Businesses and New Technologies That Are Changing the Future of Urban Delivery
Our first article showed how delivery vehicles impact urban areas, highlighting issues such as congestion, environmental concerns and safety for residents. Cities are already taking measures to lessen the impact of delivery vehicles by implementing curb management policies, technology to improve parking, and issuing fees on delivery vehicles in urban areas. In general, such measures help improve urban delivery logistics and inefficiencies within urban delivery. Urban logistics companies are also seeing the inefficiencies in urban delivery. As such, they are taking advantage of the need for a resolution and developing innovative, collaborative technology solutions and business models that address these inefficiencies.
Additionally, urban logistics companies are seeing an increase in consumer demand for more flexibility in delivery time windows, location drop off, as well as increased visibility of their order during the delivery process. Consumers also want to be able to choose sustainable options when they order goods. Research from ReBound found that 75% of respondents favor brands that make their deliveries more sustainable. Retailers are aware of the demand for sustainability, and want to display their brand as environmentally conscious. As such, these companies are implementing and exploring sustainable, new technologies that they can adopt.
Examples of these technologies include electric vehicles, e-cargo bikes, and autonomous technologies like delivery bots and delivery drones.
Delivery Bots
Delivery bots are considered sustainable options for urban delivery.
Delivery bots are one of the main categories of autonomous delivery options. Delivery bots are used primarily for the last few hundred feet of delivery in urban neighborhoods. They drive and navigate using AI algorithms that map out the most efficient routes that the robot can take to get to its destination. The bots have varying levels of autonomy. The Society of Automotive Engineers International defines driving automation from levels 1-5. Currently, the highest level of autonomy that delivery robots can reach is level 4, meaning that the delivery bot does not require human interaction in most cases. Typically, humans must operate the robot remotely using IT technology. However, in level 4 automation, the remote video feed turns off and the robot can navigate autonomously without needing a human to be in the loop. Level 5 autonomy is approaching in the near future, but is not available just yet.
Delivery bots can address challenges in urban logistics because they are considered sustainable options for urban delivery. Additionally, delivery bots are fitting for urban areas due to their small size and their ability to navigate urban landscapes in ways that conventional delivery vehicles may not be able to.
Sustainability
Delivery bots are regarded as a sustainable resource for last-mile delivery, as they are powered by electricity and can help reduce emissions. Delivery bots also reduce congestion in urban areas. This is partially due to the fact that delivery bots are much smaller than delivery trucks or vehicles. The small size of delivery bots allows them to better navigate dense urban environments. Additionally, they are replacing much larger delivery vehicles used for the same task. Both these qualities of delivery bots help reduce congestion caused by conventional delivery vehicles. In addition to that, delivery bots can be programmed to avoid problems such as double parking, cruising for parking, and staying on the curb for an extended amount of time.
WHY ARE DELIVERY BOTS beneficial FOR THE ECONOMY?
Delivery bots also include benefits for the economy and operational efficiency. Delivery bots require less labor costs compared to traditional delivery vehicles, as they do not require drivers. Additionally, unlike conventional delivery vehicles, delivery bots generally do not incur fees for traffic or curb violations. Deploying delivery bots requires expertise in certain skills, which can open up job opportunities. For example, employees will be needed to program, operate and service delivery bots.
Delivery bots create collaborative approaches for jobs in last mile delivery, as they complement the job that delivery drivers need to fulfill. For example, delivery bots can automate the labor-intensive drop off process, which is usually time-consuming and inefficient for delivery drivers. This kind of collaboration allows for more flexibility and more efficient use of resources in last mile delivery.
HOW DELIVERY BOTS CAN BE REGULATED IN CITIES
Cities are beginning to accept the use of delivery bots in the urban delivery scene. Still, cities want to be able to regulate and control how delivery bots are used in their urban environments. There are variations and uncertainties regarding regulations for delivery bots due to their relative newness. For example, the city of San Francisco banned delivery robots from sidewalks in 2017. Conversely, Pennsylvania formally legalized delivery robots on public roads in 2021. Pennsylvania also classifies delivery bots as pedestrians.
Cities want more information about delivery bots and how they work in order to fully accept the use of delivery bots in cities. As mentioned in our last article, the Open Mobility Foundation is an example of the efforts by cities to gain more information about how urban environments are being used by new technologies such as delivery bots.
There are also standards like ISO 4448 that are being developed to help govern how delivery bots operate in urban environments.
