Crowdsourcing the Last Mile

Michael D. Bradley, Jeff Colvin () and Mary K. Perkins
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Michael D. Bradley: George Washington University
Jeff Colvin: USPS Office of Inspector General
Mary K. Perkins: Howard University

A chapter in New Business and Regulatory Strategies in the Postal Sector, 2018, pp 55-66 from Springer

Abstract: Abstract Crowdsourced ridesharing companies, such as Uber, have recently made moves to expand into last-mile package delivery, setting up a competitive struggle between them and the national hub-and-spoke companies (NHC). Crowdsourced ridesharing platforms have achieved significant penetration of the passenger service industry. They have done so through constructing a two-sided platform linking consumers seeking rides with independent drivers and have avoided investing in a large physical network. In this paper, we model the interaction between contending suppliers in the same day delivery network, incorporating the scale and scope economies inherent in an NHC local delivery and the two-sided platform characteristics of ridesharing providers. Conditions under which ridesharing providers can successfully complete with NHCs include a high value placed on rapid delivery and significant cost complementarity enjoyed by passenger and delivery services.

Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:topchp:978-3-030-02937-1_5

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DOI: 10.1007/978-3-030-02937-1_5

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