Last mile delivery - How cargo e-bikes can help with city deliveries
What is the "last mile" delivery?
The last mile is short – but often the most expensive and time-consuming part of the entire supply chain. According to current statistics, it accounts for around 41% of logistics costs in online retail. This refers to the transport from the last distribution center to the front door – a section that presents companies with major challenges.
The last mile has become a key issue for logistics companies and delivery services, especially in the age of online retail. Parcel delivery figures for Swiss Post almost doubled between 2010 and 2022 (from 110 million to 194 million parcels).
With the growing number of deliveries, cities are coming under increasing pressure. Authorities and urban planners are faced with the question of how urban mobility should function in the future if delivery traffic takes up more and more space. There is a lack of space in many city centers – streets are overcrowded, loading areas are scarce and delivery vehicles are in direct competition with bicycle and pedestrian traffic. At the same time, demands are increasing: deliveries need to be fast, flexible and as emission-free as possible. Traditional logistics solutions are increasingly reaching their limits – and the need for practicable, sustainable concepts is growing.
Challenges of the last mile
While cities are struggling with increasing delivery traffic and stricter environmental regulations, rural regions are faced with unprofitable delivery routes. At the same time, customers expect fast and flexible delivery. These challenges require innovative logistics solutions to make last-mile delivery more economical and sustainable.
Traffic problems in the last mile
In cities, high traffic density, limited loading zones and environmental regulations are major obstacles to smooth delivery:
Traffic jams and lack of parking spaces: delivery vehicles often have to park in the second row or take long detours. This leads to delays, parking tickets and higher operating costs.
Restrictions due to environmental zones: Many cities are tightening access restrictions for diesel vehicles, making conventional delivery concepts increasingly unprofitable.
Competition for traffic space: Delivery vehicles compete with pedestrians, cyclists and local public transport, which further reduces the efficiency of deliveries.
Costs and profitability in the last mile
The last mile accounts for up to 50 % of total delivery costs. The main cost drivers are:
- Fuel and energy consumption: Frequent starting, stopping and idling significantly increase fuel consumption.
- High personnel costs: Manual delivery requires a lot of working time, which also increases costs.
- Inefficient routes: Long, inflexible delivery routes and poorly utilized vehicles lead to unnecessary additional costs.
- Sustainability issues in the last mile
Delivery traffic contributes significantly to CO₂ emissions and air pollution in cities. The main problems are:
Conventional diesel vans emit high levels of pollutants and are increasingly affected by driving bans.
Individual deliveries cause unnecessary empty runs and poor utilization of transport capacities.
Noise and particulate pollution from conventional delivery vehicles impair the quality of life in city centers.
Sustainable alternatives include:
- Electric vehicles and cargo bikes for emission-free delivery.
- Parcel stations and pick-up points to reduce door-to-door traffic.
- Better route planning to avoid unnecessary journeys.
- Challenges for last-mile vehicles
Not every vehicle is suitable for the requirements of last-mile logistics. Important criteria are
- Maneuverability in city centers: Vehicles must be flexible and space-saving.
- Zero emissions: Strict environmental regulations require alternative drive systems.
- Loading capacity: An optimum ratio between size and loading volume is crucial.
The role of last mile logistics in mobility
Delivery traffic characterizes the cityscape today – especially on the last mile. When parcels are brought from the depot to the front door, bottlenecks arise: too little space, too many vehicles, conflicts with bicycle and pedestrian traffic. These delivery processes have long had an impact on overall mobility in our cities. This is why the last mile is not just about logistics, but also about transport policy, urban planning and the question of how deliveries should work in the future without overloading public space.
Solutions for efficient and sustainable last mile delivery
More and more companies are turning to innovative solutions to overcome the challenges of the last mile. Sustainable means of transportation, modern logistics strategies and digital technologies make it possible to reduce costs and comply with environmental regulations.
Electric vehicles in the last mile
Electric vehicles play a key role in modern last-mile logistics. They reduce CO₂ emissions, are quieter and have lower operating costs than conventional diesel vans.
Advantages of electric vans:
- Emission-free delivery – no CO₂ pollution in urban areas.