Several providers such as Nuro, Boxbot, and more are staking out urban areas to test delivery bots on the streets. Some providers have already implemented their services in urban areas. An example is Starship Technologies, a delivery bot provider with delivery bots that reach level 4 on the scale of autonomy. Like most delivery bots, Starship Technologies delivery bots can only provide short-range deliveries.
Delivery bots are a great innovative solution, but they still have regulatory restrictions and operational constraints such as their operating range and carrying capacity. Additionally, they need to remain in the radius of a hub or charging station. Due to these constraints and uncertainties, delivery bots are slow to be fully implemented into urban delivery. However, delivery bots can still be used as they are, and combining them with other urban logistic technologies would make the last mile of delivery even more efficient.
Delivery Drones
Another technology that is entering the urban last mile delivery scene is the delivery drone. Some delivery drones can be operated autonomously. Similar to delivery bots, some delivery drones are battery-operated and considered a clean transportation option. For several technical and regulatory constraints similar to those of delivery bots, delivery drones are not completely autonomous, and rely on a ground operator. Delivery drones offer faster delivery using shorter and direct routes, which could save time and money. In certain cases, such as in areas with inefficient ground access, the cost of using delivery drones is lower compared to using conventional delivery vehicles. Delivery drones are a sustainable option that does not require use of urban roadways, so they help reduce congestion. However, there are many regulatory constraints limiting their ability to operate over densely populated urban areas, as well as constraints on range and their level of autonomy.
URBAN DELIVERY DRONE REGULATIONS ARE SHIFTING
Delivery drones typically require a Federal Aviation Administration (FAA) air carrier certificate, which is needed to operate delivery drones safely. This regulation classifies how much drones can carry and just how autonomous they can be. Additional aspects of this regulation include flight height, drone weight, and privacy laws.
There are certain regulations for delivery drones in urban areas. For example, the FAA just recently began allowing delivery drones to fly over people or fly during night time. Rules for this vary depending on the category of delivery drones and where they operate. This new regulation opened opportunities for companies to integrate drones into urban logistics. In order to prepare residents for the implementation of drone delivery services, cities are educating their residents about delivery drones to get them acclimated to the new technology. For example, in Los Angeles, Mayor Garcetti introduced the Urban Air Mobility Partnership. It is a program that serves to educate residents about delivery drones and develop a policy toolkit that assists in their regulation and further implementation into urban delivery.
company use of delivery drones
There are multiple players in the drone delivery space. Zipline is an example of a major drone manufacturer that is noted for delivering PPE and medical supplies. Zipline has teamed up with Walmart and Cardinal Health for automated, on-demand delivery to retail pharmacies. FedEx has partnered up with Elroy Air, and is planning to test flights in 2023. UPS partnered up with Wingcopter to develop a new multipurpose drone delivery fleet. Amazon also recently launched delivery drones that do not require human oversight in order for the drone to detect other aircraft or land safely without obstruction.
Delivery drones are an innovative new technology for last mile delivery. However, delivery drones are still very new and there are a few constraints that must be considered prior to fully implementing them into urban delivery. Similar to delivery bots, delivery drones can only travel a short range. They also typically have a limited capacity of cargo they can carry. There are also rules and restrictions that must be considered for the purpose of safety. For example, delivery drones also have to be aware of urban infrastructure such as buildings. In order to do this, pilots must identify the height of the tallest structure in the area and add a margin so that the drone does not get in the way of any obstacles. Additionally, they must be kept within close range, and typically need a visual observer to help maintain line of sight. These technical and regulatory constraints, along with the safety measures, are a few things that can slow the adoption of delivery drones in urban areas. However, like delivery bots, if delivery drones are supplemented with other last mile technologies, they can be deployed in their current regulatory and technical state.
E-Bikes and E-Cargo Bikes
E-bikes are bicycles equipped with electric motors to assist the driver when pedaling. The motor gets its power from a rechargeable battery that is mounted on the bike. Similar to e-bikes, e-cargo bikes have pedal and motor assist. E-cargo bikes are equipped with space either on the front or back of the bike that can be utilized for delivery hauls. E-bikes and e-cargo bikes usually provide varying levels of assistance. For example, some e-bikes have a walk-assist mode, which is beneficial for delivery drivers making stops. E-bike batteries usually give a range of 20-100 miles or more on a full charge, depending on their capacity. Some control systems give an estimated range as drivers ride or regulate the power output to let drivers achieve their planned ride distance.
