Recent years have witnessed a significant rise in e-commerce, with the Covid-19 pandemic further accelerating this growth. As a result, the last-mile delivery system, which involves transporting parcels from warehouses to customers’ doorsteps, has come under immense pressure. Consultancy firm McKinsey estimates that more than 100 billion packages were sent globally in 2020, a number that could double by 2030, leading to increased traffic congestion and pollution. To address these challenges, the industry has witnessed the emergence of five game-changing technologies that are revolutionizing the last-mile delivery process.
1. Delivery robots: The popularity of delivery robots has soared, with major companies such as Uber Eats and Domino’s Pizza utilizing them. The demand for service robots has increased by 37% in 2021 alone, according to the International Federation of Robotics. These box-sized robots can be seen maneuvering along sidewalks in cities like Leeds, UK, delivering groceries and packages. In Hong Kong, a startup called Rice Robotics has developed delivery robots suitable for various industries, including healthcare and hospitality.
2. Electric delivery vehicles: The growth in last-mile delivery traffic is expected to result in a 32% increase in emissions by 2030, according to the World Economic Forum. To combat this, Amazon, for instance, has pledged to achieve net-zero carbon emissions by 2040 and plans to spend nearly $1 billion on electric vehicles in Europe alone. The company also aims to have 100,000 electric delivery vehicles on the road in the US by 2030, partnering with electric vehicle manufacturer Rivian. Additionally, electric rickshaws and cargo bikes are being introduced in countries like India and Estonia.
3. Smart parcel lockers: Rather than delivering packages directly to customers’ doorsteps, some companies are exploring the use of smart parcel lockers. These lockers reduce the need for repeat deliveries to a single location, thereby minimizing carbon emissions. Belgian startup Bringme is a pioneer in this field, offering secure storage for packages and providing users with QR codes to collect their items at their convenience. Some lockers even come with tailored features, such as temperature control for grocery storage or hot food delivery.
4. Autonomous vehicles: Self-driving vehicles have the potential to play a crucial role in home deliveries due to their larger cargo capacity. Uber Eats has partnered with Nuro, a company founded by former engineers from Google’s self-driving program, to trial their driverless delivery pods in California and Texas. Nuro’s third-generation vehicle can carry up to 500 pounds of groceries and utilizes renewable electricity from wind farms.
5. Delivery drones: While Amazon’s drone delivery service is still awaiting full FAA approval in the US, other companies have successfully implemented drone deliveries. US-based startup Zipline has been delivering medical supplies using drones in Rwanda since 2016, reaching remote facilities with ease. In Ireland, Manna Aero has completed over 100,000 drone deliveries of various goods, with plans for expansion. Research suggests that very small quadcopter drones are among the most energy-efficient delivery methods, with significantly lower energy consumption and CO2 emissions.
These five technologies are transforming the last-mile delivery system, offering innovative solutions to the challenges posed by the growth of e-commerce. Delivery robots, electric vehicles, smart parcel lockers, autonomous vehicles, and delivery drones are reshaping the industry by reducing congestion, pollution, and the reliance on traditional delivery methods. As the global demand for e-commerce continues to flourish, embracing these game-changing technologies will not only enhance efficiency but also contribute to a more sustainable and environmentally friendly future.
