Will Self Driving Semi Trucks be Seen in Last Mile Delivery?

by | Sep 1, 2022 | Blog, Industry Insights

Will Self Driving Semi Trucks be Seen in Last Mile Deliveries?

Think about the revolutionary changes humankind has seen. The cotton gin dramatically impacted textile production. Ford’s assembly line placed indelible marks on manufacturing. One can even go all the way back to the first time a wheel was chiseled out of a piece of granite. Humankind always finds a way to improve processes and do something a little quicker and a little easier. The next arena for this type of creative change is automated delivery. Self-driving semi trucks as well as other types of automations will pave the road to the future, and last mile delivery will never be the same.

Not If…When

The question of automated delivery is no longer if but when. The COVID pandemic significantly boosted already growing eCommerce and bolstered a corollary industry— automated delivery. Self driving truck companies and even robot deliveries are predicted to reach a global market of $237 million by the year 2027. Increasing online sales create a natural need for automation in logistics. Additionally, automated delivery addresses the lingering labor shortage we saw develop during the pandemic.

What Will it Look Like?

The future of automated logistics is sure, but the question remains of what that will exactly look like. When it comes to last mile delivery, there are two facets. First, robot deliveries are already being utilized and will most likely increase. Many college campuses are already using robotic food delivery, and robotic methods of package delivery in urban areas are also being tested.

A second area is more of a hybrid approach. Self driving semi trucks of various sizes have delivery people that ride in them. They can get out to pass out parcels on foot while the vehicle continues to transit traffic, and the two will link up later. The advantage of such an approach is that drivers don’t have to take the extra time to find parking spaces freeing up a lot of congestion in crowded business districts. This hybrid approach also shortens delivery times.

Is it Profitable?

The physical transfer of goods to consumer is a primary consideration, and profit margin equally factors into the equation of last mile delivery and automated logistics. Automated delivery in the last mile contributes to the bottom line for the manufacturer or retailer in more ways than dollar signs. In fact, the merchant often pursues automated delivery more as a means of securing customer loyalty by providing a convenience. By a margin of 52% to 38%, customers care more how quickly they receive their goods as opposed to whether they receive a discount. When you add to that statistic the fact that automated delivery can make delivery times more highly predictable, automated delivery can be an option for greater customer service. Elite EXTRA leads the way in the development of automated delivery with its cutting edge software development.

Bottom Line

Automated delivery like self driving 18 wheelers and self driving truck companies are the way of the future and are a growing business that has been catalyzed by recent world events. Details such as whether delivery will be fully automatic or an assistance to delivery people remains to be seen, but just as sure as the first wheel being carved out of stone impacted humankind, automated delivery will shape our lives for the future.

Sources

https://www.weforum.org/agenda/2021/12/last-mile-delivery-autonomous-vehicles/

https://today.ku.edu/2022/04/13/autonomous-vehicles-could-prove-be-future-model-delivery-services-study-finds

https://www.weforum.org/agenda/2021/12/last-mile-delivery-autonomous-vehicles/

Susan Marcott

Susan Marcott

Author

Susan is the Executive Vice President, Chief People and Project Officer, and all-around master of everything at Elite EXTRA. Susan enjoys spending time with her two daughters and relaxing with wine - a lot. Susan had dreams of becoming a famous journalist like Lois Lane but instead uses her Super Organized superpower to help keep everyone on task and in line.

Subscribe to our newsletter!

Follow us!

Our solutions:

Routing & Dispatch

Delivery Network

Returns Automation

Read our most recent blogs:

Want more industry insights? Check out some of our other blog articles!

Let's talk logistics

Have questions or want to learn more? Contact our team today to discover how Elite EXTRA can streamline your proof of delivery in  logistics. Fill out the form or contact us from the email or phone number below to start a conversation.

Email Us: sales@eliteextra.com

Call us: 1.888.484.8729 

We look forward to working with you!

 

Please fill out the form:

(Fields marked with a * are required)

Stay informed!

Sign up for our newsletter and follow our socials to receive relevant industry insights and updates about our solutions!