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Crowdsourcing the Last Mile

  • Michael D. Bradley
  • Jeff ColvinEmail author
  • Mary K. Perkins
Chapter
Part of the Topics in Regulatory Economics and Policy book series (TREP)

Abstract

Crowdsourced ridesharing companies, such as Uber, have recently made moves to expand into last-mile package delivery, setting up a competitive struggle between them and the national hub-and-spoke companies (NHC). Crowdsourced ridesharing platforms have achieved significant penetration of the passenger service industry. They have done so through constructing a two-sided platform linking consumers seeking rides with independent drivers and have avoided investing in a large physical network. In this paper, we model the interaction between contending suppliers in the same day delivery network, incorporating the scale and scope economies inherent in an NHC local delivery and the two-sided platform characteristics of ridesharing providers. Conditions under which ridesharing providers can successfully complete with NHCs include a high value placed on rapid delivery and significant cost complementarity enjoyed by passenger and delivery services.

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Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  • Michael D. Bradley
    • 1
  • Jeff Colvin
    • 2
    Email author
  • Mary K. Perkins
    • 3
  1. 1.Department of EconomicsGeorge Washington UniversityWashington, DCUSA
  2. 2.USPS Office of Inspector GeneralArlingtonUSA
  3. 3.Department of EconomicsHoward UniversityWashington, DCUSA

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