Transforming Urban Logistics 2024

Executive summary The rapid growth of e-commerce has significantly altered consumer expectations, leading to a surge in deliveries. Globally, e-commerce already constitutes more than 20% of retail sales and is adding more delivery vehicles to urban roads. While this brings economic benefits and consumer convenience, it introduces challenges such as increased congestion, emissions and safety risks. Transforming urban deliveries into a more sustainable and efficient system is therefore crucial. Under a business-as-usual scenario, carbon emissions from all urban delivery traffic could increase by 60% by 2030. Despite many consumers indicating a preference for sustainable deliveries, less than 30% are willing to compromise on cost.1 Without significant changes, continued increases in delivery vehicles will exacerbate congestion and emissions, with some cities seeing 80% more delivery vehicles by 2030. Forecasting models, applied to six city archetypes in this paper, indicate a significant rise in congestion, emissions and negative impacts on road safety and noise levels. The urgent need to transition to zero-emission fleets and shared infrastructure is evident, with city governments creating incentives for sustainable deliveries and optimizing kerbside usage. Private-sector stakeholders are also working to adopt new operating models that improve efficiency and reduce congestion and emissions. This paper calls on public- and private-sector stakeholders throughout the value chain to accelerate the transition, and offers recommendations based on existing best practices. These include: Public sector –Integrating delivery operations into city strategies, including through sustainable urban logistics plans (SULPs) –Clarifying and standardizing frameworks and regulations that define how operators interact with the built environment –Collaborating with the private sector to create incentives for safe, innovative and sustainable practices Private sector –Deploying technologies, solutions and collaborative operating models that drive operational efficiencies, such as pick-up and drop-off (PUDO) networks –Accelerating the transition to zero- emission fleets through support for vehicle roll-out and models for financing –Providing consumers with information that will drive support for more sustainable deliveries Collaborative –Planning, innovating and collaborating throughout the delivery ecosystem to provide necessary infrastructure and operating models for the transition –Deploying shared infrastructure, assets and other resources in support of last- mile operations, including microhubs, fleets and parcel lockers –Sharing data that helps to develop a holistic view of delivery operations and achievable insights By promoting a shared commitment to sustainable and innovative practices, the delivery ecosystem can enact change that enhances quality of life and supports a thriving business environment.Without action, emissions caused by deliveries in urban centres could rise by 60% by 2030. Transforming Urban Logistics: Sustainable and Efficient Last-Mile Delivery in Cities 4