City logistics: challenges and opportunities for technology providers

Current last-mile logistics operations are inefficient. The economic competitiveness of logistics service providers is affected by distinct factors, such as the limited time windows they are given to deliver freight in increasingly complex urban environments. This paper presents the different challenges that the sector faces to make its operations more sustainable, from both economic and environmental perspectives. Then, an exhaustive list of measures and initiatives is presented and for each of them, the impact on the different agents involved in last-mile operations is analyzed. This study is expected to help understand the relations between the different actors and design compensatory mechanisms between the parties that mostly benefit from the measures and the most affected ones. Finally, a particular focus is set on the technological developments that are expected to shape the evolution of last-mile operations in the medium or long term. As in the passenger mobility industry, digitization, the emergence of more innovative and modular vehicles, and automation are trends that will undoubtedly affect the market. To maximize the impact of these new technologies, balanced and fair governance schemes and compensatory mechanisms between agents should be designed. The authors believe that the EIT Urban Mobility framework is perfectly adequate to improve this required collaboration between all agents. As a first step towards an increased sustainability of last-mile operations, win-win and agreed measures should be implemented to set the ground for more innovative and disruptive solutions that will emerge in future years.Peer ReviewedPostprint (published version