55% of America’s Generation Zs and 60% of Millennials Have More Delivery Apps Than Streaming Services
Onfleet Survey Reveals Growing Dependence on Delivery Services for Basic Goods During Pandemic
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“We all know the significant impact supply chains have on carbon emissions, which is why we introduced Onfleet Offset last year. We encourage our customers to participate in the program to help reach our goal of offsetting 100,000 tonnes of CO2 by the end of 2022.”
“Now that customers are comfortable with delivery, expect them to increase their frequency across industries. The retail sector has shifted dramatically and how businesses deliver to, interact with, and maintain their customers is a key part of their brand. Retailers across all industries need to consider their delivery strategy to expand market share and meet consumer demand. Those that figure out delivery will be the winners,” said Khaled Naim, Co-Founder and CEO, Onfleet.
Dependence on Delivery Services
Americans have become more dependent on delivery services for staple consumer goods during the pandemic. Some people have begun to see in-person shopping as unnecessary; others view it as unsafe given the continued risks of COVID-19. More people now use delivery services for their basic needs. Over half (53%) of Americans say they plan to get groceries delivered at least some of the time in 2022. Many customers appreciate the convenience and efficiency of remote shopping. For example, a third of Americans surveyed feel they waste valuable free time grocery shopping each week. More men (39%) than women (33%) overall expressed that notion, and almost half (49%) of 18-34 year-olds agree.
The pharmaceutical industry has also been impacted by the evolution of delivery offerings. More than a third (41%) of Americans have put off picking up prescriptions because they simply did not feel like making the trip to the pharmacy. This increases to 56% of 18-34 year olds and 59% of 35-44 year olds.
Additionally, more than half of those aged 18-45 (55% of ages 18-34; 60% of ages 35-44) have more delivery subscriptions (Amazon Prime, DoorDash, UberEats, etc.) than streaming service subscriptions (Netflix, Hulu, Disney+, etc.) However, this does not mean that customers are ready to embrace every innovation within the delivery economy. More than half of Americans, for example, (55%) stated that they wouldn’t trust a robot or autonomous vehicle to deliver online purchases.
Environmental Concerns are Key
Americans prefer delivery companies who commit to environmental sustainability. The study found that nearly half of Americans (45%) would be willing to pay higher delivery fees for online purchases if a company has initiatives to offset their carbon footprint.
- More men (49%) would be willing to pay extra for sustainability than women (41%)
- Younger demographics (58% of those aged 18-34; 63% of those aged 35-44) would be more willing than older ones (45% of those aged 45-54; 32% of those aged 55-64; 23% of those aged 65+)
“Companies need to embrace more sustainable delivery options,” Naim said. “We all know the significant impact supply chains have on carbon emissions, which is why we introduced Onfleet Offset last year. We encourage our customers to participate in the program to help reach our goal of offsetting 100,000 tonnes of CO2 by the end of 2022.”
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“With Gen Z becoming more important in the global marketplace, I believe the younger generation will start to shift the delivery economy towards a more sustainable and eco-friendly path. At the end of the day, it’s up to individual companies to step up and implement practices that reflect consumer sentiment and improve customer satisfaction,” Naim said.
Delivery Implications For New Industries
Consumer demand is also driving delivery growth in more complex, highly-regulated industries. Among the largest of these is cannabis, which has exploded as more states in the U.S. are introducing legalization for medical and recreational use. Cannabis delivery is a growing industry, and even titans like Uber have dipped their toes into this new field.
Over half of Americans (59%) have stated that if they were going to purchase legal cannabis products (e.g. gummies, drinks, flower), they would be much more willing to purchase them via delivery versus going into a store/dispensary.
- More men (63%) agree compared to women (56%). Younger Americans are more likely to choose delivery at 75% for 35-44, with a steady shift downward as respondents get older.
The taboo surrounding cannabis use has not completely vanished even though the cannabis industry has become increasingly legitimized. It seems many respondents feel uncomfortable by the prospect of purchasing legal cannabis products in person. More than half (53%) of 35-44 year olds would rather spend time at the DMV than run into someone they know while buying legal cannabis products.
- 49% ages 18-34
- 37% ages 45-54
- 33% ages 55-64
- 22% ages 65+
This calls out the interest and demand for discreet home delivery of cannabis.
Overall, the survey results demonstrated that delivery, driven by consumer demand and the COVID pandemic, is increasingly becoming the key channel for businesses especially in grocery, cannabis, food & beverage, pharmacy, and retail categories.
The “last mile” costs and complexities associated with delivery, especially for newcomers, are difficult to manage. Onfleet’s technology helps businesses streamline this onerous undertaking by efficiently connecting businesses, dispatchers, drivers, and deliveries to happy customers.
