Dada Group Dada Now is a leading local on-demand delivery platform in China, providing indispensable delivery infrastructure to local retail in the new era. Bing FU, General Manager of Dada Now, gave a speech on the topic “AI empowers on-demand delivery infrastructure” at the World Artificial Intelligence Conference (WAIC) held in Shanghai, elaborating how to improve efficiency and bring better fulfillment experience for customers, merchants and riders.
AI technology has gradually evolved to a mature stage. Meanwhile, online and offline channels are integrating with the development of on-demand retail; the demands and scenarios of on-demand retail have becoming increasingly abundant; and the order volume has shown a trend of rapid growth.
Also Read: Oliver Wyman completes acquisition of Booz Allen Hamilton’s MENA strategy consulting business
According to the “2022 On-demand Delivery Service White Paper” jointly released by LOG Research and Dada Now, from 2014 to 2021, the number of on-demand delivery orders grew explosively. The number of orders in 2021 was 30.85 billion, with a CAGR close to 60%.
Different from traditional logistics that often require multi-day, local on-demand orders are omni-channel, full-scenario, full-category and full-time, with a requirement to be delivered within one hour.
The increasing number and the features of delivery orders put forward higher requirements for delivery capacity. On the one hand, more riders are joining, and their working time and locations are constantly changing, posing a challenge for high-quality management and coordination. On the other hand, on-demand delivery has developed diverse types, including two-wheeled, four-wheeled and autonomous delivery. The question of how to ensure more efficient and stable fulfillment has become the key for the upgrade of the on-demand delivery industry.
Bing FU noted, “Supply and demand sides of on-demand delivery are more random than traditional logistics, and AI technology is essential to match the two sides dynamically. Meanwhile, we also care about the feelings of customers, merchants and riders, while improving efficiency.”
Dada Now’s smart order dispatch system can realize real-time dynamic match of massive orders and riders. Data shows that the order distribution system plans routes 176 million times per day, with the average order response time being within 10 milliseconds, and the average delivery time being about 30 minutes.