How are new technologies going to affect the courier service? Here is a list of the 3 main technologies which are going to change the way our industry works
2. 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.
4. 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
5. 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
7. 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
8. 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
9. 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
11. 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
