Last mile delivery outcome-based model: Paradigm shift of industry from fix pay out to ‘per piece pay’ for riders
A shifting trend towards high demand of efficient and reliable workforce has had the businesses skeptical and anxious of operating with a lower demand and not enough general expenses. The logistics industry, especially the last mile delivery could be seen driven in the same direction. Organizations had to bear large pay outs during lock down period without any inflow of revenue due to which companies are endured to change their contract terms with the workforce, henceforth remodeling to short term contracts and even applying 45 days to 15 days commitment of work to avoid any future commitment and fix pay out, if a scenario such as the lockdown arises in the future.
Logistics’ last mile delivery makes up to 40% of total cost, therefore it is crucial for operation managers to retain this cost under budget and advance deliveries, which in turn is hampering the ‘fix- pay out ‘model. Therefore, businesses which deals in express delivery, food, milk and grocery delivery are remodeling towards outcome-based model. Which has induced the entire sector of riders in last mile delivery to upgrade to outcome-based model. With rising need for home deliveries amidst the pandemic this model can fuel the rising demand of workforce.
Delivery workforce is a significant block helping rebuild the economy, and today when even the offices are operating form home, free-lance service provider as delivery partner is a huge employment opportunity, especially for the millennials with a passion for bike riding, they have an earning potential of up to 25000 per month while engaging themselves with companies like Million riders, a market place for riders who seek job security and for businesses seeking riders for last mile delivery- If you are any of the two get yourself or your business registered today on www.millionriders.com.