This is unintuivite at first, but makes sense. As we approach last mile, economies of scale begin to not only diminish, but invert.
Let me put it another way... it's very inefficient to move cargo by a fleet of cars vs a fleet of trucks, and it's even more efficient to move cargo by train.
But it would be terribly inefficient to move that train to your home. A UPS truck is more efficient than a train, and a guy on a bike might be more efficient than a UPS truck, other than labor.
But if we can get an autonomous vehicle, then the labor goes away, and if the delivery drone is electric, then it can largely be very efficient- going point to point in a straight line.
I hadn't thought about it before, but it makes so much sense.
Let me put it another way... it's very inefficient to move cargo by a fleet of cars vs a fleet of trucks, and it's even more efficient to move cargo by train.
But it would be terribly inefficient to move that train to your home. A UPS truck is more efficient than a train, and a guy on a bike might be more efficient than a UPS truck, other than labor.
But if we can get an autonomous vehicle, then the labor goes away, and if the delivery drone is electric, then it can largely be very efficient- going point to point in a straight line.
I hadn't thought about it before, but it makes so much sense.