E-bikes and e-cargo bikes are a sustainable, innovative way to make urban last mile delivery far more efficient. The traveling and operational assistance that e-bikes provide help delivery drivers navigate urban roads better. E-bikes have environmental benefits as well. Cities are beginning to pilot more e-bike testing programs and creating policies that encourage the implementation of e-bikes into the urban freight system.
HOW REGULATIONS ON E-BIKES VARY
E-bikes are becoming increasingly popular, so cities are getting more involved in defining e-bikes and delineating regulations on them. For example, Boston is launching an e-cargo bike pilot program that focuses on deliveries to and from small businesses. In the state of Massachusetts, legislation is being passed to regulate e-bikes as bikes instead of mopeds. Similar efforts are also being pursued in other states. For example, Birmingham and Baltimore are two cities that have integrated e-bikes into their bike sharing schemes.
Regulations placed on e-bikes and e-cargo bikes in cities help improve infrastructure for the bikes, and help successfully implement them into urban delivery. Regulations about how much help the motor can supply and the speed vary from one city to another. State wise, the law generally permits e-bikes to be powered by the motor alone or assisted by the driver. The motor is usually limited to a certain watt output, and must cut out at a certain speed. Certain constraints on speed and power are necessary for e-bikes to be considered bikes and be able to use infrastructure such as bike lanes. To that end, 26 US states have created a three-tiered e-bike classification system that differentiates between models with varying speed capabilities. States also offer incentives for the use of e-bikes such as exemptions from registration, license, and insurance requirements to differentiate e-bikes from other motorized vehicles.
States are delineating e-bikes differently. For example, in certain states like Delaware and Vermont, e-bikes and e-cargo bikes are generally regulated the same as traditional bikes, allowing e-bikes to have the same rights and responsibilities as bicyclists. For example, in these states, e-bikes are usually allowed to operate on facilities like bike paths or greenways.
On the other hand, many states allow localities to enact stricter operation regulations on e-bikes. For example, some states require an operator’s license to ride an e-bike. Further, some states do not allow e-bikes to be used on bike lanes.
THE NUANCES OF IMPLEMENTING E-BIKES AND E-CARGO BIKES
Delivery service providers are realizing that e-bikes are an efficient way to reach climate goals for last-mile delivery, such as net-zero emissions and carbon neutrality. Delivery service providers also understand that e-bikes are efficient for operation in urban areas. For example, e-bikes can provide a cheaper, faster way to travel in urban areas during peak hours.
Cities are also creating infrastructure in order to efficiently implement e-bikes and e-cargo bikes into urban delivery. For example, some cities implement quick build projects such as pop-up bike lanes and dedicated loading zones for delivery. Adding city infrastructure benefits the economy, the environment, and public health. This also incentivizes delivery service providers to explore ways to integrate this technology into their existing fleets.
Delivery service providers, however, have to take into account the challenges of deploying e-bikes and integrating them into existing fleets. E-bikes require different infrastructure and resources to operate and maintain them. They also require the proper technology for routing, dispatching, and efficient fleet management. Additionally, e-bikes come in different shapes, sizes, and and have different capacities. Providers want to select the right design of e-bike for their operations and urban logistics needs.
These nuances in e-bikes have created opportunities for companies to create and implement solutions for delivery service providers. Cycle is an example of a startup that provides maintenance for delivery service providers by allowing companies to book an appointment to fix their e-bikes. Zoomo is another company that provides full maintenance and customer support as part of the subscription they offer.
Operators need to address nuances when integrating e-bikes into their existing fleets.
Manufacturers offer a wide variety of e-bikes with different capabilities and models for delivery service providers to choose from. Tern Bikes is a company that manufactures a variety of e-cargo bikes with different sizes and cargo space. RYTLE, a German e-cargo bike company who has supplied UPS and DHL offers a charging attachment with their e-bikes. RYTLE also offers operational help— the company has a mobile depot and detachable cargo box solution that can be integrated into the urban transportation system. Coaster Cycles is another manufacturer that offers four models of e-bikes with different sizes, varying measurements of cargo space and accessories (such as cargo top boxes and enclosures) that fit the various needs of different delivery service providers.
