Efficiency not scale is the key to last mile delivery success


Efficiency not scale is the key to last mile delivery success

August 22 2019


By Paul Yewman, CEO of PostTag

JustEat and Takeaway.com are joining forces to become one of the largest online food delivery businesses in the world. Set to be worth a combined £8.2 billion, they’ll overtake Uber Eats in the race to dominate the market.

It’s the latest in a series of mergers adding fuel to the delivery war after Deliveroo picked up Cultivate and DoorDash aligned with Caviar. JustEat – which feeds a fifth of UK adults – says its agreement is just the start of the long talked about consolidation in the sector. But is scale the answer to success?

Despite the size of these takeovers, at the end of the day they’re still going to face the same hurdles that challenge us all. Difficulties in the supply chain, driver shortages, customer expectations and delivery costs. Acquisitions may grow your army, but it doesn’t make them any better at solving the last mile.

That’s why the road to triumph in the online food delivery sector comes down to efficiency. Optimising operations, rather than expanding them, is the key to progress, and perfecting services makes for happy customers and a growing wallet. So where can we cut corners?

Literally, on the street.

Time and time again, shoddy address data is sending drivers down the wrong road, delivering them to a different house, wasting their time and keeping them from hungry customers. Despite the UK having one of the best postcode systems in the world, location accuracy is way off the mark and close enough is not good enough.

Delivery drivers are spending hours each week manually hunting for the right front door. This hampers business and costs customers who are left waiting while their pizza gets cold. Wasted time on the road also racks up the industry’s carbon footprint, and with the UK government taking a heavy line on air pollution, fines may become a reality in the future.

Pinpoint destination data can get drivers to the right location first time, every time. Our market leading product is among the most advanced geo location systems in the world – and completely frictionless. It doesn’t require any additional steps by the costumer or driver, unlike others.

PostTag is just one of very few organisations out there looking to address inefficiency. AppyParking is another. It’s smart parking system monitors real-time availability of spaces, navigates drivers to them and even allows them to pay for a parking session with a single click.

It’s this kind of performance improvement that is the way forward. Quality over quantity. It’s not about getting bigger, it’s about being cleverer, and businesses – no matter how large – just won’t succeed if they’re left driving around in circles.  So with more choice and convenience in the online food delivery sector than ever before, what’s going to make you stand out from your competition?

Keith LewinLast mile