If your business is currently partnered with FedEx for this service, we’ve gathered a comprehensive blueprint for your next steps! But first, let’s look at the most up-to-date information regarding this change. 

The Shutdown of FedEx Same Day City Delivery Service 

FedEx is retiring its SameDay City delivery service on March 31st, ending a decade of operation. The company is prioritizing “other growth opportunities” and will eliminate all positions supporting the service. 

SameDay City offered door-to-door delivery of critical supplies to businesses and residences within hours in over 30 US cities. It served the healthcare and automotive industries, among many others. 

“FedEx Office remains committed to giving small and medium business owners, large commercial customers, and consumers convenient access to expert printing and packing, as well as shipping and returns provided by FedEx Ground and FedEx Express.”

FedEx spokesperson

Further, FedEx is making cuts across its operations due to declining volumes and poor economic conditions. The company announced a reduction of 10% of its officers and directors to become more efficient and agile.

8 Steps For Shippers That Are Transitioning From Using FedEx Same Day Delivery Services

In line with the end of SameDay City Courier FedEx service, businesses must consider other delivery options. Undoubtedly, this is an inconvenience for businesses that rely on the service for their operations. However, this change could allow companies to review and improve their logistics processes. 

Here, we take a closer look at your next steps to ensure a seamless transition from using the FedEx Same Day pickup service to a new service.

1. Assess Your Pending Deliveries

The first step is to assess any pending deliveries you still have with FedEx. This means checking how many deliveries you have left, the delivery dates, and what items are being delivered. 

When assessing your pending deliveries, don’t forget to consider the following:

1. Delivery dates: Check the dates your deliveries are scheduled for and see if you need to make any changes. If the deliveries are set for after March 31st, you’ll need to find another delivery option.
2. Delivery items: Take a look at what items are being delivered. Is there anything time-sensitive or critical to your business operations? If so, you’ll need to find a way to deliver these items as soon as possible.
3. Delivery quantity: How many deliveries do you still have with FedEx? If you have plenty of deliveries left, you’ll need to find a new courier to handle the volume.

Once you assess your pending deliveries, you’ll know how to ensure your deliveries arrive on time without any hiccups. 

2. Ensure Your Deliveries Are Being Handled Properly

After assessing your pending deliveries with FedEx, ensure everything related to delivery operations is handled properly. 

Here’s what you should do:

1. Review your current delivery agreements: Check your current agreements with FedEx to ensure that all your pending deliveries will still be fulfilled.
2. Confirm delivery dates and times: Double-check the delivery dates and times for your pending deliveries to avoid delays.
3. Monitor delivery progress: Keep an eye on all your pending deliveries so you can address any issues quickly. Use FedEx’s tracking tool.
4. Make sure the delivery addresses are correct: Make sure all the delivery addresses for your pending deliveries are correct.
5. Communicate with FedEx: If you have concerns about handling your deliveries, communicate directly with FedEx. 

3. Have a Transition Plan in Place

Now, it’s time to start thinking about transitioning from FedEx to a new logistics provider. You need to have a plan to ensure a smooth transition and minimize disruptions.

Here are a few things to consider when making a transition plan:

1. Identify your needs: Determine what delivery services you require. Do you need same-day delivery, next-day delivery, or international delivery? You will narrow down your options more easily.
2. Research providers: Do your due diligence and research different logistics providers. Don’t forget to compare prices, delivery times, and services offered. Choosing a provider you feel confident can handle your deliveries is essential.
3. Make a budget: Make sure you have a budget for the transition and any ongoing costs associated with a new logistics provider. Choosing a provider with more services may result in higher prices. But it could also offer more benefits in the long run.
4. Negotiate contracts: After choosing a provider, it’s time to negotiate the terms of your agreement. Communicate your delivery needs and any special requirements you have clearly. This is a good time to discuss any potential discounts or promotions they might offer.
5. Test run: Before fully transitioning to your new logistics provider, do a test run to ensure everything runs smoothly. You can address any issues or make changes before fully committing to the new provider.

These steps will help make the transition from FedEx to a new logistics provider smooth. It’s never too early to make a plan, so don’t hesitate to start the process.

Here’s everything you need to know about FedEx rate increases in 2023. 

With rate increases, we dive deep into what a general rate increase is in shipping.  

4. Assess All Previous Integrations 

Many businesses forget to consider the integration aspect when hiring a new courier. Look at how the previous delivery service was integrated into the business’s operations. This includes APIs, e-commerce platforms, internal systems, and more. 

The transition will be a major headache if these integrations are not correctly handled. As a result, delays happen, and the customer experience takes a hit. 

One thing to consider is ensuring all data related to the previous delivery service is transferred correctly to the new provider. Like order information, delivery schedules, and any relevant data the business has accumulated over time. 

Evaluate the new provider’s integrations and see if they are compatible with your company’s current systems.

If your business relied on the FedEx Same Day City delivery service for quick delivery, your new provider shouldn’t offer longer delivery times. That said, inform your customers about the changes, so they know what to expect moving forward.

5. Start Evaluating Alternative Delivery Solutions

Evaluating alternatives and choosing a new logistics provider is critical to ensure your deliveries continue to run smoothly. With the shutdown of FedEx Same Day City delivery service, businesses are trying to find a suitable replacement fast.

