The last mile with on demand delivery and its pricing

3 min readMar 27, 2019

The last mile delivery is an important part of the delivery chain, if not the most important in urban cities. Today, we live in a world where e-commerce is rising, which means consumer preferences is rising too, and on demand delivery Is a key differentiator. With on demand delivery, we complete the last mile delivery in the delivery chain. The additional option and quality of on demand delivery have affected e-commerce players success in marketplace, by allowing consumers immediate access to products. While keeping this in mind, vendors are struggling to offer the best customer experience possible, especially by improving delivery times and option with e.g. on demand service in the last mile of the delivery chain.

Price is an important factor

Many find pricing as an important factor when wanting goods delivered home, and we partly agree in that statement. As mentioned before, the last mile is one of the most important part in a long chain, so it may be clear to most people, that the longer the distance in urban cities the greater the costs for last mile deliveries with on demand options. An article wrote in 2016 by Mc. Kinsey called “How customer demands are reshaping last-mile delivery” they found that 25% of consumers shopping online are willing to pay significant more for on demand delivery options, and this number is likely to increase. Furthermore over 30% of young consumers are willing to choose on demand delivery over regular delivery. So YES, price is an important factor, one in many. But how does on demand pricing differentiate from regular delivery pricing? In some cases it’s cheaper, in most cases its the same and in other cases you may find that the price is a bit higher. Doorhub have built a technology for the last mile, that include an algorithm that are effected by more than 10 different factors which all influence how pricing are made. Pricing does differentiate, but the service & transparency you provide your customers is extraordinary and is definitely worth the insignificant amount that In some cases takes place.

The technology for last mile deliveries

The passion and commitment lives through everything we do, and the technology is our life source. Offering a solution with the right technology, you can offer the most convenient customer experience regarding delivery. Offering a solution with the right technology, you can even offer maximum quality and efficiency along with minimal pricing. So with a basic AI technology we have built an powerful algorithm with a predictive technology, that appraises the most effective ways of distributing orders based on several factors, including the smartest routes, weather conditions and many more. With this technology it is possible for a solution as Doorhub to keep pricing near regular delivery services, while providing a new and better customer experience.

We are proud to innovate how deliveries are made in urban cities, using the right technology to meet customers’ demands and helping to make Copenhagen more sustainable with our fleet which contains many riders.

Get in touch for more information about the best on demand delivery service available.