The role of individual compensation and acceptance decisions in crowdsourced delivery

High demand, rising customer expectations, and government regulations are forcing companies to increase the efficiency and sustainability of urban (last-mile) distribution. Consequently, several new delivery concepts have been proposed that increase flexibility for customers and other stakeholders. One of these innovations is crowdsourced delivery, where deliveries are made by occasional drivers who wish to utilize their surplus resources (unused transport capacity) by making deliveries in exchange for some compensation. In addition to reducing delivery costs, the potential benefits of crowdsourced delivery include better utilization of transport capacity, a reduction in overall traffic, and increased flexibility (by scaling up and down delivery capacity as needed). The use of occasional drivers poses new challenges because (unlike traditional couriers) neither their availability nor their behavior in accepting delivery offers is certain. The relationship between the compensation offered to occasional drivers and the probability that they will accept a task has been largely neglected in the scientific literature. Therefore, we consider a setting in which compensation-dependent acceptance probabilities are explicitly considered in the process of assigning delivery tasks to occasional drivers. We propose a mixed-integer nonlinear model that minimizes the expected delivery costs while identifying optimal assignments of tasks to a mix of traditional and occasional drivers and their compensation. We propose exact linearization schemes for two practically relevant probability functions and an approximate linearization scheme for the general case. The results of our computational study show clear advantages of our new approach over existing ones.