The whole parcel delivery market (in the UK at least) has really ended up going this way over the last 5-10 years.
As soon as one company switches to self employed 'gig economy' compensation for their fleet, they get a big advantage in costs which means they can push prices lower.
The only way the competitors can match it IMO is by also switching to the same model, otherwise they lose contracts to the companies that do.
I think it's especially difficult in parcel delivery as the 'customer' is the store you order from, not yourself. So you don't really ever buy parcel delivery services yourself, it's always subcontracted.
Not really sure the best way to solve this apart from govt regulation, but feel it would cause all kinds of crazy side effects if not well thought out.
As soon as one company switches to self employed 'gig economy' compensation for their fleet, they get a big advantage in costs which means they can push prices lower.
The only way the competitors can match it IMO is by also switching to the same model, otherwise they lose contracts to the companies that do.
I think it's especially difficult in parcel delivery as the 'customer' is the store you order from, not yourself. So you don't really ever buy parcel delivery services yourself, it's always subcontracted.
Not really sure the best way to solve this apart from govt regulation, but feel it would cause all kinds of crazy side effects if not well thought out.