Last-mile delivery technology platform FarEye has partnered with Amazon Key to address costly delivery failures stemming from access issues at gated communities and apartment buildings.
The collaboration integrates Amazon Key’s secure access system into FarEye’s AI-driven delivery management platform, creating a “one-click” solution for drivers.
According to data provided by FarEye, 5-10% of packages in the U.S. fail on the first delivery attempt, costing carriers an average of $17.78 per failure in re-routing and customer service costs. Gaurav Srivastava, chief product and technology officer at FarEye, said inaccessible locations are a major driver of these failures.
“Almost 50% of the failures are happening due to location and access, maybe 30 to 50%,” Srivastava told FreightWaves. “The drivers are unable to make a delivery 30% to 50% of the time because the locations are not accessible.”
Before this solution, a driver arriving at a gated community without an access code provided by the customer had few options. Given that drivers are often on a strict timeline of one to two minutes per delivery, they would often have to mark the delivery as failed and proceed with their route.
For companies delivering perishable goods, these costs can skyrocket.
“For HelloFresh, the cost of failed delivery is actually $73. It’s not even $17,” Srivastava explained, noting the company has to prepare and send a completely new meal box after a failed delivery. “It is a heavy cost. It’s a big cost that these retailers are paying.”
The partnership aims to solve this by installing a device that communicates with the driver’s app. The system validates that the driver is at the correct GPS location with a verified shipment for that address.
The driver then simply presses a button on their app to open the gate, receiving temporary access – no gate codes or direct correspondence with recipients necessary
“Missed deliveries aren’t just a cost – they erode customer trust,” Srivastava said in a news release announcing the partnership. “By combining Amazon Key with FarEye’s AI orchestration, carriers can deliver reliably and intelligently, even in the most constrained environments.”
The Amazon Key system is currently installed in over half of U.S. multi-unit buildings with secure access systems, and Srivastava noted it has about 70% coverage for gated communities nationally.
In major metropolitan areas where pilot programs with customers like HelloFresh are underway, coverage is as high as 95 to 98%. The access solution works 100% of the time when a building is equipped with the technology.
The partnership went live with its first customer in recent weeks. Looking forward, FarEye and Amazon plan to expand the service into Canada and Europe, where they have already started discussions with customers.
The initiative is part of FarEye’s broader focus on using AI to make the final leg of a product’s journey more efficient and reliable.
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