Pricing of the Bus-Truck Co-Delivery Mode of Last Mile Delivery Considering Social Welfare Maximization

Yunzhu He ()
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Yunzhu He: College of International Economics & Trade, Ningbo University of Finance & Economics, Ningbo 315175, China

Sustainability, 2022, vol. 15, issue 1, 1-15

Abstract: In order to solve the problems of low delivery efficiency and high cost at the end of express delivery, and the impact of express trucks on urban road traffic, the co-delivery mode of trucks and buses is proposed. In this mode, without affecting the normal operation of the bus, it uses the idle resources of the bus to cooperate with the trucks to complete the delivery. The express company pays the bus delivery service fee to the bus operator, so as to improve the revenue of the bus operator. At the same time, the delivery efficiency can be improved, the express delivery cost can be reduced, and the impact of express trucks on urban traffic can be lower. A two-layer optimization model is constructed to solve the bus delivery service pricing and express space-time path selection scheme under the co-delivery mode. An example analysis is carried out through the actual bus routes and express delivery demand in Dalian. The results show that the co-delivery mode can provide consumers with more efficient services, reduce costs for express companies, provide additional revenue for bus operators, and improve social welfare. Unless the timeliness of delivery is extremely considered, the measure of using the co-delivery mode is better than the measure of relaxing restrictions on express delivery vehicles.

Keywords: city logistics; co-delivery; public transit; bus delivery service pricing; urban truck restriction policy; social welfare (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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