This new business is the Uber of courier services and is out to kill the likes of DHL & FedEx

Sending a package abroad is a big headache, one you cannot trust your logistics on last mile issues, two the time they take might be a little irritating for people who’re in a hurry. I personally can’t wait for even 2 days for a package to get delivered. How many of us would have envisioned a delivery model where sending and receiving parcels would just take ‘no-time’ at all. Well, Uber might have thrown some light on us, and some were attentive enough to grab it. Then came the era of Nimber, Peership, Shipzy, where people were helping people using a ‘sharing economy’ model.

Sharing Economy is a socio-economic system worked around the sharing of human, physical and intellectual resources. When we think of such a concept, the first thing that strikes our mind is Uber, AirBnB, because they’re letting people to earn from underused possessions.

How Does it Work?

Crowdshipping is a kind of business in the sharing economy that is revealing the eager arrangement to utilize amateurs to deliver bundles and stock more rapidly and economically than FedEx, and the Postal Service. It offers another method for logistics, whereby anybody can satisfy other clients' needs of conveyances. The accomplishment of the Uber model is presently being connected to the bigger universe of logistics, and might change the way we consider supply chain administration.
The power of crowdshipping model is that it doesn't require asset heavy infrastructure model of distribution centres, vehicle armadas, fuel costs and utilized drivers that customary logistics organizations need to pay for and oversee. Rather, they utilize technology to make access to a underused assets of advantages to make an intense new low cost savvy logistics framework. It's an asset light model, with low overheads meaning it can scale in accordance with demand.

The supply of "shippers" tends to fall into three classes: the subcontractors of standard brands, like DHL who, best case scenario, procure 30 percent for every order of the face estimation of delivery; proficient drivers utilized by courier companies who have limit from downtime between occupations, and idle return trips after a drop off; and casual drivers like college students, retirees or freelancers. The key advantage for drivers is that they control when they work and the amount they procure.

Order-->Notified to Nearby People--> ‘X’ Accepts-->Your Order is here

For instance let’s say I need noodles from a local nearby place, I drop a request on the app. Now this rings a notification on people sharing similar app and are in the same area, the one who accepts it, has to deliver it. This method will be secure, last mile problems will be done with and ecommerce portals will now be able to finally concentrate on the product and save some investors money.

How are People using it?

Not only are the problems (waste, asset overwhelming) and the community oriented marketplace model effectively connected, the magnificence of logistics is that there is a huge existing demand that new businesses can take advantage of.

- Immediate Delivery: Businesses such as dry cleaning and restaurants will be able to tap this cost saving option and also gain user experience by providing instant service.

- Long Distance Delivery: Let’s say a package needs to be delivered from Mumbai to San Francisco; this can be easily taken care of by people traveling the same day.

- Local Retail/Kirana Stores: This model is not only empowering the overall upper business structure but also the Hyperlocal ecosystem.

- Moving: Moving home stuff is another problem people face. Calling ‘movers’ service is not a pocket light option. Instead let nearby people in trucks and big cars help you.

- White Goods: Expensive art, jewellery etc can be very problematic while using courier services, why not let a person named X, who you can call and connect with, take your package instead.

What’s in it for me?

Being the delivery guy, how do I get paid? Will the company pay me or the customer? One of the most common procedure crowdshipping companies use is user interaction. They let people negotiate with each other. For instance I need 1 kg of mangoes to be delivered at my place, once the request is generated on the app, people bid. Once the user sees the bids, he/she selects the one which is convenient to them and that’s how the process revolves. The deliverer gets paid by the company similarly how OLA and Uber pay their drivers.

What about long distances?

I’m travelling to Paris this weekend from Delhi, the ticket is too expensive and then it’s my friend’s bachelor party so I need to carry some extra cash too. How do I make use of this situation? I download XYZ crowdshipping app, post my travel there, people come-in like bees to get their packages delivered. You select one which is convenient to you, according to your luggage. Carry the stuff, drop it at the airport, get paid and have a happy weekend. This can possibly be applied to domestic travels too.

Conclusion

This might be an old tale for European countries but this is relatively new in India. There are a few companies working in the similar segment but there aren’t enough users. This model completely relies on demand.

This is a powerful, sustainable financial framework that is worked around a long haul vision, continually considering the effect and outcomes of present day activities on what's to come. By considering long haul suggestions, futurology and having the capacity to see the '10,000 foot view’, sharing economy looks to exhibit a steady and reasonable financial framework.