A new study from EIT InnoEnergy has revealed large logistics players could save around €554m (US$600m) on operational costs annually by investing in a mixed fleet of 80% e-cargo bikes and 20% e-vans, compared to 100% e-van fleet. They could also reduce last-mile logistics emissions by 80%.
The report comes as logistics companies look to improve margins and reduce CO2 emissions in line with growing parcel volumes and global sustainability targets. The study explores the existing knowledge gap in relation to the cost, operational and sustainability impacts of adding e-cargo bikes to the mix, laying out clear comparisons between ICE van fleets, e-van fleets and mixed fleets.
Jennifer Dungs, global head of mobility at EIT InnoEnergy, commented, “Logistics providers today are dealing with many simultaneous challenges: rising parcel volumes, stricter city regulations and the need to save costs in a low-margin business. This study demonstrates that e-cargo bikes are not only a sustainable way to address these challenges, but also cost-competitive and viable for major logistics players – already today, and even more so by 2030.”
Cost-effective delivery solution regardless of mix ratio
EIT InnoEnergy found that the use of e-cargo bikes reduces the total cost per parcel compared to e-vans alone, regardless of the fleet mix and the city layout.
In the study’s baseline case, which assumes a delivery fleet with a 60% share of e-cargo bikes and 40% e-vans operating in a large, densely populated city, the total costs per parcel in 2023 would be €0.05 (US$0.054) lower compared to a pure e-van fleet (€1.36 versus €1.41/US$1.47 versus US$1.53). By 2030, that difference on a per parcel base would increase to €0.20 (US$0.22). For a large logistics player delivering two billion parcels per year, these cent amounts would translate to bottom line annual savings of around €95m (US$103m) today (2023) and ~€390m (US$422m) by 2030.
In an optimized scenario (80% e-cargo bikes/20% e-vans, operating in a medium-size city) the savings in relation to a 100% e-van fleet would be even more substantial: €0.08 (US$0.087), or 5.3%, less costs per parcel today (2023) would add up to total annual savings of ~€156m (US$169m) for such large logistics provider. That cost difference per parcel would climb to €0.28 (US$0.30), or 17.0%, by 2030, equaling total savings of ~€554m (US$600m).
Importantly, these overall savings in all scenarios occur despite added costs incurred by mixed fleets, which primarily consist of increased personnel costs for parcel sorters at micro fulfilment centers and delivery riders.
Improving overall life quality in cities
The study suggested that the introduction of e-cargo bikes could reduce emissions from last-mile logistics by up to 80% across Europe’s 100 largest cities, while reducing traffic congestion and competition for space by replacing up to 120,000 vans.
Compared to 100% e-van fleets, the study shows that mixed fleets reduce pressure on local grids, saving the equivalent of up to 850 households’ annual energy demand per city.
Dungs added, “To harness the potential of mixed fleets, cities and logistics providers have a vested interest in working together. There’s great potential here for the development of public-private partnerships to optimize infrastructure planning, ensuring that the full sustainability, space and cost-saving benefits are realized. This study is designed to guide decision makers in Europe through the challenges of managing growing parcel volumes, maintaining cost efficiency and making last-mile delivery more flexible and sustainable.”
About the study
The complete study, Finding the Right Mix: The Hidden Costs, Complexities, and Benefits of Mixed Electric Fleets in Last-Mile-Logistics, is available for download here.