Amazon Is Working On ‘On-Demand’ Delivery Service
The retail giant is trying really hard to get the packages to its customers as quickly as possible.
Amazon.com, the retail giant has started invite individual drivers for its ‘on-demand delivery service’. This ‘on-demand’ delivery service specifically takes care of the retailers standard packages since the company itself is quite popular for its low prices and ‘razor-thin profit margins’. The retail company is now aiming at speeding up its deliveries and reducing its logistics bills.
The retail giant wants to control most of deliveries on its own now; however this news has not been publicly announced by the retailer as yet. According to reports by the Media, the e-commerce business wants to lease its own fleet of jets so it can start its own deliveries instead of relying on intermediaries. Additionally, the chief executive officer Jeff Bezos eventually wants to use drones to make these deliveries to its customers.
Last year, the largest e-commerce company launched Amazon Flex to speed up its delivery process especially of common household products to customers that they order through Amazon Prime. This information was extracted from all the emails that the company sent to its contract drivers over the past few weeks. These contractual drivers are not the organization’s employees; additionally Amazon Prime is an app through which customers can order household goods for a yearly price tag of $99.
In case this move of the retailer works out, analysts believe that it will be able to save a lot of shipping cost which, according to the information provided by the business grew by more than 18% during the previous year to at least $11.5 billion. Additionally, this gambit could also put Amazon in direct competition with UPS, FedEx and other courier companies that are presently making deliveries for the retail business.
According to a statement by a spokeswomen, the contract drivers of Flex have already started to make delivery for the organization which not only include Prime deliveries; however the detailed plan has not been disclosed by the management as yet but it has stated that the business is looking for ways to make the deliveries faster so that they can get to the customer quickly.
Furthermore, during the earnings call the CEO said that even though they want to start their own delivery process, they are not letting go of their partner carriers but rather are looking for ways to make certain deliveries quickly on their own. The Flex service is quite similar to the hailing service that of Uber’s. In this service, the drivers can sign up through an app for specific shifts on which they could pick up the packages and get them to the customers.