Companies like Uber and Lyft bring much to the side-gig table, and 2023 offers workers more options than ever. Some of the trends pertain to the increase in personal delivery as well.
More companies are slated to offer messenger and courier services as a way to keep pace with home delivery giants, such as Amazon.
While growth in these fields is projected for 2023, these expansions may not favor the workers. Therefore, it is highly beneficial to do some research before you consider working for a ridesharing company.
It is also important to consider other factors as well, such as the impact on your personal vehicle and the inconsistent revenue. The following is a detailed discussion of those projected trends and how they can affect you if you decide to work in this industry.
Home Delivery Services
Home delivery has increased so much in the past few years that companies like Uber and Lyft, which started by offering only ridesharing services, have now entered the home delivery market. IT messaging services such as Facebook are also teaming up with delivery and ride-hailing providers as a convenience for their members.
Retail giants such as Amazon are also meeting the pressure from internet shoppers by offering next-day delivery. This trend for instant gratification from online shopping will only increase as online retailers and restaurants engage in similar practices. This will extend to most chain grocery stores and food markets as well. Many companies hire workers to shop for customers and promise same-day delivery.
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Unfortunately, there are several problems that are inherent in home delivery. For example, porch “piracy” is a rising issue that affects an estimated 25 million shoppers annually. People who are at work all day are especially susceptible to such theft.
Grocery delivery of perishable items presents another problem. Many stores are beginning to require online customers to pick up their orders. Stores such as Walmart, Target, Giant Eagle and Kroger are creating curbside pickup spaces and parking lot drive-up lanes available for such shoppers. In 2023, many more stores will follow suit.
Retail Delivery Trends
Amazon is currently the largest online superstore, holding nearly 50 percent of the market share last year followed by eBay, Apple and Walmart. Amazon launched its flagship mail hub, called Amazon Locker, late in 2018 and it has been gaining momentum since. These point-of-shipment lockers accept packages and then ship them out for the consumer in order to streamline the process. It also:
- Eliminates the long wait at the post office.
- Allows pick up at convenient times.
- Removes the possibility of theft from deliveries left on the porch.
The Ridesharing Competition Will Increase
Along with home delivery, ridesharing continues to grow. In fact, these services are so popular that a few major automotive manufacturers are entering partnerships with the two main ridesharing companies, Uber and Lyft. Impressed by the success of ridesharing services, some automakers are even planning to start their own companies in the near future. Usage is expected to increase significantly this year and for years to come.
The messaging applications both Uber and Lyft provide differ, and some customers choose one over the other due to individual preferences. Trends are expected to follow apps with better features, such as those offered by Lyft. This includes the Waypoint service and the opportunity to schedule in advance. Undoubtedly, logistic advances by both companies are planned for the near future as competition increases.
Messenger Services for Food Delivery Greatly Expand in 2023
Worldwide, the food delivery industry is expected to grow to $174.3 billion by the end of 2023. The US market is expected to almost double by 2025, reaching about $42 billion. And predictions put the online food delivery’s market share at more than 20 percent by 2025.
DoorDash is the largest food-delivery service in the country, capturing 45 percent of the market. The other top food delivery apps are:
- Uber Eats
Of the top food delivery companies, only Uber has diversified into food delivery from an already established market. Uber has more ambitious plans for expansion in the food delivery market this year, targeting over 70 percent of the U.S. Market.
Another developing trend is partnerships between fast food companies and delivery services. For example, retail food giant Mcdonald’s has teamed up with Uber’s food delivery service UberEats, a partnership that is likely to increase revenue for both companies this year. Grubhub also has contracts with other food giants such as Burger King, White Castle, Subway, Arby’s and many others.
Employment Projections in Ride-Hailing and Delivery Services
Experts project this industry to be one of the most secure and growth-oriented industries through 2030. Some estimates predict an eight-fold growth by that time, with more than $285 billion in revenue realized. The inclusion of autonomous fleets is planned, but at least for the next few years, human-operated vehicles will be the norm.
Currently, 15 million rideshare trips are taken a day. Analysts expect this to reach 97 million in 2030. In comparison to other industries and companies, the personal transportation industry is set to continue its upward trend, offering workers a chance to take advantage of the growth potential.
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