Who Delivers Your Orders Matters

Local carriers can promise fast and cheap ecommerce delivery. Unfortunately, the services may also raise concerns about consistency and theft on a customer’s doorstep.

Merchants and shippers have been trying to solve the last-mile delivery challenge. As a recent example, Target announced this month that it would expand its Shipt-powered same-day delivery model to more than 100 of its U.S. stores in 2026.

Shipt, Amazon Flex, Uber, and similar services employ gig-economy workers to provide rapid last-mile delivery. Often, these contract drivers pick up packages directly from retail locations or fulfillment centers and deliver them in their personal vehicles.

The trend is meaningful, as delivery increasingly shapes how customers experience a brand.

Modern ecommerce increasingly relies on independent “gig” contractors for delivery.

Local

Target’s model is local at heart. Leveraging the chain’s network of physical stores, Shipt has effectively brought fulfillment closer to the customer.

Drivers pick up orders in local Target stores, effectively replacing long-haul shipping with shorter routes. A fulfillment center in every store allows the company to expand delivery coverage without building new distribution centers.

Target acquired Shipt in 2017 to support this strategy. What began as same-day grocery delivery has evolved into a broader last-mile network tied directly to store inventory. Target can reportedly reduce delivery costs by roughly $2.50 per package using Shipt instead of national carriers.

The savings come from fewer handoffs and shorter routes. Packages no longer move through multiple sortation centers or long-distance carrier networks.

Speed improves as a result. Orders originate closer to the customer, and delivery windows tighten without requiring premium air or expedited services. The model lowers fulfillment cost while meeting rising consumer expectations for faster delivery.

Target is not alone. Walmart, Amazon, and many other omnichannel retailers have similar initiatives.

Different Operation

Shipt and similar providers are not traditional small-package delivery services. The structure is increasingly common. Regional carriers, gig platforms, and white-label delivery services are growing alongside national providers.

For merchants, this means more delivery options and less standardization.

Traditional carriers operate highly controlled networks. Service levels, routing, and handoffs follow defined processes. Gig delivery networks are more flexible, but also more inconsistent.

Delivery Fails

Almost every consumer has experienced botched ecommerce delivery. Imagine a downtown dweller who lives on the sixth floor of an apartment building. Drivers are supposed to leave packages in a designated room, complete with secure entry and several camera angles.

All delivery services use one-time passcodes to enter the front door, then the room. The process is straightforward but unfamiliar to many gig drivers, who may leave packages in the lobby or in hallways near the recipient’s door, subject to damage or theft.

Suburban recipients face comparable scenarios.

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Inconsistency

To be clear, employees of respected carriers such as Amazon, UPS, FedEx, and the USPS make mistakes. But the risk is higher for part-time, inexperienced gig workers.

Delivery timing can fluctuate. Front-door drop-off placements can differ from one driver to the next. Communication may be limited or inconsistent.

Large retailers can absorb such failures via customer service teams and brand strength. But small to midsize merchants operate with less margin for error.

A missed delivery or poor handoff can lead to support costs, refunds, and negative reviews. The delivery experience becomes part of the product, even if the merchant does not control it directly. The key is balancing cost, speed, and quality.

Clear expectations and close monitoring of complaints can help. In this environment, delivery is more than fulfillment alone. It is part of the brand experience.