Bad news for Out of Home (OOH) solutions. OOH is just not what the customers want!

Both UPS and Alibaba Group / Cainiao Network wants to (must) increase home delivery, as customers prefer home delivery. OOH is just not what the customers want!

„UPS has pursued better delivery density for years, but it has tried to tackle the issue downstream, rather than upstream when the order is made. This has included encouraging use of UPS Access Point locations, local businesses where customers can receive or drop off packages, and redirecting certain UPS packages destined for Postal Service delivery back to company couriers. But Tomé said those efforts haven’t moved the needle.“ (Source Supply Chain Dive) 

UPS hopes to increase density and / or drop rates with a still to be named solution which could make home delivery significantly cheaper

“But Cainiao has a plan.
The platform guarantees doorstep deliveries in China for all purchases made on Alibaba’s B2C marketplaces Tmall Global and Tmall Supermarket. This guarantee has spurred demand.“ (Source Alizila)

There is not really anything new about this. All studies show a preference of +80% for home deliveries, and it is good to see how UPS and Alibaba now tries to deliver what the consignees want

A way to further cut home delivery cost is residential parcel boxes, preferable capable of storing perishable food. It reduces consumer trips to Out of Home delivery locations with 100% and secures a 100% first time delivery rate.

Link to Azilia: