The Other Side of the Coin for Crowdsourced Deliveries

Based on the information mentioned above, and the fact that according to my latest omni-channel research, nearly 10 percent of retailers surveyed indicated they are already use the crowdsourced delivery model, and an additional 26 percent plan to use one in the next 12 months, launching a crowdsourced delivery model seems like it should be a no brainer. However, there is certainly another side to the coin. While there are plenty of opportunities out there, challenges abound as well.

First and foremost, the crowdsourced delivery market is incredibly crowded. It can be very difficult to gain enough traction to stay afloat. Even those companies that seem to have the necessary presence find that the journey is difficult. Take Sidecar for example. Sidecar was the first transportation network company, launched in 2011, and also offered business-to-business delivery service. By 2015, after striking a partnership with YelpEat24, the majority of its business was crowdsourced deliveries. However, the company shut down at the end of 2015. But they are certainly not the only big name to shut down. In fact, in just the last couple of weeks, both Shyp and UberRUSH have ceased operations as well.

Another challenge for crowdsourced deliveries is the need for route density.


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