New approaches and performance analysis of on-demand delivery systems using buses

Abstract

Abstract With the rapid growth of on-demand delivery, traditional third-party delivery services using electric bicycles face increasing challenges, including increased labor costs and safety issues. To address these issues, we propose two modes for on-demand delivery systems using buses. One is the “bus terminal + professional crowd shippers” (B&P) mode, which involves consolidating parcels from various origins at the bus transfer hub. From there, they are grouped and delivered by buses. The other is the “bus stop + crowdsourced passenger” (B&C) mode, which transports parcels directly from the origin to the destination by passengers without the need for consolidation and sorting at bus transfer hubs. Both modes fully utilize the surplus capacity of buses and employ resources from retail stores and third-party shippers. We evaluated these modes using key performance indicators (KPIs) such as labor costs, cost increases from en-route destination changes, and average delivery time per kilometer. This analysis was based on 18,349 delivery cases in downtown Ningbo, China. Through this evaluation, we identified the strengths, weaknesses, opportunities, and threats associated with each mode. Our findings reveal that both the B&P and B&C modes effectively reduce delivery costs and external impacts while maintaining a user experience and efficiency level comparable to traditional third-party delivery services for mid-to-long-distance (3–10 km) deliveries. However, the use of public transportation may limit the flexibility of the delivery mode. Based on these insights, we provide strategic recommendations for the further development and implementation of B&P and B&C modes.

Keywords

• On-demand delivery
• Bus
• Crowdsourcing
• City logistics
• Key performance indicator