IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v179y2023ics1366554523002727.html
   My bibliography  Save this article

The determinants of online matching platforms for freight services

Author

Listed:
  • Park, Arim
  • Chen, Roger
  • Cho, Soohyun
  • Zhao, Yao

Abstract

With the development of information technology and the success of E-commerce, online freight exchange platforms have expanded to trucking freight services by matching truckers with shippers directly. Despite the endeavors of online freight platforms to emulate the success of other platform services, they face difficulties in facilitating successful matches. By analyzing the transactional data of an existing freight service platform, we seek to identify the salient factors that improve platform matching rates using a linear regression with splines for freight rate, capturing non-linearities, and a RUM discrete outcome model for matching. Both models are estimated jointly (simultaneously) using full information maximum likelihood (FIML). The empirical findings indicate that successful matching is more likely if the online freight platforms allow making substantial price adjustments once a job has been posted, as well as allowing shippers to have a longer lead time for loading their shipments, particularly in cases where finding a suitable trucker is challenging. Furthermore, allowing customers to revise shipment information provides greater flexibility in accommodating customer needs and ultimately enhances the likelihood of successful matching. Our analysis provides actionable and pragmatic suggestions to improve matching rates for online platforms of freight services.

Suggested Citation

  • Park, Arim & Chen, Roger & Cho, Soohyun & Zhao, Yao, 2023. "The determinants of online matching platforms for freight services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    • Handle: RePEc:eee:transe:v:179:y:2023:i:c:s1366554523002727
    DOI: 10.1016/j.tre.2023.103284
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554523002727
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2023.103284?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lafkihi, Mariam & Pan, Shenle & Ballot, Eric, 2019. "Freight transportation service procurement: A literature review and future research opportunities in omnichannel E-commerce," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 348-365.
    2. Mei, Qihuang & Li, Jianbin & Ursavas, Evrim & Zhu, Stuart X. & Luo, Xiaomeng, 2021. "Freight transportation planning in platform service supply chain considering carbon emissions," International Journal of Production Economics, Elsevier, vol. 240(C).
    3. Richa Agarwal & Özlem Ergun & Lori Houghtalen & Okan Orsan Ozener, 2009. "Collaboration in Cargo Transportation," Springer Optimization and Its Applications, in: Wanpracha Chaovalitwongse & Kevin C. Furman & Panos M. Pardalos (ed.), Optimization and Logistics Challenges in the Enterprise, pages 373-409, Springer.
    4. Pierre J. Dejax & Teodor Gabriel Crainic, 1987. "Survey Paper---A Review of Empty Flows and Fleet Management Models in Freight Transportation," Transportation Science, INFORMS, vol. 21(4), pages 227-248, November.
    5. Campbell, James F., 1990. "Freight consolidation and routing with transportation economies of scale," Transportation Research Part B: Methodological, Elsevier, vol. 24(5), pages 345-361, October.
    6. Guevara, C. Angelo, 2015. "Critical assessment of five methods to correct for endogeneity in discrete-choice models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 82(C), pages 240-254.
    7. Jensen, Anders Fjendbo & Thorhauge, Mikkel & de Jong, Gerard & Rich, Jeppe & Dekker, Thijs & Johnson, Daniel & Cabral, Manuel Ojeda & Bates, John & Nielsen, Otto Anker, 2019. "A disaggregate freight transport chain choice model for Europe," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 121(C), pages 43-62.
    8. Arim Park & Soohyun Cho & Seongtae Kim & Yao Zhao, 2019. "Factors Influencing E-procurement Adoption in the Transportation Industry," Springer Proceedings in Business and Economics, in: Hui Yang & Robin Qiu (ed.), Advances in Service Science, pages 287-293, Springer.
    9. Guo, Jiantao & Zhang, Juliang & Cheng, T.C.E. & Zhao, Shouting, 2022. "Truthful double auction mechanisms for online freight platforms with transaction costs," Transportation Research Part B: Methodological, Elsevier, vol. 158(C), pages 164-186.
    10. Hofer, Christian & Windle, Robert J. & Dresner, Martin E., 2008. "Price premiums and low cost carrier competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(5), pages 864-882, September.
