Supply Chain Coordination and Contracts in the Sharing Economy - a Case Study at Cargo

How should Cargo, a provider of in-car goods and services for the rideshare economy, most efficiently manage its two-sided supply chain?
Maxime Cohen, C. Daniel Guetta, Wenqiang Xiao  | Spring 2018
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Cargo’s mission is to help “rideshare drivers earn more money by providing complimentary and premium products to passengers.” Cargo sources goods from suppliers to provide a platform for gig economy drivers to run small convenience stores out of their vehicles. Drivers earn additional income, and riders enjoy convenient and affordable access to products during their rides. As the company grew, Cargo faced a number of supply-chain-related challenges including determining the product mix in the Cargo box, replenishment of the product, and the cost of carrying inventory. In particular, would the replenishment decision be driven by the company or the driver and who would bear the responsibility for the inventory cost? The founders also considered how to most efficiently manage its suppliers: Would a centralized or decentralized model best serve Cargo and its drivers? And, how might supply chain contracts with its suppliers help support the company’s profitable growth?

Case ID: 180203
Supplemental Materials: Teaching Note, Excel Spreadsheets, Solutions Spreadsheets , Cargo Instructor Spreadsheet , Cargo Student Spreadsheet
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