Mobility marketplace minute: rethinking urban logistics

For centuries, cities have thrived on the movement of goods. From bustling medieval markets to the rise of industrial trade hubs, urban logistics has always been the invisible engine powering economic activity. But today, the rapid rise of e-commerce, shifting consumer expectations and increasing environmental concerns are challenging traditional urban logistics models like never before. 

Modern cities are witnessing an explosion in parcel deliveries, a trend accelerated by online shopping and same-day delivery demands. While this ensures convenience for consumers, it also results in congested streets, increased emissions and inefficiencies in last-mile logistics. Vans clog city centres, contributing to pollution and making streets less accessible for pedestrians and cyclists. Helsinki, for example, faces significant challenges due to the high volume of delivery vans operating in its central areas, leading to increased nitrogen oxide (NOx) emissions and bottlenecks in districts like Jätkäsaari, where freight and passenger flows intersect. 

The rise of microhubs 

To address these challenges, cities are turning to innovative solutions such as microhubs - small, strategically located spaces designed to consolidate and streamline last-mile deliveries. The Helsinki Living Lab, as part of the URBANE project, implemented a microhub system that integrates digital technologies and fosters collaboration among multiple stakeholders. This approach leverages the concept of the Physical Internet, where logistics are reimagined as an interconnected network, much like data packets moving seamlessly across the web. 

By consolidating deliveries, these microhubs reduce congestion, improve efficiency, and enhance the urban environment. In Helsinki, their implementation led to a significant reduction in emissions and improved acceptance of autonomous delivery vehicles and cargo bikes among residents. 

Digitalisation and interoperability: the missing link 

Despite advancements, many logistics operations remain fragmented due to a lack of standardised systems. Businesses face costly inefficiencies caused by fragmented logistics, where the lack of real-time data sharing among key players leads to shipment delays, increased costs, and unnecessary complexity in urban freight management. 

Solutions like Standtrack aim to bridge this gap by introducing a unified tracking system, ensuring real-time traceability of goods across various logistics platforms. By integrating seamlessly with existing enterprise resource planning (ERP) systems, such platforms enable a more agile, interconnected urban logistics ecosystem. In cities such as Madrid, Vitoria-Gasteiz, and Braga, this has led to significant reductions in van usage, improved coordination, and decreased emissions. 

Lessons from European cities 

The transition to more sustainable urban logistics requires a multi-faceted approach. Lessons from projects across Europe highlight key takeaways: 

• Stakeholder collaboration is essential: success in Helsinki demonstrated that engaging multiple actors - from city authorities to private companies - can facilitate better logistics planning and operations. 

• Pilots drive change: the implementation of Standtrack in cities across Spain and Portugal showed that pilot projects help validate innovative solutions and pave the way for broader adoption. 

• Technology as an enabler: the use of digital twins, blockchain smart contracts and AI-driven route optimisation enhances logistics efficiency and transparency. 

• Public-private partnerships matter: cities must create regulatory frameworks that encourage logistics innovations while ensuring accessibility and sustainability. 

Towards a smarter urban logistics future 

As cities continue to grow and demand for deliveries increases, urban logistics must evolve to become more efficient, sustainable, and adaptable. Microhubs, digital tracking solutions and collaborative logistics models are leading the way in this transformation. By integrating these approaches, cities can not only reduce congestion and pollution but also reclaim urban space for people, making streets safer and cities more liveable. 

The evolution of urban logistics is far from over, but the shift towards smarter, cleaner and more collaborative solutions marks a significant step in the right direction.