One way to go about this is to make a list of potential new providers. Start scheduling calls with them to learn more about their services. Ask for quotes, compare prices, and get a feel for their customer service.

When evaluating alternatives, consider the available delivery options and how they meet your business needs. Some providers offer only next-day delivery, while others have a wider range of options. Additionally, look at the geographical coverage provided by each provider.

It’s also important to ask about the delivery tracking process and the level of transparency each provider offers. Your goal is to choose a provider that offers a seamless transition with the same reliability, speed, and service quality as FedEx. 

6. Choose a Nationwide Courier with Delivery Consolidation Capabilities

Now, it’s time to decide on the best courier for your business. To summarize the steps above, factors like cost, delivery time, coverage area, customer service, technology, and integrations offered by each courier, are all important to consider.

Find a courier that fits your needs and budget. By taking your time and thoroughly evaluating your options, you’ll know you are making the right decision. Remember, this is a big change!

Check out this breakdown of last-mile delivery costs and how to reduce them.

7. Maintain an Excellent Customer Experience 

​​Once you have chosen a new courier, the next step is to ensure they offer an even better customer experience than the Same Day delivery FedEx services within cities. You want your customers to be happy with the change and continue to receive high-quality delivery services.

To do this, take note of the following points:

• Track record of on-time deliveries: Does your new courier have a proven track record of delivering packages on time and in good condition? You will not compromise the reputation of your business by partnering with an unreliable courier.
• Availability of real-time delivery tracking: Customers today expect to track their packages in real time. This gives your customers peace of mind and helps you keep track of deliveries at all times.
• Customer service: You want to work with a courier that has a responsive and helpful 24/7 customer service team. If any issues arise, customers know they will get the help they need, no matter the time of day.
• Flexible delivery options: Does your new courier offer a range of flexible delivery options customizable to your business needs? Whether it’s same-day, next-day, or even weekend deliveries, the courier you choose must accommodate your needs.

Moreover, your customers will appreciate the change and continue to trust you for their delivery needs.

8. Start Onboarding Your New Courier Partner 

The final step is to onboard your new delivery partner. This step is crucial, as it marks the transition from the planning and preparation stages to the actual delivery operations. Onboarding a new courier involves several steps to ensure a seamless transition and delivery process.

One of the best practices in setting up a new courier quickly is giving them all the necessary information, like your business details, delivery addresses, and other relevant information. So your new courier can deliver your packages to the right place, at the right time, and with the right information.

Next, you’ll want to review and establish the processes, procedures, and guidelines your new courier will follow. This includes pickup and delivery times, packing and labeling requirements, and the delivery process. As we mentioned before, make sure your new courier has a robust tracking system in place.

Our technology makes it easy to follow your deliveries in real-time, from pickup to drop-off, on a live map, with accurate ETAs. You get instant delivery confirmations based on your needs. Plus, our couriers can verify package delivery via photo, signature, email, text, or any courier action you prefer.

In addition, be sure to monitor your new courier’s performance and gather feedback from your customers. That is how you’ll improve your delivery process for maximum efficiency and customer satisfaction.

In conclusion, onboarding a new courier requires careful planning, communication, and monitoring. But, with the right steps and preparation, it will be seamless, efficient, and deliver an even better customer experience.

Learn more about how to minimize delivery rate increases.

Top 4 Courier Service Alternatives to SameDay FedEx

Here are our top picks for courier service alternatives to FedEx and UPS:

1. Dropoff 

Dropoff is an innovative last-mile logistics provider that offers same-day delivery. We focus on convenience, reliability, and customer service while providing businesses with an easy-to-use platform to streamline their deliveries. Our services offer easy web and mobile ordering, flexible delivery options, real-time tracking, and transparent pricing. 

If you’re looking for reliable last-mile shipping companies like FedEx, look no further than Dropoff.

2. UPS

UPS is a leading international delivery company that offers same-day city delivery services. With its operations across 220+ countries, UPS makes billions of deliveries yearly and strongly focuses on improving its services for businesses of all sizes. With over $97 billion in revenue, UPS is a great FedEx alternative for your delivery needs.

3. DHL

DHL is a global leader in the courier industry, providing delivery services in over 220 countries with over 1.5 billion deliveries annually. With services like Express, Post and Packet, Freight, Global Forwarding, eCommerce, and Supply Chain, DHL offers more solutions than FedEx, which only provides Express, Ground, Freight, and IT-based logistics services. 

Despite FedEx being the leading courier in North America, DHL may be a great alternative to FedEx and UPS.

4. XPO Logistics 

XPO Logistics is another great alternative to FedEx, offering comprehensive logistics solutions for businesses of all sizes. It comes with XPO Connect, a platform that matches shippers with available transportation. This company serves over 50,000 customers in 32 countries, and its broad range of services, including trucking and brokerage, make it a reliable option for businesses. 

Want more options? Here are the top 8 last-mile companies and startups in the US.

How Dropoff Can Help with Same-Day Delivery

Following FedEx’s announcement to end Same Day FedEx City delivery service, shippers are now searching for a reliable alternative. Dropoff can help fill this gap with our last-mile delivery solutions. 

