Yesterday I ordered something from Amazon Prime. The guaranteed delivery time was today before 9pm, but within an hour of ordering the delivery estimate was updated and it ended up arriving on the same day about 5 hours after my order. I thought this was pretty amazing, particularly because the package was a bit time sensitive.
Delivering to individual residences is more expensive than delivering to more centralized businesses and stores. And with the rise of online shopping, UPS now delivers as many as 31 million packages every day. Because of this, every little detail counts.
Last year the company started installing Bluetooth receivers on the inside of its delivery trucks. If a driver incorrectly loads a package that isn’t on their route, it pushes out a loud beep. (This is one of the many
Yesterday I ordered something from Amazon Prime. The guaranteed delivery time was today before 9pm, but within an hour of ordering the delivery estimate was updated and it ended up arriving on the same day about 5 hours after my order. I thought this was pretty amazing, particularly because the package was a bit time sensitive.
Delivering to individual residences is more expensive than delivering to more centralized businesses and stores. And with the rise of online shopping, UPS now delivers as many as 31 million packages every day. Because of this, every little detail counts.
Last year the company started installing Bluetooth receivers on the inside of its delivery trucks. If a driver incorrectly loads a package that isn’t on their route, it pushes out a loud beep. (This is one of the many
tech and data-driven projects
that UPS is working on to ensure it stays competitive.)
Previously there was no final check. If there was a rogue package on the truck, it meant the driver would have to stray from their route, coordinate a handoff, or delay the package for another day. These mishaps can really add up when you’re delivering 31 million packages in a single day.
With Amazon squeezing delivery times and with the rumors that it’s going to start its own delivery business (to compete directly with UPS and FedEx), one has to wonder about the impact that these volumes will have on our cities. Perhaps autonomous vehicles will really become the new roaming retail outlet – ready to deliver as soon as we click buy.
This morning the first Amazon Go store opened to the public in downtown Seattle. It’s more convenience store than grocery store, but the big deal is that there are no cashiers and no lines.
You enter the store through a gate and with your phone and Amazon’s app. As you walk around the store and pick up items they get automatically added to your online cart on Amazon. So everything goes right into the offline bag you’ll be leaving the store with. Place an item back on the shelf and it is instantly removed from your “cart.” Walk out of the store and you’re automatically charged.
It’s not yet clear how exactly the technology works, but Amazon says that all of this is accomplished through sophisticated computer vision (cameras), machine learning, and lots of sensors.
What’s really remarkable is that it doesn’t rely on every product having a special chip or sensor attached to it. I would think that was one of the biggest hurdles to overcome in order to remove the pain point of grocery store lines.
Now that this is up and running, I can only imagine the customer behavior data that they must be collecting. Heat maps of every shelf showing conversion rates for every imaginable customer segment. (Are tall people more likely to buy products displayed higher up?) Correlating people’s food purchases to their broader Amazon shopping habits. And the list, I’m sure, goes on.
There is even speculation that Amazon will begin licensing this technology to other retailers, similar to what it does with Amazon Web Services. That seems like a reasonable assumption given the data play we just talked about. Assuming the tech works, it’ll get copied. So they may as well embed themselves.
In case you were wondering, the Bureau of Labor Statistics pegs the number of cashiers in the US at about 3,555,500 (2016 number). And this number is projected to remain more or less flat until 2026.
That doesn’t feel right to me.
tech and data-driven projects
that UPS is working on to ensure it stays competitive.)
Previously there was no final check. If there was a rogue package on the truck, it meant the driver would have to stray from their route, coordinate a handoff, or delay the package for another day. These mishaps can really add up when you’re delivering 31 million packages in a single day.
With Amazon squeezing delivery times and with the rumors that it’s going to start its own delivery business (to compete directly with UPS and FedEx), one has to wonder about the impact that these volumes will have on our cities. Perhaps autonomous vehicles will really become the new roaming retail outlet – ready to deliver as soon as we click buy.
