the future of the courier industry
TRANSCRIPT
The Future of the Courier Industry
TECHNOLOGY IS CHANGING EVERYTHING
- Technology is revolutionising every industry we work in. Whether it be the growing requirement for online presence with start up businesses, the ability to communicate face to face with potential business partners from all over the world, or that a physical machine can take care of labour more efficiently than a human, we cannot avoid change.
- From Doctor’s to factory workers, technological advances are continually shifting the role of workers, or more worryingly replacing them all together. So where does this leave us man and van men? Surely moving items from one place to another has too many variables to be completed by a machine. Compare the Man and Van are here to take a look at how new technologies could change the courier industry, which could help expand your business and which could potentially take it over.
Self Driving Vehicles
DRIVERLESS CARS
- Last week it was revealed that Google has joined partners with Fiat and Chrysler in a collaborative effort to make huge advances in autonomous driving vehicles. They have started work on developing a Chrysler Pacifica mini-van, aiming to integrate self driving technology into 100 vehicles, eventually incorporating the installation of the technology into the assembly line. They estimate that within a the next 5 years, there will be 20million driverless cars on the road, this means the question is no longer if driverless cars will take over the roads, but when.
- The impact of driverless cars on the courier industry is going to be substantial, but not necessarily negative. One of the main concerns of both courier companies and their customers is insurance, the peace of mind that whatever is being transported will reach its destination safely and on time. Insurance companies are already hailing the advent of driverless vehicles as the end of their industry, as the main focus on automation is achieving a level of safety simply not possible with a human driver. This means that driverless vehicles will inevitably be favoured by transport companies.
SELF DRIVING VEHICLES
NOT THE END FOR HUMANS
- However this doesn’t mean the end of homosapiens in the courier industry, there are still many factors which require human intuition and contact in order for the business to work. Removals and courier services need a driver to be able to keep track of parcels, move them up to and from the properties, interact with the customers instead of doing so remotely, secure the vehicle's contents and cover basic problem solving that has too many variables for a machine to tackle.
- This is not to say there will be no impact whatsoever, “drivers” position and worth within a business would be somewhat diminished, handing over some of the key responsibilities to automation. Companies, including Compare the Man and Van are not predicting a large loss of jobs within the industry, but are keeping a watchful eye as there is no doubt this technology will change the way it works.
SELF DRIVING VEHICLES
Drone Couriers
DRONES HAVE THE INDUSTRY WORRIED
- The prominence of Drones is something that no one expected. What started as expensive toys for keen hobbyists have begun a technological revolution. High end models are able to handle a package upwards of 500kg, and with automation now becoming the norm with many models the drawback of being awkward to fly has been all but diminished.
- Unlike driverless cars drones have the transport industry rather worried. Huge companies all over the world, including Amazon and DHL, have invested great sums to develop drone courier technology. Although these drones are still in the early stages of development, new companies are popping up all over the world with the aim of becoming a small package drone delivery service.
DRONE COURIERS
CHEAPER AND MORE EFFICIENT
Using GPS tracking to deliver a package wherever the customer might be, this provides a solution for customers in rural or hard to reach areas, who until now have had to pay extra for couriers to travel a significant distance to deliver a package. Drones offer a far cheaper and more efficient method of transporting small items. Because they fly up to 100 metres above the ground, and choose an ‘as the crow flies’ route to the customer, this also reduces delivery time significantly. Experts say that this not only has massive practical implications being cheaper and quicker, but also holds an element of novelty. Having your item dropped out of the sky to your doorstep is an exciting prospect for many customers.
DRONE COURIERS
STILL LIMITATIONS
There are of course limitations to this new technology. Battery life means that there are distance limits that traditional couriers need not be concerned with. The size of the drones also means that there are fairly significant weight restrictions, however the small package industry is where they are estimated to make real headway. This means that couriers may not be hit so hard in terms of business, as smaller item deliveries are often carried out by post, and represent an inefficient model of business. There will still be a significant need for help transporting larger items, which makes up a dominant proportion of the UK’s man and van industry.
Other factors like collision prevention and aviation laws are holding back the drone courier sector, however within the next 5 - 10 years there is no doubt they will play a significant role. Depending on advancements in battery life and power the impact is difficult to judge.
DRONE COURIERS
UberRush
BIG PLAYERS
- Just as they have revolutionised the taxi industry, Uber has now taken its unique business model to the courier industry. Seeking to cut the costs of delivery by integrating courier services into their already established network, using the same methods.
- They have trialed this system in New York, using cyclists to provide on demand deliveries of everything from flowers to food. UberRush is now being trialled in San Francisco and integrating drivers already using Uber to make some extra cash.
- With businesses paying around $6 per delivery, which is also on demand, UberRush represents a significant threat to established courier services. Businesses will have to begin to integrate new app technologies and streamline their services in order to keep up with cheap and on demand delivery services that are being brought to the table by the transport giant. It may be a few years before UberRush is implemented in the UK, but it is on the way and has the potential to be as shocking to the courier industry as it was to the taxi industry.
UBERRUSH
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