Technology delivered: Implications for cost, customers, and competition in the last-mile ecosystem

Technology delivered: Implications for cost, customers, and competition in the last-mile ecosystem

What’s the outlook for the last-mile delivery ecosystem, given rapid development in technology? How will technological advances affect unit economics, customers, and competitive dynamics? This Mckinsey & Company article explains.

One of the best parts of the e-commerce journey is the moment that you finally get your hands on that long-sought-after, much-anticipated item you ordered. As technology increases customers’ expectations of what they can have, it is also widening their options for how those products get delivered. However, Mckinsey’s previous research shows that customers are not only increasingly demanding but also extremely cost sensitive and have a very low willingness to pay for greater convenience. In the medium term, autonomous delivery vehicles (ADVs) will be the dominant technology in last-mile delivery, with the power to both give consumers greater delivery convenience at lower cost and significantly alter the competitive landscape. Read the report here: http://www.asiascot.com/wp-content/uploads/2020/07/Fast-forwarding-last-mile-delivery-Implications-for-the-ecosystem.pdf

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