Zoomo’s Top Takeaways from Home Delivery World USA 2022

The Zoomo team attended the Home Delivery World conference in Philadelphia, an exciting two-day showcase of new solutions and technologies for the last-mile logistics space. Here are some of Zoomo’s key takeaways: 

The Gig Economy is thriving 

Gig workers play an incredibly important role in today’s society, with the event emphasising that the gig economy has become an essential way for businesses to achieve more cost-efficient delivery: 

• Labour costs are one of the biggest cost inputs, and the gig model allows companies to use labour more flexibly, whilst providing workers with flexible income.  The gig economy is expected to grow at a company annual growth rate of 17%, which reflects how important it is becoming for delivery businesses.

• To date, 10% of Americans have participated in gig delivery, which is expected to grow to 22% by 2027. 

• Transportation-based gig services, like food delivery or ride-sharing companies, make up 60% of gig economy transaction value.

IKEA said that it is looking to the Gig Economy to improve the sustainability of its delivery model and reduce maintenance costs associated with owning a fleet of vehicles. This is a decision being made by businesses across the delivery space, with the gig economy reducing the need for extensive workspaces and eliminating the need to provide delivery vehicles for couriers. 

Cost and customer experience is key

Cost was a recurring topic throughout the event, which is leading to fleet managers coming up with intelligent delivery solutions to reduce operating costs whilst maximising customer experience: 

• Last-mile delivery is a major cost to most businesses: D2C logistics cost can be 15-20% of total revenue, with last-mile accounting for 75-80% of total logistics costs. 

• Last-mile delivery companies are becoming increasingly focused on the end customer experience. Faster and more flexible delivery is a key differentiator for D2C brands. 

• Reverse Logistics come at a high price. Companies are now looking for solutions to bring down the costs of this process and prevent returned goods from ending up in landfill.

Rapid grocery delivery provider Farmstead said it has recently pivoted from instant delivery to a two-hour delivery window, claiming that instant grocery isn’t profitable for them (yet automation could make that more accessible in the coming years.) 

This wish for profitable, quick, and reliable delivery is shared by companies globally, with many taking a variety of steps to achieve this. This includes experimenting with fewer but larger dark stores, as well modifying their geo-management by switching to ‘polygon’ map routes that match route and road patterns. There is no ‘one way’ of achieving quick and profitable delivery, yet delivery companies are increasingly looking at how they can get closer to their customers. 

Why LEVs are integral to the future

Switching from a fleet of traditional gas-guzzling vehicles to one of light electric vehicles (LEVs) is the answer to many of today’s delivery concerns. It allows businesses to reduce operating costs, improve customer experience, as well as mobilise gig workers,  with Zoomo’s experience across varying sectors in the delivery space proving this. 

LEVs are essential for businesses in the gig economy. E-bikes have very low barriers to entry, making them one of the most accessible vehicles for gig workers. Zoomo is committed to putting the dignity of the gig worker first by providing easy and affordable access to grade e-bikes that are built with safety front-of-mind, allowing individual riders to maximise each delivery shift whilst increasing the vibrancy of cities.

LEVs are a cost-saving solution. Fleet managers can save up to 56% on monthly vehicle costs by switching from a petrol moped to a Zoomo e-bike, with a fleet of LEVs saving on costs such as maintenance, insurance, registration, fuel and more. 

LEVs ensure customer satisfaction. LEVs offer faster delivery times, with e-bikes able to bypass congestion and avoid wasted time finding parking, whilst making up to two times as many stops per hour as a delivery vehicle. In a time when today’s customers are Amazon Prime natives, this is essential. 

LEVs ultimately offer the best solution for companies, like Farmstead or Ikea, looking to boost the cost, speed, and efficiency of delivery networks. 

Their size, speed, and ability to benefit from fleet management software makes them primed to utilise delivery strategies such as using micro-fulfillment centres or  switching to ‘polygon’ map routes. They are essential for businesses wanting to get products to customers as quickly as possible, as well as improving the challenging tasks associated with the sector such as Reverse Logistics. 

These revolutionary tools are already on our roads and bettering how we transport from A to B. LEVs are one the most innovative developments the last-mile has seen in recent years, and regardless of the sector, they will play an essential role in the future of delivery.