Cities are drowning in delivery vans. Thanks to online shopping and denser population centers, our urban streets have turned into a constant stream of last-mile deliveries. Indeed, everyone wants their packages faster and greener. This is the nature of urban local delivery today. From New York to London, Paris to Barcelona, city planners and logistics companies are scratching their heads. They all have the same problem: how to handle this delivery boom without grinding city traffic to a halt.
In this article, I’ll first identify for you the five key factors that are shaping urban delivery today. Next, I’ll look at the roadblocks to achieving fast, cheap, and carbon-neutral last-mile delivery. Lastly, I’ll detail eight key success factors for achieving an optimal urban local delivery solution. So, let’s get started!
1. Examples of the Changing Landscape of Urban Local Delivery.

Urban delivery is experiencing a seismic shift. Cities are bursting at the seams with diesel delivery vehicles, while residents demand faster service and greener solutions. Indeed, we have parcel carriers, retailers and gig workers providing faster and more deliveries to both businesses and residences. Also, these deliveries include everything from hot meals to small parcels to pallets of supplies to large, bulky items. As a result, there is a tension between speed, sustainability, and urban livability in our cities and urban areas. Below are five key factors that are reshaping urban delivery as we know it.
Example of Key Factors Changing the Landscape of Urban Local Delivery
a. Increased Flow of Goods Example: New York Ecommerce.
The explosion of ecommerce has transformed urban streets into rivers of packages. In New York City alone, delivery volumes have reached staggering levels, with approximately 2.4 million packages being delivered daily. To illustrate, in a single square mile of parts of Manhattan there are approximately 35,000 package deliveries every weekday. This surge has forced buildings to convert lobbies into makeshift distribution centers and property managers to become part-time logistics coordinators. The challenge isn’t just volume – it’s velocity. Consumers who once accepted week-long delivery windows now expect their orders within hours.
For more information on how ecommerce is affecting urban areas, see Manhattan Borough’s report, A Blueprint For Tackling the Ecommerce Delivery Challenge. Also see John Mabe’s article, Micro Hubs and Shared Mobility.
b. Commitment to Reduce CO2 Emissions Example: Paris 2024 Olympics
The Paris 2024 Olympics established a new gold standard for sustainable urban delivery. For instance, the organizers slashed their carbon footprint by 54.6% compared to previous Olympics, with logistics playing a crucial role. Specifically, the logistics for the 2024 Olympics meant more use of rail, barges, bicycles, and non-fossil fuel transportation as well as consuming more locally sourced products. For more details, see MIT Sloan Management Review’s article, How the 2024 Paris Olympics Fast-Tracked Decarbonization.
“I want Paris to be a city that can breathe.”
Anne Hidalgo, Mayor of Paris
c. Urban Logistics Need for Public-Private Collaboration Urban Example: London and Paris.
The City of London has taken a proactive approach to work with the private sector to optimize logistics through the development of their Freight and Servicing Supplementary Planning Document. This freight and servicing action plan has taken concrete steps to transform urban deliveries. As of 2018, 22% of weekday traffic consisted of logistics-type of vehicles. London’s logistics plan is designed to reduce traffic as well as several other key urban logistics metrics.
Another example of public-private collaboration was the Paris 2024 Olympics. Here, Paris closed roads to vehicular traffic during the day, encouraging delivery by bike, and providing real-time status of road restrictions within the city.
Indeed, both these cities are taking a proactive approach to collaborate with the private sector to optimize logistics within their urban areas. On the other hand, many urban planners in other cities have not really considered logistics in their current strategies.
d. More Opportunities to Access Real-time Information to Optimize Logistics Example: Singapore and Paris.
Singapore’s Smart Mobility initiative shows how real-time data transforms urban mobility. The city’s AI-driven traffic management systems predict real-time conditions, effectively manage road congestion, and optimize routes. Currently, this initiative is focused on mass transit and traffic in general. However, this system has had a 15% reduction in carbon emissions and the technology is there to further optimize urban logistics. Also as discussed previously, Paris Olympics planners implemented a public information web portal providing real-time information on traffic conditions and restrictions.
For more information on Singapore’s success, see Tomorrow City’s article on Why, Singapore’s Intelligent Transport System. Also, see Dadang Irsyam’s article, Driving the Future: How AI is Powering Singapore’s Smart City Vision for 2030.
e. Evolving Nature of Last-Mile Delivery Example: Barcelona
Currently, there are several urban logistics studies and pilot projects that are focused on last-mile delivery within large cities. Many of these studies have centered on micro hubs where larger cargo vehicles deliver their loads, and then smaller vehicles such as cargo bikes or even autonomous vehicles do the final delivery. For example, IAAC did a study, Envisioning Autonomous Logistics Systems : Eixample. This study focused on Barcelona’s Eixample district and the use of autonomous vehicles such as wheeled robots and delivery drones. Again, these emerging last-mile initiatives need collaboration with urban planners to develop policies to maximize the effectiveness of these innovative approaches. For more information on emerging last-mile urban logistics initiatives, see International Transport Forum’s report, Urban Logistics Hubs.