We offer a customized same-day delivery solution suited to your nationwide business needs. Our user-friendly software lets you place and track orders in real-time, giving complete transparency throughout the delivery process.

Additionally, our trackable digital chain of custody provides added security and peace of mind. Our couriers will verify package delivery through any method of your choice, including photo, signature, email, text, or any other courier action.

Our customizable options and easy-to-use software make us a top choice for businesses needing fast, reliable deliveries nationwide.

Get in touch with a Dropoff expert today and tell us more about your unique logistical needs. 

FAQs on FedEx SameDay City Delivery Service 

The post FedEx Shuts Down Same-Day Delivery: What to Expect appeared first on Dropoff.

In 2020 Biodesix partnered with Bio-Rad to fight the COVID-19 pandemic. During this time, they introduced a highly sensitive rapid turn-around PCR test that detects the presence of COVID-19 in patient samples. During this period, they realized shipping with staple carriers like FedEx or UPS wasn’t going to work for them.

We found that shipping through these carriers would take a whole extra day and add a day to our turnaround on our testing time. So we started looking at couriers.

Tanner Bolch, Manager of Test Processing

Switching to Couriers

Unfortunately, their initial courier was not providing quality service. Packages were being mishandled/damaged. Proper procedures weren’t always followed, which led to an unprofessional experience. It was time for a change.

Then we started working with (Dropoff), and we received much better service, hands down. Not only from the management but the drivers too. After experiencing Dropoff, we moved all of our courier services exclusively to (Dropoff).

Tanner Bolch, Manager of Test Processing

Real-Time Tracking

Thanks to Dropoff’s online portal and advanced real-time tracking, the Biodesix team is now more capable of predicting delivery times & preparing correctly. 

So we use the online portal, and I have to say I love it. I love the ability to go out and see when something’s picked up, where a driver might be en route and all those things. We use it in a lot of different ways.

Tanner Bolch, Manager of Test Processing

The Numbers

Since switching to Dropoff, Biodesix has been able to achieve impressive results. 

93%+ On-TIme Delivery Rate and 2000+ Deliveries per Month.

The post Biodesix Moves Exclusively to Dropoff appeared first on Dropoff.

Ranking No. 2607 With a Three-Year Revenue Growth of 219%

NEW YORK, August 16, 2022 – Today, Inc. revealed that Dropoff is No. 2607 on its annual Inc. 5000 list, the most prestigious ranking of the fastest-growing private companies in America. The list represents a one-of-a-kind look at the most successful companies within the economy’s most dynamic segment—its independent businesses. Facebook, Chobani, Under Armour, Microsoft, Patagonia, and many other well-known names gained their first national exposure as honorees on the Inc. 5000. 

The accomplishment of building one of the fastest-growing companies in the U.S., in light of recent economic roadblocks, cannot be overstated. Inc. is thrilled to honor the companies that have established themselves through innovation, hard work, and rising to the challenges of today.

Scott Omelianuk, editor-in-chief of Inc.

The post Dropoff Ranks No. 2607 on the 2022 Inc. 5000 Annual List   appeared first on Dropoff.

The good news is that there are plenty of solutions out there to help you meet the demands of today’s customers. In this blog post, we’ll explore some of the best ways to stay ahead of the curve and deliver your products quickly and efficiently to your customers.

The Last-Mile Delivery Market Size in the US

The last-mile delivery market is a rapidly growing industry that provides last-mile logistics solutions for businesses.

The last-mile delivery market share is expected to increase by USD 143.75 billion from 2021 to 2026, according to a recent market study by Technavio. However, the growth momentum of the market will decelerate at a CAGR of 13.1% during the forecast period.

The market is expected to grow significantly in the next decade, due to the increasing demand for e-commerce and same-day deliveries. It is currently dominated by a few large players, but there is room for smaller companies to enter the market and gain market share.

Some current trends in the last mile delivery transportation market include an increasing focus on environmental sustainability, using alternative transportation methods such as electric vehicles, and utilizing advanced technology to optimize route planning and improve customer service.

With the right mix of innovative services and cutting-edge technology, last-mile delivery companies can stay ahead of the competition and capitalize on the growing demand for last-mile logistics solutions.

The Future of the Last-Mile Delivery Market

It is likely that the gig economy is going to change things up for delivery companies across the globe, as shipping companies are more likely to hire couriers for the last step of package delivery.

The goal of last-mile delivery is to create a more efficient and cost-effective system that satisfies the needs of customers as well as retailers and delivery companies. As such, reducing costs has become an important trend for the e-commerce market.

This trend is driven by a number of factors, including the increasing popularity of online shopping, the rise of new delivery methods such as drones and autonomous vehicles, and the continued expansion of e-commerce into new markets. 

Last-mile delivery will have a significant impact on a variety of industries, including logistics, transportation, and retail. In particular, it will revolutionize the way that goods are shipped and delivered, resulting in faster turnaround times and reduced costs.

Many of the companies within the gig economy such as Uber, Lyft, Airbnb, and TaskRabbit have popularized last-mile delivery, leading to an abundance of couriers today that’s never been seen in human history.

