Uber rolls out a service for package returns as Americans’ send-it-back habits intensify
5-star ride... for your too-tight Zara blazer. Uber’s getting into the un-delivery biz with a “return a package” feature. Users in dozens of US cities including NYC, Chicago, and Nashville can now pay a flat $5 (or $3 for UberOne members) to send packages to their local post office, UPS, or FedEx. Uber has transformed from a ride-hail app to an everything transportation app, delivering people, food, freight, pharmacy products, and that purse you forgot at your friend’s party. Now:
Real-time returns: Users can send up to five packages per ride, live-track the driver's route, and get a picture receipt when the return’s complete.
Irksome errands: Nearly 80% of shoppers under 30 think mail returns are somewhat or very annoying, and that’s helped create a market for courier services.
Race to return… Returns have soared since the pandemic online shopping boom, when folks used their bedrooms as fitting rooms. Last year, 17% — or $212B worth — of all online purchases got sent back. The habit isn’t easy to break, and companies are catching on: in January, DoorDash launched a similar $5 return-package pickup. Last year, Walmart debuted its return-from-home service at no extra charge for Walmart+ subscribers.
Easing one problem can aggravate another… US returns are expected to hit $1T/year soon, and companies are struggling to keep up with extra shipping costs, restocking, and bloated inventories. In response, retailers including Zara, TJ Maxx, and Kohl’s have gone from free returns to fee returns. H&M started charging for returns last month to discourage over-ordering. Last year, over 40% of companies charged return fees, up from 33% in 2021. As Uber and others make returns even easier, more companies could follow.