Amazon is hauling cargo in self-driving trucks developed by Embark
- Published | 31 January 2019
Through pulling of self-driving trucks in delivery process by Amazon will enhance its e-commerce market globally and which will also drive E-commerce logistics market in upcoming period.
Global: Amazon is using self-driving trucks developed by Embark to haul some cargo on the I-10 interstate highway. Embark integrates its self-driving systems into Peterbilt semis, rather than building its own vehicles completely from scratch. Generally, Embark trucks operate on roads with test drivers on board. Embark and other firms working on autonomous systems — including fellow start-ups such as Ike, Thor Trucks, and Pronto.ai, and major players such as Alphabet's Waymo and Tesla — aim to alleviate industry pains by making existing truck drivers safer and more efficient. A driver shortage currently plagues the trucking industry, owing in part to the low pay and difficult schedules and conditions of the job. A lack of available drivers and trucks poses a challenge to e-commerce companies, obviously including Amazon, whose customers expect deliveries in a relatively short time. A driver shortage currently plagues the trucking industry, owing in part to the low pay and difficult schedules and conditions of the job. A lack of available drivers and trucks poses a challenge to e-commerce companies, obviously including Amazon, whose customers expect deliveries in a relatively short time. Embark CEO Alex Rodrigues said, "Embark moves freight for a number of major companies on the I-10, however, we cannot discuss any company specifically as our relationships are confidential."An Amazon spokesperson said, "We are always innovating and working with innovative companies to improve the customer experience and safety of our team. We think successful over-the-road autonomy will create safer roadways and a better work environment for drivers on long-haul runs. "
According to Blueweave Consulting, The last mile has been characterized as the most expensive and complicated part of the supply chain, featuring negative impacts on pollution and congestion in densely populated areas. The arrival of e-commerce has accentuated the number of individual home deliveries, increasing the flows in the last-mile. Investigating how to improve the efficiency of logistics in urban areas is a major driver for the success of e-commerce. Firstly, to conciliate different perspectives about the structure and cost drivers in the market. Secondly, within this framework, to propose a cost model for two of the most popular methods of last-mile delivery: home delivery and delivery through pick-up points. It is the parcel delivery market remains under a strong competition, driven by efficiency and with little space for innovations. While failed deliveries have an impact on the cost structure, achieving higher economies of density has a higher impact on costs reduction. Pick-up points offer a solution to failed deliveries while they increase the density of deliveries at the same time. When the number of parcels to the pick-up point is high enough, benefits for both logistics carriers and the society are achieved. This is due to the reductions in the overall number of vehicle kilometres travelled (VKT). Reductions can be obtained with a limited number of pick-up points. B2C logistics sector can be presented together with the most important cost drivers for the sector such as original cost model incorporates cost drivers disregarded in previous modeling efforts, such as the failed deliveries, the modal choice of companies and customers and the stoppage time of delivery.
According to BlueWeave Consulting Upcoming‘s reports, Titled- “Global E-commerce Logistics Market (Service Type - Warehousing (Mega Centers, Hubs/Delivery Centers, Returns Processing, Centers), Transportation (Air/Express Delivery, Freight/Rail, Trucking/Over Road, Maritime)”, Size and Forecast, 2018-2025”, Global E-commerce logistics market is expected with grow with a significant rate in forecast period,2018-2025. Owing to increasing the spread of B2C and C2C e-commerce websites, a greater degree of transparency and efficiency in their chosen e-commerce logistics providers expecting from buyers, E-companies providing these services are trying for look for practical ways to reduce costs – especially those associated with reverse logistics etc.