Sustainable Last Mile Delivery – More than Reducing CO2 Emissions

The findings of i-Smile indicate that there is a need to broaden the discussion on sustainability in the last mile. The business models introduced in the previous section demonstrate that there is growing interest in practical iterations of improving last mile practices and making them more sustainable from diverse social and environmental perspectives.

However, currently the focus relies heavily on CO2 emission. Reducing CO2 emission and other greenhouse gases (GHG) is in itself a very important goal, but sustainability work could benefit from a larger view on sustainability aspects, as visualized in Figure 8. The last mile is very complex and contains a multitude of stakeholders, including, but not limited to customers, retailers, logistics service providers (LSPs), cities/municipalities, and citizens. All these stakeholders hold different interests when it comes to sustainability. Especially social sustainability has been identified as an underrepresented research topic in both previous research and in this project, and a better understanding of the scope of sustainability as well as the varying interests is needed to facilitate a better adoption rate of sustainable innovations in last mile delivery (Kiba-Janiak et al., 2021).

As businesses are built on the premise of economical sustainability and profit-making, this remains the most researched topic within the last mile. The research project has revealed that managers of retailers and LSPs alike still mainly consider CO2 emissions and in terms of social sustainability, working conditions. This means that considerations like safety, noise pollutions, microparticles from wheels and other important effects of the last mile remain largely unaddressed by businesses. Thus, the research in the i-Smile project has been focusing on both the environmental and social considerations within the last mile and urban delivery.

Figure 3 Factors of sustainability in last mile deliveries

Figure 3 illustrates the different aspects of sustainability described in research literature as being of importance when discussing sustainability in the last mile.

Environmental and social considerations in the last mile

In this report environmental sustainability focuses on CO2 emissions. However, the full scope of environmental sustainability needs to be included when considering environmental sustainability for the last mile. This means all sustainability related challenges pertaining to the environment, including CO2, nitric oxide (NO), nitrogen dioxide (NO2), sulphur dioxide (SO2) emissions, microparticle emissions (PM10), and direct and indirect effects on biodiversity. Some examples of environmental considerations and their effect on the last mile:

Using delivery droids (curb-side autonomous delivery robots) can be a cost-efficient way to improve environmental sustainability, but trade-offs include social sustainability challenges regarding safety and equity
The environmental sustainability of LMD depends partly on to which degree the delivery can substitute the customers personal car travel, and by which means the freight of the delivery is organized
Efforts like using more environmentally friendly LMD vehicles such as cargo bikes and automated delivery vehicles can block traffic flows, so traffic effects need consideration in the adoption of such solutions

Social sustainability refers to all social impacts, challenges, and considerations caused by the last mile. Here it is important to highlight not just the workers, but also the consumers, as well as society at large as social stakeholders. Examples include worker rights in the platform economy, safety and accessibility of services for consumers, and the effect the last mile can have on the liveability of urban space. Due to the complexity of sustainability issues, many concerns are intertwined, for example how noise pollution affects both the health of citizens and urban wildlife. Especially new LMD schemes brought by the platform economy have highlighted issues like working conditions, road safety, bad weather conditions, overloaded cargo bikes and other work-related accidents as well as issues with employment status and payment uncertainty. Some recent social sustainability issues identified for workers within LMD are time pressure and tight deadlines and country specific work regulations that impact working conditions. The pandemic brought new pressures and safety risks for delivery riders, as they faced long working hours and job pressure as well as a fear of financial loss leading to speeding and other risky behaviours. Social sustainability issues for the end-customer related to LMD include the available delivery times and opening hours that can cause segregation, the security of parcels and the security of the customers when picking up deliveries, as well as the availability of deliveries to underprivileged populations.

Urban space

The concept of urban space varies considerably depending on geographic locations. Issues such as traffic congestion, traffic safety, and pollution are examples of some over-arching issues, but the scales vary significantly. Citizens are particularly focused on alternative, eco-friendly transportation modes like walking, public transit, and cycling, and these were not given sufficient attention.

Safety in urban areas, including concerns related to the LMD process, was a recurring topic. Many citizens expressed reservations about picking up orders from parcel lockers, deeming them unsafe. Logistical operations, particularly the presence of delivery vans, were viewed as encroaching on urban space, often at the expense of pedestrians and cyclists. Several participants cited concerns about food delivery services, where multiple vehicles would converge on the same city block due to separate orders. Even when couriers used electric bikes or scooters, they were perceived as disregarding standard traffic regulations, leading to disruptions.

In terms of LMD, citizens have strong interest in exploring various vehicle types, including electric and autonomous vehicles. However, citizens also acknowledged that they had not fully grasped the relationship between lighter, more efficient vehicles and the optimal use of urban space. In particular, the potential expansion of Autonomous Delivery Vehicles (ADVs) sparked curiosity. Citizens from Helsinki have had experiences of a robot delivering groceries, highlighting the evolving nature of last-mile delivery in urban settings.

Key points to consider in the context of urban space and last-mile delivery:

Variation in Urban Space: Urban space dynamics differ based on geographical location, leading to varying transportation preferences and infrastructure priorities.
Traffic Congestion: Some cities, like Vancouver, face significant traffic challenges, which affect transportation choices and prioritization of eco-friendly options.
Safety Concerns: Participants expressed safety concerns related to LMD, including the safety of picking up orders from parcel lockers.
Logistical Intrusion: The presence of delivery vans and multiple delivery vehicles in urban areas was perceived as encroaching on space designated for pedestrians and cyclists.
Disruptions in Traffic: Participants noted that couriers, even on electric bikes or scooters, often did not adhere to traffic rules, causing disruptions in urban traffic flow.
Interest in Alternative Vehicles: Participants showed a keen interest in exploring electric and autonomous vehicles for last-mile delivery.
Potential for ADVs: Autonomous Delivery Vehicles (ADVs) garnered attention, representing a potential evolution in last-mile delivery solutions.
Evolving Last-Mile Technologies: The use of robots for delivering goods, as seen in examples like the robot delivering groceries in Helsinki, highlights the ongoing technological advancements in last-mile delivery.