ app, says parcel firm
ParcelHero founder Roger Sumner-Rivers says Amazon’s proposed Uber-style App, ‘On My Way’, could deliver big savings and cut emissions.
Amazon is considering using its customers to deliver its parcels though a crowdsourced delivery programme, using an App codenamed ‘On My Way’.
The proposal is similar to the Nimber offering, recently launched in the UK.
Says Roger: “Amazon is undoubtedly a logistics industry disruptor; and our recent report, Amazon’s Prime Ambition has revealed the imaginative ways the company has found to continually increase delivery options for its Prime members; from creating its own logistics company to pioneering deliveries directly to customer’s cars. The ‘On My Way’ App shows how new technology can enable a whole new approach to parcel delivery.
“Our understanding is that the proposed service would recruit High Street shops in towns and cities to store packages. Then ‘everyday people’, most likely existing Amazon customers willing to make deliveries, could use the ‘On My Way’ App to see where to pick up and drop off goods to destinations that are on their existing journey. Of course such a service is very local and never going to replace the likes of UPS or Amazon’s own logistics operation, but it makes sense as another option for the final mile in urban areas.”
Roger says it could make Amazon significant savings: “Our recent report reveals Amazon spends an incredible $5.13bn on deliveries a year, with a typical UPS or FedEx delivery costing it $8. Little wonder that it is investigating involving its customers, and out-Ubering Uber. It could reduce those costs to perhaps $1 an item; or even pay in credits for items on its site.”
But Roger points out that the savings could come at a cost to Amazon. Warns Roger: “It seems on the surface a win-win idea; but what happens if items are lost or damaged by the amateur courier; or are even potentially stolen. Who is liable in such cases, Amazon or their non-professional courier? These are issues that need to be clarified before any launch.”
However, Roger can see other significant benefits to the idea as well. “It might sound a nightmare to vet, but participants could be ranked just as they are in the Uber taxi App, for example, or even by Amazon’s own seller review scheme.”
For more information see the ParcelHero industry report Amazon’s Prime Ambition.
