In its ongoing effort to improve operational efficiency, Amazon has introduced innovative systems designed to expedite package deliveries and assist customers in making quick purchasing decisions, even for unfamiliar products.
The e-commerce giant revealed on Wednesday the implementation of spotlights inside its delivery trucks aimed at guiding drivers directly to packages during their routes.
This new technology, dubbed Vision Assisted Package Retrieval, utilizes a green light to highlight packages, thus eliminating the need for delivery personnel to take extra time in scanning labels.
“When we speed up deliveries, customers shop more,” remarked Doug Herrington, CEO of Amazon Worldwide Stores, during an event. “Once a customer experiences fast delivery, they will return sooner and make more purchases.”
Amazon plans to integrate the spotlight technology into 1,000 active delivery vans, manufactured by electric vehicle producer Rivian, with a rollout set to commence early next year. Herrington noted that the vans are outfitted with cameras and LED projectors capable of instantaneously reading package labels to identify which items are destined for each customer.
As Rivian’s largest shareholder, Amazon has also ordered 100,000 electric delivery vans projected to be operational by 2030.
In morning trading, shares of both Amazon and Rivian experienced a modest increase of approximately one percent.
The new system draws parallels to technology employed in Amazon’s fulfillment centers, where lights indicate items on robotically managed shelves, enhancing the efficiency of warehouse workers. This advancement has replaced a previous system that required some employees to navigate up to 10 miles daily pushing carts through cramped spaces to locate stored products.
By cutting down the time taken for each delivery, Amazon aims to boost the number of deliveries made by each driver in a single shift, with drivers currently averaging about 100 stops per day.
During an event near Nashville, Tennessee, Amazon also announced plans to deploy advanced artificial intelligence software capable of minimizing the time customers spend researching new products like televisions and dog food. The new online guides will provide more comprehensive information and tailored recommendations, enabling consumers to make quicker, more informed purchasing decisions.
This initiative follows the introduction of an AI-powered search feature called Rufus earlier this year, which offers longer responses to users’ search queries directly on the Amazon website.
In another strategic move, Amazon disclosed plans to establish smaller warehouses adjacent to its Whole Foods grocery stores. This approach aims to reduce the likelihood of customers seeking alternatives at competing retailers when certain items are not available. For example, shoppers could order a Pepsi while at a Whole Foods, which does not typically carry the beverage, and have it delivered at checkout.
The first location of this new concept will be in Plymouth Meeting, Pennsylvania, approximately 15 miles north of Philadelphia, with services expected to commence in the upcoming year.
© Thomson Reuters 2024
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