Crowdsourced Logistics—Its Development and Potential A Case Study of JD Crowdsourced Logistics in China

Abstract

With the rapid growth of O2O (online to offline) business, the existing logistics models cannot meet the demand of dealing with the random, decentralised orders with their high timeliness requirements. Therefore, the appearance of crowdsourced logistics, such as the case project - JD crowdsourced logistics, is identified as a potential solution to meet such demand. When compared to traditional logistics models, crowdsourced logistics is quite different, which has led to various debates and worries about it. Exactly what the new business model looks like in reality, and how we should look at its future regarding its present situation is identified as an interesting topic by the researchers. Therefore, the purpose of this research is focussed on gaining a deep understanding of crowdsourced logistics, as well as using the example of JD crowdsourced logistics to analyse whether there is a place for crowdsourced logistics and what the status of crowdsourced logistics is in China. Based on that, the research objectives and questions were determined as: 1. Gaining a deep understanding of the concept of crowdsourced logistics. 2. How is crowdsourced logistics currently implemented in China? 3. What are the prospects of crowdsourced logistics in China? In order to find answers to these questions, a case study was identified as the best research method, and interviews were determined to be the main research strategy for the research. Not only was secondary data from previous research and other online sources of information collected for frame of reference, but primary data through an interview with Mr. Wang, the first product manager for JD crowdsourced logistics, was also gathered for the empirical study section. Further, both the PESTLE and SWOT models were pursued for the comprehensive analysis of the gathered data, so that the conclusion could be presented finality Following the guidance of scientific research, the reliability and validity of the research can be confirmed. As this research found, JD crowdsourced logistics made significant achievements during its one year of implementation. The value it brings are irreplaceable for O2O ii business at this current stage. But in the meantime, some risks associated with it are significant and hard to avoid. Depending on the current development situation, the future of crowdsourced logistics is full of opportunities and threat. Finally, some general recommendations are presented for potential participants in the crowdsourced logistics industry.