Crowdshipping a future of flexible logistics? What does crowdshipping solve and what is yet to be solved?

Crowdshipping: A future of flexible logistics?

Crowdshipping is a way of delivering goods by

using private travellers. Different companies from large to small have tried out some

version of the scheme. But is crowdshipping really an option?

According to David Vuylsteke from PiggyBee it is. ‘People are able to get things that they

can’t find online or locally. They can ship things to remote locations that are less

profitable for or more expensive with a regular courier,’ he explains.

Parcels’ journey

The process has two sides. One is the traveller who will do the delivery and the other

is the person ordering. Travellers advertise their service on a platform like Piggybee and

share what locations they will visit, whether it is a one-way trip or a return as well as how

often they make the journey. Depending how popular the route is they will receive a list of

request. The traveller can then contact or be contacted by some of the customers so they

can arrange a delivery. If there is no request the trip remains online so that future users will

be able to contact them. The conversation is carried out on the secure mailbox of PiggyBee where both

parties agree on the terms of the delivery. They discuss the potential price of the item,

the amount of the tip and practical details for the delivery. The requester locks in the

negotiated amount through the payment module. This allows the traveller to pay for the

item in case that is needed. The requester declares the item value so it can be insured.

Then the platform provides a crowdshipping transport contract. At the end, when the

delivery is executed, the traveller confirms it on the platform and the final payment is

made. When someone wants to hire a traveller they

can just search for one on the platform. A list of possible connections is presented and the

user can contact any of them. On the less --------

travelled routes there might be no one to deal

with the request so then the post stays on so that in the future the person can be contacted.

When two people agree on the deal the payment is made and locked in the system

until the delivery is done. After the whole process is finished users can rate the

experience and Vuylsteke says this is one of the ways customers build trust on the

platform.

Safety checks

The safety checks for crowdshipping are done

on different levels. ‘We invite our members to complete their profile with a maximum of

personal information. Beyond a photo, a biography and their place of residence.

Checks include a valid email address, a mobile telephone number, connection to

social network accounts,’ explains Vuylsteke. There is also a check before any payment is

made so the identity of the user is made known. In this way PiggyBee says they can

get rid of fraudulent profiles and prevent the creation of false accounts. When such accounts are detected they are being deleted

immediately. Users are provided with insurance on the international transport of

items.

Full trolley

People order and deliver different items from

phones and computers to sport equipment. Vuylsteke thinks crowdshipping complements

traditional logistics providers and customers are able to get items they would usually have

a hard time ordering. ‘They can ship things to remote locations that are less profitable for a

regular courier,’ he explains. Customers receive a more personalised

service as they can ask a traveller to get a specific item from a specific store.

Last mile

As logistics companies try to find the best solution to the last mile problem it is only

natural to ask if crowdshipping can be a solution. Vuylsteke admits the last mile is a

problem they are also facing and are currently looking for a better solution.

Thanks to David Vuylsteke for his interview which made this article possible. David Vuylsteke is the founder of PiggyBee. He says he is a sharing economy enthusiast who has always had an eye for business. The idea of creating PiggyBee was born after a trip when he had to return an item back but had no way of transporting it. With the abundance of travellers and people who need items Vuylsteke believes his start-up, based in Brussels, has a lot to offer.