Last Mile delivery or Q delivery ( quick delivery's)9 Feb 2022 20:01
The last mile delivery is an interesting area to read up on. Its that last mile where the war between Amazon etc and small micro delivery cos will be fought. Delivery to residential houses in just a few hours from ordering a product is growing rapidly, and will be expected sometime soon - even though its cumbersome and trends show this will be a massive market.
Fabric opened two new fulfilment stations in New York in 2020 in Manhattan and the second in Long Island, Queens. I can't find how many they have today !
However, they aim to deliver with an hour, or other options depending on customers wishes time period from initial order.
I think at present they pay a little more for an express delivery.
So how do they manage the last mile!
It seems vans are loaded up to deliver within each borough to local holding sites, where workers queue for work, from the
" Gig economy"..think uber drivers, Just Eat mopes, Deliveroo cyclists, and even workers on foot can deliver to residential homes and offices, bars etc - as the customer is now very local. They also offer a pick up service where customer will order, and then pick up an hour later or whenever.
Whats exciting is that the gig economy is already in place and working...I can get several uber sin 10mins around here, and you can see delivery drivers on bikes, mopeds etc outside most restaurants / take always, waiting for their next delivery.
Hence urban , highly populated areas is their first choice.
Amazon and others are looking at driverless vans , drones , etc to cover the last mile.
Therefore, with Manhattan covered with at least two micro distribution stations and maybe more today than in 2020 and possibly in other boroughs of NY - CHILL could trial this out in Manhattan fairly quickly on the back of a very focussed, very local advertising / promotional campaign in Queens and Long Island boroughs.
I'm not sure how quick Fabric are expanding but there is no reason that CHILL could not expand with them on this journey and promote in Fabrics new target highly density populated areas.
The other thing i found out was that there a number of these micro deliver COs - last mile company's all fighting for position in what will be massive growth market - therefore whats stopping CHLL partnering with others also , in different parts of the country.
Just to add Sh&* share price reaction again to todays RNS. SP didn't even bother getting out of bed.