PARCEL Jan/Feb 2018

Page 30

CROWDSOURCING THE FINAL MILE: THE NEXT BIG OPPORTUNITY IN PARCEL DELIVERY As this method of delivery becomes more and more common, it could change the game for carriers, shippers, and consumers alike.

By Rick Jones and Itamar Zur

30 PARCELindustry.com  JANUARY-FEBRUARY 2018

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he proliferation of ride-sharing platforms and on-demand delivery services poses a serious question to the parcel delivery industry: Can a similar crowdsourcing model be harnessed for final-mile distribution? We believe so. Based on the success of Amazon Flex and our own experience, it’s clear that when leveraged effectively, crowdsourcing can yield major operational benefits, particularly in small parcel delivery. Let’s dive deeper into the applicability of crowdsourcing up to the final mile of delivery, taking a look at the common misconceptions around the economics of the model, the key benefits of crowdsourcing, and how technology can solve the two largest implementation challenges — trust and performance level. Finally, we would argue that crowdsourcing should not be the sole domain of disruptive technology companies like


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