The demand for fast and reliable last mile delivery has never been higher. From exponential e-commerce growth to rising delivery expectations, the final mile presents unique challenges and opportunities for retailers.
Enter crowdsourced delivery. Leveraging the sharing economy, crowdsourced delivery networks use geographic pools of independent contractors to provide hyperlocal delivery. These networks, typically operated by last mile carriers, help retailers meet local delivery demands without the costs associated with a dedicated fleet.
This article explores crowdsourced delivery, highlights the benefits of partnering with a carrier, and provides insights on evaluating last mile delivery companies.
What is crowdsourced delivery?
Operating within the framework of the sharing economy—a concept that has already reshaped sectors like hospitality and personal transportation— crowdsourced delivery is transforming the logistics industry. This innovative approach uses a network of independent contractors who use their own vehicles to fulfill local delivery needs.
The leading last mile carriers are building networks with thousands of drivers to meet ever-increasing delivery demands. What once required a fleet of company-owned vehicles is now possible through these on-demand delivery networks.
Here’s how it works. Last mile carriers use technology to assign delivery requests to nearby drivers. With advanced automation, carriers can identify nearby drivers in seconds and typically assign deliveries in minutes. By employing drivers to make deliveries near where they live, these networks are incredibly efficient and cost-effective.
For drivers, the flexibility to choose when they work and what type of deliveries they do is key. Delivery is particularly appealing to gig workers, public safety employees, and people looking to earn extra income.
Crowdsourced delivery networks offer a variety of benefits for businesses looking to make delivery a competitive advantage.
What are the benefits of a last mile delivery service?
From reducing overhead to simplifying operations, last mile carriers are optimizing delivery for businesses across numerous industries. However, there are a variety of factors that separate the leading delivery service providers from the competition.
Here are the benefits of partnering with a last mile delivery service:
- Cost-effective: By outsourcing last mile delivery, retailers can simplify operations and eliminate the overhead costs associated with maintaining a dedicated delivery fleet.
- Reach: Last mile delivery networks can help fill the gaps for areas (e.g. rural communities) that traditional logistics providers have a difficult time reaching. For instance, finding drivers to serve rural or smaller markets is easier than assembling a larger inhouse fleet.
- Flexibility: Partnering with a last mile carrier allows retailers to better meet seasonal demands. During peak shopping seasons, delivery services can handle increased demand with existing drivers or by quickly recruiting new drivers. Conversely, retailers don’t have wasted overhead costs when demand decreases.
- Scale: One of the primary advantages of partnering with a last mile delivery service is its ability to scale. Delivery service providers can quickly adjust to increasing delivery demands and market expansion by onboarding more drivers.
- Speed: The leading last mile delivery companies provide on-demand and same-day delivery service. For retailers, this can make or break a sale. In a report from Stifel, 80% of consumers said they use a competitor when delivery options aren’t fast enough.
Interested in reducing last mile costs while improving performance?
Evaluating last mile delivery companies
With exponential e-commerce growth and rising delivery experiences, the last mile is playing an increasingly important role in the customer experience. According to a report from AlixPartners, 87 percent of shoppers stop shopping with a brand after two poor delivery experiences.
While each business has unique needs, here are some core capabilities to consider when evaluating last mile delivery companies:
- Coverage: A last mile carrier is only as valuable as its coverage map. Dealing with dozens of carriers is difficult and requires extra resources. However, you can avoid that by finding one or several national providers that can reach most of your customers.
- Customization: What separates a delivery service provider from a partner is their ability to meet your business needs. Find a provider that will uphold your delivery standards and serve as an extension of your logistics network.
- Integration: The success of a last mile partner often hinges on their ability to integrate with your business. Outline your current and future integration priorities. That will help you establish which providers can meet your ongoing business needs.
- Quality Control: Maintaining quality standards across a diverse group of delivery professionals can be difficult. Speak with providers about their driver certification process and understand their performance standards
- Reliability: Ensuring consistent and reliable service can be challenging when relying on a decentralized network of couriers. Without proper oversight and quality control measures, delivery times and service levels may vary.
- Service standards: To achieve your customer experience goals, you need a delivery company that meets your service standards. Delivery is important because it may be the only time a customer interacts with a person during their purchase.
- Support: From answering delivery questions to handling damage claims, the support team can make or break the delivery experience. A final mile carrier with live support can answer questions and troubleshoot in real time so that they don’t become issues later.
- Technology: The backbone of every reliable last mile carrier is technology. From an intuitive driver application to a robust transportation management system, a technology-enabled partner will help you increase automation and optimize operations.
Aligning core capabilities with business objectives can help guide the decision-making process. The ideal carrier will not only meet business needs, but provide an exceptional delivery experience that increases customer satisfaction.
Conclusion
Crowdsourced delivery networks represent a disruptive force in the logistics industry, offering a flexible and scalable alternative to traditional delivery services. Final mile carriers are building reliable delivery networks that meet consumer demands while improving efficiency and decreasing operations costs for retailers.
There are a few important steps to take when evaluating last mile delivery service companies. Determine your current and future delivery needs. Evaluate the coverage, technology, and support offered by final mile carriers. Determine if you need one or multiple carriers to meet your last mile delivery needs.
Finding the right last mile carrier for your business comes down to determining which carrier can reliably deliver for your brand.