Challenges in the Last-Mile Delivery Space

Despite the many advantages of last-mile delivery, there are also many common problems in the logistics industry that need to be addressed.

1. Rising Costs of Last Mile Deliveries

The rising costs of last-mile delivery are a major challenge for businesses, as they must find ways to offset these expenses without passing them on to customers. There are a number of factors that contribute to the rising costs of last-mile delivery, including congestion, labor shortages, and vehicle maintenance. 

2. Difficulty in Delivery Allocation

Many business owners say that failed deliveries, caused by poor address quality, have a big impact on their delivery profits. Failed deliveries can cost up to $16.58 each. This affects not just delivery operations, but also makes it hard to manage last-mile carriers. That’s why destination grouping and management are often big problems.

3. Inefficient Route Planning

Route planning is important for delivering goods in a way that is cost-effective and that makes customers happy. The route needs to take into account many different factors, such as fuel efficiency and environmental regulations.

Not just the cost of delivery, but also the route taken to make the delivery affects how happy customers are with the experience. If a delivery is late or takes a longer route than necessary, it can ruin customers’ experiences. There are many ways to make your business more efficient, but it can be difficult to decide which is the best option for your specific needs.

4. Managing Last-Mile Delivery Density

The high cost of last-mile delivery is due to the density of the network of addresses. In densely populated areas, there are more potential customers per square mile, but there are also more potential delivery locations.

This means that delivery companies have to cover a larger area in order to reach all of their customers, which increases costs. 

If the delivery density is too high, it can lead to delays and missed deliveries. But if the delivery density is too low, it can result in wasted time and resources. The key is to find the right balance.

There are a few ways to solve the challenge of managing last-mile delivery density:

1. Partner with other companies that have complementary products or services i.e a grocery delivery company can partner with a restaurant delivery.
2. Adopt technology such as drones or robots to reduce travel time and free up resources.
3. Use real-time data to identify areas that are particularly congested or difficult to navigate.
4. Implement advanced routing software as it reduces courier time on the road, resulting in less mileage on the vehicle and less fuel burned.

5. Meeting Fulfillment Timelines

One of the biggest challenges that brands face is sticking to timelines. If they miss the timeline, it can be very expensive for them in both the short and long term. This is especially true for food delivery companies, which may not be able to charge customers for late deliveries if they missed the guaranteed deadline.

Not only does it cause damage to the brand, but it also takes a lot of time to fulfill orders. That’s why it’s important to have a process in place that will help them do it quickly.

Key Benefits of Using Last-Mile Delivery

1. Streamlined Shipping & Delivery Process

A last-mile delivery solution can save your business time, resources, and money. It automates the time-consuming and repetitive tasks in the delivery process. Manual methods of tracking are not only time-consuming but also lead to human error.

A modern last-mile delivery solution can help your business become more efficient. This efficiency includes increased visibility in last-mile delivery tracking among other things.

Further, a good modern last-mile delivery solution is automated and helps to eliminate any verification issues. The system also helps with accurate load planning and gives your business predictive insights.

2. Route Optimization

Bad weather, traffic, and problems with the roads can slow down your deliveries a lot. That’s why it is important to have software that calculates the most efficient routes for your deliveries.

The software can crunch data in real-time to tell your last-mile carrier agents about traffic jams or bad weather. The software will then tell them the best route to take in those circumstances.

Moreover, route optimization is one of the must-have features in last-mile delivery solutions.

3. Flexible Deliveries

Many customers look for flexible delivery options when shopping online. This includes the ability to have orders delivered to different addresses, such as a work address or a friend’s house, in order to make receiving the order more convenient.

A good last-mile delivery software helps make it possible to change the time or location of delivery with just a tap. This software also makes it easier to handle cancellations and returns.

4. Improved Order Management

A modern last-mile delivery software can help by telling you and your customers if there are any delays. This will help with better expectations and trust.

Automatic delivery updates help customers know when their order will arrive. This way, they can be available to accept the delivery and their happiness score will go up.

5. Adding Smiles to the Last Mile

Many customers around the world are not comfortable using their credit or debit cards online. Paying for your order when it is delivered is a good option for these customers. The pandemic has increased the demand for contactless payments at the doorstep.

Some delivery software makes it easier for customers to pay for their orders. The software can include multiple payment options. Software that lets users rate and review the service can help you improve your business.

How Businesses Should Prepare for Increased Demand in the Last-Mile Delivery Market

Essentially, companies are continuously trying to implement logistics innovations and industry trends to prepare as the demand in the last-mile delivery market rises.

1. By Planning Ahead

Anticipating spikes in demand and planning accordingly can help businesses avoid being caught off guard when demand increases. By planning ahead, businesses can ensure that they have the necessary staff and resources in place to meet customer needs.

2. By Partnering with 3PL Companies like Dropoff

When demand is high, choosing to partner with reliable 3PL companies can help businesses meet customer expectations. These companies already have the infrastructure in place to handle last-mile delivery, so partnering with them can help businesses avoid having to invest in their own last-mile delivery infrastructure.

Check out our top picks of the best last-mile delivery companies and startups in the US.

