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HyperTrack 2023 Predictions: Logistic Technology Predictions That Will Fuel the OnDemand Economy in 2023

vmblog-predictions-2023 

Industry executives and experts share their predictions for 2023.  Read them in this 15th annual VMblog.com series exclusive.

Logistic Technology Predictions That Will Fuel the OnDemand Economy in 2023

By Kashyap Deorah, founder and CEO of HyperTrack

Commerce has focused on deploying technology to win more customers and orders on the front end. It is a recent phenomenon that fulfillment (last mile logistics) has gone from being the back-end to the key value proposition, or the front-end. A few on-demand apps are gaining market share at the expense of the incumbents due to their modern logistics technology. The biggest overhaul in logistics technology is to enable gig workers to fulfill on-demand and same-day deliveries with the help of live location and mapping tech. Innovations that accelerate this will not only lead to a higher impact of fulfilling consumer demands but will influence commerce as a whole. Through recent conversations with partners, customers and everyday consumers, here are three industry predictions based on the early results of this year's holiday shopping season and trends.

Prediction 1: Consumer Demand Drives Last Mile Package Delivery Improvements

eCommerce as a whole is going to evolve after this present holiday shopping season based on ever growing consumer package delivery expectations, leading to improved last mile delivery. The major eCommerce players have put a lot of effort into streamlining the customer buying experience, but the delivery process leaves a lot to be desired. We typically know the day our package has been shipped and when we should receive it; we even have a range of estimated time for the actual delivery-but not yet the exact time. Consumers want to know when their driver is 15 minutes away, five minutes away, and when they are at your doorstep in order to be ready and prepared to accept the package. The "DoorDash" experience is missing from most eCommerce sites in terms of last mile delivery fulfillment, but this is going to change.

In early 2023 - after the present holiday shopping cycle ends is when I predict companies will pour more resources into logistics technology that illuminate the last mile delivery, offering previously unseen delivery time transparency for consumers. This will occur due to both consumer demand and eCommerce competition - the battleground between rival platforms will move from the buying experience to pinpointing Last Mile Delivery. 

Prediction 2: Flex work (Gig Work) in the U.S. Grows in 2023 by 70 Percent

A shaky economy combined with evolving employee job expectations and steady consumer spending habits will push the number of gig workers to an unprecedented level in the coming year.

  • The economy speaks for itself, most Americans would benefit from extra income
  • The younger workforce has traditionally stayed with one job for a shorter amount of time, moving between employers faster than past worker generations
  • Research is showing that consumer shopping has not curtailed as much as experts predicted due to the effects of rising inflation

These three trends will lead to an explosion in the gig worker economy, as workers take on a second job (or their only job) benefitting from its extreme flexibility of it. Gig work is defined by the idea of working at your own hours, pace and chosen day. I fully expect flex work will grow because of this in double digit fashion, which is going to translate into all kinds of interesting things, most importantly, how to classify this massive workforce.

Prediction 3: Improved Service Time Forecasting with AI

The use of artificial intelligence software is going to improve service time accuracy, leading to an uptick in the number of jobs a service provider can deliver in a day. The mapping benefits AI gives to service providers - a locksmith for example - can shave off several minutes for the commute from job to job. These few minutes are significant when multiplied against the number of jobs performed in one day, they could even add up to another full-service job and the hourly rate that comes with it. This is where flexible companies willing to expand the intelligence of their predictive logistics software will lead the charge. This accuracy benefits both the consumer with jobs coming in on time, as well as the service provider that has more time to provide extra services.

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ABOUT THE AUTHOR

Kashyap-Deorah 

Kashyap Deorah is the founder and CEO of the leader in logistics APIs, HyperTrack. A fourth-time entrepreneur who previously sold companies to OpenTable and Future Group, Kashyap is also a best-selling author and investor. 

Kashyap started his first company as a college student at IIT Bombay and sold it to a Silicon Valley firm. Since then, he has operated in the US-India corridor and done business in China, South-East Asia, and Northern Europe. Kashyap has written for leading print and online publications and made keynote presentations at Internet technology and eCommerce conferences.

Published Monday, January 09, 2023 7:32 AM by David Marshall
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