Drones, walkway robots and autonomous vehicles are being touted as some of the next big climbers in the last mile space, but what about the humble bike?
Global logistics and delivery companies like UPS, FedEx and Amazon have all started testing some form of electric bikes or cargo bikes for delivery. At the same time, startups are emerging offering both fleets of micro-mobility vehicles for businesses and e-bike subscriptions for couriers and gig workers.
As last-mile delivery increases due to a booming e-commerce scene and pandemic habits now firmly entrenched in consumer lifestyles, the largest micro-mobility market will ultimately be commercial and no longer consumer-centric.
“There’s little point in delivering an iPhone or a Poke Bowl in a Buick,” Nate Jaret, general partner at Maniv Mobility, an Israeli VC specializing in early-stage mobility companies, told TechCrunch. “With the right tools, couriers can work faster and get paid better – and electric two- and three-wheelers are increasingly the right tool.”
The last mile delivery market is expected to reach $123 billion by 2030, at a compound annual growth rate of 13.21%. If the sector continues as it is now, it will seem like many more trucks, vans and cars will take up space in cities and pollute the air people breathe – not exactly the message we are getting at today try to send.
“There’s little point in delivering an iPhone or a Poke Bowl in a Buick.” Nate Jaret, General Partner at Maniv Mobility
Micro-mobility solves the problem electric cars and vans don’t have, especially in urban centers — they’re small enough to bypass traffic congestion and fast enough to make up to twice as many stops per hour as a delivery vehicle, says John Pearson. CEO of DHL Express Europe. The total cost of ownership of e-bikes is also tiny compared to vans.
Incorporating e-bikes into the logistics system also solves the problem that autonomous delivery vehicles — be they sidewalk robots or something larger like Nuro’s delivery vehicles — don’t have it. The technology is available now, not in 10 years.
These factors represent a competitive advantage for companies looking to reduce costs in the last mile, which is typically the most inefficient and costly part of the supply chain.
“We believe that many commercial and delivery applications (and last-mile urban delivery in particular) will become electrified faster than consumer use cases due to TCO considerations – amortizing the higher initial cost of an electric vehicle is much easier when the vehicle’s wheels rollers eight or more hours a day,” Jaret said.
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