Home delivery – the new boom needing spatial overhaul

By on 15 November, 2016

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New research suggests that Australians are ready for a second serve of delivery disruption, and that spatial services are the missing key to ensure deliveries are on time and accurate.

New research from Open Location Platform company, HERE, says the on-demand generation are fuelling Australia’s multi-billion-dollar home delivery boom from the comfort of their couch. Ahead of the momentous first Home Delivery Asia Pacific conference in Melbourne tomorrow, HERE, surveyed more than 1,000 Australians to achieve the findings.

HERE found that nine in 10 Millennials (aged 18-34) were currently using home delivery services, compared to less than half of over 55 year olds, with food deliveries from the likes of Domino’s, Menulog, Deliveroo, Foodora and UberEats the most popular service for 75 per cent of people.

“There are signs of delivery drivers and cyclists facing navigation and congestion challenges with half of Australians complaining about late delivery, while a third have received ‘compromised goods’ like cold food.”

More than half of Millennials surveyed (54%) said they would “drop a pin” for doorstep delivery when they were feeling ‘too lazy to leave the house’, compared to 32 per cent of over 35 year olds. For 12 percent of Millennials, being too engrossed in a Netflix show was enough motivation to order in. Surprisingly, ‘terrible weather’ was driving more people in NSW to request delivery (27%) compared to Victoria (26%) and the nationwide average (23%).

But the research found cost remains a sticking point, with 27 per cent of Australians thinking home delivery services are ‘overpriced’. Hunger pains remain for 7 per cent of Australians who have never received their delivery or had a driver that couldn’t locate them on a map.

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Innovative spatial solutions are increasingly important to enable efficient and reliable deliveries in complex urban environments.

“Australia’s appetite for home delivery isn’t without its hiccups,” said Brent Stafford from HERE Asia Pacific. “There are signs of delivery drivers and cyclists facing navigation and congestion challenges with half of Australians complaining about late delivery, while a third (33%) have received ‘compromised goods’ like cold food.”

Stafford will appear at tomorrow’s Home Delivery Asia Pacific Conference to share his vision of the burgeoning home delivery industry.

“Solving the most common bugbear of late deliveries will be a key agenda item at the home delivery summit,” he said. “Because trust and reliability are really vital to the growth of the industry and future adoption of the almost infinite on-demand possibilities on offer to Australians.”

Young Australians are the keenest for airborne deliveries with 24 per cent of 18-24 year olds hoping drones can deliver their goods faster, compared to the national average of just 16 per cent.

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Sherpa’s smartphone app allows anyone to make deliveries of just about anything within 2 hours. It is currently available in Sydney, Melbourne, Brisbane, Adelaide and Perth.

“The more we as consumers shift our purchasing behaviour to online, the more we will rely on same day and express delivery services. In fact, the two go hand in hand.” Co-Founder and CEO of last mile logistics company Sherpa, Ben Nowlan said. Like Stafford, Nowlan will also appear in at the Home Delivery conference tomorrow to discuss the enabling delivery technologies to solve the delivery dilemma.

“One of the key inhibitors in this process right now is people,” continued Nowlan, “ so in my opinion I see the future by necessity, containing drones and other automated fulfilment services. Until then, Sherpa are focused as a business on how we maximise the liquidity of driver/vehicle capacity in the existing market.”

Interestingly, the items that people would like delivered to their homes go far beyond food. Almost a quarter of Australians (24%) would like to avoid the chemist prescription queue with home-delivered pharmaceuticals, while one in six want to support their local shopping strip and independent stores without having to leave home. Victoria retains its coffee capital title with 15% wishing there was an app for espresso delivery – more than any other state.

On-demand labour services could be the next step for the industry, with 22 per cent wanting a pickup/drop off auto repair service for their cars, while one in ten want cleaning, maintenance and DIY jobs at the tap of a smartphone app.

Home Delivery Asia Pacific will take place in Melbourne on 16 November at the Automotive Centre of Excellence.

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