A new report by Orbis Research has found that crowdsourced last-mile delivery is cost-effective and flexible. This is to help with the increasing demand for last-mile delivery services due to e-commerce booming.
The ‘Global crowdsourced last-mile delivery market research’ report examines the industry analysis, trends, and forecast from 2017 to 2032. There is an increased demand for convenience, including online purchases and home delivery. “They want their packages delivered quickly and to a location of their choice,” reads the report.
Indicators show that crowdsourced last-mile delivery can help businesses meet these demands.
What is crowdsourced last-mile delivery?
Crowdsourced last-mile delivery is a segment of the logistics and delivery industry in which the “final and most challenging leg of the delivery process is outsourced to a network of independent, non-professional, or part-time individuals, often called crowdsourced drivers or gig workers,” clarifies the report.
Gig workers are used to moving goods from a local distribution hub or fulfillment center to the consumer or business.
“The global crowdsourced last-mile delivery market has gained traction due to its ability to provide cost-effective, on-demand, and flexible solutions for last-mile logistics. It addresses the challenges of urban congestion, high delivery volumes, and the need for quicker and more personalized delivery experiences in the e-commerce and on-demand economy,” the report finds.
Concerns about crowdsourced deliveries
There are concerns about a lack of regulation in crowdsourced last-mile delivery. Experts say this can lead to problems such as “driver safety, customer satisfaction, and data privacy.” There are also concerns that quality control can take a dip when using a crowdsourced workforce. “Businesses need to have robust systems to ensure that deliveries are made on time and in good condition,” says Orbis Research.
Crowdsourced delivery can also further raise problems regarding brand consistency and customer support. “Crowdsourced delivery drivers are not typically employees of the businesses they deliver for. This can make it difficult to maintain brand consistency across the delivery experience,” states the report. It also points out a stumbling block with providing customer support using a crowdsourced workforce. “Businesses need to have a dedicated customer support team to handle any issues that may arise.”
Growth of the gig economy
The gig economy is growing on a global scale. It’s creating a “pool of potential delivery drivers,” according to this report. Crowdsourced last-mile delivery platforms leverage this pool of drivers and give them “flexible and affordable delivery services.”
In Australia, the government has proposed new legislation for debate in parliament, which could increase labor regulations impacting gig workers. The so-called Closing Loopholes bill could result in contract workers being paid the same total rate as direct workforce employees. This means bonuses and overtime are included. The government says this is to protect workers who are deliberately underpaid. Businesses guilty of this could be fined up to $7.8 million or jailed.
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