So, what is crowdsourcing? Over the past couple of years, we have seen customer expectations change due to the on-demand economy that has developed. People now want a faster, more personalized yet still cost-effective delivery service, and they want it now! As surprising as it might sound to many people, the solution to on-demand delivery expectations is crowdsourcing.
How does it work?
For those who are unsure of what exactly crowdsourcing is, it is the practice of acquiring information or input into a project or task by enlisting the services of a large number of people, either paid or unpaid. It is typically done via the internet and is currently one of the biggest opportunities for package delivery companies.
Before crowdsourcing, companies tried to offer something similar by on-boarding delivery drivers and allowing them the freedom of working their own hours, for themselves and paying them more for working longer hours. This led to challenges with retaining drivers. Crowdsourcing offers both drivers and businesses the same flexibility and scalability, but without the staffing issues.
One example of a start-up that is making great use of crowdsourcing is Picup. This company has been able to attract large amounts of funding to realize their vision of providing on-demand delivery. They transformed their business from a model that was extremely impersonal and challenging, to a business where a large focus is placed on empowering and upskilling drivers, as well as customer experience and personalization. Picup also makes use of an app that has been built by drivers, for drivers.
What does the future of crowdsourcing and on-demand delivery look like?
On-demand expectations aren’t going anywhere, and if anything people will become fussier over when they will receive their deliveries. In saying this, businesses will also become better at meeting these expectations, and this is largely through making use of crowdsourced companies and drivers. In South Africa, crowdsourced drivers are starting to use different platforms at different times, making the most of their time and resources to increase their earnings. According to global research done by Zebra, by 2028 almost 90% of retailers are expected to make use of crowdsourced delivery to handle specific orders. One challenge that businesses will face with crowdsourcing will be maintaining a reliable network
How will crowdsourcing in on-demand delivery impact your business? For logistics companies, this could pose a potential threat, and being competitive has never been more important. By putting more focus on personalization and customer service, it gives your business an advantage. Our technology has been developed to help with this. To find out more about what we can do for you, visit our website at www.centralstation.co.za.
Read more about Picup here.