Citation: Alharbi, A.; Cantarelli, C.;
Brint, A. Crowd Models for Last Mile
Delivery in an Emerging Economy.
Sustainability 2022, 14, 1401. https://
doi.org/10.3390/su14031401
Academic Editors: Guido Perboli,
Stefano Musso and
Mariangela Rosano
Received: 31 December 2021
Accepted: 18 January 2022
Published: 26 January 2022
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sustainability
Article
Crowd Models for Last Mile Delivery in an Emerging Economy
Ahmad Alharbi * , Chantal Cantarelli and Andrew Brint
Management School, University of Sheffield, Sheffield S10 1FL, UK; c.c.cantarelli@sheffield.ac.uk (C.C.);
a.brint@sheffield.ac.uk (A.B.)
* Correspondence: aalharbi5@sheffield.ac.uk
Abstract: The dramatic rise in online shopping means that the last mile delivery (LMD) task is
becoming extremely important. However, last mile delivery faces many economic, social, and envi-
ronmental challenges. A fast-growing innovative solution is Crowd Logistics Delivery (CLD). This
study investigates how CLD is meeting these challenges in a rapidly emerging economy (Saudi
Arabia). It uses semi-structured interviews to analyse CLD from the perspectives of multiple stake-
holders, focusing on its implementation, benefits to different stakeholders, and its limitations. While
the findings of this study broadly support the work of other studies in this area, it provides several
new insights. It observed three different business models being used for CLD: B2B, B2C, and C2C. It
identified the internal success factors of each business model, including registration, assigning orders,
compensation, and the payment model. It revealed the motivations for stakeholders to use CLD as a
last mile delivery solution, such as LMD-related benefits and the social impact on society. In addition,
the study highlighted the four main challenges these CLD implementations face that impede their
success: legislation, availability of supply/drivers, trust, and culture. These results add to the rapidly
expanding field of CLD.
Keywords: last mile delivery; crowd logistics; business model; stakeholder analysis
1. Introduction
Even before the COVID-19 pandemic, the relentless rise in online ordering meant that
last mile delivery (LMD) was a key element of city logistics. Since the advent of COVID-19,
it has become even more crucial. Recently there has been increasing interest in using
Crowd Logistics Delivery (CLD) for this key stage in the delivery chain. In CLD, retailers
let individuals cover the last mile for other shoppers [1] with the crowd being defined as
individuals who choose to undertake the last mile delivery task [2–6]. Buldeo Rai et al.
define crowd logistics as:
“an information connectivity enabled marketplace concept that matches supply
and demand for logistics services with an undefined and external crowd that has
free capacity with regards to time and/or space, participates on a voluntary basis,
and is compensated accordingly”
([5], page 1) (also quoted in [7]).
Therefore, the growing interest in CLD is expected to continue to rise as the move to
smart cities improves the information and communications technology (ICT), providing the
‘crowd’ with better knowledge of the real time marketplace and reducing the knowledge
imbalance with large logistics providers [7,8].
Although the use of CLD has been increasing, a number of implementations have
not been viable, for instance some start-ups, such as WebVan and Kozmo.com, failed due
to an absence of critical volume. Similarly, Myways is no longer available [9], and Metro
Post (a USPS service) has been phased out [2]. Therefore, a deeper understanding of the
CLD models and their strengths and weaknesses is needed. While a number of analyses of
LMD have been published in advanced economies [10–12], there have been relatively few
Sustainability 2022, 14, 1401. https://doi.org/10.3390/su14031401 https://www.mdpi.com/journal/sustainability