The Last Mile Problem
With the rise of e-commerce, consumer preferences have moved more and more to the center of attention in what can be described as the formerly business-oriented parcel delivery market. The challenge many face today is matching the consumer expectation with the consumer experience in regards to delivery time, costs, returns and delivery methods. While e-commerce and the channels in which we shop transformed at a rapid pace the last decades, last mile delivery methods have lagged behind. The last mile of delivering parcels accounts for over 50 percent of the share of delivery cost by part of journey while also having a profound impact on the environment. Its evident that there is a last mile problem, and we here at HUGO are going to change that.
Pay For Premium
McKinsey & Company have found that around 25 percent of consumers are willing to pay premiums for same-day delivery or instant delivery.
Single Car Pick-Up
Couples and families with children have a preference for choosing a car as their transportation mode for picking up packages from a collection point.
Parcel Delivery is a growing market: In the next 10 years, parcel delivery market volumes could double according to McKinsey & Company.
Half the Cost
The last mile of delivering parcels accounts for over 50 percent of the share of delivery cost by part of journey.
Consumers shopping behavior has changed drastically, shifting from stores to shopping online. It is estimated that in 2020 online sales of physical goods will double compared to 2016.
Not being home when deliveries are made creates a ping pong effect between the customer and the courier, leading to high economic and environmental costs.