How is the COVID-19 Crisis Transforming the Courier Industry?

As much as technology has been a savior for a world dealing with the corona virus pandemic, I have always believed that crises spark innovations. It is during crises that companies’ true strength is tested, in terms of adaptability, resilience and risk management.

As COVID-19 moved across the borders of China in January 2020, countries went into large-scale lock downs. Some major shifts happened. Now, one of the only safe ways to shop for groceries and food was through the online route. Secondly, retailers around the world, who had to close their brick and mortar outlets, had to switch to online orders and delivery to ensure business continuity. This has been a major turning point for the global courier industry.

The global courier industry stands at a value of $326 billion as of 2020, with over 368,236 businesses worldwide hiring millions of people, according to stats provided by IBIS World. The pandemic will bring in significant challenges, but a boost as well to this industry. The fear of contamination and social distancing laws are expected to boost the courier and messenger market to $824.9 billion by 2023, according to market research on MarTech Series. It is technology that will drive this growth during these unprecedented times.

Contactless OTP-Based Deliveries

It is not that customers like me woke up one fine morning and took the decision to start ordering online. Studies have shown that virus strains like COVID-19 live for hours on various surfaces. So, packages could exchange thousands of hands en-route to my home or come back to the seller through multiple delivery persons. I vividly remember the fear of the initial days of the “shelter-at-home” orders, when every package and every person appeared to be a threat.

eCommerce companies have not only banned the cash-on-delivery method for this purpose, but also adopted innovative ways to ensure safety. Now, OTP-based contact less deliveries can allow delivery personnel to leave the package at your doorstep, without any physical contact, while verifying the delivery through OTP-based codes, sent to your mobile phone. Companies like Amazon have implemented this system, to ensure safety of the front line delivery executives as well.

Comprehensive Visibility through Courier Management Systems

For courier businesses, the need to optimize the dispatch, pick-up and delivery process was more essential than ever before. Also essential was the protection of employees against contracting the virus. From automated dispatching to tracking shipments, courier software systems can be a game changer for businesses, allowing them to provide consistent services during these challenging times and beyond, according to an article by Key Software Systems.

All information regarding deliveries is digitized, and through a real-time central data system, delivery personnel can eliminate tedious paperwork and provide better customer service. Even we, as customers, can access all information required to place orders, track packages and more.

Would You Prefer Drone Delivery?

The next wave of delivery technology might come in the form of robots and drones. Meituan Dianping, a delivery app in China, used autonomous vehicles to deliver groceries to people in Beijing in February 2020, and is planning to expand it to other cities as well, according to an article on Tech in Asia. Drones are helping create resilient supply chains and enabling socially distanced delivery services. Run by Google’s parent company, Alphabet Inc., the Wing drone delivery system has been used by FedEx and supermarket Walgreens to deliver essential items to residents in locked down areas of Virginia, USA, according to an article on Dezeen.

“Troubled times, unique measures” is the mantra right now. It is not known when the scourge of the corona virus will end. But, what is certain is that we will be looking at life-changing tech innovations in this period. The need for efficient logistics services is more important than ever in this pandemic. With continued support from tech enablers, governments, aggregators and eCommerce companies, this could ensure a bright future for the courier industry.