Shared mobility is a growing sector of the sharing economy. Services that facilitate the shared use of a vehicle, truck, or other mode of transport are disrupting many businesses that provide transport to the consumer. Recognition of the benefits of shared mobility in passenger transport has led to significant uptake in the form of start-up industries (e.g., Uber, Didi).

However, implementation of shared mobility in supply chain and logistics markets remains a future prospect, with most shippers still opting for-hire or ancillary carriers. In the supply chain and logistics markets context, a shared e-logistics service can be used to connect shippers to logistics services by private truck drivers and storage owners, where users (shippers or carriers) need to register in the system with their banking information and certification of insurance into two separate applications for shippers and carriers.

Such on-demand shared logistics solutions result in the rise of Supply Chain as a Service (SCaaS), where logistics providers give turnkey services tailored to the needs of freight agents and customers. For example, Uber has recently introduced its “Uber Freight” in the United States, and there are plenty of on-demand applications with shared economy business models, such as Deliveroo.

Dynamic Pricing of on-demand Transport Platforms

On-demand marketplaces are characterised by fluctuating supply and demand conditions that should be balanced in a way that is satisfactory for both sides and guarantees a higher profit relative to the status quo. This central requirement is fulfilled with a dynamic pricing mechanism in the form of a surge multiplier where the number of suppliers is calibrated by wages, and the number of customers is adjusted by price. Ride-hailing platforms, such as Uber or Didi, employ zone-specific surge pricing mechanism. This surge pricing mechanism leverages predictive modelling in real-time based on demand and supply.

This has motivated me to expand this research with a focus on freight transport.