Hail a Package? Amazon Snubs USPS, Uber in Taxi-Delivery Test
Just when it seems like the U.S. Postal Service is hanging a lot of its growth options on Amazon (think grocery and package delivery), Amazon decides it wants to see other deliverypeople. Amazon is considering whether to expand its package-delivery-by-taxi service beyond its test cities of San Francisco and Los Angeles, reports The Wall Street Journal.
No one at Amazon wants a repeat of last year's last-minute holiday package delivery snafus, "according to people familiar with the matter," reads Wednesday's article by Greg Bensinger. He notes this latest test, which Amazon conducted this fall using cab-hailing app Flywheel, is one of many—ranging from drones to a brick-and-mortar Manhattan store.
"Forrester Researcher analyst Sucharita Mulpuru said Amazon may be developing a 'same-day delivery algorithm,' software designed to evaluate a variety of delivery services at any moment, based on which is fastest and cheapest," Bensinger writes.
Amazon is hardly the only beau for USPS, which continues to see package delivery revenues rise as First Class mail volume drops. UPS and FedEx remain suitors, as does Amazon—which is using the postal service to deliver groceries for AmazonFresh.
If this taxi test works, what will it mean for marketers?
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