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How E-Commerce Has Affected Routes and Jobs 

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The rise of e-commerce has revolutionized the way we shop, providing consumers with unprecedented convenience and access to a global marketplace from the comfort of their homes.  

 

For truck drivers, the growth of e-commerce has fundamentally altered traditional trucking routes, job roles, and the overall landscape of the trucking industry.  

 

Today, there is an increasing focus on short-haul routes and last mile delivery, which allows drivers to remain local and spend more time at home. This growing demand has also led some companies to offer higher pay and improved working conditions, giving the drivers the power to leverage a better career.  

 

Keep reading to find out how e-commerce has affected the truck driving industry, including the benefits, challenges, and potential future changes.  

 

Increased Demand for Short-Haul Routes 

One of the most significant and immediate impacts the rise of e-commerce has had on the trucking industry is the increased demand for short-haul pickup-and-delivery runs. In fact, the American Transportation Research Institute (ATRI) has reported that the average trip length for truckers has decreased by 37 percent since 2000.  

 

As e-commerce companies, like Amazon and Ebay, and their competitors, such as Wal-Mart, continue to offer consumers benefits like same-day shipping and real-time product tracking, trucking companies must keep up by providing quality last mile delivery services.  

 

Last mile delivery is the transportation of a product from a hub, such as a local warehouse or fulfillment center, to its final destination at either a retailer or customer’s home. These types of runs involve significantly less mileage than long-haul routes, but require a strict delivery schedule with less room for error.  

 

This surge in demand for short-haul routes has led to a rise in job opportunities within the trucking industry, and it has also impacted drivers’ work-life balance. More drivers are needed to handle the increased volume of deliveries, and many of these drivers now have the opportunity to return home more frequently.  

 

Higher Pay and Improved Working Conditions 

The growing demand for shorter, pickup-and-delivery jobs over longer, inter-regional or long-haul jobs has impacted the daily life and job requirements of many drivers.  

 

Not only are these drivers able to spend less time on the road and more time at home, some e-commerce companies are offering competitive pay and benefits to attract and retain truckers. For example, Walmart now pays its first-year drivers up to $110,000, more than double the industry median for long-haul drivers.  

 

The rise of e-commerce has also created more job opportunities for truckers, especially younger drivers and those who are looking for a more stable work schedule. Because in the US drivers must be at least 21 years old to complete cross-state runs, the high demand for local e-commerce deliveries has created openings for younger drivers to enter the field.  

 

Technology and E-Commerce 

The growth of e-commerce has also driven innovation in logistics technology. With an increased demand for same-day deliveries and real-time tracking, e-commerce has led carriers to implement and improve route optimization software, GPS tracking, and automated load matching systems. 

 

Although to some truckers new technologies might seem like one more thing to learn and be responsible for, these innovations allow for more precise and timely deliveries, which are crucial for maintaining the tight schedules of last mile delivery. They also can save drivers time and money, lowering expenses on fuel and vehicle repairs.  

 

Potential Challenges  

Like any innovation, e-commerce is not without its challenges and potential negative impacts on the trucking industry. Some of these impacts have already been reflected in carriers and shippers across the nation, while others are still being researched.  

 

With the dramatic increase in demand for short-haul drivers, some experts are worried that this growth could worsen the already existing shortage of long-haul drivers. Although OTR driving has its own benefits and advantages, the long hours away from home and high turnover rates in long-haul trucking may push drivers to seek employment in the burgeoning short-haul sector.  

 

The stringent delivery expectations of e-commerce deliveries has also caused trouble for shippers and companies. To save time and improve service, many shippers choose to move their freight via full truckload to meet strict delivery expectations, even if they lack enough freight to fill the entire truck.  

 

In fact, a study by Flock Freight found that 43% of truckloads moved partially empty in 2023, with an average of 29 linear feet of unused deck space per truck.  

 

To combat this challenge, carriers and shippers have increasingly been choosing shared truckloads or digital freight matching technology to maximize efficiency and reduce costs. However, these means drivers should familiarize themselves with these options and how it could affect their daily operations and expectations.  

 

 

 

Interested in learning more about current industry trends and advancements in trucking? Connect with us on social media and check out the rest of our Truck Driver blog posts to learn more today.  

