Convenience vs Congestion: How Data is Transforming Last Mile Delivery
Published on January 31, 2024
Geotab insights show accelerating year-over-year growth in last mile delivery
Last mile delivery has emerged as the pivotal battleground where convenience collides with congestion. The global market for last mile delivery is poised for unprecedented growth expected to reach US$137.4 billion by 2030as consumers continue to transform the way we live, shop, and move.
The Concrete Jungle: The Frontline of Last Mile Delivery
The impact of last mile delivery is evident in densely populated areas, like Manhattan. In this concrete jungle, last mile delivery has witnessed a 55% increase in the number of stops on delivery routes, and a 46% rise in the number of vehicles making deliveries. It's no wonder that over 2.4 million packages are deliveredin Manhattan every single weekday.
New Yorkers have been increasing their daily household deliveriesat an astonishing rate since 2009. Deliveries tripled to more than 1.1 million by 2017, and reached 1.5 million by 2019. The following four years saw the daily number grow by a staggering 60%.
Chicago, Phoenix, and Houston are also grappling with the last mile delivery boom.
- Chicago witnessed a 116% surge in the number of stops, and 82% increase in the number of vehicles dedicated to last mile deliveries.
- Phoenix recorded 58% growth in the number of stops, along with a 22% rise in the number of last mile delivery vehicles.
- Houston had a notable 29% rise in stops along last mile delivery routes, coupled with a 39% increase in the number of fleet vehicles responsible for deliveries.
Convenience, speed, and personalization are the driving forces behind consumer purchasing behavior. If business continues as usual, emissions from delivery traffic in the world's 100 largest cities will surge by a daunting 32%by 2030. Traffic congestion is predicted to increase by more than 21%, adding to the already frustrating urban gridlock. It’s time for a solution, which comes in the form of curbside management.
Clearing Roadblocks with Curbside Management
Curbside management is poised to clear future roadblocks created by last mile delivery. Check out Geotab ITS in action here. Discover how data insights from freight and commercial vehicles can be used to improve infrastructure efficiency, sustainability, profitability, and safety.
The Geotab ITS platform, Altitudeconnects aggregate commercial vehicle insights to offer a contextualized view of an entire transportation network. It harnesses the power of data intelligence and trusted AI to play a crucial role in route optimization and near real-time monitoring of traffic insights, ensuring safe, reliable deliveries even in the midst of congested city streets.
Improving the Efficiency of Curbside Management
Curbside space is in high demand. Urban planners and cities are analyzing its use to build more efficient infrastructure, and reduce congestion– like creating overnight loading zones or paid or priority curb spaces. Geotab ITS’ Stop Analytics module fuels curbside programs with insights from commercial vehicle activity, to understand why, where, and how curbside space is used.
As businesses strive to meet the growing demands of consumers, innovative solutions based on data intelligence will pave the road to alleviate the environmental and logistical challenges ahead.
-Nate Veeh, Senior Business Development Manager, Geotab
Manager, Strategic Communications & Public Affairs
Geotab is a global leader in connected transportation solutions. We provide telematics — vehicle and asset tracking — solutions to over 50,000 customers in 160 countries. For more than 20 years, we have invested in ground-breaking data research and innovation to enable partners and customers, including Fortune 500 and public sector organizations, to transform their fleets and operations. With over 4 million subscriptions and processing more than 75 billion data points a day, we help customers make better decisions, increase productivity, have safer fleets, and achieve their sustainability goals. Geotab’s open platform and Marketplace, offers hundreds of third-party solution options. Backed by a team of industry leading data scientists and AI experts, Geotab is unlocking the power of data to understand real-time and predictive analytics — solving for today’s challenges and tomorrow’s world. To learn more, visit www.geotab.com, follow @GEOTAB on X and LinkedIn or visit the Geotab Blog.
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