Taxis Could Deliver Your Next Package

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Amazon is experimenting with taxis to speed up package delivery. This fall, the company used the mobile app Flywheel in San Francisco and Los Angeles to test package delivery by licensed cabs.

Amazon is researching the broader use of taxis to speed up shipments to allow the company to compete more directly with brick-and-mortar stores and seek alternatives to UPS and Fed Ex. Using the Flywheel app, Amazon is able to summon cabs to mini-distribution centers and load each taxi with as many as 10 packages. The packages are bound for a single zip code and cost about $5 a package for delivery within one hour.

Taxi delivery is not the only experiment Amazon is testing, Amazon has tested its own delivery service, increased their use of regional couriers, partnered with the Postal Service to deliver fresh groceries and expects to open its first storefront in Manhattan.

With Amazon's increased research for faster delivery, brick-and-mortar retailers are competing with them by converting their stores into mini warehouses, offering same day, one hour delivery and in-store pickup. Amazon created the market for faster and fastest delivery methods, and retailers must keep up with the online retailer if they want to continue to compete.

Google, eBay, and startups are Amazon’s top competitors in same-day delivery. Google Express, Target and Costco are able to offer same-day delivery. Startups send couriers to brick-and-mortar locations to collect orders and deliver them to the customers’ doorstep. Same-day delivery remains a niche service but is continuing to see growth and increased competition. 

 

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Nick Banks

Nick created Front Street Commercial Real Estate Group in 2002 and spent the first eight years developing and acquiring office and retail projects in South Florida as well as North Central Florida. In 2010 the focus of the firm was shifted to primarily serve third party clients and perform brokerage, property management and mortgage banking functions. Nick has personally developed and acquired nearly 200,000 square feet of office and retail properties in markets throughout Florida. Prior to founding Front Street, Nick was the Director of Finance and Dispositions for Stiles Corporation in Fort Lauderdale where he financed and sold over $500 million in commercial real estate. Before joining Stiles, Nick was an Associate Director at GE Capital Real Estate where he sourced over $200 million in financing throughout Florida. Nick is a graduate of the University of Florida with a degree in Finance and a concentration in Real Estate. He serves as a board member and current vice-chair for the United Way of North Central Florida where he also chairs the Development Committee. Nick is actively involved with the Gainesville Area Chamber of Commerce where he serves as a board member and committee member for the Council for Economic Outreach. He is also a recent graduate of Leadership Gainesville which is a year long leadership program hosted by the Chamber. He is a member of Grace United Methodist Church where he has served as finance chair and as a member of the leadership council. Nick serves as an advisory board member of the University of Florida Bergstrom Center for Real Estate Studies. Nick was recently named chair of the Gainesville committee for the North Florida chapter of Urban Land Institute (ULI). He is a licensed real estate broker in the State of Florida and is a long time member of the International Council of Shopping Centers.

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