UAV-rider coordinated dispatching for the on-demand delivery service provider

Fast response is critical to the success of the on-demand delivery service providers. Recently, more and more on-demand delivery service providers have started trying to use UAVs/drones to cope with the increasing challenges due to delivery service-sensitive demand. In this study, we propose a novel UAV-rider coordinated on-demand delivery model from the perspective of the on-demand delivery service provider. The objective aims to provide cost-effective delivery solutions by introducing the UAV/drone fleets into the current rider-only on-demand delivery system. A mixed integer linear programming (MILP) model is formulated to solve the problem, which is verified by the solver Cplex. To further analyze the impacts of the integration of UAVs on the riders’ deployment in practice, we develop a modified adaptive large neighborhood search (ALNS) algorithm to solve real business large-scale instances. The mechanism of how to improve the operational efficiency of the delivery service provider by integrating UAVs and the best-coordinated mode between UAVs and riders is discussed by conducting real-data-based numerical experiments. The results show that, for the case with a small number of orders in a dispatch cycle, the pure UAV model is best for the on-demand delivery service provider. When there are a large number of orders received in one dispatch cycle, the UAV-rider coordinated model is the best one to achieve cost-effective solutions. Some useful managerial insights are obtained through extensive experiments.