Progistics Distribution launches last-mile delivery app

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Progistics Distribution, a third-party logistics firm specializing in last-mile delivery solutions, has launched a web app to aid retail, e-commerce, and small package and bulk shipment companies, according to Yahoo Finance.

The app, called eDemand, is aimed at reducing the costs and difficulties associated with last-mile deliveries, or the actual delivery of a product to a consumer’s home. The app will connect the roughly 700 professional drivers in Progistics’ network to firms who offer same-day and/or on-demand delivery. eDemand is only available in Chicago, Dallas, Las Vegas, Los Angeles, Oakland, California, Phoenix, Portland, Oregon, San Francisco, and Seattle.

Costs associated with last-mile delivery can account for up to 28% of a company’s total supply chain costs, according to The Council of Supply Chain Management Professionals. The Progistics app aims to cut back on these costs and make last-mile fulfillment run smoother. With eDemand, companies will be able to seamlessly connect with a professional driver, who will be able to deliver a same-day or on-demand order within a 200-mile radius. The eDemand app will also include services like real-time order tracking and live customer support.

Same-day delivery services have grown significantly in the past year due to the rise of e-commerce. Same- and next-day delivery has become the benchmark for fast shipping, putting pressure on online merchants to meet consumer delivery expectations. As a result, the same-day delivery space is now very competitive.

Postmates recently made a push into same-day delivery for the retail industry, while UberRush continues to attract retailers in large cities. E-commerce giant Amazon has also been steadily rolling out its same-day delivery service Prime Now in the US and globally. Progistics will likely look to leverage its experience as a traditional third-party logistics firm in order to become competitive in the increasingly crowded same-day delivery space.

To be sure, there are several expenses and complexities involved in delivering over this so-called "last mile," but companies such as UPS will grow e-commerce's customer base (as well as its share of retail dollars) and siphon off one of offline retail's last real competitive advantages if they are successful in this regard.

Cooper Smith, senior research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on same-day delivery that takes an exhaustive look at this market and sizes the percentage of people who will purchase goods to be delivered the same day.

The report uncovers the demographics of same-day delivery customers, the markets where these services have the best chance of taking off, and assesses how each of the many new same-day delivery entrants compares to the others. It also looks at the technology that really could make getting a package delivered to your door hours after you order it a common phenomenon.

Here are some of the key points from the report:

• USE: BI Intelligence estimates that 2% of shoppers living in cities where same-day delivery is offered have used such services. In dollar terms, we estimate that roughly $100 million worth of merchandise will be delivered via same-day fulfillment this year in 20 US cities.
• CONSUMER EXPECTATIONS: Consumer interest in same-day delivery is already fairly high. Four in 10 US shoppers said they would use same-day delivery if they didn't have time to go to the store, and one in four shoppers said they would considering abandoning an online shopping cart if same-day delivery was not an option.
• DEMOGRAPHICS: The most common same-day delivery shopper fits a very specific profile — millennial, highly likely to be male, urban-dwelling, and young. The products people want delivered same-day are also fairly niche.
• BARRIERS: Despite all the competition in the same-day delivery market, it still won't be easy to get people to pay for these services. 92% of consumers say they are willing to wait four days or longer for their e-commerce packages to arrive.

In full, the report:

• Estimates the market for same-day delivery from 2013-2018, including the percentage of people who will use these services and the total sales volume
• Looks at the most likely same-day delivery customers and the cities where these individuals are concentrated
• Unpacks the kinds of goods people are likeliest to order for same-day delivery
• Lays out how the different same-day delivery services stack up against each other in terms of prices, location, and selection
• Considers the barriers that could keep same-day delivery from ever becoming a mainstream preference among consumers
• Identifies the technology that could make same-day delivery cost-effective and commonplace

To get your copy of this invaluable guide, choose one of these options:

1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
2. Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the shift toward same-day delivery.