In addition, Dropoff has dominated the same-day delivery area, providing reliability for a variety of industries, including healthcare and business services. We offer same-day delivery services for custom logistics. We know that each industry has different requirements and we can tailor courier services to match your industry’s demands.

Dropoff can help companies that are trying to meet omnichannel demand for inventory in local markets. They do this by approaching it from a branded local courier via a national platform approach. There are a lot of markets out there that today are being served by a lot of local and unsophisticated couriers. That’s where the need for Dropoff comes in.

Interested in learning more? Check out how Dropoff acquired Rightaway Delivery after 23 years of service in Michigan.

3. By Offering Multiple Shipping Options

Customers appreciate having choices when it comes to shipping, so offering multiple shipping options is a good way to make sure that everyone’s needs are met. Businesses should consider offering both standard and express shipping options.

Bottom Line

The last-mile delivery market is growing rapidly, and there are many opportunities for businesses to involve themselves. By understanding the needs of customers and partnering with reliable 3PL companies, businesses can succeed in this competitive industry.

You don’t need to worry about investing in new technology for logistics. We stay on top of the newest trends and invest in new technology to provide the best service for our customers.

Talk with a Dropoff expert today and we’ll work with you to develop a unique solution for your company’s requirements.

The post Dropoff and The Growing Last Mile Delivery Market appeared first on Dropoff.

Dropoff, Inc is pleased to announce that it has officially acquired Rightaway Delivery, Inc. An essential part of the company’s growth strategy is to provide new and existing customers with coverage nationwide and an enterprise-level solution. Through its acquisition of Rightaway, Dropoff’s service footprint now extends deeper into the Midwest. Rightaway Delivery was founded in 1999 by industry veteran Benjamin Kaplan, to provide healthcare businesses in Michigan with the best delivery experience possible. Over the last 23 years, Rightaway Delivery has grown to service cities across Michigan, Ohio, and Indiana.

In January 2022, the Rightaway team finalized a transaction to sell the company and its assets to Dropoff, Inc., an Austin, TX-based national firm and one of the leaders in the same-day delivery industry. After tremendous growth in 2021, Dropoff now operates in 53 markets across 20 states.

Benjamin Kaplan, the former Rightaway CEO, will be joining Dropoff as Director of Strategic Accounts to ensure a smooth transition. When asked why he believed selling to Dropoff was the right choice, Kaplan had this to say,

“When the Dropoff team flew me to Austin, the first thing that impressed me was the people. Not only were they friendly but they had the same energy & focus on the healthcare industry that Rightaway did just at a national level.”

Benjamin Kaplan – CEO, Rightaway Delivery

This acquisition continues Dropoff’s expansion, as it provides access to more customers in the midwest, and will enable rapid expansion in servicing a wide range of customers in the surrounding areas. In addition, Rightaway Delivery was already working with an impressive list of customers that Dropoff can now provide service at a national level. Dropoff founder/CEO, Sean Spector, added,

“As we learned more about Rightaway’s history in MI, we realized the opportunity and synergy between the two companies was quite strong.”

Sean Spector – CEO, Dropoff

The post Dropoff, Inc Acquires Rightaway Delivery, Inc. After 23 Years of Success in Michigan appeared first on Dropoff.

Dropoff provides its customers with same-day delivery services, most notably to healthcare companies that have critical blood and lab testing needs for expedient and safe delivery. Powered by their proprietary logistics software built from the ground up, Dropoff provides real-time tracking, route optimization, and the ability to customize and integrate within a customer’s logistics platform, enabling them to more smoothly run their overall operations. Dropoff has received funding from prominent growth sponsors Fulcrum Equity Partners, Greycroft Partners, and Wild Basin Investments, and will use the loan proceeds for general working capital purposes and acquisitions.

“Dropoff is blazing a new trail with respect to same-day, local courier service,” said Gerald A. Michaud, President of Horizon. “Utilizing its proven technology platform and a strict vetting process for its couriers, including HIPAA and OSHA certification, Dropoff has become the delivery service of choice for a rapidly expanding number of healthcare and other enterprise clients. We are excited to support Dropoff’s growth and development as it further adds to its innovative offerings and footprint.” “We are excited to receive Horizon’s support, as they clearly recognize that Dropoff has become a one-stop source for critical business same-day logistics,” said Sean Spector, co-founder, and Chief Executive Officer of Dropoff. “By providing a comprehensive and custom, first-mile and last-mile solution, we are able to meet our customers’ needs and assist them in ensuring their operations run more smoothly, thus creating efficiencies and real cost savings for our clients. Our future continues to be bright and we are eager to continue expanding our robust market share.”

About Horizon Technology Finance

Horizon Technology Finance Corporation (NASDAQ: HRZN) is a leading specialty finance company that provides capital in the form of secured loans to venture capital-backed companies in technology, life science, healthcare information and services, and sustainability industries. The investment objective of Horizon is to maximize its investment portfolio’s return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located in Portland, Maine, Austin, Texas, and Reston, Virginia. To learn more, please visit www.horizontechfinance.com.