Last Mile Delivery: What Every Trucker Needs to Know

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delivery man holding package

The chances are, if you’ve been in the transportation industry for a while, you’ve heard the phrase “last mile delivery, also referred to as final mile delivery.”  

 

In recent years, with the rise of e-commerce and a consumer-driven industry, last mile delivery has become a major differentiating factor among competitor, and a job opportunity for independent contractors looking to have a regular route, close to home.  

 

With today’s consumers expecting fast and reliable delivery every time they make an online purchase, retailers and last mile delivery companies have had to work hard to offer multiple options for fast and affordable shipping and delivery rates. This has also opened up availability for 1099 independent contractors and owner operators who have the equipment necessary to respond to the rising consumer demand.  

 

Read on to find out what last mile delivery really is, the biggest challenges facing delivery drivers today, and how this could be the right job for you.  

 

What is Last Mile Delivery? 

The supply chain process can be divided into three main stages:  

 

The First Mile is the creation and distribution of a product from the original manufacturer.  

 

The Middle Mile is the long distance transportation of a product from the manufacturer to its final transportation hub.  

 

The Last Mile, also called Final Mile is the transportation of a product from a hub such as a local warehouse or fulfillment center to its final destination at either a retailer or customer’s home.  

 

Every step of the supply chain process is important, but the last mile has the most impact on the customer’s experience, and their likelihood of ordering from a company again. Therefore, businesses must ensure the most quick and efficient last mile delivery as possible if they want to stay ahead of competition.  

 

What’s the “Last Mile Problem?” 

The “last mile problem” is another phrase you might have heard thrown around. This simply refers to the common factors that cause issues, delays, and additional expenses during the last mile delivery. This stage of the supply chain process might be the most critical to the consumer experience, but it’s also the most expensive and time-consuming for the business, often accounting for 53% of overall delivery costs.  

 

Many factors play a role in this notoriously difficult and expensive phase of the delivery process that affect both drivers and businesses. For drivers, last mile delivery can be difficult due to a short delivery time frame, dense urban areas that lead to more stops and last minute route changes, rising fuel prices, and failed deliveries.  

 

Businesses must also account for other factors such as the added pressure of customer expectation for rapid delivery and real-time tracking, the shortage of qualified drivers, and the costs of vehicle maintenance.  

 

Although these common inefficiencies aren’t going away any time soon, neither is the importance of quick and efficient last mile delivery. This is where the opportunity for independent contractors comes in.  

 

Opportunities for Independent Contractors 

1099 independent contractor drivers and owner-operators from across the nation have found success in recent years filling the gaps left by the “last mile problem.” As the demand for fast and reliable shipping and delivery has continued to increase, drivers with the right equipment are increasingly able to find flexible, locally based, and well-paying delivery jobs.  

 

Last mile delivery appeals to many owner-operators who appreciate the flexibility and autonomy that comes with this kind of job. Delivery drivers are able to choose their routes, allowing for more control of their schedule on a day-to-day basis.  

 

For drivers looking to reduce long-haul travel and find consistent work within a particular region, last mile delivery is ideal because of its inherently local nature. Local drivers are also better suited for making deliveries in urban areas and other locations where having a prior knowledge of the roads and shortcuts could save time and money during delivery.  

 

Drivers also benefit from understanding consumer expectations. One of the most requested and expected features of last mile delivery is real-time tracking, with one study finding that 93% of customers expect to be able to track their order. By integrating technology such as fleet management software or telematics systems, owner-operators can streamline their operations and provide better service.  

 

Some drivers also choose to partner with delivery platforms or gig economy services that connect them to businesses and individuals in need of last mile delivery. These partnerships offer independent contractors opportunities to leverage their vehicles and expertise in efficient and timely deliveries while providing them with consistent freight.  

 

It’s important for independent contract drivers and owner-operators to research and evaluate potential partners based on their specific needs, preferences, and the types of deliveries they are interested in handling. Building relationships with a mix of local businesses and larger platforms can provide a diversified and steady stream of last mile delivery opportunities. Additionally, staying informed about industry trends and changes can help owner-operators identify new partnership possibilities. 

 

 

If you’re looking for an in-demand job that will continue to grow while remaining locally-based, last mile delivery might be the solution for you. Although facing a number of difficulties and considerations as it expands, last mile delivery is sure to be a key part of the future of the trucking industry.  

  

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