Originally published November 10 2015
UberRUSH delivery service revolutionizing local U.S. economies
by Daniel Barker
(NaturalNews) After a one-year pilot program in New York City, Uber has now officially launched its UberRUSH delivery service in Chicago and San Francisco. The same-day peer-to-peer delivery service has been dubbed the "FedEx killer" in the press, but the service is unlikely to pose a serious threat to the big delivery service companies, at least for the time being.
In fact, the service is so new that no one even seems sure yet how the name should appear in print; is it UberRUSH, Uber Rush or UberRush? All three versions have appeared in the press, and it would appear that the "rush" to label the service as the demise of FedEx and UPS is a bit premature.
The more likely scenario is that UberRUSH will compete for a share of the same-day delivery market by filling a certain niche that FedEx, UPS and Postmates can't address as efficiently. In other words, UberRUSH can do certain things better than the others can, but they can't do everything.
How does it work?
UberRUSH is aiming to develop what the parent company's CEO calls an "urban logistics network." It will use its smartphone app and fleet of drivers to quickly deliver packages and other items within cities.
From the Wall Street Journal:
That does put Uber in a position to snatch away some parcel delivery orders. But the smartphone-enabled courier service is focused on quick, same-day deliveries, which make only a small portion of its larger rivals' business. Drivers go from point A to point B, and the service is limited to a small geographical area - much more suited to delivering flowers, Starbucks or lunch than, say, a book or costume jewelry from Amazon.
UberRUSH also differs from Postmates in that it is not a merchant-based service. When you use the Postmates app, you are offered the delivery of products from various local businesses. UberRUSH works differently. Uber users will not see any changes in how the basic app works, but companies can access the service through a merchant platform.
For example, UberRUSH can help businesses such as restaurants handle their deliveries during peak hours or allow local businesses to offer inexpensive same-day deliveries.
The main difference between UberRUSH and Postmates was described by Business Insider:
While the two companies may end up in a price war, they are ultimately approaching delivery from two angles. With Postmates, you order from Postmates. With Uber Rush, you order from the business, and Uber handles the delivery in the background.
As Jason Droege, head of UberEVERYTHING, said: "Postmates is building a marketplace. We see this more as infrastructure."
Potentially stiff competition
It remains to be seen how well Uber can compete against the established courier and delivery services, but if their success with carrying passengers is any indication, the company might have a good chance at carving out a large slice of the market.
Uber's trackable smartphone app-based services might prove to be a key advantage in competing with FedEx, UPS and Postmates, but in the long run, they are likely to run into other competition as well.
From The Verge.com:
While it's still early in the game for UberRUSH, the possibilities for Uber to truly succeed as a full-fledged delivery service are readily available. With a fleet of cars that far exceed those operated by Postmates and Seamless, Uber could feasibly cut down on delivery times. But with Amazon Prime Now still expanding and a number of other delivery startups sure to pop up in the future, UberRUSH is far from the last entry into this market.
One thing is certain: Uber is serious about expanding on its hugely successful business model. Although FedEx founder and CEO Fred Smith says he does not believe that Uber will become a "major player in the logistics business," you can bet he'll be keeping a close eye on the competition.
Sources include:
TheVerge.com
BusinessInsider.com
WSJ.com
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