“It’s estimated that cargo bikes could replace around 51 percent of all motorized freight trips in European cities. And this number could be higher if cargo bikes with electric assistance are used. According to a recent study, in Paris it’s technically possible to pick up and deliver as much as 91 percent of freight using ecargo bikes.”
WIRED
2. The Urban Logistics Challenge: Obstacles to Achieving Fast, Reliable, Cheap, and Carbon Neutral Local Delivery.
The ultimate goal of urban local delivery is speed, reliability, affordability, and carbon neutrality simultaneously. Indeed, this is a complex logistical problem in a constrained urban environment. To identify the best solutions for urban last-mile delivery, we first need to examine the challenges. This includes navigating changing traffic conditions, meeting customers’ fast delivery expectations, maintaining reliability, controlling costs, and reducing environmental impacts. To list, below are key logistics challenges for urban last-mile delivery.
Urban Local Delivery Challenges
- Climate Change Concerns. Green public policy and growing consumer preferences place constraints on logistics operations.
- Skyrocketing Increase in Ecommerce Deliveries. More residential customers with increasing expectations requiring faster same-day deliveries.
- Infrastructure Not Optimized for Logistics. There is a lack of public infrastructure and favorable zoning to support an expanding number of pickups and deliveries.
- High Cost of Real Estate. Logistics facilities cost more in high-density residential urban areas.
- Noise. High density residential areas are more sensitive to noisy logistics activities.
- Large Truck Deliveries. Too many delivery trucks going Into the city making too many stops are causing unnecessary traffic congestion and high CO2 emissions.
- No Logistics Collaboration. The number of logistics providers are increasing that are not collaborative, nor share data or facilities.
- No City Logistics Planning. Cities have difficulty with logistics planning due to a lack of last-mile data.
- Lack of Logistics Visibility. Lack of urban visibility and situational awareness makes logistics less efficient and less flexible.
For more information on the challenges with urban local delivery, see ESCP Business School’s article, Urban Logistics 4.0 and Momentum Magazine’s Paris to Transition to Cargo Bike Delivery During and After Olympic Games. Also, see these resources from BBC, France clamps down on delivery depot ‘dark stores’ and Paola Cossu’s ALICE presentation: The next normal in urban logistics.
3. Eight Key Success Factors for Achieving Optimal Urban Logistics Solutions.
So, what does it take to crack the code to optimize urban local delivery? Well, I do not think there is a “silver bullet”, but there are several key success factors that will advance us toward optimal urban logistics solutions.
Interestingly, a key element for all logistics and supply chains today is interoperability. For both supply chains and urban logistics, interoperability involves three aspects: physical, operational, and digital. Due to the strict logistics limits in urban areas, interoperability is even more essential. Positively, interoperability is a key ingredient for urban logistics success. Specific examples of this type of interoperability includes sharing assets, collaborating with stakeholders, and sharing information. Indeed, these types of actions offer the best return on investment for improving urban last-mile delivery. Even small improvements in interoperability can boost efficiency, enhance service levels, and reduce CO2 emissions. Now, let’s detail the eight key success factors for advancing urban logistics.
8 Key Success Factors for Optimizing Urban Logistics
- Committed City Leadership to Advance Urban Logistics.
- Need for Shared Visibility and Services to Support Logistics Within a Constrained Urban Infrastructure.
- Increase Operational Interoperability and Collaboration for Urban Logistics.
- Improve Physical Interoperability for Seamless Urban Transshipments: Containers, Transport, Handling Systems.
- Need Shared Transshipment Urban Facilities to Transfer Cargo from Inbound Trucks to Lighter, Emissions-Friendly Transportation.
- Maximize the Loads of Logistics Vehicles. This Includes Minimizing “Air” in Packages, Containers, and Trucks.
- Reduced Use of Fossil Fuel in Last-Mile Delivery Vehicles.
- Increase Digital Interoperability to Make Urban Logistics More Proactive, Flexible, and Cost-Effective.
For a detailed discussion with examples of these 8 key success factors for optimizing urban logistics, see my article, Urban Logistics: Here Are the Best Ways for Cities To Achieve Unparalleled Results.
Also, for more from SC Tech Insights, see the latest articles on Supply Chains, ITS, and Interoperability.
Greetings! As an independent supply chain tech advisor with 30+ years of hands-on experience, I take great pleasure in providing actionable insights and solutions to logistics leaders. My focus is to drive transformation within the logistics industry by leveraging emerging LogTech, applying data-centric solutions, and increasing interoperability within supply chains. I have a wide range of experience to include successfully leading the development of 100s of innovative software solutions across supply chains and delivering business intelligence (BI) solutions to 1,000s of shippers. Click here for more info.