Are Same-Day Deliveries Bad for Shippers?

[cheryl]

Are Same-Day Deliveries Bad for Shippers? - Motley Fool

Same-day delivery remains an area of intense interest for eBay and Google . It offers the promise of almost instant gratification when shopping online, which could potentially drive more commerce online. Both of these companies have teamed up with local retailers in an effort to save on transportation costs and shipping time. If successful, this could threaten shippers like UPS and FedEx . In this video, Fool contributor Steve Heller sits down with Erin Miller to discuss what same-day deliveries could mean for shippers.

Are Same-Day Deliveries Bad for Shippers? - YouTube

 

[BMWMC]

I think the shippers in the piece are smart to look for ways to reduce cost but there lack of experience will come back to haunt them. As we at UPS know full well its about density and SPORS. That's how cost are contained.

We had a shipper that shipped all there clients paychecks. They where a paycheck processing system for small businesses. I'd get 5 a week until they decided to go to a courier service because it was cheaper. After about 6 months they where back on my truck. Lesson learned.

 

[Returntosender]

A few years UPS pushed out 1800+mangement. If any of those guys went to these same day start ups and layed the ground work for them. These start ups have chance to make it.

 

[Junkguy]

The cost of a start up company in this industry makes it all but impossible. Just look at what happened to DHL and they were very well funded. RPS would have went out too if FEDEX hadn't bought them out and used their infrastructure to complete the buildout. If any of these Tech. companies think they can pull that off they are seriously confused. There's no where near the volume they would need to break even. The commercial volume at the big boys more or less subsidizes the residential business. We all know these packages are usually lighter, usually just one package per stop, and residential deliveries take much longer to deliver for various reasons which is what has made the "last mile" programs so popular with the deals made at the post office to reduce costs. If they find an investor to back an adventure like this though I have some ideas too that I would like to get funded.

 

[cachsux]

Until they come up with the Star Trek teleporter beam to drop the box on the doorstep I don't see a threat outside of the most urban of areas.

 

[vanbc]

Until they come up with the Star Trek teleporter beam to drop the box on the doorstep I don't see a threat outside of the most urban of areas.

Not quite a teleporter but 3D printing is ready to change the world as we know it.
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