The Gig Economy Comes to Parcel Delivery: What Should Companies Know?

The Gig Economy Comes to Parcel Delivery: What Should Companies Know?

Gig Economy and parcel

With national and global economies slowly recovering and some semblance of normalcy returning to many areas of life, the focus and reliance on gig contract workers do not seem to be slowing down at all. Gig economy functionality is based on the unique setup where workers accept one job or assignment at a time rather than working a pre-scheduled shift, such as a 9-5 worker. Gig workers pull hours and take on work when and where they want, transforming how transportation service providers look at shipping and delivery services. Combined with the growing e-commerce trends, the current events in logistics make this a perfect market for the gig worker.

What Is Gig Contractor Delivery, and Why Is It So Impactful to Today’s Market

Everything from food and clothes to household supplies and even transportation services is handled more often by gig workers. And companies such as Shipt, Instacart, Roadie, Postmates, Uber, DoorDash, and many more are tapping into this new market and expanding their services. According to Parcel magazine, shippers are often prone to jumping for the quick-fix option rather than tackling an issue with a logical problem-solving process. These often end up being very one-dimensional solutions and usually end by addressing one issue and unintentionally creating even more problems. Understanding the value of the current gig economy and what has spurred its growth in the supply chain requires a look at how technology, automation, machine learning, and innovation.

The Gig Economy Is Leveling Up,Thanks to AI and Technology

With current shifts in market trends and consumer demands, the value of gig drivers and workers may yet prove to be a formidable foe for the major players in the shipping and transportation industry. As technology evolves and customers become more comfortable and confident with online shopping, the demand for diverse and specific delivery niches will continue to grow. This is where gig workers can make the most significant impact. 

Many of the gig contractors in the delivery niche market work for large companies in need of scalability. This is a prime example of how a gig company can gain scale and traction in the current market. All of this is possible because of the advances in tracking, monitoring, and technology within the supply chain’s gig economy and retailers market.

Why Retailers Love Gig Setups in This Market

When a transaction goes well, gig companies can tap into service opportunities that prominent carriers and shippers cannot. Gig companies have the flexibility to offer same-day and even same-hour deliveries on the customer’s terms, something larger shipping companies have struggled significantly to pull off. Retailers are discovering just how great a partnership with gig drivers and flexible fleets can be. In addition to instant scalability and flexibility, carriers or couriers in this space are providing more data that can be applied to derive more meaningful insights. That functionality further builds better recipient experiences through customized delivery instructions and digital proof of delivery or other advantages, such as setup or dunnage too. 

Focusing on regionals more than nationals for shipping services opens doors for more outstanding sales, increased customer interaction, and better profits overall. After a year that saw incredibly overwhelmed parcel carriers, inconsistent service, and poor communication, transportation management has adapted. Retailers and consumers alike have embraced the improvements and advancements in shipping and delivery that gig economy contractors provide.

Trends Are Changing: Is There Enough to go Around

Even as gig delivery startups gain in popularity, it is unlikely that the dominant players are too worried just yet. There is still a lot of pie to go around and plenty of demand to accommodate the big players and the little guys as well. However, it is foolish to ignore the current trends within supply chain analytics and their impact on regional markets. Customer service is key, and with the focus on delivery tracking and customization in recent years, these features are still in high demand among many consumers. The current gig economy works to address the rising expectations of consumers while also navigating a volatile market. Right now, the pie is large enough to allow for diversity to flourish and for consumers to take their pick of shipping services.

Tap Into the Power of the Current Gig Economy to Maximize Profits

Beyond same-day service, gig startups often can provide a more customer-centric experience. They provide real-time tracking and status updates, customized delivery preferences, and also offer the option for verified hand-off delivery. Leveraging gig economy workers and drivers from companies focused on this service niche can provide retailers with a whole new array of ways to connect with customers more intimately. Connect with Intelligent Audit to get started today.

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