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Drones, sidewalk robots And autonomous vehicles are being touted as the next big movers in the last-mile delivery space, but what about the humble bicycle?
Global logistics and shipping companies such as UPS, FedEx and Amazon have all started testing some kind of electric bike or cargo bike for delivery. At the same time, startups are gearing up to offer both micro-mobile vehicles for enterprises and e-bike subscriptions for messengers and gig workers.
As last-mile delivery continues to increase due to the growing e-commerce scene and the pandemic built into consumer lifestyles, the largest micromobility market will end up being in the business space, not the consumer.
“It makes little sense to deliver an iPhone or Poké Bolt in a Buick,” Nate Jarrett, general partner at Manive Mobility, an Israeli VC focused on early-stage mobility companies, told TechCrush. “Given the right tools, couriers can work faster and get paid better – and electric two- and three-wheelers are the right tools.”
The last mile delivery market size is expected to reach USD 123 billion by 2030. If the sector continues as it is now, that looks like a lot more trucks, vans and cars taking up space in cities and polluting the air people breathe – exactly the message we’re trying to send at the moment.
“It makes little sense to deliver an iPhone or a poke bowl in a Buick.” Nate Jaret, General Partner, Maniv Mobility
Micromobility solves a problem that electric cars and vans can’t, especially in city centers — they’re small enough to get through traffic jams and fast enough to make twice as many stops per hour as a fast delivery vehicle, says John Pearson. The DHL Express Europe CEO said the total cost of ownership of e-bikes is low compared to vans.
Incorporating e-bikes into logistics systems solves a problem that autonomous delivery vehicles — whether they’re sidewalk robots or something a little bigger, like live delivery vehicles — don’t. The technology is available now, not in 10 years.
These factors provide a competitive advantage to businesses looking to reduce costs in the last mile, which is often the most inefficient and part of the supply chain.
“We believe that many commercial and delivery applications (particularly urban last-mile delivery) will electrify faster than consumer use cases, due to the total cost of ownership – the high upfront cost of any EV is much easier to offset when the vehicle’s wheels are the same. Rolling eight or more hours a day,” Jarrett said.
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