Amazon Enhances Delivery Efficiency
By Greg Bensinger
NASHVILLE, Tennessee (Reuters) – Amazon (NASDAQ:AMZN) is striving for greater efficiency by developing new systems that reduce package delivery times and assist customers in making quicker purchase decisions, even for unfamiliar products.
On Wednesday, the company announced the introduction of spotlights within its delivery trucks aimed at guiding delivery personnel to packages for each stop along their routes. This technology, named Vision Assisted Package Retrieval, utilizes green lights to highlight packages, minimizing the time wasted on reading labels.
Doug Herrington, CEO of Amazon worldwide stores, stated at the event, "When we speed up deliveries, customers shop more. Once a customer experiences fast delivery, they will come back sooner and shop more."
Amazon plans to equip 1,000 active delivery trucks, supplied by electric vehicle manufacturer Rivian (NASDAQ:RIVN), with this spotlight technology by early next year. Herrington noted that the ceilings of delivery vans are fitted with cameras and LED projectors to instantly read package labels and identify customer destinations.
Amazon is Rivian's largest shareholder, having ordered 100,000 electric delivery vans for deployment by 2030. Following this announcement, shares of both Amazon and Rivian rose about 1% in morning trading.
The spotlight system is reminiscent of a technology used in Amazon warehouses that illuminates items on robotic shelves, allowing workers to pick items without having to search extensively. This innovation replaced a system that required workers to walk long distances pushing carts through narrow aisles.
By reducing delivery times by just a few seconds, Amazon can boost the number of deliveries each worker makes during their shift. Currently, Amazon reports that delivery workers reach approximately 100 customers daily.
During a Nashville event, Amazon also introduced new AI-powered software designed to streamline the product research process, which can often take minutes or hours. The software includes comprehensive guides and recommendations, enabling customers to make faster, informed choices about products such as televisions and pet food.
This feature follows the earlier launch of an AI search function on the main Amazon website called Rufus, which provides users with more detailed answers to their inquiries.
In a separate announcement, Amazon revealed plans to create smaller warehouses linked to Whole Foods grocery stores. This approach aims to prevent customers from seeking competitive stores if certain items are unavailable. For instance, shoppers could order a bottle of Pepsi while at Whole Foods—where it's not offered—and have it delivered at the checkout. The first location of this initiative will be in Plymouth Meeting, Pennsylvania, expected to start next year.
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