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Crowd-Sourced Delivery Solving the Last Mile Problem
Crowd-sourced shipping applies the Uber-model to the delivery process.
Crowd-Sourced Delivery Solving the Last Mile Problem
Crowd-sourced shipping applies the Uber-model to the delivery process.
June 24, 2019

T
oday’s suppliers are facing an ongoing challenge that is only rising with customer expectations of delivery – The Last Mile Problem. The last mile refers to the final leg of delivery as a shipment leaves the local warehouse or distribution center and ends up safely in the customer’s hands.

Why is the “Last Mile” a Problem?
With an increase in e-commerce, customer satisfaction puts an ever increasing emphasis on extremely fast, flexible, and free shipping. This has proven to be both inefficient and expensive— with the "last mile” being the most time consuming and costly portion of the shipping process. We’re talking 53% of total shipping costs. These inefficiencies are due to various factors: the increasing amount of parcels from e-commerce, amount of destinations on a driver’s route, distance in rural communities, traffic congestion in urban communities, ever-changing routes, customer availability, and the list does not end there. In order to stay competitive with one-day shipping powerhouses such as Amazon, retailers and their logistics providers need to find ways to close this gap.

Closing the Gap with Crowd-Sourced Shipping
Crowd-sourced shipping applies the Uber-model to the delivery process where businesses utilize local non-professional couriers to deliver goods to their customers’ hands quickly. Crowd-sourced shipping allows for on-demand and scheduled shipping, where customers have control over the exact time and location they would like to receive their product and can keep track of where their product is along the way. This makes it possible for customers to have their package in their hands within the same day of placing their order. In today’s world, same-day delivery makes for one happy customer. Luckily, businesses can now choose from an expanding list of crowd-source delivery services so they can make sure their customers are the most satisfied.


Deliv: Our Crowd-Sourced Partner
ConnectShip wants to help solve these challenges by partnering with a “last mile” solution– Deliv. This innovative crowd-sourced shipper provides same-day shipping to over 4,000 retailers and businesses in 35 markets. For your specific needs, Deliv is broken down into Deliv Small Business, Deliv Enterprise, Deliv Fresh for Groceries, and the newly launched Deliv RX for medical needs.

How does Deliv work?
Deliv smoothly integrates into the mobile checkout system of retailers and businesses. As customers are ready to check out, online or in store, they schedule same-day delivery, specifying their specific location and time. Customers are then able to track their package mile by mile, ending with Deliv at their doorstep in as little as an hour. Customers can then rate their courier. Those with the highest rating receive the highest amount of Deliv orders, providing their customers with the most trusted and secure deliveries.

Looking into the Future
Crowd-sourced shipping is a fairly new market that is only projected to grow. As the desire for one-day shipping continues to increase, companies will need to update their ways of delivery to satisfy demand and compete with the Amazons of the world. A new study finds that by 2028, almost 90% of retailers plan to use crowd-source delivery for certain orders. This same-day delivery process will continue to see changes as the industry technology advances. With drone technology, autonomous vehicles, and artificial intelligence, we can expect to see a day where crowd-source delivery strays away from local couriers and towards automation. But for now, companies such as Deliv will provide retailers and customers with innovative delivery methods to fulfill one-day and on-demand shipping needs.


References
https://www.businessinsider.com/last-mile-delivery-shipping-explained
https://www.supplychaindive.com/news/last-mile-spotlight-inefficient-perfect-delivery/443089/
https://www.businessinsider.com/crowdsourced-delivery-shipping-explained
https://www.businessinsider.com/last-mile-delivery-companies-startups
https://www.businessinsider.com/last-mile-delivery-companies-startups
https://www.zebra.com/content/dam/zebra_new_ia/en-us/solutions-verticals/vertical-solutions/retail/vision-study/fulfillment-vision-study-report-en-us.pdf
Jody Landis
Marketing Intern ~ ConnectShip
 Jody Landis attends Penn State University where she will be graduating with a degree in Supply Chain Information Systems in May of 2020. She is also pursuing minors in two areas of great interest – International Business and Entrepreneurship & Innovation. On campus, Jody is dedicated to her THON organization and waitresses at her favorite restaurant, India Pavilion. Jody is living in Atlanta, Georgia for the summer where she has joined ConnectShip as a Marketing Intern through her position with UPS in Global Customer Solutions. In her free time, Jody loves to spend her time exploring the outdoors, traveling, playing her Ukulele, and creating crochet tops.