Amazon.com Inc is testing taxi deliveries in San Francisco and Los Angeles, according to the Wall Street Journal.
The Internet retailer is exploring a number of alternative modes of delivery to speed up shipments while cutting back on costs.
Amazon also said that it is using the taxi-hailing mobile app, Flywheel, to send out packages through licensed cabs, according to the publication.
The company will study the feasibility of using taxi fleets "more broadly" as a delivery avenue, the Journal reported, citing "people familiar with the matter" as saying.
The e-commerce company, which was hurt by shipping delays last during the 2013 Christmas season, blamed delays on services like UPS and Fedex. Since then it has been looking into a number of different options from regional couriers to its own delivery vehicles.
For its latest test however, Amazon summoned cabs through Flywheel to distribution centers, from where they picked up approximately as 10 packages bound for the same location at $5 per package, the Journal reported.
Deliveries normally took place early in the morning, when taxi traffic was low and the competition was unlikely to notice.
Google and eBay are also experimenting with different methods to get goods to consumers as quick as possible. Services like eBay Now claim "one-hour or less" delivery in five American cities. Uber even has a bike messenger service which it provides in New York City.
Amazon Fresh delivers through the U.S. Postal Service, but it's not cheap. So while taxis may not seem like a good option, they make sense logistically. They're more direct than UPS or FedEx and much cheaper than your typical courier services.
Forrester Researcher analyst Sucharita Mulpuru said to the WSJ that Amazon is working on developing an algorithm that will funnel packages towards the most appropriate delivery method. Amazon could also create an additional stream of income for cab drivers, who have been hurt by ride-sharing apps.
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