We’ve all read about digital transformation and as I write this entry, I hope you have all taken heed of the importance of big data, AI and the optimisation of processes using technology, yet how can this transform the food delivery industry, and gig-economy as a whole?
Telemetry has the potential to completely transform the way that operators manage their delivery solutions whether as a delivery platform (aggregator), 3rd party logistics, independent restaurant and the riders servicing customers – ONE MOTO have discussed the environmental and cost savings on the bottom line, but today I write about the time saving and the benefits – with the hope that you’ll walk away having taken home some facts surrounding the technological beenfits of the service ONE MOTO offer the last-mile delivery sector.
Now that the message is well and truly out there that ONE MOTO are not just an electric vehicle manufacturer, but in fact we are a HardTech meets FinTech mobility eco-system. It’s time we showcase the benefits of electric vehicles beyond the environment and financial cost-savings, instead demonstrate the service delivery experience through data and digital optimisation.
ONE MOTO vehicles are nothing short of smartphones on wheels.CNN, 2021
In this specific case, the idea is that a wireless technology system lets the company track fundamental usage data, performance and delivery metrics and with AI forecast the delivery populus to service customers more efficiently adding that ’somewhat detached customer feel good’ from a process fulfilment service.
This simple seeming use of telemetry is predicted to reduce operational costs by minimising the amount spent on descales while simultaneously maximising efficiencies.
It’s a no-brainer and it’s also just the tip of innovation tsunami set to flood the last-mile industry in coming months and years.
Interestingly in the current form of vehicle/fleet leasing telemetry isn’t installed (as a rule), why? Because no one wants to pay for it. Aggregators do the best they can with in-house developers building their apps to work with their riders smartphones, 3PLs already face the brunt of risk and cost associated with supplying the service, riders couldn’t be expected to pay for it – so who should burden the cost? The answer is no one. With every price tag, a value is set. If a company can see the value in a 2-3x optimisation in delivery volumes, time, cost-reduction, working pressure, working hours then the price tag is attached to a sense of winning above competition, i’ll explain.
In the last few months, ONE MOTO have rolled out several hundred electric vehicles throughout the territories we operate (Europe, UAE, LatAm, India) each loaded and pre-installed with telematics devices to help both fleet operators and riders, which has led to some interesting data.
The most advanced delivery companies have this data available remotely via internet portal for use by fleet management professionals, restaurant operators and their transportation managers not only simply to view but also, and crucially, to modify.
Yes, you did just read that correctly.
Let’s lay down some historical data. Delivery aggregators currently offer a order delivery rate of 1.2 deliveries (on average) per hour. Yet with ONE MOTO telemetry and the ONE App these same operators are achieving 3.4 deliveries per hour. yet, what does this mean at month end?
• One customer has achieved 206% more deliveries (over 200,000 per month)
• Saved over 500 hours of time (5 hours per rider per month)
• Reduced the rider working hours by 28% (12 hours per day to 8.6 hours)
• Eliminated the rider delivery bonus volumes (achieving a greater profit)
• Without reducing the riders take home – they actually increased by 22%.
The financial rewards – as you can see – were phenomenal, routes were optimised, riders also saved on their fuel costs totalling AED 73,500 ($20,000) in one month.
What was the outlay? AED 60 ($15) per rider per month. What was the cost? What was the investment?!
The cost saving potential is huge and the remote monitoring and management with settings modification from any computer or smartphone means overseeing multiple vehicles in the fleet is suddenly so much easier.
Innovation and connectivity has been a discussion point throughout 2022, yet the education and demonstration of this hyper-efficient technology is still ongoing. The cost associated to a delivery aggregator for not implementing such innovation would mean the further demise in stock price, profitability and many of the mobility/last-mile aggregators falling short of their commitment to stakeholders.
Electric vehicles aren’t independently the answer, it is a combination of a mobility eco-system which provides the real-time facts to the efficiency and effectiveness of their operations.
One thing is certain: these interactive and connected, sustainable and smart mobility with all their telemetry and practical, time- and effort-saving features are here to stay.
Telemetry is a big deal and it’s going to increasingly affect us all whether we’re ready for it or not!
If you would like to discuss your transition to an electric delivery fleet, please contact the team at ONE MOTO
Thank you for reading.