by OMS Admin

The transportation of goods from a local distribution centre to the final destination, usually the customer’s doorstep, is known as last mile delivery. This process has a considerable environmental impact due to the large number of vehicles involved and the long distances travelled. The challenges are even more significant in urban areas, where population density, congested roads, limited parking space, and multi-story buildings make delivery more difficult. These difficulties can result in delayed deliveries, higher costs, and lower customer satisfaction. This article will examine the challenges and potential solutions for last mile delivery in urban areas.

Key Facts

  • Last-mile delivery accounts for 53% of the total shipping costs.
  • After a negative delivery experience, 84% of customers would not shop again with a retailer.
  • For 70% of consumers, fast and convenient delivery service with friendly customer service is crucial.
  • 90% of customers consider two- to three-day delivery as the standard, while 30% expect same-day delivery.
  • Amazon ships over 6 million packages every day, equivalent to 66,000 orders per hour or 18.5 orders per second.
  • Local fulfilment centres could reduce last-mile emissions by 17% to 26% by 2025.
  • By 2030, there could be a 32% increase in carbon emissions due to urban delivery traffic.
  • The top 100 cities globally could see a 36% increase in delivery vehicle numbers by 2030, leading to congestion rising by over 21%, resulting in an additional 11 minutes of commute time for each passenger every day.

Challenges of Last Mile Delivery in Urban Areas

In urban areas, it becomes even more challenging due to the high density of population, congested roads, limited parking space, and delivery to multi-story buildings. The following are some of the significant challenges associated with last mile delivery in urban areas:


Urban areas are known for their high population density and heavy traffic. The roads are often clogged with cars, buses, and other vehicles, making it difficult for delivery drivers to navigate through traffic and reach their destination on time. This can lead to significant delays in delivering goods to customers, resulting in reduced customer satisfaction and increased delivery costs.

The congested traffic in urban areas can cause delivery vehicles to move slowly or come to a complete standstill, especially during peak traffic hours. The delays can add up quickly, making it challenging for delivery companies to meet the delivery deadlines they have promised their customers. The longer it takes for goods to be delivered, the more frustrated customers become, leading to increased customer complaints and negative feedback.

Limited Parking

Parking is a major issue in urban areas, and delivery trucks often face difficulties finding a parking spot close to the delivery location. The limited parking spaces available in busy urban areas often force delivery trucks to park far away from the delivery location. This can create a number of issues for delivery personnel who have to transport packages from the truck to the customer’s doorstep.

The longer walking distances created by the lack of available parking spots can lead to increased delivery times and can even result in additional delivery costs due to the need for more personnel to transport packages. Furthermore, delivery trucks parked illegally or in restricted areas can be subject to fines and penalties, adding to the cost of delivery operations.

Multi-story Buildings

In urban areas, multi-story buildings are a common feature of the landscape, and many customers live on higher floors. This presents a unique challenge for delivery personnel who have to navigate through these buildings to deliver packages to customers. Carrying heavy packages up several flights of stairs can be physically demanding and can cause delays in the delivery process.

In some cases, delivery personnel may have to spend additional time waiting for elevators or finding the correct apartment, which can further add to delivery times. The physical strain of carrying heavy packages up several flights of stairs can also lead to injuries and fatigue for delivery personnel, which can have a negative impact on their productivity and job satisfaction.

Security Concerns

Urban areas are often associated with higher crime rates compared to suburban or rural areas. This can create a significant risk for delivery personnel who are responsible for transporting valuable packages to customers. In urban areas, theft and vandalism of packages are common occurrences, and delivery personnel need to take extra precautions to ensure the safety and security of the packages they carry.

To address this challenge, delivery companies are implementing various security measures such as GPS tracking, tamper-evident packaging, and real-time surveillance. GPS tracking allows companies to monitor the location of packages in real-time, which can help them identify potential theft or diversion of packages. Tamper-evident packaging is designed to reveal any attempt to open or tamper with the package, which can alert the delivery personnel to potential theft. Real-time surveillance systems can help detect any suspicious activity around delivery trucks or delivery locations and can notify the authorities in case of an incident.

In addition to technological solutions, delivery companies are also working with law enforcement agencies to prevent theft and vandalism of packages in urban areas. By building strong relationships with local police departments, delivery companies can share information about potential security threats and develop proactive strategies to prevent theft and vandalism.

Environmental Impact of Last Mile Delivery

Last mile delivery is often associated with high emissions and environmental damage due to several factors. First, the use of fossil fuel-powered vehicles such as trucks, vans, and cars emit carbon dioxide and other harmful pollutants into the atmosphere. These emissions contribute to climate change and air pollution, which can harm human health and ecosystems.

In addition to emissions, last mile delivery can also lead to traffic congestion, particularly in urban areas where there are more delivery destinations and less space for vehicles. Traffic congestion can cause delays and increase the time it takes for delivery vehicles to complete their routes. This results in more fuel consumption and emissions, as well as increased wear and tear on vehicles, which can lead to higher maintenance costs and lower fuel efficiency.

Furthermore, last mile delivery can also lead to noise pollution, particularly in residential areas where deliveries are made early in the morning or late at night. The use of large, noisy vehicles and equipment can disrupt the sleep and quality of life of nearby residents, leading to negative health impacts and reduced quality of life.