About Dropoff

Dropoff provides reliable same-day delivery to enable businesses to meet rising customer expectations. With a presence in 40+ cities across 20+ states and growing, our sophisticated logistics platform allows enterprise businesses to gain visibility into their deliveries, equipping them to improve the customer experience and streamline their operations. Leading companies in healthcare, retail/e-commerce and an industrial partner with Dropoff to fulfill customer needs using our highly vetted professional drivers and proactive customer service. Dropoff is committed to meeting the demands of your evolving business. For more information about how Dropoff is shaping the future of same-day delivery, visit dropoffstaging.wpengine.com.​

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition, or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in the Company’s filings with the Securities and Exchange Commission. Horizon undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Contacts:

Investor Relations:
ICR
Garrett Edson
ir@horizontechfinance.com
(860) 284-6450

Media Relations:
ICR
Chris Gillick
HorizonPR@icrinc.com
(646) 677-1819

The post Horizon Technology Finance Leads $30 Million Venture Loan Facility to Dropoff appeared first on Dropoff.

Today we’re also announcing two new members to Dropoff’s executive leadership team. Neil Seth has filled the position as Chief Technology Officer and Rey Madolora is taking on the newly created role as Chief Financial Officer. These appointments support Dropoff’s strategic priorities and commitment to innovation.

“We are moving quickly to structure our business for accelerated growth leading into the new year and are on track to be profitable in 2019. These additions round out the management team and ensure we can respond to the rapidly changing needs of our customers and keep up with the pace of change in the industry,” said Sean Spector, CEO of Dropoff. “Each of the leaders named today is highly qualified and understands what’s needed to scale our business and continue to deliver best in class last mile services to businesses across the country.”We are eager to continually expand and help businesses across industries grow by providing them with a simple same-day delivery experience.

Our success comes from our major initiatives to streamline our clients’ same-day deliveries using technology to ensure security, reliability, and efficiency from start to finish.

Read more about our latest expansion and Dropoff’s new leadership members, here.

For more information on Dropoff services in San Francisco, visit: https://www.dropoff.com/cities/san-francisco

For more information on Dropoff services in Seattle, visit: https://www.dropoff.com/cities/seattle

For more information on Dropoff services in Oklahoma City, visit: https://www.dropoff.com/cities/oklahoma-city

Are you wondering what the Dropoff same-day delivery experience is like? Start delivery now!

The post Dropoff Launched in San Francisco, Seattle, and Oklahoma City appeared first on Dropoff.

An astounding 91% of shoppers are concerned about gifts being delivered on time during the 2018 holiday season, a 6% increase over the number who shared this same concern last year. Yet U.S. consumers continue to anticipate doing last minute shopping during the holidays. Fast and on-time delivery that upholds the quality of a gift is of the utmost importance. 42% of consumers find same-day delivery to be particularly valuable when purchasing a gift, and they’re willing to pay for it.  

The Rise of Same-Day Gift Delivery

The survey findings show that over half of consumers are more likely to purchase gifts from retailers that offer same-day delivery during the holidays. Consequently, cart abandonment due to slow delivery options for gifts is on the rise. 67% of consumers have abandoned a gift purchase during the holiday season for this reason (a 16% increase from 2017).

Expedited delivery options for gifts are important to consumers, and they’re willing to pay for it. Nearly a third (31%) have purchased a gift in the last year that was delivered same-day. Additionally, customer loyalty has shown to increase beyond the holiday season after experiencing same-day delivery for a gift. 75% of consumers are highly likely to shop with a retailer again after purchasing a gift that arrived same-day.

Accommodating Last Minute Shoppers

Even the most organized people end up doing at least some last-minute gift shopping during the holiday season, and most of the respondents from Dropoff’s survey are already planning on it. 77% of consumers say they plan to do last minute holiday shopping in 2018, which is a 15% increase from those who were planning to last year. Given the time constraint, 92% of last minute shoppers are concerned about their gifts being delivered on time.

Last minute holiday shoppers are 78% more likely to purchase gifts from retailers that offer same-day delivery. They’re also 39% more likely than those not planning to shop last minute to abandon a purchase if the delivery options are slow.

Find more stats on last-minute shoppers’ habits in Dropoff’s new ebook!

The Cost of Negative Gift Delivery Experiences

If something goes wrong with a gift delivery (i.e. the package is damaged, the wrong item is delivered, the gift arrives late), consumers won’t bring their business back to that retailer. Only 20% of consumers are likely to purchase from a retailer again after a negative delivery experience. Regardless of who actually delivers the gift, be it a third party delivery company or the retailer itself, consumers tend to blame the retailer for negative delivery experiences. 80% of consumers feel it reflects poorly on the retailer if a gift arrives late, and 74% feel it reflects poorly on the retailer if a gift arrives damaged.

While 49% of consumers don’t have a preference for who delivers a gift as long as it arrives on time and in good condition, they also report not trusting traditional carriers or crowdsourced, peer-to-peer services to deliver gifts. 52% of consumers trust FedEx to deliver gifts and only 12% trust peer-to-peer services with gift delivery.

Online vs. In-Store Gift Shopping Preferences

Same-day delivery isn’t a demand exclusive to online shoppers. 44% of consumers who prefer an in-store experience when shopping for holiday gifts have purchased a gift in the past year that was delivered same-day. That’s compared to 32% of consumers who prefer shopping for gifts online.

