FedEx Looks to Shake Up Delivery Industry

On Behalf of | Mar 4, 2019 | Business Formation & Planning |

As discussed previously on this blog, the transportation market is rapidly evolving both in terms of the laws governing it and in the nature of the business itself. Now, FedEx is looking to bring the next innovation along as it announced plans for last-minute robot delivery for companies such as Pizza Hut and Walmart.

This new development will be tested over the summer of 2019. The plan is to use robots, drones, and self-driving cars to deliver goods to customers that reside near store locations. It is believed that this could account for fifty percent or more of deliveries.

If FedEx’s testing is successful, and it is able to bring the concept mainstream, it will no doubt have a huge impact on a number of different aspects of the industry and potentially on the economy as a whole. Initially, it could of course completely alter the jobs available to those traditionally hired for restaurant deliveries, as well as drivers delivering goods over the “last mile” for major online sellers.

The new development could also impact newer companies like Postmates, which may find using drivers to deliver products less profitable given the new abilities that come with FedEx’s advancement.

Finally, of course, it could have a huge impact on all businesses, big and small, that operate in the same sphere as those that will take advantage of these deliveries. This could have a greater impact on the smaller mom and pop restaurants that offer delivery and may create a new form of competition from their already larger competitors.  But, it may also give smaller businesses a tool to compete with their larger rivals.

This once again underscores the need for all business to adapt and remain on top of developments like this one that could impact a wide array of industries. Adding experienced business lawyers to your planning team can prevent legal missteps while adding the perspective and knowledge that comes from counseling many different companies over many business cycles.

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