To mitigate these environmental impacts, companies and policymakers are exploring alternative delivery methods, such as electric and hybrid vehicles, bike and foot couriers, and drone deliveries. These alternatives can reduce emissions and traffic congestion, as well as improve delivery efficiency and customer satisfaction. Additionally, there are efforts to encourage the consolidation of deliveries, which involves grouping multiple deliveries to a single location, reducing the number of trips and vehicles required for delivery. Overall, reducing the environmental impact of last mile delivery is an important issue that requires collaboration between businesses, policymakers, and consumers to achieve a sustainable and efficient supply chain.

Strategies for Sustainable Solutions

Electric Vehicles

One of the most promising solutions to reduce the environmental impact of last mile delivery is the use of electric vehicles (EVs). EVs have lower emissions and are more energy-efficient than traditional fossil fuel-powered vehicles, making them an environmentally friendly alternative for transportation. They can also reduce noise pollution and improve air quality. Unlike traditional vehicles, electric motors are much quieter and produce fewer emissions, which can lead to a healthier and more pleasant urban environment.

Cargo Bikes

Another sustainable solution for last mile delivery is the use of cargo bikes such as CityQ. Cargo bikes are an environmentally friendly and cost-effective alternative to traditional delivery vehicles. They have a smaller carbon footprint and can navigate through congested urban areas more easily, making them an ideal option for last mile delivery in cities.

Cargo bikes are designed to carry heavy loads and can accommodate various types of cargo, including packages, groceries, and even furniture. Some cargo bikes have a cargo box, or a trailer attached to the bike frame, which allows for larger and heavier loads to be transported. The CityQ electric cargo bike aims to replace cars and vans with a more efficient and sustainable electric bike that offers similar capacity, comfort, efficiency, and safety. With its innovative design, the CityQ electric cargo bike is a promising solution for last mile delivery and transportation in urban areas. Compared to traditional modes of transportation, the CityQ range of ebikes is 90% more sustainable, making it a more environmentally friendly option for city dwellers.


Consolidation of deliveries is another sustainable solution for last mile delivery that has gained attention in recent years. This approach involves combining multiple deliveries to a single location, reducing the number of vehicles and emissions needed for each delivery. There are various ways to consolidate deliveries, including hub-and-spoke models, where goods are transported to a central hub and then distributed to local areas, and peer-to-peer models, where individuals or businesses serve as delivery points for other local recipients.

By consolidating deliveries, companies can optimise their routes and minimise the number of vehicles needed to deliver packages. This approach can also reduce traffic congestion and improve air quality, as fewer delivery vehicles are on the road. By reducing the number of delivery vehicles, consolidation of deliveries can also lead to cost savings for companies, as they can lower fuel and maintenance costs and optimise their operations.

Route Optimisation

Route optimisation is a strategy for sustainable last mile delivery that involves optimising delivery routes to minimise distances travelled and reduce emissions. This approach can be achieved through the use of advanced technology such as GPS and mapping software that allows delivery personnel to identify the shortest and most efficient routes for package delivery. This approach can also improve delivery times and customer satisfaction as packages can be delivered more efficiently and on time.

The use of advanced technology such as machine learning and artificial intelligence can further enhance route optimisation. These technologies can analyse data on traffic, weather, and other factors to provide real-time route optimisation suggestions, enabling delivery personnel to quickly adjust their routes and avoid delays.


Packaging is an essential aspect of last mile delivery, and it also plays a significant role in sustainable delivery practices. Companies can use eco-friendly packaging materials, such as biodegradable plastics, to reduce the environmental impact of their deliveries. Biodegradable plastics are made from plant-based materials and are designed to break down naturally over time, making them a more sustainable alternative to traditional plastics. These materials can be used to create packaging that is both durable and eco-friendly, helping to reduce the amount of waste generated by the delivery process. Another sustainable packaging option is reusable packaging, which involves using containers that can be returned and reused for future deliveries. This approach reduces the need for single-use packaging and can help to reduce waste and the environmental impact of last mile delivery.


Collaboration between companies can play a vital role in promoting sustainable last mile delivery. By sharing resources and coordinating their delivery operations, companies can reduce the number of vehicles on the road, minimize emissions, and contribute to a more sustainable future.

One way that companies can collaborate on last mile delivery is by sharing delivery vehicles. This approach can help to reduce the number of vehicles on the road, minimize emissions, and lower the overall costs of delivery operations. For example, two or more companies can share a single delivery truck, each paying a portion of the costs and using the vehicle to transport their products to customers. Another approach is to share delivery routes. By coordinating their delivery schedules and routes, companies can optimize their operations and reduce the distance and time needed for each delivery. This approach not only reduces emissions but also saves time and money for companies and can improve delivery times and customer satisfaction.

Collaboration between companies can also lead to the development of new delivery models that are more sustainable and efficient. For example, companies can partner with local retailers or delivery networks to create shared delivery hubs, where packages can be consolidated and delivered more efficiently to customers in a specific area.

CityQ For Last Mile Delivery

The environmental impact of last mile delivery is significant and requires sustainable solutions to reduce emissions and improve air quality. Strategies such as the use of electric vehicles, cargo bikes, consolidation, route optimisation, eco-friendly packaging, and collaboration can all contribute to sustainable last mile delivery. By adopting these strategies, companies can reduce their carbon footprint, improve air quality, and promote sustainable delivery practices.

CityQ is a line of four-wheeled electric bicycles that are designed to provide a more appealing and sustainable option for urban transportation. With a cargo area that can be used to transport groceries, packages, or other items. Find out more today.