The Wall Street Journal reports Amazon is developing a mobile app that would allow people to deliver packages en route to their destination. Shartia Brantley reports.
Amazon has tested drones for delivery. Now, The Wall Street Journal reports, the e-commerce giant may be looking for ordinary people to deliver packages. The company is said to be developing an app called "On My Way" that would allow people to deliver packages en route to their destination to cut costs and improve the customer experience. Morningtar analyst, R.J. Hottovy, thinks the concept has merit. SOUNDBITE: R.J. HOTTOVY, ANALYST, MORNINGSTAR (ENGLISH) SAYING: "I think, it is a smart idea, and will help to reduce shipping costs. At the same time, consumers are demanding more and more faster shipping options." Competition for delivery is heating up as reports circulate that Uber is testing package delivery options. SOUNDBITE: R.J. HOTTOVY, ANALYST, MORNINGSTAR (ENGLISH) SAYING: "Consumers are making their purchase decisions just as much on price as they are the how quickly they get the products. To me, you have to have this service. You have to have this expedited shipping, and, if you give up a little control with it, I think, that's a sacrifice the company is willing to make, the tradeoff to make sure they can get products to consumers quickly. I think its critical in this day and age." Reuters' Breakingviews Columnist Rob Cyran applauds Amazon's creativity, but is not optimistic on the service. SOUNDBITE: ROB CYRAN, COLUMNIST, REUTERS BREAKINGVIEWS (ENGLISH) SAYING: "There are a couple of problems, first off you only receive a couple of bucks per item. If you think about it when you get something delivered through UPS, it's pretty cheap, actually. So, who wants to deliver packages for that little sum. The second problem is vetting the drivers, insurance and other things like that. And, also, there is the question of theft." It's unclear whether these hurdles will prevent Amazon from moving forward with the app.