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As Uber prepares to deliver shopping, local couriers face a tougher fight than black cabs

A new report by inUber prepares to deliver shoppingternational parcels broker ParcelHero reveals how you may soon be having your packages delivered by Uber. It’s a move set to deliver loss-making Uber $24.6bn internationally – but could mean war on the streets over Britain’s lucrative £7bn express courier industry.

Many of us are already hooked on the Uber app that delivers a cab to our door within minutes. Now the pioneering courier price comparison site ParcelHero says we should prepare for the ‘Uberfication’ of our parcels and shopping deliveries. A new report from ParcelHero reveals the same crowdshare App technology that delivers passengers is set to deliver our shopping, and the simple to use, almost real-time, service will turn the UK local express courier industry on its head.

ParcelHero’s significant new industry report, The Uberfication of Deliveries, predicts the UK’s £7bn local courier industry will be just as vulnerable to Uber’s crowd share technology as the traditional black cab has been. ParcelHero’s Head of Consumer Research, David Jinks MILT, says: ‘ This report reveals UberRUSH has revolutionised local deliveries in a number of US cities already, forcing rivals such as Sidecar out of the market, and Uber admits it is eager to develop its delivery proposition in London. With £7bn of Same Day courier revenue on the table, there’s no way Uber is going to ignore the UK market for long, which means existing local express couriers are going to have to be ready for them.’

David asks: ‘Why would Uber want to move into logistics? The answer is simple: Uber is the most funded start-up in the world, valued at $50bn; but runs at a loss. The worldwide taxi industry is worth $22bn in revenue; but that’s tiny compared to the domestic global courier and parcel sector, which generates around $246 billion in revenue, a far more lucrative market. Our analysis reveals Uber is likely to capture at least 10% of this market globally, earning it an extra $24.6bn annually. Uber needs to expand into these new markets to reach its potential.’

Building on its successful US operations Uber is expected to work with big name and local stores to offer the speedy delivery of items; which means consumers will experience near real time deliveries. And if Uber brings its New York-style courier service to London, existing couriers will have to compete with the customer-friendly instant App bookings and driver ratings – or die. Over 500 black cabs have disappeared from the streets of London since the arrival of Uber, and ParcelHero predicts local couriers not connected with larger networks will face an even tougher future.

Says David: ‘As any London cabby will confirm, the arrival of Uber violently shakes up traditional markets. Just like the taxi industry, the local express and same day courier market seems well-established but equally vulnerable to crowdsource technology. Existing companies will have to embrace this new technology, or fall aside.’

Read the full report at: https://www.parcelhero.com/blog/news-updates/the-uberfication-of-deliveries-parcelhero-industry-report

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