    11. Anuradha Jain & Rob van der Heijden & Vincent Marchau & Dirk Bruckmann, 2020. "Towards Rail-Road Online Exchange Platforms in EU-Freight Transportation Markets: An Analysis of Matching Supply and Demand in Multimodal Services," Sustainability, MDPI, vol. 12(24), pages 1-28, December.
    12. Mariam Lafkihi & Shenle Pan & Eric Ballot, 2019. "Freight transportation service procurement: A literature review and future research opportunities in omnichannel E-commerce," Post-Print hal-02086154, HAL.
    13. Samuelson, Ralph D. & Lerman, Steven R., 1977. "Modeling the Freight Rate Structure," Transportation Research Forum Proceedings 1970s 318643, Transportation Research Forum.
    14. Li, Jianbin & Zheng, Yuting & Dai, Bin & Yu, Jiang, 2020. "Implications of matching and pricing strategies for multiple-delivery-points service in a freight O2O platform," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    15. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, October.
    16. Bettini, Humberto F.A.J. & Silveira, José Maria F.J. & Oliveira, Alessandro V.M., 2018. "Estimating strategic responses to the march of a low cost carrier to primary airports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 190-204.
    17. Karthik K. Srinivasan & Hani S. Mahmassani, 2005. "A Dynamic Kernel Logit Model for the Analysis of Longitudinal Discrete Choice Data: Properties and Computational Assessment," Transportation Science, INFORMS, vol. 39(2), pages 160-181, May.
    18. Özkaya, Evren & Keskinocak, PInar & Roshan Joseph, V. & Weight, Ryan, 2010. "Estimating and benchmarking Less-than-Truckload market rates," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 667-682, September.
    19. Peng, Zixuan & Shan, Wenxuan & Guan, Feng & Yu, Bin, 2016. "Stable vessel-cargo matching in dry bulk shipping market with price game mechanism," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 76-94.
    20. Kuyzu, Gültekin & Akyol, Çağla Gül & Ergun, Özlem & Savelsbergh, Martin, 2015. "Bid price optimization for truckload carriers in simultaneous transportation procurement auctions," Transportation Research Part B: Methodological, Elsevier, vol. 73(C), pages 34-58.
    21. van Duin, J.H.R. & Tavasszy, L.A. & Taniguchi, E., 2007. "Real time simulation of auctioning and re-scheduling processes in hybrid freight markets," Transportation Research Part B: Methodological, Elsevier, vol. 41(9), pages 1050-1066, November.
    22. Zenan Zhou & Xiang Wan, 2022. "Does the Sharing Economy Technology Disrupt Incumbents? Exploring the Influences of Mobile Digital Freight Matching Platforms on Road Freight Logistics Firms," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 117-137, January.
    23. Scott, Alex, 2015. "The value of information sharing for truckload shippers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 203-214.
    24. Hess, Stephane & Palma, David, 2019. "Apollo: A flexible, powerful and customisable freeware package for choice model estimation and application," Journal of choice modelling, Elsevier, vol. 32(C), pages 1-1.
    25. Budak, Aysenur & Ustundag, Alp & Guloglu, Bulent, 2017. "A forecasting approach for truckload spot market pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 55-68.
    26. Saif Benjaafar & Ming Hu, 2020. "Operations Management in the Age of the Sharing Economy: What Is Old and What Is New?," Manufacturing & Service Operations Management, INFORMS, vol. 22(1), pages 93-101, January.
    27. Mengdi Zhang & George Q. Huang & Su Xiu Xu & Zhiheng Zhao, 2019. "Optimization based transportation service trading in B2B e-commerce logistics," Journal of Intelligent Manufacturing, Springer, vol. 30(7), pages 2603-2619, October.
    28. Panos Constantinides & Ola Henfridsson & Geoffrey G. Parker, 2018. "Introduction—Platforms and Infrastructures in the Digital Age," Information Systems Research, INFORMS, vol. 29(2), pages 381-400, June.
    29. Ruomeng Cui & Gad Allon & Achal Bassamboo & Jan A. Van Mieghem, 2015. "Information Sharing in Supply Chains: An Empirical and Theoretical Valuation," Management Science, INFORMS, vol. 61(11), pages 2803-2824, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dellbrügge, Marius & Brilka, Tim & Kreuz, Felix & Clausen, Uwe, 2022. "Auction design in strategic freight procurement," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Jahn, Carlos & Blecker, Thorsten & Ringle, Christian M. (ed.), Changing Tides: The New Role of Resilience and Sustainability in Logistics and Supply Chain Management – Innovative Approaches for the Shift to a New , volume 33, pages 295-325, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    2. Michael Haughton & Alireza Amini, 2024. "An Examination of Human Fast and Frugal Heuristic Decisions for Truckload Spot Pricing," Logistics, MDPI, vol. 8(3), pages 1-16, July.
