Myths About Modern Last-Mile Delivery Providers that Hurt Big Brands
last-mile delivery sustainability Ecommerce same-day delivery next-day delivery gig drivers technology dynamic routing All Blogs
Jul 07, 2023
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We’re all familiar with urban myths—the stories that start as whispers, get repeated by a friend of a friend, and, over time, morph into something accepted by many as fact. Like the UFOs the government allegedly hides in Area 51, the prehistoric monster lurking in the depths of Loch Ness, Bigfoot roaming the forests of the Pacific Northwest, or the outdated notion that next-day or same-day deliveries cost too much, many common misconceptions continue to persist. The last one passes as common knowledge, especially with big eCommerce brands. Let’s look at the top three myths about modern last-mile delivery providers.
—"Delivery is fast, so it must be expensive”
The high cost of last-mile deliveries is often the 800-pound Bigfoot in the room, and it’s understandable why you might believe expedited delivery isn’t affordable. If you’re using a traditional legacy carrier, same- and next-day delivery rates can be 2-3 times the rate for ground shipping before you add in the surcharges for fuel, residential deliveries, and the peak season. Worst of all, the list of fees and surcharges seems to get a little longer each year.
The truth is, depending on the delivery provider, fast delivery doesn’t have to equal expensive delivery. For instance, AxleHire provides next-day delivery in the markets we serve at rates comparable to traditional carriers’ ground rates. That’s 19 of the largest 25 U.S. metro areas, with more markets coming soon. We do it without adding surcharges, which means cost certainty for 362 days/per year. We do it with personal touches like white label tracking, customized branded messaging, 24/7 live support, and a client dashboard that allows you to see where every package is in real-time. And we do it with a 99%+ on-time delivery rate.
The secret is an asset-light business model. We don’t buy and maintain expensive fleets of vehicles, and we don’t own large plots of real estate. With our gig driver model, we pay for the capacity we need when we need it, and we don’t ask our customers to pick up the price tag for expensive overhead, unused capacity, or a fixed-pool workforce. The result is expedited urban delivery.
Myth #2—"You can’t deliver at scale”
The ability to scale starts with repeatable, consistent processes. Software and technology provide the tools to drive that consistency. AxleHire leverages purpose-built proprietary data, software, and technology to deliver millions of packages each month for a growing list of customers. We’re scaling in real-time.
Our technology delivers structure—the ability to anticipate all the unexpected variables that can occur between your warehouse and your customer’s doorstep, and to empower all of our stakeholders (drivers, dispatchers, and recipients) to make the right decisions in the right moment, thousands of times per day. Dynamic routing algorithms allow us to route and assign resources each day based on demand, producing a more efficient and sustainable last mile.
Our technology might not be as advanced as some of the alien stuff the government is hiding in Area 51 (wink, wink), but it’s cutting edge for our industry, and it’s the secret sauce that, combined with our asset-light business model, allows us to scale according to your needs. We’re able to flex for peak capacity without imposing volume caps or surcharges and to spin up new capacity/new business in a fraction of the time of traditional carriers.
Myth #3—"You might be hard to work with”
And there might be a prehistoric monster lurking in Loch Ness… but don’t bet on it. We understand the concerns about integration or the ability of non-traditional carriers to provide complete warehouse-to-doorstep services. Some regional carriers have struggled with these things, and we’ve learned from their struggles.
AxleHire’s tech platform is built from the ground up to provide the most efficient warehouse-to-doorstep experience possible. Customers can link up using pre-built integrations for many industry-leading shipping platforms or access a robust and easy-to-use set of APIs for more custom integration. You can customize the messages your customers receive and use white-label tracking to promote your brand better.
Our partner network of providers can handle the first- and middle-mile from your warehouse to our sortation centers. We even have options that allow us to deliver directly from your warehouse to your end customer. Check with our logistics experts to learn how we can customize a solution for your needs.
Don’t get caught up with the urban myths related to last-mile providers. As part of a diversified shipping strategy, last-mile providers like AxleHire can make it easier to delight your customers with expedited urban delivery at an affordable price.