Abstract
e-Grocery is one of the e-commerce sectors whose growth has increased significantly. This condition indicates the transition from conventional to online shopping and impacts the rate of home delivery services. Consequently, it may cause home delivery trips to produce the same or even greater externalities compared to conventional shopping trips. This study is aimed to analyze the effectiveness of home delivery based on the external cost aspect. Home delivery trips are analyzed using travel diary data of a grocery delivery service provider, whereas the conventional shopping trips are analyzed using the data taken from the consumers of conventional shopping. Compared to conventional shopping trips which are dominated by cars, home delivery using motorcycles produce an external cost of 23%-57% lower. In order to increase the effectiveness of home delivery, consumers are required to choose more than onetime window. This will provide a greater opportunity to do more efficient delivery routing.
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