The city logistics-based business model: a series of components

PurposeEmpirical studies show that 96% of the city logistics projects failed to become permanent, mainly due to the lack of sustainable business models (Quak et al., 2014; Malhene et al., 2012). Accordingly, it was concluded that the need of business model specifically designed for city logistics is high (Benjelloun, 2010). However, researchers have yet to describe the components and their interrelations of the city logistics-based business model. In this context, the purpose of this paper is to identify and describe the components of the city logistics-based business model and their interrelations.Design/methodology/approachThe paper makes a literature review of Osterwalder’s and Pigneur’s general business model and a literature and practice city logistics projects and identifies the components of the city logistics-based business model. Thus, the components of the city logistics-based business model are identified in parallel to the components described by Osterwalder and Pigneur in the general business model and the current projects.FindingsThe analysis led to identify and describe the components of the city logistics-based business model. The study highlights that the business model is a series of components. In addition, the study clarifies the owner and the scope of the business model. All the identified components provide insights into the city logistics-based business model.Research limitations/implicationsThe proposed business model can be adopted by public and private authorities to design the business model of a city logistics initiative. A limitation of the study is that it only focuses on the european projects. Another limitation of the study is that it is focused only on the most reported projects and those that provide exemplars of the implementation of the business model.Practical implicationsThe proposed business model can be implemented in various scopes in city logistics projects, and can engage all the sub-business models that are contained in the city logistics system.Original/valueThe research defines the city logistics-based business model and identifies and describes its components and their interrelations.Keywords: city logistics, business model, city logistics-based business model, components, interρelation, scope, owner, business area