The major shipping carriers may soon have a new player to compete with in the last-mile delivery space: the FRONTDoor Collective. Rather than yet another last-mile delivery startup or one-off idea, the FRONTDoor Collective (or “FDC,” for short) has focused on onboarding small delivery companies via a franchise model…and so far, they’ve acquired over 100 delivery partners.
What is the FRONTDoor Collective?
The FRONTDoor Collective is a network of over 100 small delivery companies, the majority of which exclusively service Amazon customers. The group operates with a franchise model, offering smaller delivery outfits equity in the overall company, and room for growth that many delivery service partners feel they lack in their current agreements. In a nutshell, the FDC promises to unlock new sources of revenue for its franchisees by contracting directly with retailers outside of Amazon.
Franchisees in the FDC have a wealth of experience in delivering for companies such as Amazon, XPO Logistics, OnTrac, and Axlehire. The collective, launched officially on August 12th, aims to expand its network to 300 franchisees by the end of 2021. With its current network of over 100 delivery partners, the FDC claims it has the ability to deliver over one million packages per day. As speed and efficiency become more of a focus point for retailers and the FDC continues onboarding delivery partners, the company predicts it may not be long before its network rivals major carriers like UPS and FedEx,
A Focus on Sustainability
In addition to carving out their own niche in last-mile delivery, the FDC also has its sights set on bringing sustainability more into focus for the entire logistics industry. To do so, the company has struck a partnership with electric vehicle manufacturer Canoo to provide fully electric delivery vehicles for its drivers.
In a Q&A with Freightwaves, Kelly Pickering—Chief Development Officer of the FDC—said the following on the importance of embracing electric vehicles:
“It is one of our core values to be good stewards to the community, and that means creating a sustainable living for our franchisees and creating green solutions to revolutionize last-mile delivery. There is a clear directive from nations, governments and scientists that we really need to start paying attention and make some changes…We have a responsibility to this planet, and inherently, putting a massive number of traditional vehicles on the road can do harm. We want to be problem solvers.”
How the FDC’s Network of Amazon Delivery Companies (and Others) Will Fill the Gap in Last Mile Logistics
The FRONTDoor Collective maintains that the core focus of its success rests on two pillars: their delivery partners (aka franchisees), and the end customers who receive products. In that regard, the FDC sees itself as more of an omni-channel partner. For instance, the collective will not only help merchants to deliver products more efficiently, but can also provide white-glove services, such as including a merchant’s branding on the side of one of their delivery trucks. At the same time, the FDC also aims to create a more incentivized environment for its delivery partners to grow and unlock more revenue as eCommerce popularity continues to trend upwards.
In the same Q&A with Freightwaves, Pickering spoke more about the organization’s vision:
“We recognized very early on that there was a massive gap in the industry when it came to last-mile delivery networks. It is very fragmented. There are regional players that operate in a few states, small independent fleets, and even gig economy drivers delivering packages out of their personal vehicles. When you look at the gig economy driver, it can be a fairly inconsistent experience for the retailer and the consumer. On the other end of the spectrum, the national carrier partners are hitting their max capacity. We all happen to know each other; wouldn’t it be great if we got together and organized ourselves to be able to fill this need for last-mile delivery services?”