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Major Retailers Taking on Package Delivery

Major Retailers Taking on Package Delivery

Major Retailers Taking on Package Delivery

They’re Coming from Everywhere - Deliveries That Is 

 

We all know it; we all feel it; we all see it. There is a massive influx of packages coming to our communities on a daily basis. No longer just Monday through Friday but on Saturdays and Sundays, too. 

All the major carriers – UPS, FedEX and USPS – are now on a seven-day delivery schedule or are getting ready to launch a 24/7/365 delivery program, just to keep up with the likes of Amazon. But where else are these packages coming from? 

Let’s examine what could be driving the ever-growing number of deliveries coming to your properties day-in and day-out: 

Major Retailers are Taking on Amazon 

Walmart, Target, Kroger and other retailers already offer direct-to-home delivery services, but due to increased demand and huge success, they are expanding their services. 

In September, Walmart announced the launch of its Unlimited Delivery Membership. For a low monthly or yearly subscription fee, consumers have access to unlimited grocery deliveries. Think Amazon Prime Pantry but for more affordable fruits and vegetables. 

After a successful pilot in four markets earlier this year – Houston, Miami, Salt Lake City and Tampa, the retailer is expanding the program to all 200 metro areas where it already has established Grocery Delivery service. The company shares that the service will be available in more than 1,600 stores and more than 50 percent of the country by the end of the year. 

Further easing shopping for consumers, Target’s Restock program aims to fulfill the everyday needs of a family. The retailer is now offering free next-day delivery for those who purchase more than $35 worth of goods. This can be anything from diapers, toilet paper and paper towels to laundry detergent, lightbulbs and other household essentials. 

While the program limits its Restock package to 45 pounds – or roughly the size of a red Target shopping cart – that is still one large box that apartment communities nationwide will have to deal with. 

Target’s Restock program also offers an interesting spin to make shopping even easier. The retailer has partnered with Google to enable voice-activated shopping. Similar to Amazon and its Alexa integration, consumers simply tell a Google smart speaker that they need more toilet paper and shampoo and those items are automatically added to their carts. 

As smart home technologies gain momentum in the multifamily industry, residents may be leveraging their voice assistance speakers to expedite their retail habits. Again, this ease of use and accessibility could further complicate package management at your community. 

The Raise of Gig Economy Services

And let’s not forget about the massive influx of outsourced delivery services, or gig economy delivery.

InstaCart serves more than 300 retailers and more than 20,000 stores nationwide. Its service touts one-hour grocery delivery in certain locations and relies on more than 70,000 delivery drivers. With its new partnership with Walmart, moms and dads across the country can order a single avocado or another gallon of milk and have it delivered. It’s just that easy. 

Shipt is the major competitor to InstaCart. It was acquired by Target in 2017 to help drive its digital sales platform. The program offers a same-day-delivery, typically within a one to two-hour delivery window. Target reported that its 2019 Q2 same-store sales increased by 1.5 percent, which it says is largely due to the accessibility and ease of use offered through the Shipt delivery service. 

Contributing to the growth of the package-delivering ecosystem is the fact that it’s so easy for people to become delivery drivers. 

For instance, in order to become an Amazon Flex driver, a person simply needs to be 21 years or older, have a valid driver’s license, auto insurance and at least a mid-sized sedan. Applicants go through a simple basic background check and, if cleared, can start picking up and delivering packages immediately. To become a Shipt driver, a person only has to be at least 18 years old, have a driver’s license and auto insurance as well as access to an insulated cooler. 

With the explosion in companies that deliver packages and the ease with which they can find drivers, it’s easy to see that package deliveries are only going to continue to increase in frequency. Now, more than ever, apartment communities have to have the right solutions and procedures in place to ensure that leasing staffs aren’t overburdened and that residents can easily pick up their items. 

 

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