In 2019, eRetail and traditional retail grew exponentially as businesses scrambled to stand out, and delivery continued to be the key topic of discussion across all verticals.
Looking forward, 2020 is going to be a game-changer. We couldn’t really kick off the new year without reflecting on the last one. Here are some of the key events in 2019 that will be pivotal in shaping delivery this year:
Retail and the race to one-day delivery
This past year retailers raced to keep up with eCommerce giants such as Amazon to offer multiple delivery options. It was also the year that Nike and Ikea determined that controlling their brand and customer data were equally as important as expedited shipping, choosing to no longer sell their products on Amazon. Looking forward, expect to see more companies taking ownership of their eCommerce and fulfillment as 82% of customers say they are more likely or much more likely to purchase from a brand with multiple delivery options.
Logistics and the battle of the carriers
Amazon’s recent $1.5B investment in its supply chain is the clearest clue of Amazon’s intention to disrupt the way traditional logistic carriers do business to become a leading logistics provider. In 2019, FedEx ended its long-standing relationship with Amazon in order to spend time focusing on strengthening relationships with retailers such as Walmart, who are looking to orchestrate and digitize the order lifecycle. Like other major carriers, FedEx has established networks and capacity to serve thousands of retailers within the eCommerce space and with last-mile logistics. However, to compete with the likes of Amazon in 2020, they will need to adapt to new technology and logistics models ensuring they have the right solution through the last-mile.
Restaurants and delivery wars
Fueled by the demand for speedy deliveries, the gig economy has taken over the streets of every major city. Third-party providers like Doordash and Uber Eats deliver everything from burgers to smoothies to your customer’s doorstep in minutes. However, there is a growing recognition of the role customer data plays in retaining customer loyalty. This may have led McDonald’s to end its exclusive relationship with UberEats. What’s certain is that restaurant delivery is growing and will become a $200 billion dollar industry by 2025. Restaurants will need to have multiple delivery options available to them to meet the needs of the rapidly changing food delivery industry.
Grocery and the rise of crowdsourced delivery
From Amazon’s checkout-less stores to Instacart filling grocery stores across North America with bright green t-shirts, Grocers are being forced to reinvent themselves. Customers are choosing to stay home instead of pushing a cart up and down the aisle. Grocers now realize they must comply by building out their eCommerce and fulfillment strategy to test click and collect, curbside pick up and micro fulfillment centers. While the adoption of online services is still low, there is huge room for growth as the overall grocery market has increased. In 2020, we will definitely see this trend continue as grocers utilize new logistics models to contain costs and increase margins on delivery.
2020 and beyond
There is no doubt that in 2020 we will see more companies provide faster deliveries at a fraction of the cost with an Uber-like experience. To do so, businesses will need to make strategic investment decisions in their technology.
At Bringg, we understand delivery is changing the way everyone has traditionally looked at logistics. Instead of seeing logistics as siloed technologies for customers, orders, inventory, stores, and fleets, we see a data intelligence challenge that needs orchestration. Leveraging this data, Bringg can optimize and automate delivery and fulfillment for maximum operational and logistical efficiency.
Businesses who can provide a seamless fulfillment experience that includes live-updates, real-time communications and customer feedback will see an increase in conversation rates and loyalty, gaining an advantage in 2020.
Click to learn more about how delivery orchestration is helping businesses digitize and automate the last mile.