Location Analytics for delivery & mobility companies with ground operations
1: Supply-Demand Analysis: Analyzing the gaps between demand & supply

For an on-demand company (aka “Uber for X”), that is primarily a three-sided marketplace, matching demand and supply is at the core of the business and also extremely challenging. Moreover, the real-world introduces far more variation that leads to starker results than in the model.

When supply-demand gaps exist, we are either losing orders or our riders are idle — both of which are contributing to losing money. Normally, every micro-mobility company has a matching algorithm. But, how does that algorithm perform at different times of the day, days of the week, locations? Do they have a pattern? How do you analyze that?

Supply-Demand Analysis. Kepler.gl

Supply-demand analysis helps you decode where, when and why the gap between supply and demand occurs. For every unit of demand which is not met, you have lost an order. For every unit of supply which is idle, you are losing money on your vehicles.

Analyzing the gaps behind supply and demand helps you optimize for metrics such as utilization rate and the number of unserviced orders.

Decisions that can be taken using this analysis

Depending on the time of the day, day of week and location, you can decide:

Rider Incentives: The incentive that needs to be given to the rider to make them move to a particular area of higher demand

The incentive that needs to be given to the rider to make them move to a particular area of higher demand Surges and Discounts: The surges and discounts that we can give to the user to incentivize them to use your service in areas of high supply?

Insights required for taking these decisions

You can analyze the following metrics from the demand and supply side across different locations:

Number of Orders Lost vs Order Frequency: How many orders you are receiving and what percentage of that you are losing?

How many orders you are receiving and what percentage of that you are losing? Idle Supply vs Total Available Supply: How much total supply you have and what percentage of that is idle?

How much total supply you have and what percentage of that is idle? Distance of Lost Orders to Available Supply: What is the distance of orders that you are losing to the nearest idle supply?

Read more about these metrics here:
['Aditi Sinha']
['Analytics', 'Delivery', 'Geospatial', 'Geolocation', 'Mobility']