Amazon has received a lot of publicity for its latest home-delivery innovation in the US. Prime customers with compatible digital locks can now have packages delivered directly to to the trunk of their parked car. As with most things Amazon, the move has attracted positive and negative reviews.
Faced with these conflicting opinions, how might we assess whether in-car delivery is a gimmick or a game-changing innovation? I will illustrate this using a framework based on two keys for successful delivery innovation – customer convenience and retailer costs.
The horizontal axis categorises a delivery innovation according to its impact on customer convenience:
The vertical axis categorises a delivery innovation according to its impact on retailer costs:
Any new delivery innovation will fall into one of the four quadrants. How do they compare?
I believe in-car delivery is a top-right quadrant innovation – guaranteed to be successful – and will evolve into a completely new class of delivery option. Why do I say that?
And what of the security concerns? Without wishing to downplay these, it is not too hard to imagine some simple steps that will reduce the risk, for example by capping the value of in-car deliveries or increasing the security features of car trunks. By reducing the need to leave deliveries on porches, in-car deliveries may even improve security.
And for Australia? Although Amazon Prime is not yet live, I believe this innovation has huge potential for our market because the rate of failed deliveries is much higher than that of most other countries. Sign me up please, Jeff!