Some manufacturers offer technologies to help manage fleets as well. For example, the RYTLE app offers route planning for last mile delivery service providers through their app. Specialized technology companies have also developed solutions to these challenges. For example, Curbhub has developed proprietary fleet orchestration technology that enables delivery service providers to integrate new transportation options such as e-bikes into their existing fleets.
While e-bikes and e-cargo bikes are efficient, and states are beginning to test e-bikes out within urban infrastructure, the regulations on e-bikes vary and can slow the integration of e-bikes into urban delivery. Additionally, e-bikes and cargo bikes have distance constraints, are classified differently depending on the area, and also have charging needs. E-bikes also take different routes from conventional delivery vehicles. Successful deployment requires operators to address these nuances when integrating e-bikes into their existing fleets.
Electric Vehicles
Electric vehicles are also a popular option for delivery service providers who want to make last mile delivery more efficient. Their zero tailpipe emission makes them preferable to operate in dense urban environments with emission restrictions. The cost of owning and operating these vehicles is also slowly declining, and the demand for clean commercial vehicles is increasing. There are different kinds of electric vehicles.
All-electric vehicles are electric vehicles that do not have conventional engines. All-electric vehicles are driven solely by one or more electric motors that are powered by energy stored in batteries. The battery is charged by plugging the vehicle into an electric power source. Most all-electric vehicles can travel at least 100 miles on a charge. Many new electric vehicles offer a range of 200-300 miles, and the range is steadily increasing.
Plug-in hybrid electric vehicles (PHEV) are electric vehicles that use batteries to power the electric motor and another fuel, like gasoline, to power a conventional engine. The batteries are charged by plugging the PHEV into an electric power source, but PHEVs can also be charged by the conventional engine. PHEVs have an electric driving range of 15-50 miles, depending on the model.
Electric trucks and vans are becoming viable alternatives for last mile delivery service providers. Companies are incentivized to electrify their delivery fleets due to government subsidies and regulations promoting electric vehicles. In addition, electrifying the delivery fleet reduces maintenance costs, reduces the cost of fuel, and is considered sustainable.
why are electric delivery vehicles becoming more popular?
The electric vehicle market is growing. The global compound annual growth rate (CAGR) of electric vehicles is 18.2% from 2021-2030. More specifically, the global electric truck market is expected to register a CAGR of 26.4% from 2021-2030. The increased popularity and availability of electric vehicles is partially due to new policy measures and financial incentives that states and countries are implementing. At least 47 US states offer incentives to support the deployment of electric vehicles. States support electric vehicle infrastructure through legislation or private utility incentives within the state. Examples of legislative incentives for electric vehicles include HOV lane exemptions, vehicle inspection and emissions test exemptions, and parking incentives.
Many incentives are also beneficial for providers that are electrifying their commercial delivery fleets. For example, the Massachusetts Department of Environmental Protection is offering almost 2 million dollars in funding for projects that will reduce diesel truck emissions across the state. Another program designed to reduce air pollution is the MOR-EV Trucks Program in Massachusetts that also aims to increase the use of electric trucks and vans. The MOR-EV Trucks Program offers rebates for public purchases or leasing of qualified new vehicles.
The increase in policy measures and environmental regulations is also a reason for the surge in electric vehicles. The California Air Resources Board launched the Advanced Clean Fleets regulation requiring truck manufacturers to transition from diesel trucks to electric zero-emission trucks starting in 2024. This puts California on the path for zero emission last mile delivery vehicles by 2040. Additionally, the Clean Trucks regulation of California requires truck manufacturers to increase their percentage of zero emissions vehicles so that medium and heavy duty truck sales are all zero emissions vehicles by 2050.
regulations on electric delivery vehicles
While policies and incentives are in place to boost purchase and market share of electric vehicles, cities and states will have to prepare themselves to fully implement electric vehicle delivery in urban areas. For example, cities will need to advance their communities’ EV readiness in order to prepare for the growing number of electric delivery fleets on the road. They can do this by developing EV-related infrastructure, policies, and services. Many states have adopted electric vehicle action plans, including existing standards that require manufacturers to sell a certain number of electric vehicles per year. Some specific plans include development for transitioning medium-heavy duty and transit vehicles to zero emission vehicles, properly implementing charging stations, and more. For example, the Biden-Harris administration has committed to construct a national network of 500,000 electric vehicle chargers by 2030.
