The biggest threat to UPS and FedEx isn’t Amazon. It’s the gig economy.

When a transaction goes well, gig companies can provide a level of service the parcel giants can’t, according to Aaron Rubin, CEO of e-commerce fulfillment startup ShipHero. He points to the difference in experience. Beyond same-day service, gig startups often offer live tracking and text updates for each order. The delivery workers knock on the door and (pre-COVID) hand orders to customers‚ creating contrast with opaque and sometimes theft-prone deliveries offered by traditional carriers.

“You’re starting to see more Amazon packages show up at your door, more Grubhub, Doordash … where it’s this fantastic experience. And that opens your eyes to, well, this is the way the world could be. Why is it not like that?” Rubin said.

Read more at Business Insider

Read more at Markets Insider

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