Startup Suggests Fighting Porch Piracy with AI-Enhanced Shipment Insurance

Fast Company published some thoughts about porch piracy from Rohan Shah, the cofounder of the shipment-insurance platform Extend:In New York City, where as many as 90,000 packages are stolen every day, the Department of Transportation has launched a pilot program, LockerNYC, in which consumers can collect their online purchases at various storefront or sidewalk locations. Amazon Locker has 900 locations across the U.S. and recently launched Amazon Key, allowing consumers to throw privacy to the wind and give delivery persons access to their homes and cars. Amazon also has pick up kiosks at Whole Foods and Kohl's and The U.S. Postal Service has set up after-hours pick-up locations in many states. All of that said, for consumers who simply wanted convenient, free two-day shipping, the time spent driving and waiting in line for a package doesn't seem like the best fix, nor a differentiated digital experience. AI to the rescue... This year, the fastest path to progress is simply reinventing shipping protection for the digital era and AI can do that at scale, for pennies on the dollar... My company, Extend, for example, leverages AI to process 98% of shipping claims in 90 seconds, with a replacement product shipped to the customer the same day... The new approach is a type of no-fault insurance, which the consumer purchases at checkout for around 2% of the purchase price. For a $200 pair of shoes, the cost to protect against shipping issues would be just $4.

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