The standards will ensure a unified network of chargers with similar prices, speeds and more. Still, cities need to be thoughtful about where they implement public charging infrastructure. For example, implementing EV charging infrastructure in low-income neighborhoods could lead to rent speculation and higher housing prices. A majority of these low-income neighborhoods are located in urban areas that are disproportionately impacted by the issues that delivery operations cause or add to. Plans such as the Florida Electric Vehicle Roadmap can help address this issue by identifying the impacts of implementing EV charging infrastructure in urban areas.
These regulations address not only the lack of infrastructure for electric vehicles in urban areas but the impacts of such infrastructure and how to mitigate them. They can also help prepare residents for the implementation of electric vans and trucks in urban environments due to the infrastructure that they require.
companies are committing to fleet electrification
Several major delivery service providers are implementing electric vehicles into their delivery fleets. For example, UPS has committed to purchase up to 10,000 electric vans from Arrival, a UK startup that provides electric vans that are compatible with all major charging systems. Rivian is an electric vehicle company that is serving major delivery service providers such as Amazon— Amazon is committing to integrate 100,000 of Rivian’s delivery vans on the road by 2050. Walmart has announced that they will buy 4,500 electric delivery vehicles from Canoo, a startup company that develops and manufactures electric vans and trucks.
Other companies like BrightDrop — which FedEx recently partnered with — provide electric delivery vans as well as support with charging infrastructure. Proterra is a similar example of a company that creates zero emission electric vehicles designed specifically for delivery trucks. Proterra also provides route modeling to assist delivery service providers in determining routes that are best suited for electrification, something that could benefit urban delivery areas.
Delivery service providers are becoming increasingly aware of the benefits of electrifying delivery fleets, and they are committing to and even going beyond policies that require the electrification of delivery fleets.
sustainability
Electrifying the heaviest, most fuel-consuming vehicles such as conventional delivery vehicles gives more reach towards meeting emissions targets. Electric delivery vehicles typically have a lower carbon footprint than gasoline powered delivery vehicles. Additionally, greenhouse gas emissions associated with manufacturing, charging, and driving an electric vehicle are typically lower than the total greenhouse gas emissions associated with a gasoline vehicle.
Electric vehicles are ideal for urban delivery applications which typically involve multiple stops. Most electric delivery vehicles can utilize regenerative braking, which allows them to recover the energy that would typically be lost due to frequent stopping.
Though the electrification of delivery fleets certainly is an innovative solution that companies are implementing increasingly, there are still some barriers to implementing electric vehicles into urban delivery. Issues include insufficient charging infrastructure at delivery terminals, production delays, and existing routing and fleet management technologies struggling to account for the nuances of operating electric delivery vehicles. There is still work to be done to capture the full potential of electric delivery vehicles for urban logistic applications.
Managed Clean Delivery Services
The growing concerns around urban delivery logistics issues, sustainability of urban delivery, and the growing demand for clean delivery options from consumers have created opportunities for companies to offer managed clean delivery services to retailers. Such companies might implement a number of new technologies such as e-bikes, electric vehicles, delivery bots and more. One prominent example is HIVED, whose mission is building a scalable, zero emission parcel delivery network. Their delivery fleet includes electric vans, e-cargo bikes, and electric mopeds. Businesses that want to offer sustainable delivery options can use HIVED as their delivery service provider.
Another example of such a service is Green Courier, a company that is based in the UK. The company determines the type of service that is required by considering the size, weight and urgency of each consignment delivered by Green Courier. The fleets include bicycles, motorcycles, and low emissions vans. Green Worldwide Shipping is a US based courier service that offers tech, global trade consulting and green freight services.
These companies all work to provide low emission clean delivery services to different merchants and shippers. This can enable more shippers and merchants to take advantage of the growing demand for sustainable delivery and be able to offer that to their customers without having to navigate the nuances of implementing new technologies into their existing operations.
Conventional delivery vehicles are not always ideal for cities, and can exacerbate urban delivery inefficiencies. We have seen how cities implemented regulations and infrastructure for an improved urban delivery environment. Urban logistics players such as manufacturers and green courier services have also shown how they are taking advantage of the growing demands for sustainability and efficient last mile delivery by developing new technologies and business models. While each technology has its benefits, they also are restricted by regulatory and technological constraints and challenges that slow their deployment in the urban delivery scheme.
However, instead of waiting for these technologies to fully mature or introduce them into urban environments one by one, logistics players should combine these technologies, allowing their different uses and capabilities to complement each other. This will help truly make urban delivery efficient and tie together these new, innovative technologies.