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

Author

Listed:
  • Yafei Yang

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, P. R. China)

  • Yi Zhang

    (Department of Purchasing Management, School of Logistics, Beijing Wuzi University, Beijing 101149, P. R. China)

  • Shouting Zhao

    (Department of Purchasing Management, School of Logistics, Beijing Wuzi University, Beijing 101149, P. R. China)

  • Samuel Shuai Liu

    (Department of Logistics and Maritime Studies, The Hong Kong Polytechnic University, Hung Hom Kowloon, Hong Kong SAR 999077, P. R. China)

Abstract

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.

Suggested Citation

  • Yafei Yang & Yi Zhang & Shouting Zhao & Samuel Shuai Liu, 2025. "Pricing Strategy for Crowdsourced Delivery Service Platform Considering Demand Heterogeneity: Subscription or Pay-Per-Transaction," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 42(01), pages 1-20, February.
    • Handle: RePEc:wsi:apjorx:v:42:y:2025:i:01:n:s0217595925400019
    DOI: 10.1142/S0217595925400019
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