Dynamic Delivery Zone System for Merchants
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Solution Overview
Problem
Traditional food delivery services often restrict customers to fixed delivery zones based on distance, leading to high delivery fees for those outside the zone, which can deter customers and limit business expansion for merchants.
Innovation Solution
A dynamic delivery zone system using computing devices and location sensors to create flexible delivery boundaries based on shared-revenue, traffic, weather, and local conditions, allowing customers to order from a wider range of merchants with reduced fees by subsidizing delivery costs through revenue sharing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of energy
If a fixed delivery zone is established to control delivery costs, then delivery fees for distant customers are reduced, but the merchant's business expansion beyond the fixed zone is limited
Solution Approach 1:
The patent transforms fixed delivery zones into dynamic delivery zones that automatically adjust their boundaries based on real-time courier availability and local conditions. This allows merchants to expand delivery coverage to areas outside traditional fixed zones when couriers are available, while maintaining cost control when couriers are scarce, thus resolving the contradiction between cost control and business expansion capability
Solution Approach 2:
The system changes the parameter of delivery zone boundaries from static to dynamic by incorporating real-time data about courier availability, traffic conditions, and local factors. This enables the delivery zone to adapt its radius and coverage area based on current operational conditions, allowing business expansion when conditions permit while maintaining cost efficiency when conditions are constrained
2Loss of energy
If an incremental delivery fee is charged to customers outside the fixed zone, then delivery costs are covered, but customer usage is discouraged
Solution Approach 1:
The patent implements dynamic delivery fees that adjust based on real-time courier availability and demand conditions. When couriers are abundant and local conditions are favorable, delivery fees are reduced or eliminated, making the service more accessible to customers. When couriers are scarce, fees increase to cover costs, thus dynamically balancing cost coverage with customer accessibility
Solution Approach 2:
The system incorporates feedback loops that monitor courier availability, delivery performance, and customer demand to continuously adjust delivery fees and zone boundaries. This feedback mechanism ensures that fees are set appropriately to cover costs while remaining attractive to customers based on real-time operational conditions
3Adaptability or versatility
If a dynamic delivery zone system is implemented to expand merchant reach, then customer choice and business expansion are improved, but system complexity increases
Solution Approach 1:
The patent implements self-service mechanisms where the system automatically adjusts delivery zones and fees based on pre-defined algorithms that monitor courier availability and local conditions. The system autonomously makes decisions about zone expansion and fee adjustment without requiring complex manual intervention, thus achieving dynamic adaptability while managing system complexity through automation
Solution Approach 2:
The system integrates multiple functions into a unified platform that simultaneously handles courier dispatch, delivery zone calculation, fee determination, and real-time monitoring. This multi-functional approach consolidates complexity into a single system rather than requiring separate systems for each function, making the overall system more manageable despite its sophisticated capabilities
Data Source
AI summary
In some examples, a service provider may receive revenue value shared between the service provider and a merchant. The service provider may also receive an order request along with item information and a delivery location. Accordingly, the service provider may determine an original delivery boundary and a delivery fee associated with the order request based at least on the delivery location. If the value of revenue shared is more than a predefined value, the service provider allocates at least a part of the value of shared revenue toward modifying the delivery boundary, wherein the modified delivery boundary causes at least one of: (a) an inclusion of the buyer previously excluded from the delivery boundary, or (b) a new delivery fee for delivering the indicated items, where the new delivery fee is computed based on a contribution of the percentage value of the shared revenue toward the original delivery fee.