Locus Logo Locus Logo
  • Platform
    • Fulfillment Automation
      • Order Management
      • Delivery Linked Checkout
    • Dispatch Planning
      • Hub Operations
      • Capacity Management
      • Route Planning
    • Hybrid Fleet Management
      • Transporter Management
      • ShipFlex
    • Track and Trace
      • Driver Companion App
      • Control Tower
      • Tracking Page
    • Analytics and Insights
      • Business Insights
      • Location Analytics
  • Industries
    • Retail
    • 3PL & CEP
    • E-commerce
    • Other Industries
      • E-grocery
      • Industrial Services
      • Manufacturing
      • Home Services
  • Resources
    • Whitepaper
    • Case Studies
    • Infographics
    • E-books
    • Blogs
    • Events & Webinars
    • Videos
    • Glossary
  • Company
    • About Us
    • Global Presence
      • Locus in Americas
      • Locus in Asia Pacific
      • Locus in the Middle East
    • Locus at Gartner
    • Careers
    • Partners
    • News & Press
    • Locus Labs
    • Trust & Security
    • Contact Us
  • Customers
  • Guides
    • Unit Economics in Last Mile
    • Last Mile Delivery Logistics
    • Last Mile Delivery Trends
    • Time Under the Roof
    • Peak Shipping Season
    • Electronic Products
    • Fleet Management
    • Healthcare Logistics
    • Transport Management System
    • E-commerce Logistics
    • Direct Store Delivery
    • Logistics Route Planner Guide
Schedule a demo
  1. Home
  2. Blog
  3. Crowdsourced Delivery Is Changing the Last-Mile Delivery Game

Last Mile Delivery Optimization

Crowdsourced Delivery Is Changing the Last-Mile Delivery Game

Avatar photo

Mrinalini Khattar

Feb 11, 2021

6 mins read

Crowdsourced Delivery

Updated on: August 10, 2022

The movie or book series of Harry Potter has a separate fanbase for the spells casted in it. We used to imagine ourselves as Hogwarts students and repeat the spell used in it. One such spell used in Harry Potter and the Goblet of Fire was Accio. This spell Accio summons objects towards the person who casts the spell. 

When I started writing a blog on crowdsourced delivery service, I found this model similar to the spell of Accio. When we order a food item from Instacart, Doordash, Grubhub, UberEats or Postmates, they bring it to us quickly. Looks like the spell of Accio from Harry Potter might have inspired the idea of crowdsourced delivery services!

What is crowdsourced delivery ? 

Crowdsourced delivery is the modern and emerging fulfilment method that uses a network of local couriers or independent contractors(crowdsourced drivers) to deliver products to consumers quickly. Businesses looking to satisfy their customers on-demand and same-day delivery needs adopt crowdsourced delivery services.

Why are crowdsourced delivery services gaining popularity?

Crowdsourced delivery, also known as crowdsourced shipping, is being seen as the solution to some real-world last-mile delivery problems. This emerging method is used to deliver packages to customers by leveraging non-professional and local courier services. The delivery method is growing popular in the face of customer delivery demand, as companies struggle to compete with giants such as Amazon that rule the retail market. In fact, even the big players are dipping their toes into the market—Amazon is recruiting independent couriers with Amazon Flex.

One of the reasons why crowdsourced solutions are attractive is because of reduced costs and the flexibility that comes with it. This flexibility also makes crowdsourced shipping more popular with meal-kit and grocery delivery since the supply and demand keep fluctuating and it is easier to meet these challenges. The few concerns with crowdsourced delivery are around reliability, brand consistency and regional differences in regulations and policies. 

How Does Crowdsourced Delivery Work?

The purpose of crowdsourced delivery is to maximize supply chain efficiency. Typically, this arrangement is made in partnership with companies that offer delivery as a service and manage a fleet of crowdsourced gig workers. Companies that have strong customer-facing brands reach a wider audience for their products by offering e-commerce marketplaces. Listed are steps that are followed in a successful crowdsourced fulfilment method:

  1. An order is placed by the prospective customer at a crowdsourced delivery platform.
  2. Order is received by the retailer. 
  3. A professional or independent courier service is allocated by the retailer to fulfil the order. 
  4. Product is delivered to the customer via the courier agent.
  5. Product is received by the customer. 

What Makes Crowdsourced Delivery Work?

According to a study conducted by Zebra Technologies in 2019, about 90% of retailers are expected to shift to crowdsourced delivery by 2028. Crowdsourced delivery is advantageous to both retailers as well as their customers. The main issues tackled here are of cost, convenience, speed and efficiency. This is a big promise and does not come without its drawbacks. However, the positives are aplenty. For instance, companies can get orders to their customers very quickly—sometimes in less than an hour. Since the contracted couriers come with their vehicles, they are paid by the hour or for each shift. Thus companies don’t have to bear the cost of full-time employees and can save on fleet management, warehousing, employee benefits, among other things. Crowdsource delivery is a great example of a tech-heavy and asset-light operation. 

For the prospective customer, this means greater control, complete visibility and instant gratification. This model has worked admirably in urban areas where the delivery density is high and has helped speed up deliveries. It also works as a great stop-gap solution till companies can figure out their delivery network. 

Along with expediting the fulfilment and making customers happy crowdsource delivery is also recognized as a trend that is here to stay. DaaS or Delivery-as-a-Service model marketplaces that can connect you to a network of local truck and van owners. Good examples of this are Uber Eats, Postmates and Doordash. Although DaaS is popular with food and restaurant industries, it doesn’t restrict itself to them. Retailers are slowly but steadily viewing crowdsourced delivery as an answer to same-day-shipping, which, according to a survey by Trustev, is an expectation of 56% of millennials.

