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

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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.

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