The much-acclaimed "Amazon Effect" combined with the rise of the on-demand gig economy is disrupting the way traditional last-mile delivery systems were visualized. Consumers now anticipate delivery services to be much faster than what was the norm a decade ago and expect to gain more visibility into the movement of their goods across the value chain. 

Predictably, this has caused an increase in traffic on the streets, especially in urban settings where traffic bottlenecks are a frequent occurrence. An amalgamation of consumer expectations and taut logistics processes push civil authorities to consider an overhaul of existing transport systems, by rethinking the way last-mile logistics services are managed. 

"Consumption trends have multiplied point-of-sale through ecommerce. Every time you order something at home, it becomes a shop where the product arrives and the trade ends. This means that interactions with customers need to be more specific and granular in order to engage with them," said Javier Esquillor, co-founder of el relevo, a Spain-based last-mile cycle logistics cooperative. 

Esquillor explained that urban transport infrastructure needs to be restructured to have vehicles that are optimized to suit last-mile delivery, which he called "capillary vehicles" – the ones that are versatile enough to move through restricted traffic conditions while creating minimal impact. 

"The more congestion there is on the streets, the more advantageous it is for capillary vehicles. With the proliferation of capillary vehicles, there will be lower emissions on the streets, which will give these vehicles an advantage over conventional vehicles. For instance, a human-powered cycle will pollute less than an electric cargo bike, which in turn is cleaner than an electric van," said Esquillor. 

Breaking down the building blocks of a last-mile logistics delivery process will give cities a clearer perspective on what needs to be tweaked for a sustainable transport system of the future. Esquillor contended that the key indicator to make a choice between different low-to-zero emissions vehicles is the delivery efficiency per unit in terms of traffic conditions and business performance – for both logistics services and original sellers. 

"If we put into the mix, all these factors including consumption patterns and traffic conditions linked to congestion and the environment, low-to-zero emissions delivery trend will only keep growing," said Esquillor.

It is here that cargo bikes – be it human-powered or electric – can actually make a difference, as they can bypass lanes and avoid congestion. Two-wheeled vehicles can weave through traffic without disturbing the environment while making deliveries faster, sustainable and safer. 

However, Esquillor pointed out that the push is not necessarily targeted at moving freight via cargo bikes, but to make sure delivery methods look to improve utilization rates, and not be a deadweight to urban areas or assets. Cities, for instance, are already dedicating large swathes of their real estate to urban transit and logistics, which, if optimized and used efficiently, can bring out tremendous change. 

Collaboration between conventional logistics business models and the contemporary ___ (what?) is critical to plug the utilization holes. Digitization of processes will lead to a scenario where algorithms can be applied through freight-collaboration platforms that can deliver cost efficiency savings.