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Is Uber Shaking Up The Same-Day Delivery Competition?

There are a variety of services at retailers’ disposal to help them get products to customers faster. Deliv, for instance, partners with malls, while retailers like Amazon are taking on the logistical work themselves. 

But now, Uber may be trying to grab a piece of the same-day delivery pie. Last week, Retail TouchPoints reported that Uber was testing a same-day delivery service with up to 400 retailers and brands, including Hugo Boss, Louis Vuitton, Neiman Marcus and Tiffany’s. In April 2014, the company introduced UberRUSH, which is a bicycle courier service, throughout New York City. Currently, UberRUSH drivers and couriers take merchant orders through a separate app than the one they use to receive consumer orders. Eventually, Uber drivers will be able to take both human passengers and Uber Merchant orders at the same time through an intelligent routing system. 

But how will this shake up the same-day delivery space? The RTP editorial team shares their thoughts: 

Debbie Hauss, Editor-in-Chief: I think it’s a smart idea to try to take advantage of a service already in place. I definitely have questions about monitoring quality of the delivery time and customer interactions. My brother actually drives for Uber and here are his thoughts on this: “That certainly makes sense as an extension to what they already do. Personally I don’t think I’d want to be a food delivery driver because that means you have to find a way to park downtown and leave your car to pick up the food. I’ve also heard about delivery services that work like UPS or Fedex (with trucks) but the trucks are “rented” by drivers (just like taxis are rented) and those drivers are like us – self-employed. I think you get paid by the package just like we get paid by the trip. I don’t know what those services are called but I guess it’s cheaper for the retailers because drivers like me are cheaper than UPS or Fedex drivers.”

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Alicia Fiorletta, Senior Editor: To Debbie’s point, I think it’s a great way to test or take advantage of a new trend (same-day delivery), without having to develop an in-house solution or process. However, I think there are some risks involved that need to be verified and communicated on both the brand side as well as the consumer side. For example: What happens if a package gets lost or damaged during the delivery process? Would Uber be held accountable? Or because Uber drivers are basically working for themselves, is it basically a lost cause and the consumer has to deal with it themselves? Or, is the retailer held accountable? It’s still early days, so there’s not a lot of details out there, but I find it surprising that high-end luxury brands like Tiffany’s haven’t thought about this side of the equation, especially since any person on the street can essentially become an Uber driver.

Rob Fee, Managing Editor: I’m not 100% sold on this idea for retailers because it requires them to put too much faith in Uber and its drivers. Think about this, anybody making a delivery immediately becomes a brand representative to consumers, so any negative interactions would likely reflect more on the retailers than Uber. Are retailers ready to place their brand’s reputation in the hands of drivers they might never see again? I’m not so sure. For me, a better solution is to simply offer the service themselves.

Kim Zimmermann, Senior Managing Editor: I think it makes sense for Uber drivers as a way to earn some extra cash, especially in markets where same-day delivery from companies like Amazon might not be otherwise feasible. Uber has gotten a bad rep for sketchy drivers, so I would think the retailers would want to be cautious about that, but all said, it would put some heat on Amazon, especially during the holidays. 

Glenn Taylor, Associate Editor: If anything, it will stir more competition around companies like Deliv, Shutl and Instacart to put out top-flight service, which is always a good thing. The popularity of Uber as a brand will certainly help them here, but I don’t think their entrance into the market is necessarily going to change the profile of same-day retail delivery. The retailers themselves still have to be comfortable enough with the process for it to truly take off, and many just haven’t dedicated the resources to consider it a feasible option yet.

Brian Anderson, Associate Editor: Still curious to see how Uber drivers will be able to pick up in-store items for shoppers who purchase products online, primarily due to the security measures some retailers have for these services. For example, I know that Walmart customers who make a purchase online with intent to pick it up in-store have to show the confirmation email they received, along with a photo ID, to the store associate. Success would require a lot of brand partnerships, but with Uber’s popularity, only time will tell if the new delivery service will take off.

What are your thoughts on this new service? Share your opinions in the comments section below! 

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