What Is the Role of Technology in Crowdsourced Delivery?

The most important role of tech in crowdsourced delivery service is to create a centralized platform for delivery management. Apps provide real-time visibility across the supply chain, driver apps ensure communication and delivery flow, customer apps allow product tracking and support contactless proof of delivery. You can also control the use of crowdsourced fleets and respond to seasonal or hourly demands, and create alerts for customers as well as the managers when deliveries are running late. The data retrieved from this tech can help you compare performance and make better financial decisions in the future. 

Challenges Faced With Crowdsourced Delivery

Like all good things, crowdsourced delivery comes with its own set of challenges, the biggest of which is maintaining consistency and control in order to adhere to the branding of the company. Real-time data for dispatchers, post-delivery feedback, customer feedback as well as control over customers can be tricky to account for. Private vehicles also make it difficult to determine the time it takes in traffic. Employees undertake strict training programmes so as to adhere to the company values, which cannot be controlled when partnering with third-party delivery providers. 

What the Future of Crowdsourcing Platform Looks Like

Considering that consumer expectations in urban areas will only go up, crowdsourced delivery is here to stay. US consumers have shown great interest in same-day deliveries even if they hesitate to pay extra money for it. Urban areas with large volumes of deliveries on a daily basis are expected to accept this change with open arms. Companies can add crowdsourced deliveries as an additional option to the traditional delivery models.  

Locus offers an AI-enabled dispatch management platform for enterprises to improve delivery efficiencies and elevate customer satisfaction. Get in touch with our experts for a quick tour of our solutions.

Schedule Demo

[Infographics] Crowdsourced Delivery is Here to Stay
Infographic by Locus

Share this infographic by using this embed code:

<a href="https://blog.locus.sh/crowdsourced-delivery-is-changing-the-last-mile-delivery-game/" target="_blank" style="text-align: center; display: block;"><img src="https://locus.sh/assets/img/infographic/resources/crowdsourced-delivery-is-here-to-stay.jpg" alt="[Infographics] Crowdsourced Delivery is Here to Stay" style="width:100%;height:auto;max-width:750px;margin:auto;"></a><br/>Infographic by <a href="https://locus.sh/">Locus</a>
                            

Related Tags:

Previous Post Next Post
Electric Vehicles for Last-Mile Deliveries

Last Mile Delivery Optimization

Electric Vehicles (EVs) — The Future of Last-Mile Deliveries in 2021 and Beyond

Avatar photo

Shweta Sarma

Feb 9, 2021

As convenience, delivery speed, and efficiency continue to define customer experience, there is a steady growth in the use of Electric Vehicles to carry out last-mile operations. EVs are eco-friendly and offer some hidden business gains to supply chain enterprises. Read on to catch up on this rising trend that is shaping up the future […]

Read more
dark stores

Grocery

Will dark stores be the dark horse in this age of ever-increasing demand

Avatar photo

Nishith Rastogi

Feb 12, 2021

“Invention, it must be humbly admitted, does not consist in creating out of void but out of chaos.” ― Mary Shelly Chaos.  That was the state of supply chains in 2020 due to the Covid-19 pandemic.  While the situation is undoubtedly better now, one has to accept that the chaos created by the pandemic has […]

Read more

Crowdsourced Delivery Is Changing the Last-Mile Delivery Game

  • Share iconShare
    • facebook iconFacebook
    • Twitter iconTwitter
    • Linkedin iconLinkedIn
    • Email iconEmail
  • Print iconPrint
  • Download iconDownload
  • Schedule a Demo

MOST POPULAR

Featured

The Rise of Hub and Spoke Distribution Model in Modern Supply Chains

Avatar photo

Shweta Sarma

Apr 24, 2020

Route Optimization

Traveling Salesman Problem (TSP) and How Tech Can Solve It

Avatar photo

Lakshmi D

Mar 2, 2020

Route Optimization

Explained: Vehicle Routing Problem (VRP) and the most effective solution to address it

Avatar photo

Lakshmi D

Jun 16, 2020

EDITOR’S PICKS

Supply Chain Optimization

The Role of Logistics Management in Optimizing Supply Chain Operations

Avatar photo

Team Locus

Apr 4, 2023

Route Optimization

Last Mile Automation: Intelligent Routing is Key to Success

Avatar photo

Prateek Shetty

Mar 28, 2023

E-Commerce

How Dispatch Management Software Helps Businesses Manage Peak Shipping Seasons like Ramadan

Avatar photo

Lakshmi D

Apr 28, 2021

SUBSCRIBE TO OUR NEWSLETTER

Stay up to date with the latest marketing, sales, and service tips and news

SUBSCRIBE TO OUR NEWSLETTER

Stay up to date with the latest marketing, sales, and service tips and news

Platform
  • Platform Overview
  • Delivery Experience
  • Real-world Routing
  • ShipFlex
Footer compliance
Industries
  • Retail
  • 3PL & CEP
  • E-commerce
  • E-grocery
  • Industrial Services
  • Manufacturing
  • Home Services
Resources
  • Whitepaper
  • Case Studies
  • Infographics
  • E-books
  • Blogs
  • Events & Webinars
  • Videos
  • Glossary
Company
  • About Us
  • Customers
  • Careers
  • Partners
  • News & Press
  • Trust & Security
  • Contact Us
Locus Logo

© 2023 Mara Labs Inc. All rights reserved. Privacy and Terms

 

Loading Comments...