This newly approved law and one of the first of it’s kind cost the delivery industry a whopping 29€ Millions. Deliveroo was the first to feel the impact, leaving the Spanish market due to reasons fueled by this new and already controversial law.
With that said, market makers need a new solution that enables them to save money and therefore maintain the workers they currently have.
This market generates around 700€ million for the Spanish economy. For the Spanish Government, it is a very important point of interest.
Companies like Just Eat or Uber Eats expect to significantly reduce their workforce in the face of this new reality. This creates different scenarios like the one’s listed below:
Shortage of drivers: By reducing the number of delivery employees, this platform could potentially face some serious problems concerning the delivery times and the number of food partners. If the delivery time skyrockets due to a shortage of workers, many restaurants won’t appreciate working with these delivery platforms. The service at this point is just not effective anymore.
Increase of prices: Door to door works because it’s convenient. People don’t mind paying a small amount for this type of service. But this reality could change very quickly. Companies have to increase the fee that they charge people, motivated by the legal changes this new law has brought.
The question is: how can we save last-mile delivery for food companies?
It’s safe to say that Smart Lockers can create a fair and equally convenient solution for everyone. People using these platforms have probably somehow already used a Smart Locker solution.
Companies like Glovo, Just Eat, Uber Eats & Stuart have organized to ‘fight’ this matter. Enabling them to buy lockers, has a consortium diminishing the investment effort.
Why this could be the solution?
These delivery platforms have a very complete system of data collection. They can precisely know where there are heat zones and where it would make sense to put a locker.
Smart Lockers can be super-convenient. Imagine having a meal waiting for you as soon as you reach home. You could order it while leaving office, not worry if you are going to be late due to unsuspected traffic.
‘Riders Law’ effect can be not that bad. If Uber Eats or other companies implements this, they would reduce costs since a driver can take multiple parcels to the same destination, making the operation more efficient.
Physical presence is the last challenge that eCommerce actors and Dark stores face. They will have a material presence that has no costs and also serves to advertise their brand. This offers triggers to order to those who are simply passing by.
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