Delivery Companies Lose Nearly $6B Annually Due to Map Problems During Last-Mile Delivery, Says New Mapping in Logistics Report

NEW YORK, Feb. 11, 2020 /PRNewswire/ -- Mapillary, the street-level imagery platform that uses computer vision to scale and automate mapping, today announced the release of its first Mapping in Logistics Report which reveals the material impact of broken maps on the logistics sector. The report based on a survey conducted last month of last-mile delivery drivers, industry data and insights from industry experts, uncovered nearly $6B in costs associated with driving extra miles and wasted time alone, in addition to missed delivery windows, parking availability, and parking tickets all due to maps that lack accurate, up-to-date information related to navigation and traffic signs and building information such as entrances and parking slots. Of the delivery drivers surveyed, nearly all (99%) said they would be more effective if they had better maps.

The report estimates the industry is racking up $2.5 billion in wasted salary alone and $611 million in extra miles due to drivers not having better maps. A third of drivers stated they could save upwards of five hours each week if they had access to detailed and up-to-date maps, saving companies $2.6 billion annually.

"We know intuitively that broken maps waste time and money for logistics companies, and with the Mapping in Logistics Report we now have data to begin calculating just how massive the problem is," said Jan Erik Solem, Mapillary co-founder and CEO. "The growing demand for ever-shrinking delivery times has created tremendous pressure on maps being more detailed and up-to-date and, as we see in the report, broken maps create inefficiencies across the board. Better maps will result in more deliveries at a faster pace every single day, saving millions of dollars each year for individual companies and dramatically improving their bottom lines."

The report revealed striking inefficiencies including:

• Extra driving miles – 78% of surveyed drivers report driving more than 5 extra miles a day due to bad routes (closed roads, bad signage, etc.), with 22% reporting between 15 and 25 extra miles and 11% reporting between 25 and 50 miles.
• Exact drop-off location – 72% report taking more than 4 minutes to find the exact location (building numbers, delivery entrances, etc.) for a typical delivery, with 36% taking more than 7 minutes and 14% taking more than 10 minutes.
• Delivery windows – 96% report wasting significant time during the day waiting for delivery windows, with 76% wasting more than 15 minutes and 35% wasting more than 30 minutes.
• Parking availability – 62% report taking more than 4 minutes to find parking, with 32% taking more than 7 minutes and 10% taking more than 10 minutes.
• Parking tickets – 57% report getting multiple parking tickets per month, with 33% getting more than 8 tickets.
• Undelivered packages – 86% report taking packages back as undeliverable, with 38% taking back more than 25 packages per week.

The Challenges of Maps

Maps include company-provided delivery management devices, Google maps or Apple maps on a smartphone or tablet, and built-in vehicle navigation systems. The Mapping in Logistics Report revealed that drivers had the following challenges with their maps:

• 99% of delivery drivers say they would be more effective if they had better maps.
• 95% report problems with maps, including longer routes, long distances from actual drop-off locations, and road closures.
• 38% report issues with maps every day they work, with 12% reporting issues with every delivery.
• 50% report that a problem with a map during a single delivery delays deliveries for the rest of the day.
• 92% say maps have significant room for improvement.

"Consumer demands around online shopping and delivery times are evolving rapidly, and major players like Amazon, Best Buy, and Walmart are now providing same-day delivery in numerous locations across the U.S. This puts pressure on every logistics company to utilize accurate, up-to-date maps that can ensure faster last-mile delivery and an optimal customer experience," Solem added.

A full copy of the report can be found here as well as an infographic of the findings.

Notes to Editors

Methodology

The survey was conducted by Dimensional Research in December 2019 and completed in January 2020. The 219 individuals surveyed all worked as delivery drivers in the U.S. and were responsible for delivering packages to homes and businesses and used mapping applications for their work. Delivery vehicles included cars and trucks, and locations included a mix of businesses and residences.

For the cost estimations presented in this release, the following assumptions have been made.

• 1,449,100 is the total estimated number of delivery drivers in the US (BLS)
• $14.66 is the median hourly pay for delivery drivers (BLS)
• $2.877 is the average cost per gallon of gas in the U.S. (GlobalPetrolPrices)
• 24.9 mpg is the average fuel consumption of vehicles in the U.S. (EPA)

About Mapillary

Mapillary is the street-level imagery platform that scales and automates mapping using collaboration, cameras, and computer vision. Mapillary combines images from any camera into a visualization of the world that generates map data for improving maps, developing cities, and advancing the automotive industry. Mapillary's tools enable anyone to collect, share, and use street-level images.

Today, people and organizations all over the world have contributed more than a billion images toward Mapillary's mission of helping people understand the world's places through images and making this data available, with clients and partners including the World Bank, HERE, and Toyota Research Institute. Mapillary has raised $24.5 million in venture capital from some of the world's most seasoned investors, including Sequoia Capital, Atomico, and BMW i Ventures.

About Dimensional Research

Dimensional Research® provides practical market research for technology companies. We partner with our clients to deliver actionable information that reduces risks, increases customer satisfaction, and grows the business. Our researchers are experts in the applications, devices, and infrastructure used by modern businesses and their customers. For more information, visit www.dimensionalresearch.com.

SOURCE Mapillary

Related Links

https://www.mapillary.com/