Amazon and Home Delivery -Winds of Change

So if you're an Amazon customer for a few years you likely have been noticing how many times a day a different delivery person shows up with your Amazon delivery. If you dig deep you'll see that the deliveries come via various delivery companies, some of whom are really giant logistics companies. Here in Southern California I've counted no less than five different delivery services who bring my Amazon orders, sometimes on-time, sometimes late, sometimes to my door, sometimes to the building office or sometimes in my mailbox. Let's first breakdown who delivers what (at least here)

• USPS-aka the Post Office. They deliver Amazon Fresh to the door (sometimes or to my building).
• USPS for Amazon Packages that are mailed or via FedEx Smartship and international shipments. Sometimes left in the building office. Sometimes in my mailbox or a key. Never to my door. No real clue a package is here except if I look at Amazon web site or receive an email and then need to hunt around for it.
• On Trac – Packages that usually are fulfilled via a local Amazon Distribution Center (later in the day) To my door when home, to the office when I'm not with a door sticker.
• Amazon Delivery - Packages that usually are fulfilled via a local Amazon Distribution Center-To my door when home or not regardless of signature required or not.
• Amazon Prime Now-an on demand delivery team ala Postmates or Uber
• FedEx-hardly ever.
• UPS-to my door. Signature always. If I'm not home, note on my door, package in left in building office.

Hands down the best experience today is UPS that I've seen over the past year but I see that being challenged by Amazon's own delivery team.

Today with all these companies in the mix Amazon has a consistency problem, and it's what I think they are trying to address more and more with their own Amazon Delivery team. I say that because having conversations with the delivery team from time to time reveals a lot about what's going on. You can see a more UPS like approach evolving, and it's obvious Amazon is learning.

But to grow, Amazon is going to need to create its own infrastructure, not only buy airplanes and drones. This makes companies like OnTrac, a regional delivery company in the western states, an endangered spices, as the level of consumer complaints never seems to quiet down (do a google search). In essence, Amazon could easily hire away executives and a labor force from UPS, OnTrac and FedEx, and create their own supply, logistics and delivery business.  What's more, since Amazon is all about data, they can build one massive "when and how" to deliver to you database better than anyone. If they link up with Uber or Lyft they could even begin to offer "personal" delivery using the micro distribution centers for on demand, something Amazon Prime Now is deploying.

To me, Amazon is a company that really disrupts markets. They know how to do it, and do it with consistency and end up doing it very well, with real world trials, not concepts simply on a white board. I see delivery as their next big frontier.

 

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