Centralized vs decentralized last mile delivery models in New York City

An article in the Wall Street. Journal (December 21,2013) titled titled “Delivery goes Hi-Tech” describes Hobsons, a delivery service with its own vans that does 300 trips a day currently, and Postmates, a decentralized service provider that broadcasts request to couriers and picks the best one for delivery. Pricing at Postmates adjusts to congestion and delivery conditions. Each of these services also faces stockouts at designated retail locations which may require them to pick up from alternative locations. Given the pressure for ontime delivery, do you expect one or the other model to dominate ? Will product characteristics dictate which one would be preferred e.g., individual items vs baskets of items ordered ? How will ontime delivery guarantees be expected to differ across the models ?

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About aviyer2010

Professor
This entry was posted in Ecommerce, Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , , . Bookmark the permalink.

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