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VOLT’s model for calculating delivery prices is based on an AI algorithm — no human intervention is needed to determine the appropriate fee. This might seem problematic for some, but when you appreciate how the AI calculates the price, you will see that it is a fair system which operates in the best interests of all parties involved.

Current delivery systems require a human operative at a processing hub to calculate the price of the delivery. Alternatively, it might just be a simple case of the distance traveled, which is a very simplistic method of calculating that doesn’t account for other important factors.

Deep Learning

VOLT has utilized deep learning by gathering delivery data over the last 10 years with a number of variables in mind, which includes distance, region, date, holidays and weather. The automated pricing algorithm calculates the cost using these variables in the following way:

Delivery Date: The date of the delivery is specified and options for weekdays, weekends and national holidays will be available for a fee.

Weather: Poor weather can lead to higher delivery costs.

Distance: Longer distances naturally lead to higher prices.

Region: The delivery to a remote location where messengers may not naturally travel can lead to higher costs. Whereas, destinations in populous areas like city centers will reduce the delivery cost as more messengers will be available to take the contract.

Transportation: The client has the freedom to restrict the messengers to specific types of transportation — for example, by cycling or walking if they are environmentally conscious. The transportation method used will be factored into the cost.

Time: A faster delivery time will demand a higher fee.

These are just some common factors that affect the pricing model, but in reality the calculation will be more complicated. Each of these metrics are examined when a contract is created to ensure that the messengers get paid fairly.

However, clients will not incur extra charges if unforeseen problems arise. Once they agree on a price before the start of the journey, the messenger has the responsibility to ensure the delivery is completed on time and within budget.

Competitive Pricing

The only way that the VOLT model is going to work is if the pricing is competitive compared to the rest of the competition. In the VOLT system, the processing hubs are removed from the equation and savings are passed down to the messengers and clients. Once orders are submitted the information is shared via the Blockhain without the need for centralized processing hubs. This improves the speed of execution and removes the cost that’s associated with the old model. These benefits will help VOLT in seeing success.

Messengers will benefit from this system because much more of the customer’s fees will be paid to them, rather than lost to overhead fees. Commission rates will be transparent so messengers looking to make more many can take unpopular routes, work in remote locations, or deliver during bad weather. The transparency and flexibility of the system allows messengers to feel like they are in control of the work they are getting and the commission they are receiving.

Conclusion

The list of factors that allows AI based algorithms to calculate delivery prices ensure a fair system for everybody. Once wide-scale implementation of the VOLT system is achieved, changes can always be made so that the calculation is improved to provide a favorable platform for messengers and clients. The nature of the automated pricing calculations means the speed of setting up contracts and executing deliveries will be improved. A fair system is guaranteed as the same pricing rules will apply for all users of the VOLT system.