Same Day Delivery: Making a Comeback

By: Mackenzie Kilmartin

The Internet plays a large role in today’s society, and in today’s market world. The biggest change in today’s market is that companies are trying to improve same-day delivery with software. While at first it was a failure in the mid 2000’s, times are changing, and customers are adapting.

“The reason it is such a good idea now is the exact same reason it was so horrible before: the network effect,” said Nabeel Hyatt, a venture partner at Spark Capital.

Not even half of American households had an Internet connection in 1999; today 98% have access to a connection. And it certainly helps that customers all have smartphones. This means a higher population of users and potential users, who can instantly reach couriers whenever they are in need.

Same-day delivery seems to be working positively, specifically for already existing liquor stores. New delivery companies such as Thirstie, Ultra, Drinkos, and DrinkFly in select cities ensure quick and reliable alcohol deliveries to your doorstep. These start-up companies form partnerships with brick-and-mortar stores, and consumers use the delivery company’s website or app to shop.

Gordon’s was Drizly’s (in Boston) first store partner when it officially began in February 2013. It now has 33 employees and expected more than $5 million in revenue for 2014. In New York, Vino Fine Wines and Spirits has signed up with several services, including Thirstie and Ultra. The services have brought in new business and customers. Since collaborating, the store has been taking in $1,000 to $2,000 more a month just through that service.

People rely on the Internet daily, and shop online all the time. Same-day delivery is making it big in today’s market environment. I believe that this kind of market will continue to become a large contribution to the world of marketing, no matter what the product may be, as long as delivery services and companies keep up to date with current economic trends, and consumer behavior.

Sources:

http://www.nytimes.com/2014/08/24/magazine/delivery-start-ups-are-back-like-its-1999.html

http://www.nytimes.com/2015/02/19/business/smallbusiness/same-day-delivery-resurges-adding-alcohol.html

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9 thoughts on “Same Day Delivery: Making a Comeback

  1. Chris Girard March 5, 2015 / 2:07 pm

    This is a very interesting concept. It would be very nice to be able to see same day delievery make a come back. There is a gap in the current market that this could fill very well

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  2. Yafen Liu April 8, 2015 / 4:00 pm

    The same-day delivery is a new but creative service today. Since the spread of Internet, shopping online is normal. Not only the delivery companies should consider the quality of service, but also the speed. Meeting consumers’ needs and satisfying them is the source of profit. Amazon Prime Air, for example, provides the same-day delivery, and is even more effective: they delivery fresh vegetable or seafood within 30 minutes. Although only have two drone models and are only allowed flying in small areas, they are developing quickly and increasingly popular among consumers. As a result, same-day delivery will be more and more influential in the market place in the long run.

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  3. Domenica Fuller April 10, 2015 / 9:59 pm

    With all of the technology we have today, our society has become more reliant on getting things faster. I work in financial services and I deal with this everyday when I tell customers once they submit a request it can take so many days to process. Consumers expect now to be able to get products or services immediately because of our increased capabilities. While I can see it being beneficial for companies to start offering same-day delivery, I can also see it becoming very costly for the first few years while companies develop a strategy that works. There will need to be an increase in the number of products stores, more warehouses in different locations, as well as, more delivery vehicles. Companies would really need to decide if same day delivery is beneficial to it making a profit or if it would even be feasible with the products or service it offers.

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  4. Jackie Lurvey April 13, 2015 / 11:53 pm

    Instant gratification has continued to become a growing desire in today’s market. We all want something right when we order it. I agree that same day delivery is an expensive service to offer but it may prove to be beneficial. In order for a company to really benefit from it, they should be a large company with many resources or a smaller company that has partnered with a larger company with resources. Those types of companies, such as Amazon, have the capabilities to provide this service without it weighing down the costs. I do not think same day delivery will be cost effective with a small company in a small market, especially since it is such a new and expensive service.

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  5. Lauren Smith April 15, 2015 / 7:53 pm

    With the high surge in smartphone usage as well as the high surge in instant gratification demand, the market for same day delivery is definitely up and coming. I know as a college student, online shopping is definitely one of my go to outlets as a form of shopping and getting things delivered to my campus easily and quickly since I don’t have a car. Typically when I order something online it’s probably because I need it rather quickly and I procrastinated getting it when I was out and about, whether that be a birthday gift or something I need for myself or dorm room. In order for companies to actually benefit from the same-day delivery tool I think it should definitely be geared towards bigger companies or even companies that just have connections or partnerships with larger companies that are more well known such as Amazon. In regards to Google Plus and as well as the other companies that Mackenzie talks about, I think that because they are not well known as having the same-day delivery and not many people know about their beneficial features it will be tougher for them to have a big surge in profit or even be cost effective. However, if the smaller companies paired with Amazon or other big name companies I feel as if it would help them to both their extent and the extent of their customers.

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  6. Kaitlyn Magnano April 27, 2015 / 7:39 pm

    Same day delivery is a great idea. I agree with Domenica that with all the technology we have today, society is more reliant on getting things faster. I would personally like for this to come back because sometimes I do not have time to get to the store that day or have a busy week and cannot get to the store until the end of the week so this would be useful in times like that. I think that this would be more beneficial for bigger companies rather than smaller ones. All in all, this idea is very creative and interesting and I think could be beneficial to bigger companies.

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  7. Briana Lynch April 27, 2015 / 10:31 pm

    As others have stated,consumers have a growing longing for instant gratification. I can definitely see same day delivery being a success nowadays where people have become more involved with and reliant on technology. In cases where someone may need something and is unable to make it to the store, I can see this being extremely beneficial. However, I imagine it will be rather costly for both the consumer and the companies offering same day delivery. Personally, I think I would rarely utilize this service. Most of the time, I believe I would either simply wait to go to the store or choose a cheaper shipping method and be willing to wait a couple of extra days. It is hard to imagine many scenarios where same day shipping would be worth the cost for me personally.

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  8. Kendra Van Pelt April 28, 2015 / 4:29 am

    Many companies have gotten a lot of press recently from proposed drone use – one of the most publicized has probably been Amazon. When same day delivery, especially same day delivery brought to you by drone, came into the news, Amazon’s name was side by side with the headline. It is a company positioned perfectly well for implementing drone use into their company service, as they already strive for fast and reliable service. Amazon is well known for it’s two day free delivery service for its Prime members – increasing that to one day service is definitely an achievable measure. There has even been talk over 30 minute service, in order to get important medical supplies to consumers or to help get emergency supplies to critical places in need. As of December last year, the FAA has approved four commercial companies to fly fly commercial drones to conduct aerial surveys, monitor construction sites and inspect oil flare stacks. There is an incredible push for the use of commercial drones form huge companies, like Amazon. I think it is only a matter of time until they become common place (unless a newer and better way comes along).

    http://www.usatoday.com/story/money/business/2014/12/10/faa-drones-trimble-vdos-clayco-woolpert-amazon/20187761/

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  9. Lauren Moran April 28, 2015 / 3:25 pm

    I think that businesses like these are a great idea. Not only do they encourage healthier drinking habits (drinking and driving) people at parties will love it. I find it interesting that people do not have to leave the comfort of their own home to have their favorite drinks delivered to them. Promoting people to not drink and drive will help everyone since it is so dangerous.

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