{"id":2044,"date":"2019-03-28T00:59:12","date_gmt":"2019-03-28T00:59:12","guid":{"rendered":"https:\/\/quicktransportsolutions.com\/blog\/?p=2044"},"modified":"2019-03-28T00:59:14","modified_gmt":"2019-03-28T00:59:14","slug":"the-transportation-sector-faces-increasing-disruption-from-established-players","status":"publish","type":"post","link":"https:\/\/quicktransportsolutions.com\/blog\/the-transportation-sector-faces-increasing-disruption-from-established-players\/","title":{"rendered":"The Transportation Sector Faces Increasing Disruption From Established Players"},"content":{"rendered":"\n

If you follow the convention circuit at all, you may have noticed something at this year\u2019s Consumer Electronics Show (CES) in Las Vegas; it may be a small thing, but it could have an outsized impact on the trucking industry. <\/p>\n\n\n\n

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The Continental tire company showcased a driverless vehicle\nthat could be used to deploy delivery robots. This would be especially helpful\nfor last-mile customers who are not physically able to take receipt of the\npackages. And this is not the only example of companies pushing ahead with\nautomated solutions to trucking problems. <\/p>\n\n\n\n

If anyone has any doubts about how technology\nis reshaping the transportation sector<\/a>, this news should be a wake-up call.\nConsider that the Consumer Electronics Show \u2013 one of the biggest of its kind in\nthe world \u2013 used to be a haven for nothing more than computer geeks and gamers,\nyet now attendees can feast their eyes on all sorts of technologies related to\nbusiness, healthcare, and transportation.<\/p>\n\n\n\n

Why Continental?<\/strong><\/p>\n\n\n\n

Some are wondering why Continental, which is Germany\u2019s\nlargest tire manufacturer, is getting in on the game of autonomous vehicles.\nAccording to the company themselves, they always were a technology company,\npioneering pneumatic tires back when that was considered bleeding edge\ntechnology. Now, with global automotive technology undergoing a major sea\nchange, Continental is once again trying to position itself as a major\ntechnological innovator. Yet, to see a tire company moving into driverless\ntechnology certainly is a bit of a surprise. <\/p>\n\n\n\n

Continental displayed how a small, driverless vehicle could\nhouse delivery robots that look much like small dogs and to deliver packages to\nhandicapped or disabled people. Continental released a statement saying that\nthe vehicle and its robots, what they refer to as the Continental Urban\nMobility Experience (CUbE), offer a more effective and efficient distribution\nof goods. <\/p>\n\n\n\n

The company also highlights potential sustainability goals\nby saying that this technology will reduce idle times and ease packed transport\ncapacity. In densely populated areas, these technologies will help prevent\nbottlenecks and, when powered by electric technology, ease fuel usage. <\/p>\n\n\n\n

Fortunately, Continental still foresees the need for human\ninteraction in this process. Although the vehicle and delivery robot technology\ndoes not require a specific person on the vehicle, there will still need to be\na technician, or operator, who works as part of the last-mile technological\nteam. <\/p>\n\n\n\n

Addressing an Urban\nNeed<\/strong><\/p>\n\n\n\n

Continental is essentially making the case that goods and\nparcel delivery in residential areas is not only growing, but it will continue\nto evolve over time as people increasingly get their consumer goods delivered\nthrough e-commerce sales. As these sales grow, and people receive their\npackages in dense urban areas, delivery cost per hour is going to be\nincreasingly important. <\/p>\n\n\n\n

As more last-mile delivery vehicles crowd out the nation\u2019s\nurban areas, the companies that handle last-mile delivery will need to find\ntomorrow\u2019s solutions for today\u2019s problems. Therefore, companies like\nContinental are looking at automation as a potential way to meet that goal. In\nfact, industry analysts state that within the next decade, we could see\nautomated goods delivery make up a full 80 percent of all last-mile deliveries.\n<\/p>\n\n\n\n

The term that many are using to describe this situation is\n\u201cfuture urban mobility.\u201d The expectation is that this futuristic form of urban\ndelivery will compliment conventional goods delivery methods. As truck drivers\nand warehouse workers prepare parcels for the final mile, driverless vehicles\nlike the CUbE, supplemented and operated by technicians, can carry delivery\nrobots to handle the last yards of the logistics chain. <\/p>\n\n\n\n

Even more the technology already exists to make this a\npotential reality. Reliable, robust, and low-costs technologies are already\navailable thanks to the push to make automation a reality in the transportation\nmarketplace. Continental has already stated that it is ready to scale the\ntechnology in order to meet OEM manufacturing requirements. <\/p>\n\n\n\n

With companies already providing robust automotive\nsolutions, it should not be difficult to make the transition to these technologies.\nEven more, with many different sectors moving towards the smart city concept,\nthe technology showcased by Continental could fit quite well within that model.\n<\/p>\n\n\n\n

Smart cities of the future will require a 24\/7 level of\nurbanized development. Concepts like the CUbE can meet the needs of smart\ncities and the complex challenges of dense urbanization. As always, there will\nbe peaks in demand, and in some cases human delivery intervention will be\nrequired, but in situations where peak rush hours are low, robotic delivery\ncould become standard.<\/p>\n\n\n\n

Many people are not even home during the day when deliveries\nor made. This makes robotic delivery especially perfect for off-peak hours when\nthe individual receiving the package isn\u2019t home to take delivery of it. With\nthe smart city already on the horizon, Continental is not the only company\ntaking advantage of this change and positioning\nthemselves to be at the forefront of it. Amazon, the disruptor-in-chief, is\nalso leading the way in introducing these new technologies.<\/p>\n\n\n\n

