Economic Analysis of Cargo Cycles for Urban Mail Delivery

Abstract

Freight constitutes a large portion of urban daily traffic, contributing to emissions, noise, and safety concerns. Moreover, urban freight logistics are often hindered by the last mile, characterized by significant delays and high delivery costs. Firms in dense urban areas are therefore seeking more efficient and reliable modes for their last-mile services. One mode that has been gaining widespread interest is the cargo cycle. Current research on cargo cycles is limited; however, their success in effectively delivering urban goods is gaining recognition. An examination was done of the economic feasibility of using different types of cargo cycles in varying urban contexts. A case study that assessed replacing the U.S. Postal Service vehicles with cargo cycles for last-mile mail deliveries in three population densities is presented. With the use of existing depots, the results of the case study indicate that electric cargo trikes have the lowest net present value among the modes in congested areas with high population densities such as central business districts. Moreover, having a depot positioned within the delivery area was found to play a significant role in increasing the competitiveness of trikes compared with other modes.