The U.S. Postal Service on Tuesday opened a website where retailers and logistics providers can begin bidding for last-mile delivery service to homes and businesses, part of a broader strategy by new Postmaster General David Steiner to raise revenue for the money-losing organization. The Postal Service has sold delivery service direct from post offices for many years, but it has been mostly limited to very large customers that bring bulk shipments to local or regional stations themselves. Under Steiner’s ...

Core Insights - Serve Robotics aims to expand its fleet to 2,000 by the end of 2025, targeting an annualized revenue run rate of $60 million to $80 million by 2026 [1] - The global last-mile delivery market is projected to grow from $132.7 billion in 2022 to $258.7 billion by 2030, positioning Serve to capitalize on this growth [2] - Serve has deployed 1,000 delivery robots across five cities and completed over 100,000 deliveries in partnership with Uber Eats [4] Company Expansion and Partnerships - Serve Robotics has successfully deployed 120 new third-generation robots ahead of schedule, bringing its total fleet to over 400 robots [2] - The company has expanded its commercial ecosystem, integrating over 2,500 restaurants and stores into its delivery network, significantly increasing from the previous year [10] - New partnerships with DoorDash and Little Caesars are expected to enhance its delivery operations [10] Operational Performance - In Q2, delivery volumes increased by 78% sequentially, maintaining a 99.8% delivery success rate [13] - Average daily operating hours per robot rose by 20% to 10.8, while robot intervention rates decreased by 25% [13] - Revenue increased by 37% year over year in Q2 to $641,000, driven by fleet growth and improved utilization [14] Financial Position - Serve Robotics had $183 million in cash at the end of Q2 and raised $100 million through the sale of 6.25 million shares to institutional investors [14][15] - Analysts project revenue to grow significantly, with expectations of $3.7 million in 2025, $35.1 million in 2026, and $71.4 million in 2027 [17] Valuation and Market Sentiment - Serve's share price has increased by nearly 90% over the past year, currently trading at over 430 times sales [16] - Despite high valuations, the company is seen as having strong long-term potential, with several catalysts for growth [19]

Core Insights - OnTrac is launching new express delivery and ground shipping services to address gaps in the delivery market, particularly for long-distance shipments in the U.S. [3][7] - The express service, OnTrac Express, will utilize ClearJet's air transportation capabilities to offer two-day and three-day transit times [7] - OnTrac Ground Essentials aims to provide a cost-effective shipping option with per-parcel costs up to 30% lower than national providers [5][7] Service Details - OnTrac Express will manage package pickups for longer distances and use air cargo carriers for transportation to OnTrac facilities for last-mile delivery [3][4] - The Ground Essentials service features longer transit times but eliminates residential delivery surcharges, with a current fee of $6.10 per package [5] - A "7-Day Play" program has been introduced to provide precise delivery dates at checkout, enhancing customer experience for time-sensitive shipments [6] Market Positioning - The partnership with ClearJet indicates a strategic move to create a new model between expensive air services and traditional ground shipping [4] - Early access enrollment for both new services is available, with some customers already piloting the capabilities to provide feedback before the full rollout [7]

Core Insights - Walmart has surpassed Amazon in same-day delivery, particularly in groceries, with 48% of grocery-only customers opting for same-day delivery compared to 36% for Amazon [1][5][4] - The competitive landscape is shifting, challenging the assumption that Amazon is always the fastest due to its logistics network [3][4] - Walmart's investments in local fulfillment centers and last-mile partnerships are yielding significant results in time-sensitive categories [8][10] Delivery Performance - Walmart leads in same-day delivery for grocery items, with 48% of its grocery customers choosing this option, while only 36% of Amazon's grocery customers do the same [5][4] - Among customers purchasing both grocery and non-grocery items, 41% preferred Walmart for same-day delivery, compared to 29% for Amazon [5] Consumer Behavior - A notable 21% of Walmart's grocery customers did not use delivery at all, contrasting sharply with Amazon, where less than 2% of grocery-only customers skipped delivery [9][10] - Many Walmart customers utilize curbside pickup or shop in-store, leveraging Walmart's strengths in physical retail, while Amazon's customer base is more reliant on delivery [10] Strategic Shifts - Walmart's success in same-day delivery represents a strategic evolution in its eCommerce operations, driven by significant investments in logistics and technology [8][11] - The competition between eCommerce and brick-and-mortar is intensifying, with the final mile becoming a critical battleground [10][11] Market Dynamics - The retail environment is being reshaped by various factors, including tariffs, inflation, and changing consumer behavior, which are influencing operational strategies across companies [11][12] - As companies like Amazon and Walmart recalibrate their strategies, the focus is on leveraging innovations to address operational challenges [13]