- Lower operating costs – lower energy and maintenance costs compared to diesel vans.
- Attractive for low emission zones – unrestricted access to emission-regulated areas.
The biggest challenge remains the charging infrastructure. Companies need more fast charging stations and intelligent charging solutions that can be integrated into existing logistics processes.
Cargo bikes and e-cargo bikes for the last mile
Cargo bikes are one of the most efficient solutions for sustainable inner-city logistics. They require no parking spaces, avoid traffic jams and are emission-free.
Why cargo bikes are becoming increasingly important:
- Flexibility – faster than delivery vehicles in congested city centers.
- Space-saving – no searching for a parking space, no second row, less traffic congestion.
- Sustainable – CO₂-free and lower operating costs than motorized alternatives.
The new regulations from July 2025 will make cargo e-bikes even more attractive for the transport sector in Switzerland. You can find out what changes companies will face in our article: New rules for cargo e-bikes in Switzerland from July 2025
Alternative transport solutions for the last mile
In addition to electric vehicles and cargo bikes, companies are increasingly testing new concepts to make last-mile delivery more efficient.
- Autonomous delivery robots – small, self-driving vehicles that bring parcels directly to the front door. They reduce personnel costs and are already being used in initial pilot projects.
- Drone deliveries – a fast and direct delivery solution, especially for time-critical consignments such as medicines or documents. However, technical and legal hurdles are slowing down widespread introduction.
- Paketstationen und Abholpunkte – Kunden holen ihre Sendungen flexibel an zentralen Standorten ab, wodurch die Anzahl der Haustürlieferungen und der innerstädtische Verkehr reduziert wird.
Some of these concepts are still in the test phase, but could play a decisive role in the coming years.
Micro-depots and logistics centers for the last
Micro-depots are small, inner-city distribution centers that bring parcels closer to the end customer and enable more efficient, environmentally friendly delivery.
Advantages of micro-deposits:
- Reduced travel times – delivery vehicles no longer have to drive across the city.
- Better use of alternative vehicles – cargo bikes or small e-vehicles can be used for deliveries.
- Fewer emissions and traffic jams – fewer delivery vans on the roads relieve urban traffic.
In combination with intelligent logistics management, both costs and environmental impact can be significantly reduced.
Technologies for optimizing the last mile
Digital tools and modern technologies play a decisive role in increasing the efficiency of last-mile logistics.
- AI-supported route optimization – Artificial intelligence analyses traffic data in real time and plans the most efficient delivery routes.
- Real-time tracking – customers can track their orders at any time, while companies can recognize bottlenecks early and act proactively.
- Automated delivery solutions – robotics and machine learning help to further optimize processes and reduce personnel costs.
Legal developments and regulations for the last mile
Politics is playing an increasingly important role in shaping last-mile logistics. Stricter environmental requirements and new regulations are influencing which means of transportation and delivery concepts can be used in the future.
- CO₂ reduction targets and environmental zones: Many cities are introducing driving bans for diesel vans and promoting emission-free delivery methods. Companies must therefore switch to electric vehicles or cargo bikes.
- Support programs for sustainable logistics: Government subsidies support the purchase of e-vehicles, the expansion of charging infrastructure and the establishment of micro-depots.
- New working guidelines for couriers: Stricter working time regulations and better social security for delivery staff could change the industry and increase the pressure on companies to develop more efficient systems.
Companies must adapt to these legal developments at an early stage in order to remain competitive and comply with environmental regulations.
Conclusion: Last mile delivery in transition
The last mile is not a new issue, but it is presenting companies with new challenges today. High time pressure, rising costs and limited space in cities make delivery more demanding than ever before.
At the same time, new opportunities to work more efficiently and flexibly are constantly emerging – whether through better planned routes, the targeted use of e-vehicles or logistically well-placed handover points. Those who know their processes inside out and are prepared to develop them further can not only work more economically on the last mile, but also noticeably improve everyday life for customers and delivery staff.
Do you want to know how to make the last mile in your company more efficient?
Then take a look at our solutions – from cargo e-bikes to flexible body concepts: