World Scientific
Skip main navigation

Cookies Notification

We use cookies on this site to enhance your user experience. By continuing to browse the site, you consent to the use of our cookies. Learn More
×

System Upgrade on Tue, May 28th, 2024 at 2am (EDT)

Existing users will be able to log into the site and access content. However, E-commerce and registration of new users may not be available for up to 12 hours.
For online purchase, please visit us again. Contact us at customercare@wspc.com for any enquiries.

Pricing Strategy for Crowdsourced Delivery Service Platform Considering Demand Heterogeneity: Subscription or Pay-Per-Transaction

    https://doi.org/10.1142/S0217595925400019Cited by:0 (Source: Crossref)
    This article is part of the issue:

    Subscription pricing strategies are increasingly adopted by crowdsourcing delivery platforms, allowing subscribers to pay a fixed upfront fee for unlimited future services. This paper explores the impact of demand heterogeneity and transaction costs on the comparison between subscription pricing and pay-per-transaction pricing. We construct and solve models to obtain optimal service prices, delivery commissions, and profits under both strategies. Our findings indicate that the subscription strategy is more effective at attracting consumers compared to the pay-per-transaction strategy. Specifically, the subscription strategy can lower commission rates and reduce the number of deliverers required, while generating higher surplus for both consumers and deliverers when transaction costs are high. Moreover, the subscription strategy maintains a profit advantage when demand heterogeneity is low and transaction costs are high. This study offers valuable insights into pricing decisions, strategy selection, and operational performance optimization, aiding delivery service platforms in better targeting consumers and products.