Will Roadie provide an alternative cost effective delivery model ?

An article in the Wall Street Journal titled “Technology Bubble? Ask Waffle House” (February 24, 2015, http://www.wsj.com/articles/technology-bubble-ask-waffle-house-1424754062?cb=logged0.0031108735129237175) describes an alliance between Roadie (a technology startup) and Waffle House (a 24 hour restaurant). Under the agreement, Waffle House’s 1750 stores will serve as pickup and drop off points for college students who will use the Roadie app to accept and complete deliveries along routes they are already driving. The delivery person gets 80% of the fee, with insurance and photographic evidence of delivery included. Will such use of third party spare delivery capacity provide a cost effective delivery alternative to UPS, FedEx and USPS ? How will dealing with security concerns, timeliness of delivery, tracing impact the costs for Roadie ? Will drivers be able to earn a sustainable income stream to incent them to be available when required ?

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About aviyer2010

Professor
This entry was posted in Capacity, Collaboration, Cost, delivery, Ecommerce, Operations Management, retailers and tagged , , , , , , , . Bookmark the permalink.

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