TY - JOUR
T1 - Outsourcing service price for crowd-shipping based on on-demand mobility services
AU - Peng, Shouguo
AU - Park, Woo Yong
AU - Eltoukhy, Abdelrahman E.E.
AU - Xu, Min
N1 - Funding Information:
The work described in this paper was fully supported by a grant from Research Grants Council of the Hong Kong Special Administrative Region, China (Project No. PolyU 25222822).
Publisher Copyright:
© 2024 Elsevier Ltd
PY - 2024/3
Y1 - 2024/3
N2 - Online-to-offline (O2O) parcel delivery service providers (PSPs) are facing ever-increasing pressure to provide timely and reliable delivery services. An emerging form of collaborative crowd-shipping based on on-demand mobility (COM) services, which utilizes the excess capacity of on-demand mobility vehicles (e.g., taxis and ride-hailing vehicles) to deliver O2O parcels, is proposed to alleviate PSP's delivery pressure while improving the profitability for the on-demand mobility service provider (OMP). This study investigates an outsourcing service price problem for a collaborative COM considering the game play between PSP and OMP. A bilevel optimization model is formulated, and a customized iterative hybrid (IH) algorithm integrating two tabu search algorithms with objective-oriented granularity and a genetic algorithm is proposed to find the solution. Numerical experiments conducted on randomly generated instances and a real-life case study demonstrate that the COM model with a well-designed outsourcing service price can benefit both participants, with PSP achieving up to 17.0 % cost savings and OMP achieving up to 15.8% profit improvement.
AB - Online-to-offline (O2O) parcel delivery service providers (PSPs) are facing ever-increasing pressure to provide timely and reliable delivery services. An emerging form of collaborative crowd-shipping based on on-demand mobility (COM) services, which utilizes the excess capacity of on-demand mobility vehicles (e.g., taxis and ride-hailing vehicles) to deliver O2O parcels, is proposed to alleviate PSP's delivery pressure while improving the profitability for the on-demand mobility service provider (OMP). This study investigates an outsourcing service price problem for a collaborative COM considering the game play between PSP and OMP. A bilevel optimization model is formulated, and a customized iterative hybrid (IH) algorithm integrating two tabu search algorithms with objective-oriented granularity and a genetic algorithm is proposed to find the solution. Numerical experiments conducted on randomly generated instances and a real-life case study demonstrate that the COM model with a well-designed outsourcing service price can benefit both participants, with PSP achieving up to 17.0 % cost savings and OMP achieving up to 15.8% profit improvement.
KW - Bilevel optimization
KW - Crowd-shipping
KW - Granular tabu search algorithm
KW - On-demand mobility service
KW - Service price
UR - http://www.scopus.com/inward/record.url?scp=85184952090&partnerID=8YFLogxK
U2 - 10.1016/j.tre.2024.103451
DO - 10.1016/j.tre.2024.103451
M3 - Journal article
AN - SCOPUS:85184952090
SN - 1366-5545
VL - 183
JO - Transportation Research Part E: Logistics and Transportation Review
JF - Transportation Research Part E: Logistics and Transportation Review
M1 - 103451
ER -