Eco-Friendly Delivery service

Today, I’d like to write about one recent remarkable business news in Japan. That is “Rakuten” acquired 15% of share of “Eco-Friendly Delivery” corp. Rakuten is one of the largest internet shopping retailer in Japan. Rakuten has been positioned as a rival company of Amazon.com in Japan. They have been expanding their business since starting their business. Their core business is to manage internet shopping site, but they entered logistics business in 2010. Rakuten established logistics subsidiary and began to build their own distribution network. Same as US market, due to the rapid spread of the internet shopping, the volume of door to door parcel delivery has been increasing in recent ten years in Japan. This trend generates huge demand of logistics properties and real estate developers and investors enjoy and welcome this trend. On the other hand, increasing door to door parcel delivery causes other problems. That is Increasing carbon dioxide emitted by delivery vans and frequent traffic jam prevents delivery vans from smooth parcel delivery. Especially in CBD Tokyo, traffic volume is always very heavy, and finding parking spot to park their van is quite difficult. In this area, delivering by van is inefficient way and not eco-friendly. It was big problem for many logistics company how to achieve smooth delivery in CBD Tokyo. Eco-Friendly Delivery corp tries to solve these challenges by introduction electric-assisted bicycle and adopting urban specialized strategy. Eco-Friendly corp delivers all parcels by electric- assisted bicycle. Electric-assisted bicycle is a bicycle with and electric motor used to power the vehicle and use rechargeable batteries. Electric-assisted bicycle is classified as zero-emission vehicles. They connect the carrier at the rear of the bicycle and make it possible to deliver a lot of parcels. And, their delivery focuses on big city, Tokyo, Osaka and Nagoya area. These are high population density cities and always have heavy traffic. Although bicycle messenger service has been popular in these big cities, they can’t deliver big parcel due to limited of carrying capacity. Eco-Friendly Delivery corp solves these disadvantages by combination between electric bicycle and big rear carrier. Furthermore, bicycle delivery is not affected by traffic congestion and don’t have to find parking spot. Their delivery service is punctual and low-priced. In this research, I couldn’t figure out why they can provide lower-priced delivery than other van delivery companies in CBD area. Normally, bicycle carrying capacity is smaller than delivery vans’ and the number of parcel that can be delivered per courier should be less compared to delivery by van. I think this is very unique delivery business in an environment that will continue to expand internet shopping users and increasing number of urban residents all over the world.

http://www.youtube.com/watch?v=3Qj0IOig9ek&feature=player_embedded
eco-friendly delivery

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