Online gift shoppers, however, are 39% more likely to recommend a retailer after purchasing a gift that was delivered same-day. Yet, they’re also less forgiving when it comes to negative delivery experiences. Consumers who prefer shopping for gifts online are 28% less likely to purchase from a retailer again after a bad delivery experience.

How Retailers Benefit From Meeting Holiday Delivery Expectations

The Expectation: Same-Day Delivery

71% of consumers are “highly likely” to recommend a retailer to others after purchasing a holiday gift and having it delivered the same day.

The Expectation: Real-Time Tracking

85% of consumers are more likely to purchase from a retailer again, and five times more likely to recommend a retailer to others, if their holiday gift purchase can be tracked in real-time throughout the delivery.

The Expectation: Delivery Arrives on Time

90% of consumers are likely to recommend a retailer to others after purchasing a holiday gift that arrives on time or early.

Stand-Out Consumer Segments

Millennials

Millennials are 118% more likely to have paid extra for same-day delivery on a gift. They’re also 48% more likely to purchase gifts from retailers that offer same-day delivery during the holidays (59% of millennials vs. 40% of non-millennials).

Luxury Shoppers

45% of luxury shoppers are likely to have purchased gifts in the last year that were delivered same-day. That’s 105% more than non-luxury shoppers. They’re also 23% more likely to purchase gifts from retailers that offer same-day delivery during the holidays (58% of luxury shoppers vs. 47% of non-luxury shoppers).

Holiday Gift Delivery Solutions For Retailers

By offering fast, convenient delivery options during the holidays, retailers stand to gain the loyalty of consumers even after the decorations have been stored away. While consumers continue to expect same-day delivery for gifts, they’re also expressing a desire for real-time tracking and a growing concern about the quality of deliveries.

Between the influx of shoppers during the holidays and growing need for same-day delivery, meeting gift delivery expectations isn’t easy for retailers. Dropoff helps retailers conquer these challenges by providing above-and-beyond service along with features like real-time tracking, flexible delivery options, and professional, customer service-oriented drivers.

Survey Methodology

The findings presented here are the result of a June 2018 study of 2,064 U.S. consumers who answered “Yes” to the initial question, “Do you ever purchase gifts that need to be delivered?” (confidence level 95%).

Discover more stats regarding consumer delivery preferences and holiday shopping habits in Dropoff’s new ebook. 

The post Consumers Favor Retailers With Same-Day Delivery This Holiday appeared first on Dropoff.

An astonishing 99% of U.S. consumers say ‘fast delivery’ is important to them when making online purchases. At the same time, more consumers feel frustrated with the lack of professionalism and accuracy (deliveries arriving late, damaged, etc.) when having items delivered. This tells us that retailers are struggling to keep up with the increasing demand for faster delivery. And while this may seem daunting, it’s a positive for retailers looking to exceed expectations. There’s plenty of opportunity to capture consumer loyalty when delivery is done right.

This leads to the question: how is delivery done right? To begin, let’s take a look at what consumers really want, where retailers are currently falling short, and what solutions can help businesses overcome common delivery challenges to win big.

What Consumers Want

Faster delivery

The survey revealed 43% of U.S. consumers expect companies to have ‘much faster’ delivery times than the previous year. That’s up from 35% in 2017. For businesses without a streamlined delivery service in place, this poses an important question: how can you meet the rising expectations of your customers without falling short on the quality of your overall experiences?

Same-day delivery

According to our survey, same-day delivery was the fastest growing expedited delivery option in the past year. Whereas only 17% of consumers stated they took advantage of same-day delivery in 2017, 31% of consumers say they opted for it in 2018. To make matters more urgent for retailers, nearly a third of consumers now say they feel ‘frustrated’ when a company doesn’t offer same-day delivery.

On the other hand, retailers that do offer same-day delivery have the opportunity to increase customer loyalty. 74% of consumers say they’re more likely to purchase again from a company after receiving same-day delivery on an item.

Professionalism

75% of consumers agree that the professionalism of the delivery person is important. Ultimately, the professionalism of the delivery provider directly reflects on the retailer. Receiving a package is often the last step of a consumers’ purchase experience, and therefore has the ability to leave the strongest impression—good or bad.

Real-time tracking

According to the survey, consumers want to be kept “in the know” regarding what stage of the delivery process their purchases are in, and when they can expect to receive them. 88% of consumers say the ability to track shipments in real-time is important.

Find more stats around consumer expectations in Dropoff’s new ebook!

What Consumers Experience

Consumers want faster delivery options with real-time tracking and good customer service. The findings from our survey show that there’s a huge discrepancy between how quickly consumers want items versus how quickly they’re receiving them. Refer to the ebook for more information about specific products—like clothing, appliances, and health care-related items—consumers would like to receive faster, but aren’t.

Additionally, consumers are experiencing a decline in the quality of service provided by carriers. 78% of consumers say they’ve experienced packages arriving late (up from 70% in 2017), and 56% of consumers received damaged packages (up from 42% in 2017). This decline is also consistent for those who received incorrect or damaged items, or experienced their packages going missing altogether.

The Expectations Gap

There is currently a large gap in experiences between what product categories consumers want to be delivered same-day and what products they actually receive same-day. This presents a huge opportunity for retailers to fill that need.

