What predictions can be made about the adverse effects of the booming e-commerce market? Read more to find out.
Increased e-commerce buying, coupled with the development of faster supply chain tech has resulted in the exponential growth of parcel delivery traffic congestion. Since 2009, online buying has increased by 15% annually and shows no signs of slowing down. The influx of delivery trucks continues to expand as consumer expectations evolve (quicker delivery has become the standard, thanks to Amazon's popular 2-day shipping feature). While advancement in direct-to-consumer technologies has proven useful for many retailers (especially in the midst of the COVID-19 pandemic), the increased street-presence of delivery trucks poses a number of challenges for urban commuters and the environment.
The World Economic Forum (WEF) estimates that the demand for last-mile delivery is expected to increase by 78% within the next decade. This would cause traffic congestion to rise by 21%, adding approximately 11 minutes to the average person's commute time (these estimates are applicable to the top 100 global cities, including New York City). Parcel delivery-caused-congestion is felt especially hard in urban centers, where parking is scarce. This often results in illegal double-parking and blocked traffic, in fact, a 2006 study found that delivery companies get roughly 7,000 parking tickets a day, and that's just New York. But parking tickets are not preventative. Double-parked trucks cause narrow residential roads to become clogged and even more difficult to navigate, which can even be dangerous for those trying to maneuver around the delivery carrier. Traffic caused by delivery trucks is only worsened by an outdated parcel delivery system, which sends out multiple, partially-filled trucks to the same, or nearby destinations. This leads to duplicate routes. The result is a clash between ever-expanding DTC demand and an inefficient delivery system.
The WEF also estimates that parcel delivery carbon emissions will rise 30% by 2030 (i.e. 25 million tons of C02 annually within the next decade). To add insult to injury, the bulk of these parcel delivery emissions will impact mainly urban areas, which already struggle with air pollution issues.
Fortunately, the future of parcel delivery does seem like it's headed in a more sustainable direction. After-all sustainability is everyone's new favorite buzzword. So the future of e-commerce delivery isn't that bleak.
