FedEx wanted a little help getting over the finish line, and it seems to have found it. The delivery giant inked a multiyear partnership with robotics firm Nuro to test drop-offs via self-driving vehicles.
Self-serving: The goal? Scaling up last-mile delivery. FedEx is piloting the program in Houston, focusing on scenarios that offer “the biggest bang for your buck,” Cosimo Leipold, Nuro head of partnerships, told Reuters.
- Nuro’s already hit the road for Kroger and Domino’s, but Axios notes this is the robot company’s first move in the parcel arena.
Rat race: Last mile is a pricey piece of the delivery puzzle, accounting for 53% of shipping costs, according to an Accenture report. Any way to lighten that load is welcome, as all those brown boxes take over our front porches.
- US e-commerce sales hit $791 billion in 2020, per eMarketer, and are expected to top $933 billion this year.
- 3 billion packages were delivered during the holidays last year, The New York Times reported.
And forget two-day shipping: 61% of Americans prefer things delivered as soon as possible, per NielsenIQ survey data released in April.
Amazon jacked capital expenditures 80% from April 2020 to April 2021, largely to speed up delivery. Meanwhile, UPS CEO Carol Tomé hinted last week the company is exploring a same-day option, which FedEx already offers.—KM
Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.