Dive Brief:
- Shipping platform provider Rollo is launching a delivery fleet in Las Vegas, spurred by shortcomings among major carriers, the company announced Jan. 2.
- Through its fleet of three Ford E-Transits, Rollo will offer delivery within Las Vegas for a $5 flat fee. The company expects packages picked up in the morning will be able to be delivered the same day.
- Rollo’s fleet has been performing test runs and will slowly expand coverage from the area of its main hub centrally located in Las Vegas, founder and CEO Kevin Faro told Supply Chain Dive in an interview.
Dive Insight:
Delivery alternatives to FedEx and UPS continue to pop up in metropolitan areas, as smaller parcel carriers expand their capacity and coverage to meet growing demand. Until recently, shippers typically relied on just one major carrier, said Douglas Kent, the Association for Supply Chain Management's executive vice president of strategy and alliances, in an interview.
"Now, it's a lot more diversified," Kent said, noting technology advancements have made it easier for shippers to juggle multiple carriers. "You're going to have several carriers, perhaps, depending on what kind of company you run."
Poor customer service, unexpected fees and unreliable delivery are a few of the problems shippers face when working with the major legacy carriers, according to Rollo's news release, motivating the company to provide an alternative.
"We just want to show that you can do it the right way and hopefully have enough response from the public that maybe motivates these companies to do it the right way," Faro said.
Although this is Rollo's inaugural fleet, the company has plenty of insight into the delivery space. It processes millions of shipments annually and leverages that activity to provide users discounted shipping rates through major carriers.
Deliveries via Rollo's fleet are available on the company's Rollo Ship app and website. If the delivery is within a zone that Rollo supports, the company will appear as an option among other carriers, Faro said.
Rollo provides pickups in supported zones in Las Vegas, even for deliveries ending up with carriers like UPS or FedEx, Faro explained. A driver will be dispatched to pick up the package before dropping it off at the desired location.
"We have access to the entire network of UPS and FedEx and USPS, so people can still ship globally and get those discounts," he said.
Las Vegas is Rollo's first test market, and the company plans to establish the service in other cities down the road. The CEO floated Phoenix as the next city Rollo could expand its delivery coverage to.
