Last April, we attended the annual Express Couriers Association Marketplace conference in Dallas, which is where the subject of Uber implementing last mile deliveries was a hot topic.
Rob Howard, founder of both Ensenda and Grand Junction (key companies in the local delivery industry), spoke on the topic where he explained how, for the near future, the plan may work, but that long-term success for Uber carrying out the last mile delivery is not feasible.
We agree with Howard on this issue and here’s why:
Uber uses a system that is efficient at moving customers from point A to B without having the driver to get out of their car. Not only would last mile delivery require drivers to leave their cars, drivers would also need to adapt to receiving the package and delivering the package by hand, as well as managing extra paperwork. This is a different skill set that requires more time, training and liability.
Last mile delivery in higher population cities can also present extra problems. Big cities often do not have the luxury of multiple parking spots near places of living. This would require drivers to run the risk of double parking and adding an extra charge.
A particular problem Uber would also face with last mile delivery is transporting larger and heavier packages. This problem would bring restrictions towards many drivers and the current business model that allows different kinds of people with different kinds of cars to be consistently successful. Current and potential drivers wanting to deliver packages would be restricted heavily by the new business model.
Another issue is that Uber drivers currently receive their payments through the app customers use to call the drivers. However, with last mile delivery, drivers would have to manage additional information in order to receive payment and often would need to do so prior to carrying out delivery.
We agree with Howard that Uber’s current business model works, allowing for efficiency and comfort to both drivers as well as customers. Overall, Uber could possibly see short-term success in the last mile delivery service, but it is not feasible for any long-term success for the company in terms of last mile delivery.
Need a reliable, experienced company to manage your last mile delivery needs? We have service available in Northwest Arkansas, the Tulsa area, and Little Rock. Give us a call today.