The rise of e-commerce has brought considerable challenges for urban transport systems worldwide. In 2022 alone, 161 billion parcels were delivered globally, with Australian households making monthly online purchases more than ever before. This surge in e-commerce translates to increased parcel deliveries, predominantly carried out by diesel vans and trucks. These vehicles contribute to traffic congestion, parking issues, carbon emissions, and air pollution in urban areas. Among the proposed solutions to mitigate these issues, crowdshipping stands out as a promising, innovative approach.
The Growing Challenges in Urban Parcel Delivery
Surge in Parcel Deliveries
Since the advent of e-commerce, the number of parcels delivered annually has skyrocketed, showing no signs of slowing down. This boom puts immense pressure on urban transport systems, especially during the ‘last mile’ delivery phase—the final leg of the journey from a transportation hub to the parcel’s doorstep. Diesel-powered delivery vehicles dominate this stage, exacerbating urban congestion and pollution. In Australia, the situation mirrors global trends. With 5.6 million households making online purchases monthly, millions of parcels are shipped across urban environments every month. The reliance on high-emission delivery vehicles underscores the necessity of finding innovative and sustainable solutions to alleviate these logistical and environmental concerns.
Environmental and Logistical Impact
High-emitting delivery trucks and vans are integral to the e-commerce supply chain, but their environmental footprint is considerable. They contribute not only to traffic congestion and parking dilemmas in densely populated areas but also to significant carbon emissions and air pollutants. The scalability of these delivery methods comes at a high environmental cost, prompting experts to seek alternative approaches to last-mile logistics. The emphasis on reducing these environmental impacts has led to the exploration of low-emission vehicles, such as electric delivery vans powered by renewable energy sources. However, despite their potential benefits, the global adoption rate for electric delivery vehicles remains below 5% as of 2023. The required infrastructure upgrades, especially for renewable energy vehicle chargers, are time-consuming, highlighting the need for immediate, supplementary strategies.
Crowdshipping: An Innovative Approach
Concept and Mechanism
Crowdshipping introduces a fresh perspective by employing crowdsourcing principles in delivery services. This model engages the public to deliver parcels during their routine commutes, effectively merging passenger transport with freight transportation. By leveraging existing transport infrastructure, crowdshipping minimizes the need for dedicated delivery vehicles and optimizes urban movement. Crowdshipping platforms, like Roadie or DoorDash, facilitate the coordination of parcel deliveries by matching them with available crowdshippers. These crowdshippers can use personal vehicles, public transport, bicycles, or even walk to deliver packages, receiving compensation for carrying parcels along their routes.
Case Study: Singapore’s Crowdshipping Model
Singapore serves as a practical example of crowdshipping implementation. Known for its robust public transport network, utilized by nearly 60% of commuters, Singapore provides an ideal setting for assessing crowdshipping’s viability. Researchers developed algorithms to align parcels with suitable passengers, using real-world delivery and public transport data. The simulation results were promising: outsourcing just 11% of parcel deliveries to public bus passengers led to significant reductions in the need for dedicated delivery vehicles. The travel distances for delivery vehicles decreased by 20%, along with corresponding reductions in emissions. Financially, the approach was viable even after compensating crowdshippers, demonstrating potential cost savings for e-commerce carriers.
Practical Considerations for Crowdshipping
Public Willingness and Incentives
For crowdshipping to succeed, public involvement is crucial. Surveys gauging passengers’ interest in becoming crowdshippers revealed a generally positive reception, driven primarily by the opportunity to earn extra income. Many respondents indicated they would participate if compensation equaled one to two times their transport fare. Maintaining passenger willingness requires setting appropriate incentives. The remuneration must balance the crowdshippers’ efforts and the delivery service’s operational costs. Ensuring a steady participant pool involves effectively communicating the benefits and conveniences of crowdshipping to potential crowdshippers.
Managing Peak-Hour Congestion
An essential consideration in implementing crowdshipping is the potential impact on peak-hour congestion. To avoid exacerbating traffic during busy periods, crowdshipping should be restricted to off-peak hours. This strategy ensures sufficient availability of potential crowdshippers without overwhelming public transport systems during high-traffic periods. By scheduling crowdshipping deliveries during less congested times, the model maximizes efficiency and minimizes additional strain on urban transport. Effective timing coordination is pivotal in achieving a balance between operational smoothness and broader traffic management goals.
Ensuring Trust and Reliability
The success of crowdshipping hinges on trust and reliability. Platforms facilitating crowdshipping must guarantee the verification of crowdshippers’ identities and incorporate real-time parcel tracking to reassure all parties involved. This builds confidence among shippers, carriers, and recipients regarding the security and timeliness of deliveries. Enhancing trust involves deploying robust authentication mechanisms and maintaining transparent communication channels. Ensuring reliable service can significantly boost the adoption rate of crowdshipping, cementing its role within urban logistics frameworks.
Broader Implications and Future Directions
Crowdshipping holds particular promise for cities with established and heavily utilized public transport networks. For these urban areas, adopting crowdshipping could complement existing logistics operations, thereby making city transport systems more sustainable and efficient. To fully realize the potential of crowdshipping, urban planners and logistics providers should undertake data-driven transport modeling and simulation. This approach enables the practical exploration of innovative ideas like crowdshipping, laying the groundwork for pilot programs and broader implementation.
The research conducted alongside Dr. Meijing Zhang from Singapore University of Technology and Design underscores the necessity of integrating passenger and freight transport to streamline urban logistics. Such efforts will contribute significantly to the sustainability and efficiency of urban mobility and logistics operations.
Concluding Remarks
The growth of e-commerce has posed significant challenges for urban transport systems around the globe. In 2022, a staggering 161 billion parcels were delivered worldwide, with Australian households making more online purchases each month than ever before. This explosion in e-commerce has resulted in a noticeable increase in parcel deliveries, mostly handled by diesel vans and trucks. These delivery vehicles contribute heavily to traffic congestion, parking difficulties, carbon emissions, and air pollution in cities.
A notable solution to address these urban transport pressures is crowdshipping. This innovative approach leverages the capabilities of regular commuters or travelers to deliver parcels, reducing the reliance on traditional delivery vehicles. By engaging ordinary people, crowdshipping has the potential to spread the load of deliveries across a broader spectrum of participants, thereby easing traffic and reducing environmental impact. This method not only promises to alleviate some of the logistical burdens but also offers a more sustainable and efficient alternative to traditional parcel delivery.
