News, Insights and Stories from the Australian and New Zealand tech ecosystem.

Taxi Lineup is the latest startup to enter the same day delivery space

The opportunities to use existing spaces and share services are enormous and has become responsible for the mass growth of startup companies like Airbnb and Uber. These global companies have become part of the on-demand economy’s rapid growth, which has recently started to change the way customers engage with products and services.

The way companies innovate are determined by customer expectations and user experiences. These experiences are increasingly being challenged by the on-demand economy. In Australia startups have been taking advantage of unused spaces to send products for same day delivery. These unused spaces are identified in both taxi and ridesharing services, where startups see the opportunity of harnessing and leveraging off existing markets.

With the growth of online shopping, the demand for same day delivery services is increasing. While many companies now offer same day delivery this service seems less exceptional and more of a given. What would be a new and exciting development is instantaneous delivery, but I think it will still be a few decades before we see that one.

In the meantime one of the fastest and more flexible ways to send local parcels across town is through leveraging off the taxi industry. Aussie startup Taxi Lineup is the latest to enter the same day delivery space. The service uses online technology and mobile apps to connect people with their parcels to taxis in their local area.

Users login to the Taxi Lineup site or app and input their parcel pickup and delivery details. A quote is set for a one hour, three hour or same day delivery service, which is transacted and paid for via credit card. Each parcel delivery job is posted on the sites job board in the driver’s app for those drivers who are in the customer’s local area. When a driver chooses to accept a job the pickup and delivery details are assigned to them and the customer is notified along the way through a GPS tracking system.

Prices start from one hour urgent delivery at $44, which is marked within a 10km radius and a three hour express delivery window. For six hour delivery quotes are set at $25 and for same day the fixed price is $18. These prices don’t change or increase on weekend or public holidays.

“Local logistics is an enormous market that has been largely untouched by technology. We’ve seen the opportunity to use technology to match the latent capacity of taxis already on the road, with people that have urgent parcels. The current industry is inflexible and relies on heavily on scheduled routes. This reliance shuts out convenience and flexibility for the consumer — we want to change that,” says cofounder of Taxi Lineup Anthony Lechner.

Taxi Lineup is currently available for customers in Sydney and Melbourne to book and receive deliveries for parcels up to 16kg. Lechner says the delivery service can be used to send parcels, gifts, flowers or even for items you’ve accidentally left at home like your phone.

Taxi Lineup is adding a slightly different service to the competitive delivery service space that has seen startups like Sendle, Zipmate, Shippit and Zoom2u take advantage of the growing marketplace. Last month Australia Post, who has been widely criticised for being slow to react to the huge changes in this space, partnered with Shippit to drive growth across the eCommerce and digital markets.

Thanks to strategic partnerships, startups like Sendle and Shippit are experiencing growth in a marketplace that is now heating up. Last month Shippit announced a 50 percent month-on-month growth, which just goes to show how popular on-demand and same day delivery services are.

Lechner admits the space already has some tough competition, however he feels that his service will add innovation and diversity that customers have yet to experience. While meeting customer needs, Lechner says an important part of the business model is providing supplementary income to local taxi drivers who are feeling the threat of technological disruption.

Lechner says using professional drivers is a key difference between Taxi Lineup and other delivery service startups. He believes taxis have special access and knowledge of inner and outer city areas and can deliver parcels in a more efficient and cost effective manner.

“We believe that nobody else is providing this combination of flexibility, speed and transparency, at such value prices,” he says.

Taxi Lineup will be launching its services in Brisbane, Adelaide and Perth in the coming months. The app is already available for download Australia-wide and is free for both iOS and Android devices. Lechner says he already has his sights firmly set on markets regionally and globally and will wait to see how the market responds locally first.

Image: Anthony Lechner. Source: Supplied