McKinsey: factors to consider for same-day delivery

Same-day delivery, where a customer places an e-commerce order and delivers it within the same calendar day, is a small market segment. A McKinsey analysis suggests that same-day accounts for less than 5 percent of most countries’ courier, express, and parcel (CEP) market.

McKinsey examines six variables that drive the potential for same-day delivery services. These conditions define the pace at which same-day delivery adoption may be approaching. However, retail, e-commerce, and parcel companies needn’t wait for variables to align before exploring faster delivery options. While companies monitor market conditions, they might consider “24-hour delivery” as an alternative value proposition that resonates with customers’ desire for various options that offer speed, reliability, and reasonable cost.

Urban density

Almost all same-day delivery volumes are concentrated within cities. It’s an urban pursuit where population size and density are the most important variables to balance. Only large metropoles can generate demand and supply volumes to enable same-day services.

Willingness to invest

Theoretically, many e-tailers (from giants like Amazon to SMEs active in e-commerce) could offer same-day delivery services. But they may need to commit and invest if they…