Report Shows Start-Ups Are Disrupting Traditional Postal Delivery Services

Post and Parcel Players Are Being Out-Hustled By These Innovative Business Models and Risk Getting Even Further Behind the Delivery Challenge
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Brody Buhler, Global Managing Director, Post and Parcel Industry at Accenture

(Arlington, VA, Wednesday, February 22, 2017) - They’re convenient, innovative and fast. Venture capital-funded start-ups are reinventing delivery. Billions of dollars have poured into the post and parcel industry in the last two years, driven by the continued popularity of e-commerce and increased competitiveness in hyper-local delivery models. Think of UberRUSH or Instacart.

Post and parcel players are being out-hustled by these innovative business models and risk getting even further behind the delivery challenge. According to a new report from Accenture, consumers who combine online purchasing with delivery find high appeal in receiving an item the same day it is purchased. This change in consumer behavior is causing tensions for traditional global delivery models, calling into question the use and importance of a robust, national delivery network.

The report shows that venture capital funding of supply chain and logistics start-ups, integral to delivery services, has increased more than 10-fold in the last three years worldwide, from $266 million in 2013 to $2.78 billion in 2016. Fueled by a low cost of capital, these start-ups are able to innovate at pace with e-commerce demand. Groups outside of traditional delivery services and postal organizations are seeing growth opportunities as retailers compete to reach consumers no longer impressed with free delivery service.

  • Groups outside of traditional delivery services and postal organizations are seeing growth opportunities as retailers compete to reach consumers no longer impressed with free delivery service. According to the report, consumers who combine online purchasing with delivery find high appeal in receiving an item the same day it is purchased.
  • Traditional post and parcel organizations are increasing investments as well, focused on products and services to keep up with the demand being generated by e-commerce. Industry capital expenditure has grown over 40 percent from 2013 to 2015 as post and parcel organizations make significant investments in increased capacity, new capabilities and diversification to keep up with e-commerce-driven change and demand, according to the report.
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