Google harnesses Maps data as it enters last mile market

The tech giant has launched two tools for fleets as companies seek more efficient home delivery options. Experts differ on Google’s next move.
By Max Garland

In an inefficient, costly and yet vital piece of the supply chain, Google saw an opportunity to capitalize on the capabilities of its Maps platform and jump into last mile services.

The technology giant staked its claim in the home delivery sphere in March with the launch of two tools — Last Mile Fleet Solution and Cloud Fleet Routing API — focused on last mile execution and route planning, respectively.

Google’s foray into fleet management technology isn’t surprising to Jim Nicholson, SVP of operations at Loadsmart. He compared it to Amazon’s entry into the logistics space: a natural next step for the company’s wider ambitions. Hefty financial resources and years of Google Maps improvements should help the company with its foray into the space.

“Having a leading web mapping platform absolutely gives them a great opportunity and some advantage against the competitors,” Nicholson said.

Google is bringing a bevy of Maps data and a familiar navigation interface to a space that has seen increased attention as home delivery demand has boomed. U.S. parcel volumes surpassed 21.5 billion in 2021, compared to pre-pandemic levels of 15.5 billion in 2019, according to the Pitney Bowes Parcel Shipping Index.

More effective route planning and execution has become critical in response to the rising number of packages. Since the last mile is the most expensive and least efficient step of the delivery process, avoiding misses like an inaccurate address is critical, said Shalin Mantri, group product manager at Google Maps Platform, who oversees its transportation and logistics vertical. Fleet operators receive addresses in varying states of quality, and it is one of the top causes of delivery failure, he said.

“One failure on that package basically means that it’s unprofitable for the fleet operator,” Mantri said.

Map quality and data ownership could be key advantages in the last mile space going forward. Customers for Google’s last mile offerings are likely to only help the company improve its own mapping accuracy further, said Rick Watson, founder and CEO of RMW Commerce Consulting, in a LinkedIn post.

“Listen to any Amazon Flex driver and one of their primary complaints is about their route, maps, etc.” Watson wrote.

Read the complete article at Supply Chain Dive.