In Delivery, Last-Mile, Retail, Same-Day Delivery
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mobility-blog

Mobility Mindset

G

etting things from point A to point B isn’t as simple as it used to be. Cities are becoming more crowded, the roads more congested, with evolving consumer habits towards home delivery an additional contributing factor. New technologies and business models are transforming how goods and people move within cities. Here’s a look at some factors causing retailers and logistics companies to rethink mobility.

Urbanization

The world’s population is concentrating in cities. According to the United Nations, 55% of the world’s population lives in urban areas. That number is expected to increase to 68% by 2050. The increase in urbanization brings major transportation challenges and opportunities. As more vehicles in urban areas increase congestion, air pollution, and noise, more cities are experiencing issues related to last mile delivery of goods.

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As cities become more congested, new business models and technologies are emerging to cater to the evolving needs of customers and overcome mobility challenges

Millennial Mindset

This year, according to the Pew Research Center, the millennial generation will overtake baby boomers as the largest adult population group in the United States. Millennial shoppers are less brand loyal than previous generations. They shop online more and have a strong preference for convenience. When it comes to delivery, they more often use two-day and expedited options and will choose alternate locations. Millennials value experiences over things, access over ownership.

New subscription-based companies are emerging, providing consumers access to products without the burden of ownership. For example, furniture subscription service, Fernish, lets consumers rent furniture, buy it, exchange and upgrade to different pieces, or just have everything picked up. The company provides free delivery and assembly, so customers can instantly feel at home without the hassle and commitment of owning and moving furniture.

On-demand is in-demand

The growth of eCommerce is revolutionizing retail and changing consumer habits. On-demand delivery and shrinking delivery times enable consumers to get deliveries whenever and wherever they want. As the threat from on-demand delivery services grows, brick-and-mortar retailers are adapting to shifting consumer expectations with implementing their own delivery operations. For example, Kroger is testing a new service, Kroger Rush, in which customers can get meals and groceries delivered in thirty minutes. As consumers continue to shift towards online shopping, brick-and-mortar retailers must implement fast and convenient delivery options to stay relevant in the evolving retail landscape.

As cities become more congested, new business models and technologies are emerging to cater to the evolving needs of customers and overcome mobility challenges. The automotive industry is shifting towards developing more smart mobility options for consumers. Next week, we’ll take a look at some new mobility services and innovative technologies that are transforming the mobility landscape.

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