    3. Fukushi, Mitsuyoshi & Delgado, Felipe & Raveau, Sebastián, 2024. "Impact of omitted variable and simultaneous estimation endogeneity in choice-based revenue management systems," Transportation Research Part A: Policy and Practice, Elsevier, vol. 179(C).
    4. Yu, Hao & Huang, Min & Chao, Xiuli & Yue, Xiaohang, 2022. "Truthful multi-attribute multi-unit double auctions for B2B e-commerce logistics service transactions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    5. Mashalah, Heider Al & Hassini, Elkafi & Gunasekaran, Angappa & Bhatt (Mishra), Deepa, 2022. "The impact of digital transformation on supply chains through e-commerce: Literature review and a conceptual framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    6. Jason W. Miller, 2018. "ARIMA Time Series Models for Full Truckload Transportation Prices," Forecasting, MDPI, vol. 1(1), pages 1-14, September.
    7. Hammami, Farouk & Rekik, Monia & Coelho, Leandro C., 2021. "Exact and hybrid heuristic methods to solve the combinatorial bid construction problem with stochastic prices in truckload transportation services procurement auctions," Transportation Research Part B: Methodological, Elsevier, vol. 149(C), pages 204-229.
    8. Guo, Chaojie & Thompson, Russell G. & Foliente, Greg & Kong, Xiang T.R., 2021. "An auction-enabled collaborative routing mechanism for omnichannel on-demand logistics through transshipment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 146(C).
    9. Cho, Woohyun & Windle, Robert J. & Dresner, Martin E., 2017. "The impact of operational exposure and value-of-time on customer choice: Evidence from the airline industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 455-471.
    10. Chorus, Caspar & van Cranenburgh, Sander & Daniel, Aemiro Melkamu & Sandorf, Erlend Dancke & Sobhani, Anae & Szép, Teodóra, 2021. "Obfuscation maximization-based decision-making: Theory, methodology and first empirical evidence," Mathematical Social Sciences, Elsevier, vol. 109(C), pages 28-44.
    11. Gopalakrishnan, Raja & Guevara, C. Angelo & Ben-Akiva, Moshe, 2020. "Combining multiple imputation and control function methods to deal with missing data and endogeneity in discrete-choice models," Transportation Research Part B: Methodological, Elsevier, vol. 142(C), pages 45-57.
    12. Lu, Hui & Hess, Stephane & Daly, Andrew & Rohr, Charlene & Patruni, Bhanu & Vuk, Goran, 2021. "Using state-of-the-art models in applied work: Travellers willingness to pay for a toll tunnel in Copenhagen," Transportation Research Part A: Policy and Practice, Elsevier, vol. 154(C), pages 37-52.
    13. Broberg, Thomas & Daniel, Aemiro Melkamu & Persson, Lars, 2021. "Household preferences for load restrictions: Is there an effect of pro-environmental framing?," Energy Economics, Elsevier, vol. 97(C).
    14. Gómez-Limón, José A. & Granado-Díaz, Rubén, 2023. "Assessing the demand for hydrological drought insurance in irrigated agriculture," Agricultural Water Management, Elsevier, vol. 276(C).
    15. Jia, Wenjian & Jiang, Zhiqiu & Wang, Qian & Xu, Bin & Xiao, Mei, 2023. "Preferences for zero-emission vehicle attributes: Comparing early adopters with mainstream consumers in California," Transport Policy, Elsevier, vol. 135(C), pages 21-32.
    16. Kong, Xiang T.R. & Kang, Kai & Zhong, Ray Y. & Luo, Hao & Xu, Su Xiu, 2021. "Cyber physical system-enabled on-demand logistics trading," International Journal of Production Economics, Elsevier, vol. 233(C).
    17. Kim, Seheon & Rasouli, Soora, 2022. "The influence of latent lifestyle on acceptance of Mobility-as-a-Service (MaaS): A hierarchical latent variable and latent class approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 159(C), pages 304-319.
    18. Nathalie Touratier-Muller & Jacques Jaussaud, 2021. "Development of Road Freight Transport Indicators Focused on Sustainability to Assist Shippers: An Analysis Conducted in France through the FRET 21 Programme," Sustainability, MDPI, vol. 13(17), pages 1-17, August.
    19. Bhat, Furqan A. & Verma, Ashish, 2024. "Electric two-wheeler adoption in India – A discrete choice analysis of motivators and barriers affecting the potential electric two-wheeler buyers," Transport Policy, Elsevier, vol. 152(C), pages 118-131.
    20. Hasselwander, Marc & Bigotte, Joao F. & Antunes, Antonio P. & Sigua, Ricardo G., 2022. "Towards sustainable transport in developing countries: Preliminary findings on the demand for mobility-as-a-service (MaaS) in Metro Manila," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 501-518.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:179:y:2023:i:c:s1366554523002727. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.