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Challenges for last mile logistics

Alexa Romero / 21 Feb 2022 / 3 min

Reducing emissions and making the last mile more sustainable are two of the main challenges for last mile logistics today.

The last StartupTalk, organized in Aticco María de Molina together with UpBizor, brought together representatives from last-mile logistics companies such as Uber, GoPuff, Mox. Together with the moderator Sara Sánchez, architect and urban planner from the consultancy TECH friendly, they debated the challenges and opportunities.

But before we jump into the debate, let's clarify what is the last mile of the logistics sector?

We are referring to the last stage from when the package leaves the transportation center until it is delivered to its recipient. And no, it is not always an exact mile (1.6 km), it can be a greater or lesser distance.

This last segment is a relevant factor in the increase of traffic and congestion in cities. Therefore, seeking a greener and more sustainable future, last-mile logistics faces great challenges.

 

Made the last mile race more efficient

Efficiency in this case involves two areas: energy and economic. To this end, Juan Galiardo, Head of Spain at Uber; Antonio Valenzuela, co-founder of Mox; and David Alonso, General Manager Spain at GoPuff, proposed the following changes in the medium term:

1. 100% electric or hybrid fleets

To reduce energy expenditure, the three companies rely on the incorporation of fleets of electric or hybrid vehicles. While Gopuff has already started with a 100% electric fleet, other companies such as tech.mox have not yet been able to make the full leap, although they have it in their plans. 

2. Increase the use of cycle logistics

For Juan Gallardo, Head of Spain at Uber, efficiency will increase significantly when we are able to easily combine different types of greener transport, both in terms of more sustainable personal mobility and in the logistics sector.

3. Network of convenience points

These networks would allow consumers to pick up packages at specific points in their same postal code

4. Being Data-Driven

Use sophisticated technologies to optimize processes, make data-driven decisions, and thus reduce waste of resources or unnecessary travel.

One of the main challenges identified is that consumers need to understand the changes that are going to take place, and that is why, as indicated by the co-founder of Mox,

Antonio Valenzuela: "We must offer the consumer different alternatives so that they understand that having a package delivered to your home has a higher economic and environmental cost."

David Alonso, for his part, added an optimistic perspective to this issue since, as head of GoPuff in Spain, he claims to be seeing how consumers value aspects such as more sustainable packaging or having organic products in your offer.

Follow the full debate in this video https://www.youtube.com/watch?v=hdg-ok5DWJE