Source: London Daily News

Last-mile delivery in London is being influenced by the city’s clean-air policies, with the Ultra Low Emission Zone (ULEZ) encouraging the use of alternatives to non-compliant vans, while various trials and the establishment of microhubs aim to scale up commercial cargo bike adoption.

The ULEZ is having its intended effect of encouraging businesses operating in the city to avoid the use of non-compliant motor vehicles for delivery, especially for shorter journeys in dense boroughs with a high volume of road traffic. Small and medium-sized businesses in the delivery and retail sector are finding that economics of delivery are changing. Electric cargo bikes present themselves as viable delivery options, with substantial loading capacities available, the ability to circumvent a lot of congestion, and competitive purchase, running and maintenance costs.

Mainstream usage

The availability of cargo bikes with lockable boxes, chilled containers and flatbeds for larger items make them attractive to a range of businesses. Operators can make use of technology such as routing software, remote locking functionality and real-time courier data for maximised utilisation and traceability.

Typical users include retailers completing same-day e-commerce orders, facilities management teams moving supplies between sites, and courier companies. Cargo bikes are a suitable option in boroughs operating trials such as low-traffic zones and time-limited loading bays, as they are able to access kerbside parking more easily and thus streamline delivery.

Rationalising the delivery space

Several London boroughs and Business Improvement Districts (BIDs) are organising and supporting short-term trials to test out fresh routes, revised kerbside layouts, and consolidation points. These trials typically measure aspects such as delivery times, reliability, resident feedback and rider safety, helping to inform decision-making on the establishment of permanent hubs and cargo bike-friendly loading bays. Common delivery models involve goods being delivered in bulk to a local microhub adjacent to busy centres, then consolidated for speedy drops. In these scenarios, operators report fewer failed deliveries, and smoother handovers.

Support for small businesses

Upfront cargo bike costs have fallen in recent years, however smaller businesses still seek out help with financing, insurance and training. Past national funding and borough-level schemes have helped establish earlier fleets, and currently some landlords offer hub space as part of their sustainability packages for business tenants. The TfL Cargo Bike Action Plan, published in 2023, outlines pathways for the scaling of cargo bike adoption across the city, including standards and best practice for businesses.

Successes and challenges

The increasing uptake of cargo bikes has led to lower running costs and improved efficiency and access on short urban delivery trips, while contributing to reduced congestion and clean air gains.

Ongoing challenges include limited secure kerbside loading/unloading and parking space, and the scaling of microhubs in areas of expensive property. Ensuring rider safety and training is also a challenge as cargo bike popularity rises, necessitating clear standards.

What’s next?

It is likely that there will be more efforts to expand microhub networks close to transport nodes, with partnerships between national carriers, local business and property managers helping to facilitate.

Retailers may expand the options for ‘green delivery’ slots at the checkout stage, at comparable prices to standard delivery.

Policies will continue to prioritise public health and climate targets, in turn encouraging a continued shift towards sustainable commercial delivery options.