According to the Wall Street Journal’s report, Amazon the e-commerce giant is internally working on an app that will allow the average consumer to make a little bucks by picking up Amazon packages at various retail locations and dropping them off at their final destination.
The app known internally as “On My way” is expected to turn the U.S into a nation of couriers. From all indications, it seems this app will be launched initially in the U.S before it probably makes its way to other countries.As of yet we are unsure.
Although, reports from WSJ’s sources suggest that there is not yet a timeline for the release of this product and were unsure whether it would launch at all, we believe if this concept actually does launch it could give Amazon more control over the shopping experience and help contain shipping costs that grew 31% last year, faster than revenue.
This concept however, still faces many hurdles because a lot could go wrong with this process. “What’s to stop these people from simply taking the packages for themselves instead of leaving it on someone’s porch?” said Marc Wulfraat, president of Montreal-based logistics consulting firm MWPVL International Inc., which closely tracks Amazon.
Crowdsourced delivery could offer Amazon an escape route for the shipping woes it faced during the 2013 holiday season, when it had to compensate customers after some packages failed to arrive by Christmas. In 2014, Amazon’s shipping costs jumped by $2.07 billion to $8.7 billion, or 9.8% of sales, compared with 8.9% the year prior.
Amazon has also talked about launching a fleet of drones to deliver parcels although this flight still has its own delays.
TechCrunch reports that “Whether or not turning to consumers to help fight the rising cost of deliveries isn’t clear, but with a handful of huge companies and dozens of startups working on on-demand, same-day delivery, at least one match is bound to catch fire.”.
Although some analysts think this might be a liability insurance nightmare waiting to happen, we would really like to see how this pans out.