• Groceries: 64% want same-day, 19% receive same-day
• Health Care Products: 46% want same-day, 4% receive same-day
• Specialty Snacks: 42% want same-day, 7% receive same-day
• Alcohol: 41% want same-day, 5% receive same-day
•  Household Products: 28% want same-day, 5% receive same-day
• + more

Delivery Options Affect Purchasing Decisions

Consumers will pay for fast delivery

More and more consumers want faster delivery, and they’re willing to pay for it. In fact, 47% of U.S. consumers say they’ve paid extra for either same-day or next day delivery. Whether a retailer offers faster delivery options for free or charge for it, it’s paramount that it’s an option in the first place. Without it, retailers risk losing out on the 53% of consumers who’ve abandoned an online purchase because of slow delivery times.

Quality matters

Consumers are experiencing a decline in quality and professionalism when receiving packages, from late deliveries to damaged packages and products. According to the survey, 75% of consumers want a more professional delivery service—and their desire is increasing. In 2017, 72% of consumers said that the professionalism of a delivery person was important to them.

When retailers don’t meet this expectation, consumers are less likely to stay loyal. 57% of consumers say that once they’ve experienced unprofessionalism from a delivery person, they’re less likely to purchase from that retailer again.

Who’s delivering your product?

Only 12% of U.S. consumers say they prefer to have packages delivered by the merchant from which they purchased, meaning consumers are open to receiving packages from third-party delivery services. Consumers are not, however, feeling good about crowdsourced, peer-to-peer delivery. Trust in it is very low (only 14%) and not increasing year-over-year. Professionalism is important to consumers, so retailers must be mindful of the third-party delivery providers they partner with when outsourcing solutions for delivering their product.

Stand-Out Consumer Segments

Millennials

The expectation for speed is growing faster for millennials than non-millennials, though both are on the rise. In 2018, 50% of millennials expect faster delivery compared to a year ago, whereas only 41% of millennials expressed those increasing year-over-year expectations in 2017.

Based on that information, it’s unsurprising that more millennials have actually paid extra for faster delivery in the past year (54% of millennials reported paying extra for faster delivery in the past 12 months compared to 39% of non-millennials).

Luxury shoppers

Luxury shoppers expect more from their delivery experiences than non-luxury shoppers. They’re 32% more likely to expect ‘much faster’ delivery times from companies compared to a year ago, and are 80% more likely to feel frustrated when same-day delivery isn’t an option.

And like millennials, they’ll pay for it. Luxury shoppers are 110% more likely to have paid extra for same-day delivery in the past 12 months.

Amazon shoppers

Retailers can breathe a sigh of relief. Dropoff’s survey shows that Amazon shoppers aren’t committed to purchasing solely from the online retail giant. 65% of consumers who shop at Amazon say they would order from other retailers that offer the same delivery options.

Early tech adopters

Early tech adopters, including those that purchase items for delivery using smart watches and digital assistants, want everything faster. They’re also more likely to abandon an online purchase if the delivery options aren’t fast enough (60% of early tech adopters versus 51% non-early tech adopters).

And as we’ve seen consistently, the more likely a consumer wants fast delivery, the more likely they are to pay for it. Early tech adopters are more than twice as likely to have paid extra for same-day delivery in the past 12 months (27% versus 11%).

Check out Dropoff’s new ebook to learn more about what drives these consumer segments. 

Delivery Solutions for Retailers

Clearly, delivery options and quality play a major role in consumers’ purchase decisions. When done right, retailers stand to gain a lot, from attracting new customers to encouraging loyalty. But getting delivery right isn’t easy. It requires the ability to send deliveries out quickly in a professional manner without compromising quality.

Dropoff helps businesses meet (and exceed) delivery expectations by providing the kind of service that represents retailers in the best light possible. With features like real-time tracking (for both businesses and their customers), flexible delivery options, and assured professionalism, Dropoff gives businesses the peace of mind that their product and customers are in good hands.

Discover more stats regarding consumer delivery preferences and shopping habits in Dropoff’s new ebook. 

Survey Methodology

The findings presented here are the result of a February 2018 study of 995 U.S. consumers who answered “Yes” to the initial question, “Do you ever purchase products or items that need to be delivered?”

The post Consumers Want Faster Delivery and They’re Willing to Pay for It appeared first on Dropoff.

With record-breaking delivery requests, we’ve been preparing for weeks for this big day. So far we’ve delivered cupcakes, bundt cakes, cookies, fresh flowers, last-minute Valentine’s Day outfits and more. So far it’s been a smooth and happy ride for all of us here at Dropoff.

Here are a few photos of deliveries we’ve made so far.

“Flowers and Sprinkles, that’s what Dropoff does on V-Day!” – Dropoff driver Zack L. 

“Getting work done in San Jose!” – Dropoff driver, Michael D. 

This day is not only filled with exciting deliveries, it’s also a day when we feel very thankful. Helping our clients make memorable deliveries is what we love to do. Thank you for trusting Dropoff to represent your brand on this special day.

The post Dropoff Deliveries are Extra Special this Valentine’s Day appeared first on Dropoff.