Tag Archives: crowdsourcing logistics

Same day delivery with ‘crowd logistics’

Over the recent years, (almost) all the large e-commerce retailers started to offer same day delivery to their customers. These services are generally carried out by third party logistics providers. With the emergence of same day delivery, new third parties that provide this service also emerge. An example of such a company is Deliv. The goal of the company is to close the last mile gap between retailers and customers. The main way in which Deliv differentiates itself from competitors is that it crowdsources same day delivery. This is done by using a network of on-demand drivers. This creates the advantage for the company that the investments are relatively low in comparison to large competitors. An example is Amazon, which has to invest in expanding the network of distribution centers to enable same day delivery. This while Deliv has no inventory and no fleet of vehicles. This is the reason why Deliv is able to provide the service for $5, which is a relatively low fee in comparison to competitors. Another way in which Delives differentiates itself is that it sells the service to stores and malls instead of directly to customers. Deliv partnered with malls because over 85% of the largest retailers are located in malls. By doing this, Deliv created its own distribution network (Halzack, 2012).

Continue reading Same day delivery with ‘crowd logistics’