By Chris Frericks, Vice President of Sales & Business Development OneRail
Let’s have an honest conversation. If you’re like most retail executives staring down your quarterly projections, you’re probably sitting on a goldmine of customer data that you can’t access. Why? Because somewhere between the pandemic panic and the rush to meet same-day delivery demands, you made the seemingly logical decision to let gig economy platforms handle your last mile. Sure, DoorDash, Instacart and UberEats helped you weather the e-commerce storm, but at what cost? While you were focusing on keeping your business running, these “partners” were quietly building billion-dollar empires using your customer relationships and transaction data. If that stings a little, you’re not alone in the boardroom.
Here’s the good news: The tide is turning, and you can lead the way. Think of same-day delivery 2.0 as your declaration of independence from gig platforms. Your peers across the industry are already making the switch, bringing fulfillment back in-house, and discovering something remarkable. When you own the delivery experience, you own your business’s future. You’re unlocking revenue streams you didn’t even know you had through data monetization while building customer loyalty.
Sure, these gig platforms serve a valuable purpose, and many major retailers use them to a point. But the crux is striking a balance between speed, efficiency and owning your last mile delivery experience. If you’re tired of watching others profit from your customer relationships, now’s the time to make some moves; whoever owns the data wins in the end.
The Origins of Same-Day Delivery Outsourcing
When the world locked down in early 2020, retailers faced an unprecedented challenge: Their customers needed products delivered, and they needed them now. What happened next reshaped the retail landscape in ways we’re still confronting today.
The Rise of Gig Economy Platforms
Recall the early pandemic days. While most businesses were figuring out how to simply stay afloat, consumer demand for same-day delivery skyrocketed by 40% practically overnight. Those empty streets weren’t so empty after all — gig workers filled them, racing to deliver everything from groceries to gadgets. In the face of this massive change, retailers made a pivotal decision that seemed logical at the time: They turned to third-party delivery platforms like DoorDash, Instacart and UberEats.
The move appeared to make perfect sense. These platforms already had the infrastructure, the drivers, and, most importantly, the ability to start delivering immediately. But many business leaders didn’t realize that by outsourcing delivery to these platforms, they inadvertently gave away their most valuable asset — customer data.
Today, as we look toward 2024’s projected 25% growth in same-day delivery orders, the true cost of this decision is becoming crystal clear.
What’s particularly striking is the math behind owned delivery networks versus third-party commissions. When retailers control their own delivery operations, they’re not just saving on commission fees — they’re investing in their own future.
Think of it as the difference between renting and owning: Sure, renting might be easier in the short term, but you’re building someone else’s equity, not your own.
Data Ownership Crisis: What Was Lost
If customer data is the new oil, many retailers unknowingly hand over their oil fields to third-party platforms. The numbers tell a staggering story: Fueled by this data, the retail media market has exploded into a $100 billion industry. Those delivery platforms you partnered with? They’re now running their own media networks, monetizing the very data you handed over.
Another catch? Retailers who maintained control of their first-party data are now generating over $100 billion annually from monetization alone. The only ceiling on this revenue stream is the amount of data they can collect.
The lesson here goes beyond last-mile logistics and moving boxes. It’s about understanding the true value of your customer relationships and the data they generate. Moving forward, the question for every retail executive becomes not just “How do we get products to customers?” but “How do we maintain ownership of our most valuable asset—our customer relationships?”
The Need for a Shift to Same-Day Delivery 2.0
As your peers rush to implement same-day delivery solutions, a deeper transformation is taking place beneath the surface — one that will separate the leaders from the followers in the coming years: who truly owns and leverages the customer relationship.
Why Data Ownership is Key to Retailers’ Future
Digital marketing faces a stark reality: Third-party cookies, long the cornerstone of customer insights, are becoming extinct. Such a seismic shift makes first-party data absolutely integral for survival. Your transaction data tells the story of who your customers are, what they want and how they behave. Raw customer information powers targeted advertising that actually works and marketing that resonates rather than irritates.
An uncomfortable truth confronts many retailers: Outsourcing deliveries to third-party platforms like Instacart or DoorDash means essentially handing over the keys to your kingdom. Platforms managing your transactions extend beyond delivery—they harvest invaluable customer insights that should be yours. Each outsourced delivery weakens your ability to build a powerful retail media network, leaving you dependent on others for insights about your customers. That’s quite a big deal, considering that retail media ad spending worldwide should more than triple between 2019 and 2025.
The Strategic Pivot to Own the Shopper Relationship
Would you let another company run your physical stores? Of course not. So why hand over the digital equivalent? Now stands the time for retailers to reclaim control of these crucial customer interactions. While gig economy platforms served their purpose in getting many retailers into the delivery game, they were always meant to be a stepping stone, not the final destination.
Controlling your own delivery operations transcends simple package movement. You build relationships, gather insights and ensure quality at every touchpoint. Your customers interact directly with your brand, not a random third-party app; they experience your brand your way. A powerful “MY TRANSACTION, MY SHOPPER, MY DATA” philosophy becomes a mantra that transforms into your competitive advantage.
