The business world is changing and the faster you can get an item into a customer’s hands the better. Same-day delivery is revolutionizing the way we do business and everyone’s knows it. Even ride-sharing companies like Sidecar have decided to try their hand at it, testing the service in the San Francisco Bay area. After six months of testing, it has actually found their version of the service works. Now, Sidecar has decided to take the leap into officially offering the service.
Sidecar has announced that it is launching Sidecar Deliveries. It expects the new same-day delivery service will become 50% of their business this year. The new program will allow third party companies to use Sidecar vehicles to deliver their goods. In the article by Vantor News, Sidecar stated, “By combining people and packages, Sidecar offers companies same-day delivery at prices that are 80% cheaper than traditional services, and cuts delivery times in half.” If these are sure numbers, Sidecar’s cost will be down, which is the real key to same-day delivery.
Pricing is essential in order for same-day delivery to thrive and companies know the costs of the service can be their downfall. When it isn’t, companies end up exiting the service market just as fast as they entered into it. Physical store retailers and web-based only retailers have launched same-day programs with similar pricing scales. Big name retailers like Amazon offer its’ Prime members same-day delivery for $5.99. Non-Prime members pay $9.99 for the first item and $.99 cents per additional item. Google Express is $4.99 per order or customers can pay $10 per month and an annual charge of $95. Wal-Mart even offers same-day delivery in multiple cities and its’ service Walmart To Go costs $10, regardless of the order size.
“During our test period, Sidecar drivers earned 75% more when they delivered both people and packages. Riders also reap the benefits of this people and packages combo because there will be more drivers available, lower wait times and even lower prices.” From this testing, Sidecar has researched and developed a same-day delivery solution that fits the company. Most companies that enter into providing same-day delivery test it due to the important of costs and economies of scale. The combination of packages and people helps the marketability of Sidecar, creating more of a relevance and demand for it to its’ customers.
Sidecar was founded in 2012 in San Francisco and is also available in Los Angeles, San Diego, Seattle, Chicago, Charlotte, Washington DC, and Boston. Now that it has figured out the right delivery service mix, the company is looking to expand the service nationwide this year, which shows it will be aggressive in the months to come. Retailer Macy’s jumped into the same-day delivery race aggressively late last year once it proved it could successfully perform it. The department store leader launched the service in San Francisco, San Jose, Los Angeles, Seattle, Houston, Washington DC, New Jersey, and Chicago.
The company sees same-day delivery as a part of its’ long-term strategy. Sidecar stated, “Same-day delivery will represent half of our business by the end of 2015. Our vision is that one day any business will be able to take an order and get it to the customer in an hour, and Sidecar will be the service that powers this capability.” With same-day delivery becoming a staple option in on-demand services, more companies will implement it. A same-day courier like AQuickDelivery can be a partner to any business seeking to implement a same-day logistics solution. The Atlanta courier specializes in one-hour, on-time deliveries and can transport a wide range of items locally, even nationwide.
Reference: 2.9.15, Vator News, Steven Loeb, Sidecar launches its own same-day delivery service