1605. Instant Deliveries in Mexico City: A Socio-Economic Analysis and Profit Maximization Framework for Couriers.
Invited abstract in session TB-23: OR for Socio-Humanitarian Development , stream OR for Societal Development.
Tuesday, 10:30-12:00Room: Esther Simpson 3.01
Authors (first author is the speaker)
| 1. | Ana Bricia Galindo Muro
|
| Industrial Engineering, Tecnologico de Monterrey | |
| 2. | Jaime Mora Vargas
|
| Graduated School of Engineering and Sciences, ITESM-CEM |
Abstract
This study introduces an engineering approach to understanding instant delivery operations within the platform economy via a Case Study in Mexico City. Through two comprehensive surveys, we identified significant risks and challenges faced by couriers, highlighting their precarious working conditions and financial pressures. Our findings emphasize the stark disparity between the platform economy's promise of flexibility and independence and the harsh reality experienced by most couriers.
Based on these results, we formulated an assignment model to support technological advancement in the sector. By incorporating a fee algorithm and operational cost calculations, our quantitative model demonstrates that a 20% increase in couriers' income compared to traditional assignment approaches is achievable while remaining advantageous for all stakeholders.
The model assigns orders to couriers with the constraint that operational costs (gas consumption, insurance, equipment, etc.) should not exceed the delivery fee, ensuring that couriers receive fair remuneration after each trip. The delivery fee is calculated via an algorithm primarily based on distance parameters, designed to approximate commercial platforms' pricing while respecting their proprietary algorithms. Additionally, a distance restriction ensures no order is accepted if the total travel distance exceeds an established minimum, maintaining service quality.
Keywords
- OR/MS and the Public Sector
- Logistics
Status: accepted
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