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The economics of delivery are determined by route density - how many packages per mile you can deliver. Who will have higher route density ? UPS, which deliver
by petra 8y ago
The economics of delivery are determined by route density - how many packages per mile you can deliver.
Who will have higher route density ? UPS, which delivers orders for everybody wanting to ship to your neighborhood ? or Walmart, that only ships from Walmart, with it's measly share of e-commerce ?
It was probably always a risky proposition.
So what's the ideal way to test a risky proposition ? issue a big press release.
And now i'm curios: how is the stock price affected from this press release, and failure ? is it possible, that this kind of tactic(very common in big companies) is beneficial to the stock price , or maybe to the compensation of managers ?
- sonnyblarney 8y agoIf Wallmart had an easy delivery option, their e-commerce would be higher, and I suggest there is very high 'density' in the environs directly around a wallmart. The other advantage is that Wallmart sells the stuff we use a lot: cleaning things, toothpaste, diapers. If Wallmart coupled delivery with the gangbuster of all 'monthly box of stuff' type business plans (whereby the 'stuff' is not a tester box of perfume, but literally the stuff you buy most often in a household) - they could win. But the notion of getting employees to do this after shift is utterly beyond crazy. Just hire people for this, focus hard on selling the feature in a region, get people to sign up to 'toothpaste every month' and 'milk and eggs every monday',
- ethbro 8y agoI'd be surprised if the density around Walmart was particularly high. As a consequence of opening a large number of huge stores, the majority seem to be in suburbs / places where land is cheap. Not exactly high-density urban centers.