A Rationale for the "Smart" Home Delivery Box 

The following is a postal perspective by David Porter, President of Garment Care Inc. and a long-time proponent of looking at product delivery in a different way (http://www.smartbox.com). The views expressed are solely the author's and do not necessarily reflect the official views of the PostCom Bulletin or the Association for Postal Commerce. 

Years ago, letter carriers used to knock or ring people’s doorbells to deliver the mail.  But in 1916, efficiency experts determined that they were losing almost two hours daily waiting for patrons to come to the door; so the Post Office required that every household have a mailbox or letter slot.  

What about parcels and goods that can’t be delivered to a mailbox?  Granted, some people don’t mind if stuff is left outside their door; but if something valuable was sitting outside your door all day, wouldn’t you?     

Since 1988, my company has picked up and delivered dry-cleaning to office buildings and homes.  In several of the high-rise office buildings we serve, customers give us their clothes by dropping them into a custom-made drop-box; and business is good.  In contrast, we've never been able to get more than just a few customers in each of the neighborhoods we serve. Why?  We’re convinced that most people aren't home during the day, and don't feel comfortable having their clothes left exposed outside their door.  

But it’s more than just clothes.  Several years ago the market research firm, Ipsos-Reid, asked 1,000 Americans: “If nobody in your family could be home to receive home-delivered goods, would you be likely to even order them in the first place?  78.6% said “no”!  And in an article at InternetRetailer.com, dated April 17^th, 2003, e-commerce consultant, Ms. Lauren Freedman, asked: “How do we grow this business if people aren’t home to receive their purchases when they are delivered?    

Since mailboxes solved the not-at-home problem for letters in 1916, isn’t the short answer for parcels and goods that can’t be delivered to conventional mailboxes: bigger mailbox-like devices that all companies can access?  …But if all companies are permitted access, how big must they be?  Won’t security be an issue?  How can they be funded?   

In the July 1998 issue of “Wired” magazine, in an article titled “The Future of Retail”, Professor Nicholas Negroponte, founding chairman of MIT’s Media Laboratory, said: "Among other things, we need to rethink the concept of a mailbox.  The mailbox of tomorrow ought to be a cubic yard, with the potential for refrigeration."  …In an interview in the April 2000 issue of "Victoria" magazine, Esther Dyson, chairman of EDventure Holdings, said: "You really shouldn't have to go to the store to get milk or other things you use every day, like toothpaste.  If you live a reasonably steady life, these things should come by subscription."  "The return of the milkman?" asked the interviewer.  "Exactly," said Esther.  "But instead of a milk box, you'll have a large lockbox with a security combination.  Every delivery person will have his or her ID, so you'll know who put what in when."  

Many designs are possible, including clusters of boxes outside of apartment buildings.  Regarding size, Prof. Negroponte’s “cubic yard” seems about right; especially for what’s likely to be two very frequent deliveries: laundry/dry-cleaning and groceries (a combination of dry-ice and packaging technology is probably more practical than refrigeration).  Regarding security, Ms. Dyson’s vision requires that each box be “smart”.  Further, as the numbers of boxes proliferate, I suspect that all companies will prefer that the system of access is standardized; and U.S. Patent 5,774,053 enables that.   

Regarding funding, I offer a simple frame of reference: just think of them as stores.  Since conventional retail stores do indeed “store”, since delivery boxes do exactly the same thing, and since consumers don’t pay, per se, for stores now – loan every household a basic box for free, then charge small access fees to all who deliver.  For essentially, that’s how the owners of conventional stores profit: they collect the spread between wholesale and retail prices.  And if it weren’t for the fact that a store’s storage function is essential, consumer goods manufacturers could sell their merchandise at the higher retail prices themselves.   

How much will need to be charged?  Probably not much.  Why?  Because “miniature stores near people’s doors” are bound to make orders for home-delivered goods boom.  Then, increased delivery density will decrease delivery costs, delivery cost savings alone will justify access fees, and access fees will pay for the smart box investment. 

In closing, it makes sense for the United States Postal Service to deploy smart home delivery boxes en masse. Quite obviously, the scope of this goal obviously requires strong leadership; and with its long and noble history, there’s not a name in the world that better defines the convenience and true service of delivery.  Finally, with first-class mail volume declining (and with thousands of companies like mine not having yet begun to send statements online), huge new revenues will come from the delivering of parcels that such boxes will prompt.