How Uber Rush is set to challenge giants UPS and FedEx

By Admin
In an attempt to expand its business even further, rideshare giant Ubers latest creation Uber Rush will now bring items to you instead of the other way...

In an attempt to expand its business even further, rideshare giant Uber’s latest creation Uber Rush will now bring items to you instead of the other way around.

Initially launched last year in New York as an experiment, Uber Rush allows users to hail a courier from the regular Uber app, then track the delivery all the way to your doorstep.

RELATED TOPIC: Slow delivery equals slow death in ecommerce

With it now also up and running in Chicago and San Francisco, the latest invention allows customers to get what they want, when they want it.

In the United States, 20 per cent of all trips are moving things from point A to B. Although a lot of time and energy would be saved if every local business delivered, it’s just not logistically feasible.

Not only will this new service help consumers, it will help out businesses as well with its ability to order and track deliveries instantly, expand delivery zones and integrate with existing tools and platforms.

RELATED TOPIC: DHL: Technology advances in logistics necessary to meet increasing delivery demands

Making it even more efficient is Uber Rush’s ability to pick up multiple packages from multiple locations, similar to UPS and FedEx. Although passengers and packages will ride separately for now, Uber Rush drivers will be trained on how to position themselves, how to handle package deliveries and how long to wait for deliveries.

In New York, deliveries can also be made on foot or by bicycle.

If Uber Rush is able to find a balance between efficiency, supply and demand, it could cause huge problems for companies specializing in deliveries. Uber has also partnered with online retail outlets such as Shopify to allow consumers to choose UberRush as a delivery option.

RELATED TOPIC: How India is keeping up with mobile & delivery commerce trends

When combining the two, customers will be able to receive their online orders within hours of making the purchase, increasing online shoppers’ urge to buy that much more inevitable.

Each Uber Rush delivery will cost the merchant between $5-7, as Uber will pay the delivery driver 75-80 percent of the fee and keep the remaining revenue. It’s a similar strategy used by on-demand delivery service Postmates, which claims a percentage of each sale.

Although having convenient delivery comes at a hefty price, Uber’s decision to turn Uber Rush into a legit business instead of an experiment shows the confidence the rideshare giant has in its latest invention.

Let's connect!    

Read the October Issue of Supply Chain Digital!

Share

Featured Articles

PwC Examines Digital Trends in Operations for 2024

PwC’s Digital Trends in Operations Survey for 2024 demonstrates a significant proportion of firms are struggling to achieve their desired outcomes

P&SC LIVE New York 2024 Virutal - SAVE THE DATE

Don’t miss out on your chance to attend Procurement & Supply Chain LIVE New York in 2024 Virtually, 5-6 June

Charities & NGOs Submit to The Global P&SC Awards for FREE

The Global Procurement & Supply Chain Awards hosted at P&SC LIVE London Sept 2024 welcomes charities and NGOs to submit for FREE

Procurement & Supply Chain LIVE: 2024 Dates to Remember

Digital Supply Chain

Gartner Unveils Top Supply Chain Technology Trends for 2024

Technology

What the Latest CSDDD Milestone Means for Supply Chains

Sustainability