Amazon looks for new ways to innovate delivery
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Amazon looks for new ways to innovate delivery

Few companies send out as many packages, or have as impressive a history of innovation, as Ecommerce giant Amazon. So it makes sense that the company would look to innovate the way deliveries work. Now, with a little help from General Motors Co. and Volvo Cars, they’re offering to leave stuff in the boot of your vehicle.

Amazon’s share price has appreciated by 63% over the last 12 months

graph 2604 amazon

SOURCE: Yahoo Finance

Here’s one problem with the kind of instant deliveries that Amazon has become famous for through its Prime scheme: lots more boxes are left on front doorsteps. Understandably, you may not want your expensive new TV left outside while you’re at work all day.

So Amazon offered smart lock owners the opportunity to let couriers into their homes with a one-time use keyless access code, eliminating the worries of having your goods outside. But then a new question arises: do you want couriers going into your house when you’re not in? Hence, the company has found another way to leave your goods somewhere safe.

In partnership with General Motors (GM) and Volvo Cars (Volvo), Amazon is offering vehicle owners the option of providing that same one-use keyless access code, but this time, for the boot of their car.

This might not sound like groundbreaking news, but as online retail becomes even more dominant, finding new ways to guarantee secure deliveries will be a transformative space. Amazon’s two new friends are key to it working, though.

GM has millions of connected cars on the road, and Volvo has experience working with Amazon in Sweden and Switzerland through its On Call app. These factors suggest that the idea has a significant chance of hitting Amazon’s expectations.

Atif Rafiq, Volvo’s chief digital officer, has high hopes for the coupling: “I think what we’re doing in the U.S. with Amazon will be even more seamless and the adoption will be stronger. For Volvo owners, this is another way to take advantage of how they can use the car,” he said.

Rafiq also suggested that Volvo and Amazon could work together on more things down the road: “It’s a natural path to think more globally with Amazon. We will be exploring geographical expansion as well as expansion of other ways to take advantage of the car as a logistics endpoint. That could be other things like returns or more specialized types of deliveries. Everything is on the table.”

Disclosure

Dominion holds Amazon in its Global Trends Ecommerce Fund.


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