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Why Amazon's Lockers Don't Solve Package Delivery Problems

This story has been updated to include additional cities where Package Concierge lockers are located.

NEW YORK (TheStreet) - What is one of the biggest inconveniences for urban dwellers? Many say the fear that they won't receive package deliveries. It's a reason why many apartment residents prefer to plug in their work address when asked for shipping information, putting added responsibility on the office mail-room or administrative assistants that deal with that.

With consumers purchasing increasing amounts online, the added burden of secure delivery, packages clogging front vestibules and overburdening residential maintenance staff is a big worry.

Package Concierge believes it has the solution to urban package deliveries, something it thinks Amazon's (AMZN - Get Report) Lockers do not.

"A typical 200- to 225-unit multifamily community has 40 to 50 packages coming in every day," says Barry Hume, president and co-founder of Package Concierge. "The pain point is how do you manage that? Where do you put the [packages] and how do you notify residents?"

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Package Concierge's digital locker system addresses the challenges of package management by placing lockers in apartment complexes and university student housing. Deliveries via FedEx (FDX), UPS (UPS), Staples (SPLS), the U.S. Postal Service and others are accepted via the system.

The Boston-based startup launched in late 2012 and is working with property management companies, such as Riverstone Residential, the second largest multifamily property manager in the U.S., according to the National Multifamily Housing Council (NMHC), to install the locker systems. Residents are loaded into the locker's system and are notified via email or text notification when they have a package. They then insert a pin code to unlock their package.

Package Concierge has pilot lockers installed in right cities so far - Washington, D.C., Stamford, Conn., Arlington, Va., Boston, Cambridge and Chelsea, Mass., Hoboken, N.J. and Wheaton, Md. The company also has additional lockers in the works for Boston, Washington D.C., Virginia and Maryland as well as Texas, Washington state and California. According to Hume, the opportunity for expansion is large.

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