Amazon.com, Inc. (AMZN) Reportedly Considering Providing Delivery Jobs Via Crowd-Sourcing


Amazon.com, Inc. (NASDAQ:AMZN) might have made a breakthrough on its quest to enhance speedier deliveries of goods. There are reports that the giant e-commerce company is considering using normal people to make deliveries as part of a new delivery system.

Nagging challenges

Dubbed ‘On May Way’ Amazon.com, Inc. (NASDAQ:AMZN) is reportedly considering recruiting retailers who will be used to store packages from which normal people can pick and drop goods. The service is to be made possible by an app that will allow regular people to know where exactly they can pick goods already purchased.

However, the system is already facing some challenges before unveiling. The biggest concern at the moment is who is to be held responsible in case a package disappears or gets damaged while in transit to the end user. Vetting deliverers of goods to retail stores is also posing its own challenges.

Reaching deals with retailers for storage space could pose another headwind on Amazon’s push to unveil the new service. Amazon.com, Inc. (NASDAQ:AMZN) could borrow a leaf out of established package carriers and seal deals with convenience stores, dry cleaners and other small retailers for storage space.

Concerns over Rising Shipping Costs

The new service could help Amazon.com, Inc. (NASDAQ:AMZN) control shipping charges that skyrocketed by 31% in 2014. Last year the company tried to use Uber and taxi drivers to deliver packages, but the service didn’t expand.

Should Amazon go forth with the new delivery service, it will join the likes of Deliv Inc and Instacart that have used the crowd-sourced delivery system with success. A lot still needs to be done if crowd-sourced delivery systems are to stand a chance against parcel delivery or regional carriers that dominate the landscape.

Crowd-sourced deliveries could help Amazon.com, Inc. (NASDAQ:AMZN) escape shipping woes that have hit it in the past. In 2013 holiday season, the company was forced to compensate some of its customers after packages failed to arrive before Christmas.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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