Amazon takes over the last mile - where DHL & Co have weaknesses
On its way to independence: Amazon is plugging the holes left by DHL, Hermes, Fedex & Co - and is thus gradually expanding its last-mile delivery services. It's nothing new that Amazon has ambitions to become a real alternative for the last mile, and is already getting this done properly.
Source: Google search on Amazon Last Mile Delivery
However, reports such as Amazon's delivery in northern Hesse (Bad Hersfeld, 100 drivers, about 10,000 shipments per day) provide a good analysis of the scheme behind Amazon's last-mile ambitions:
Amazon always takes over delivery in precisely those regions where the previous carriers such as DHL or Hermes have their weaknesses.
The current phase is therefore about plugging holes and ensuring delivery capability in the sense of sufficient capacity. The goal is to achieve mere delivery and the associated customer satisfaction. It is not yet so much a question of covering the entire area and also of mapping this "last mile" at a structurally different level than the "established" CEP service providers. Despite the current situation, the goal is clear: Amazon is conducting tests for scaling this processing (pre-packed vehicles, pre-planned tours, consolidated delivery, etc.) in order to be self-sufficient in the future.
Here's what Amazon has to say about its last-mile ambitions:
"We are investing in additional logistics so that packages reach customers faster and more flexibly. We are going into the regions where existing capacities alone are no longer sufficient."
Ralf Kleber, Amazon Germany Chief Executive, Interview 3/2019
You have to know that:
As soon as you systematically evaluate the lead times of the CEP service providers, you see striking differences depending on the postal code area. Also, the lead times mentioned in the contracts such as E+1 (delivery plus one day) are not guaranteed, but are merely guideline values. Conclusion: in certain cities, the delivery rate in the first attempt, which is important for the customer experience, can be particularly poor. In metropolitan areas, attractive additional services such as "same day" or evening delivery are often available with far too few slots on the market. To bring the roll-out of delivery services to the streets, Amazon will focus on the ZIP code areas that are best suited for this according to their data analysis.