Customers’ return parcels will now be mailed by Uber as a new service. The ride-hailing and delivery service announced on Wednesday that its drivers will pick up to five sealed, pre-paid goods and transport them to a nearby post office, UPS, or FedEx location.
For the service, Uber will charge a flat rate of $5, or $3 for Uber One members. According to the San Francisco-based business, the service would first be offered in roughly 5,000 American locales.
Within its app, Uber says, users will be able to select package drop-off locations.
There will only be places mentioned that are open for at least the next hour. Once a package has been delivered, drivers will show visual confirmation.
Uber drivers will also ship new packages that are sealed and have prepaid labels, even though it is anticipated that the service will be utilized mostly for package returns.
Uber now has a huge opportunity with the new service. Every day, FedEx and UPS deliver 31 million packages, while the U.S. According to Satish Jindel, president of ShipMatrix, a shipping and logistics consultancy, the Postal Service distributes 25 million packages.
According to Jindel, a large portion of that volume involves deliveries to companies that do not frequently return items, and he predicts that many customers will continue to return packages on their own rather than paying $5 to Uber to do so. Jindel predicts that on business days, there may be a demand for about 574,000 parcels for Uber’s return package service.
He predicted that, due to Christmas returns, it would increase by around 25% in January.