This morning the first Amazon Go store opened to the public in downtown Seattle. It’s more convenience store than grocery store, but the big deal is that there are no cashiers and no lines.
You enter the store through a gate and with your phone and Amazon’s app. As you walk around the store and pick up items they get automatically added to your online cart on Amazon. So everything goes right into the offline bag you’ll be leaving the store with. Place an item back on the shelf and it is instantly removed from your “cart.” Walk out of the store and you’re automatically charged.
It’s not yet clear how exactly the technology works, but Amazon says that all of this is accomplished through sophisticated computer vision (cameras), machine learning, and lots of sensors.
What’s really remarkable is that it doesn’t rely on every product having a special chip or sensor attached to it. I would think that was one of the biggest hurdles to overcome in order to remove the pain point of grocery store lines.
Now that this is up and running, I can only imagine the customer behavior data that they must be collecting. Heat maps of every shelf showing conversion rates for every imaginable customer segment. (Are tall people more likely to buy products displayed higher up?) Correlating people’s food purchases to their broader Amazon shopping habits. And the list, I’m sure, goes on.
There is even speculation that Amazon will begin licensing this technology to other retailers, similar to what it does with Amazon Web Services. That seems like a reasonable assumption given the data play we just talked about. Assuming the tech works, it’ll get copied. So they may as well embed themselves.
In case you were wondering, the Bureau of Labor Statistics pegs the number of cashiers in the US at about 3,555,500 (2016 number). And this number is projected to remain more or less flat until 2026.
in response to the city’s failed Amazon HQ2 bid. He chalked up the loss to reputational hangover:
We are still dealing with the unique radioactive-like reputational fallout of 50-60 years of economic decline, disinvestment, municipal bankruptcy, and all of the other associated negative consequences of that extraordinarily long period of time.
This was the “elephant in the room”, though his statement is primarily centered around both talent and transportation – the two critical and lacking ingredients that allegedly disqualified Detroit.
He ends by stressing the importance of physically visiting Detroit 2018. That is the only way, he says, people will fully appreciate the change and momentum that has taken hold in the city. (I experienced Detroit 2016 so I guess I’m overdue.)
To bring people to downtown Las Vegas, Tony – somewhat famously – rented 50 apartments in one of the only high-rises, called them “crash pads”, and offered them out for free to people who wanted to come and check out what was happening in downtown Vegas and with the Downtown Project.
That’s certainly one way to lower the friction.
Equally interesting to me about this strategy, though, is that it was presumably necessary (he did it, right?) just to bring people to another part of Vegas, let alone another city altogether.
Full disclosure, I’ve never been to Vegas. But I understand that many people visit the place. So for me it speaks to the kinds of inducements that may be necessary just to revive or kickstart a place.
in response to the city’s failed Amazon HQ2 bid. He chalked up the loss to reputational hangover:
We are still dealing with the unique radioactive-like reputational fallout of 50-60 years of economic decline, disinvestment, municipal bankruptcy, and all of the other associated negative consequences of that extraordinarily long period of time.
This was the “elephant in the room”, though his statement is primarily centered around both talent and transportation – the two critical and lacking ingredients that allegedly disqualified Detroit.
He ends by stressing the importance of physically visiting Detroit 2018. That is the only way, he says, people will fully appreciate the change and momentum that has taken hold in the city. (I experienced Detroit 2016 so I guess I’m overdue.)
To bring people to downtown Las Vegas, Tony – somewhat famously – rented 50 apartments in one of the only high-rises, called them “crash pads”, and offered them out for free to people who wanted to come and check out what was happening in downtown Vegas and with the Downtown Project.
That’s certainly one way to lower the friction.
Equally interesting to me about this strategy, though, is that it was presumably necessary (he did it, right?) just to bring people to another part of Vegas, let alone another city altogether.
Full disclosure, I’ve never been to Vegas. But I understand that many people visit the place. So for me it speaks to the kinds of inducements that may be necessary just to revive or kickstart a place.
