Amazon is reportedly creating a mobile app which will enable ordinary people to deliver products on their way to other destinations, this idea now paves a new path for eCommerce shipping services.
This mobile service is known internally as “On My Way.” It was built similarly on an Uber system where users have the ability to choose to deliver for Amazon, either on a full-time or part-time basis.
Alex Asianov, CEO and president of enterprise services for DOOR3, a mobile app company, expressed his thoughts that Amazon is smart to improve logistic efficiency with mobile.
“It’s a good idea. Mobile has become an indispensable tool for e-commerce companies. Obviously the app itself cannot carry packages but it can connect all the logistic points from people who are using the app to where the packages are,” according to Asianov.
This up coming mobile solution can also give Amazon more control over their shipping expense and would allow the company to extend their existing logistic resources, according to Tien Nguyen, director of technology for CPC strategy says that “Amazon has been working with the U.S. Postal Service on Sunday delivery. The service is currently available but limited due to the set-up of the postal service and the number of employees who want to work Sundays,” Nguyen explains. “During Christmas, Amazon has missed delivery promises so On My Way could help ensure no child misses out from a Santa visit by adding new drivers.”
The biggest challenge can come from a technological view where battery might become an issue. “Uber drivers use lots of mobile battery in order to continue using maps and other location services. That’s ok for them because they can charge their mobile devices via a cigarette lighter in the car. But for pedestrian consumers, if they have Amazon’s delivery app turned on all the time, their devices can easily run out of battery. So Amazon needs to consider people’s mobile usage,” as Asianov explains.
While CPC Strategy’s Nguyen adds that the fee structure for “On My Way” could also be a concern.
“Amazon didn’t say how much On My Way would cost. They don’t want to charge users a high price but at the same time they need to compensate their drivers. For example, if the extra charge is $5 for delivery within two hours, while it takes a drive an hour to do that, obviously it’s impossible for the driver to make just $5 per hour,” he says.