Amazon Introduces\nRobots<\/strong><\/p>\n\n\n\n

Amazon recently showcased the Amazon Scout, which is a\ncooler-sized, electric, six-wheeled delivery robot. The company is now testing\nthe robot in Snohomish County in Washington state. The robot is designed to roll\nalong city sidewalks at walking speeds and deliver packages to customers in\nconcert with autonomous delivery vehicles. <\/p>\n\n\n\n

According to Amazon, customers who live in Snohomish County\nwill receive their orders either through an Amazon partner (SEE: Human) or\nthrough the Amazon Scout. The pilot period for the Scouts will involve six\ndevices and they will work during normal business hours on Monday through\nFriday. <\/p>\n\n\n\n

The Amazon Scout is designed to autonomously follow their delivery route, but in the case of this pilot, they will be accompanied by an Amazon employee. During the engineering phase of the device, it was developed to safely and efficiently navigate around pets, pedestrians, or any other obstacles that may prevent safe forward motion. <\/p>\n\n\n\n

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Snohomish County officials are excited to partner with Amazon on this venture, stating that the Amazon Scout will represent a way to deliver better service to their constituents. And with Amazon being a home-state company, Washington officials in cities and towns all over the state are used to working with Amazon on developing new cutting-edge technologies. <\/p>\n\n\n\n

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Field testing a new delivery system with Amazon Scout.
Source: https:\/\/blog.aboutamazon.com<\/figcaption><\/figure>\n\n\n\n

More Disruption from\nAmazon<\/strong><\/p>\n\n\n\n

Except Amazon is not stopping at small, autonomous,\nlast-mile delivery. Jeff Bezos and his enterprising company are inching\never-closer to launching their Amazon parcel delivery service. As we get closer\nto Amazon actually moving forward with this concept, it would represent a\ndirect threat to its current delivery partners, FedEx, UPS, the USPS and many\nothers who currently handle Amazon deliveries. <\/p>\n\n\n\n

Amazon has been quietly leasing cargo aircraft, signing new\nmaritime shipping deals and contracts, and building up their own in-house\nstable of truck drivers, whether in the United States or overseas. In fact,\ntheir efforts in this area have been no less than staggering in scope. While\nsome think that Amazon could simply be posturing to put pressure on motor\ncarriers and reduce shipping costs, others state that the moves are very real\nand that the company is seriously looking to move into the trucking and\nlogistics space.<\/p>\n\n\n\n

If Amazon does end up moving into the trucking space, the\ntechnological and logistical disruption throughout the trucking industry, on a\nglobal scale, will accelerate on a massive scale. Jeff Bezos is the world\u2019s\nrichest man today not because he was lucky, but because he has shepherded\nAmazon through emerging technologies, massive innovation, and major disruption.\nIf he sees entering the logistics sector as a surefire way to save money, all\nwhile raising overall efficiencies, there is no doubt that he will do just\nthat. <\/p>\n\n\n\n

In doing so, it is virtually assured that all options will\nbe on the table. Whether it be drones, autonomous \u201cscout vehicles,\u201d entirely\nnew distribution chains, or fancy warehousing techniques, Amazon will not hold\nback in doing whatever it takes to fulfill their mission as they see fit. They\nmay even employ technologies we have not yet seen. <\/p>\n\n\n\n

And although Amazon has never operated in the transportation\nand logistics space and Jeff Bezos does not come from a trucking background,\nneither he or the company have any qualms about utilizing a particular\ntechnology or fuel management approach if they feel it would be a benefit to\nthe company and its bottom line. <\/p>\n\n\n\n

The question now is this: How will all the disruption impact the trucking industry? There are pundits on both sides of the debate, with some thinking that this will merely increase the opportunity for quick-thinking transportation companies and others shouting that it will mean the end of the trucking business as we know it. <\/p>\n\n\n\n

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Smart money is somewhere in between. While motor carriers\nwho cannot quickly adapt to the changing environment may feel themselves\nsqueezed to going out of business, truck drivers, technicians, and others up\nand down the supply chain will still be needed to ensure packages get to where\nthey need t go and freight gets moved. As with any other major industrial\nchange, there will be some initial pain, but the final outcome is far from a\ndone deal.<\/p>\n","protected":false},"excerpt":{"rendered":"

If you follow the convention circuit at all, you may have noticed something at this year\u2019s Consumer Electronics Show (CES) in Las Vegas; it may be a small thing, but it could have an outsized impact on the trucking industry. [wp_ad_camp_2] The Continental tire company showcased a driverless vehicle that could be used to deploy … Read moreThe Transportation Sector Faces Increasing Disruption From Established Players<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":2046,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2044","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trucking"],"yoast_head":"\nThe Transportation Sector Faces Increasing Disruption From Established Players - Quick Transport Solutions Trucking Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/quicktransportsolutions.com\/blog\/the-transportation-sector-faces-increasing-disruption-from-established-players\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Transportation Sector Faces Increasing Disruption From Established Players - Quick Transport Solutions Trucking Blog\" \/>\n<meta property=\"og:description\" content=\"If you follow the convention circuit at all, you may have noticed something at this year\u2019s Consumer Electronics Show (CES) in Las Vegas; it may be a small thing, but it could have an outsized impact on the trucking industry. 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