Clear choices lie ahead: continue renting customer relationships from third parties or own them outright. In an era where data is the new currency and customer experience defines success, can you let someone else control your most valuable assets?
The Mechanics of Same-Day Delivery 2.0
The path forward demands a fresh approach to same-day delivery. While gig economy platforms offer quick fixes, they’re practically middlemen between you and your customers. Modern retailers have cracked the code by building delivery systems that protect customer connections while meeting sky-high speed expectations. Here’s how they’re making near-instant delivery work while keeping costs in check and customer data secure.
Technology and Infrastructure: Building the Speed Machine
Traditional stores now double as mini-warehouses, with dedicated back rooms transformed into micro-fulfillment centers. Robotic picking systems and automated tech help staff process online orders lightning-fast, right from the retail floor. The model works because retailers can stock products closer to buyers and slash those expensive final mile delivery costs.
Behind the scenes, sophisticated logistics software powers everything. Last mile delivery companies like OneRail connect retailers to over 12 million drivers, automatically matching each delivery to the perfect courier based on location and capacity. Real-time tracking keeps customers updated while smart systems quickly resolve any hiccups with addresses or inventory.
Many retailers run their own delivery fleets while strategically tapping gig economy platforms like DoorDash and Instacart. The key is maintaining control of orders through their websites and apps to protect valuable customer data and loyalty while using third-party drivers to handle overflow and reach remote areas.
Building a Flexible Delivery Network: Partners Make Perfect
Smart retailers team up with multiple delivery services to handle every type of order. For example, bulky furniture needs specialized vehicles and handling, while rural deliveries might work better with gig economy drivers. Having several partners means retailers can scale up instantly during busy seasons without missing a beat.
Major brands show how well this works in real life. Best Buy strategically uses DoorDash while investing in its own delivery infrastructure. PetSmart lets Instacart handle smaller orders but keeps control of loyal customer transactions through its app. Dollar General blends DoorDash with their own couriers, adapting based on order complexity and location.
The mix-and-match approach gives retailers the best of both worlds — speed and reach when they need it, plus direct relationships with their most valuable customers. For shoppers, it means getting what they want when they want it, no matter what they buy or where they live.
Key Benefits of Same-Day Delivery 2.0
The first wave of same-day delivery was a necessary Band-Aid and a rush to partner with third-party platforms just to stay competitive. But now? It’s time to take back control and transform this cost center into a strategic advantage.
Here’s how same-day delivery 2.0 can benefit businesses like yours:
- Customer Experience That Actually Feels Like Your Brand: Finally, no more awkward handoffs where your carefully crafted brand experience disappears. Now, you’re overseeing every touchpoint — from letting customers pick their preferred delivery window to gathering feedback that actually makes it back to your team. It’s your show, start to finish.
- Flex Your Delivery Muscle When You Need It: Did holiday rushes ever mean begging your delivery partner for more capacity? Now, you no longer have to worry about situations like that by tapping multiple networks that help you scale up or down on demand. Need to deliver a sectional sofa? Your new flexible fleet has you covered without the usual constraints.
- Turn Deliveries Into Loyalty Moments: Stop letting third parties own your customer relationships. Each delivery becomes an opportunity to deepen connections — think personalized thank-you notes, loyalty points for on-time deliveries, or special offers based on delivery patterns.
- Sleep Better With Reduced Provider Risk: What happens when you’re at the mercy of a single delivery partner? Their problems become your problems. Yet, with 2.0, you’re in control — mix and match providers, adjust on the fly and never worry about being at the mercy of a partner’s limitations again.
- Watch Your Bottom Line Actually Improve: Are third-party commissions eating into your margins? Gone. That valuable delivery data you could never quite access? It’s yours now. Not only are you saving on every order, but you’re also building a data goldmine that can drive smarter decisions and new revenue streams.
The Future of Retail: Taking Back Control of the Last Mile
The writing is on the wall: Retailers who cede control of same-day delivery are leaving billions on the table and surrendering their most precious asset — customer relationships. Smart retailers are transforming their delivery operations from an expense into a powerful engine for growth, loyalty and new revenue. And by 2025, we will surely see the results, with the retail landscape splitting into two camps: those who seized control of their last-mile operations and those who watched their customer relationships slip away. The message is simple — own your deliveries, own your future.
OneRail stands ready to help retailers make this transition with its comprehensive suite of solutions. With access to over 12 million vetted drivers, sophisticated AI-powered route optimization and the groundbreaking OmniPoint® Platform, OneRail provides everything retailers need to take control of their delivery operations without sacrificing speed or reliability, while the Exceptions Assist™ service provides 24/7 proactive monitoring and support from dedicated logistics experts. Combined with the recent launch of OmniPoint® Inventory Visibility and the acquisition of Orderbot, OneRail offers a complete solution for retailers looking to build and maintain rock-solid, efficient delivery networks that they truly own.
Ready to modernize your delivery operations and regain control of your customer relationships? Schedule a demo today to see how OneRail can help you move to same-day delivery 2.0.
