The On-Demand Delivery Services Model for eCommerce

Abstract

Traditional business models are increasingly being replaced by newer business models based on relationships enabled by information technologies. In this chapter, we survey and categorize many of these new business models enabled by electronic commerce (e-commerce). The main contribution of this chapter is the proposal and analysis of a new business model enabled by e-commerce: the On-Demand Delivery Services (ODDS) model. The ODDS model of e-commerce is one in which the physical products for sale are delivered directly to the customer without the use of a third-party logistics provider, such as a common carrier. For purpose of analysis, we sub-categorize the ODDS model into three submodels: The ODDS Model A applies to business-to-consumer (B2C) online sellers of physical goods who own or control their own delivery vehicles and may provide further services to extend the value proposition for the buyer. The online grocer is a typical example of businesses in this category. The ODDS Model B applies to business-to-business (B2B) sellers of physical goods, who also own a significant portion of their delivery fleet and deliver goods on demand to local distributors or business customers. Office supply eMerchants provide an example of this model. The ODDS Model C applies to businesses that typically provide virtually instantaneous delivery of third-party goods to consumers or businesses. Businesses in this category own or control their own delivery fleet and add value by delivering items within very short periods of time, usually one-hour delivery.