Can self driving cars make the last mile distribution into the fast lane? From World Economic Forum

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As an indispensable part of our daily life, transportation is undergoing structural changes – towards digitization and low-carbon. The novel coronavirus pneumonia has accelerated the transformation, and everyone is adopting new code of conduct. Although the requirement of maintaining social distance and travel restrictions mean that the mobility of most people is greatly reduced, other transport sectors are experiencing great development. For the parcel delivery sector, the number of items distributed worldwide increased by 17.5% and reached a new high of nearly 25 billion in 2020.
At the same time, as the concepts of virtual reality and meta universe continue to tell people that they may be able to do something without leaving home in the future, e-commerce and online shopping continue to grow rapidly. From the beginning of the epidemic to the end of 2020, sales increased by 27.6%, accounting for 18% of the total global retail market.
In the city, Last mile delivery (LMD, last mile delivery) is a core link in the value chain of package distribution. It is the end of the journey of an item, which reaches the final destination through the transportation hub. This is the most labor-intensive stage in the distribution process. The scattered distribution of customers and high-frequency requests mean that it accounts for a high cost proportion in the whole logistics chain. The characteristic Shopping Festival is this urban distribution mode The main driving forces of rapid development, such as China’s “double 11”, western countries’ “Black Friday” and “online shopping Monday”, during these periods, the number of packages increased sharply.
The challenge of last mile distribution goes far beyond establishing an effective and efficient sorting system. Perennial urban problems, such as traffic congestion and carbon emissions, as well as random parking and more and more delivery vehicles, are becoming unprecedented destructive problems in the urban transportation system. Of course, this also affects the last kilometer of distribution. This is also an activity that relies heavily on labor, and its labor demand fluctuates with the changes of business peak and low tide.
In this regard, self driving cars can be a solution. Their on-board technologies, such as intelligent driving and electric power systems, mean that traffic congestion and carbon emissions can be greatly reduced. Autopilot can also be used as a supplement to manual delivery to diversify services and fill labor shortage at peak hours and at night.
Figure source statista | number of packages distributed worldwide from 2015 to 2020, by Region (unit: million pieces)
Europe, China and the United States are regions that promote the trend of automobile electrification, These three regions will have electric vehicles in 2020 The penetration rate of (EV, electric vehicle) in new sales is 10%, 5.7% and 2% respectively. In the field of automatic last kilometer distribution, the United States developed earlier, and its market has major players such as starship technologies and nuro. In China, this has been tested not only in logistics parks, private communities and university campuses, but also in public areas in big cities such as Beijing and Shenzhen The road was also tested. Other cities, such as Guangzhou, are taking measures to try out this new solution.
ALMDV (autonomous last mile delivery vehicle) has some characteristics, which makes it an excellent test platform for cutting-edge intelligent driving technology. Compared with autonomous vehicles, almdv is smaller and usually has relatively low speed limit, thus reducing the risk of accidents. Since there are no people on the vehicle, the algorithm usually focuses on protecting vehicles on public roads Pedestrian, avoiding the dilemma of giving priority to passengers or pedestrians in an emergency. In addition to the technical architecture of the vehicle itself (such as sensing, positioning and operation), it also provides a good opportunity to apply and demonstrate the concept of vehicle to everything (v2x). As one of the main technical achievements of the fourth industrial revolution, it stipulates how intelligent vehicles communicate with road infrastructure such as traffic lights (including cloud operating system).
There is no doubt that there are challenges on the demand side. In today’s era, consumers want to deliver immediately or on the same day. Distribution speed accounts for 52% of customers’ overall purchase decision, This is a free or discounted item (38%) the most important consideration is that as society adopts a policy of maintaining social distance, more parcels are sent to freight hubs, such as parcels, and then taken by customers themselves. Auto driving distribution will be able to deliver multiple packages directly to the doorway within a predictable time window to minimize human contact.
The application of intelligent driving in small flexible devices has created many situations that need innovative solutions. For example, how does almdv go upstairs to deliver goods to home. One idea is to install another automatic device at the entrance. Like the housekeeper robot, this device can enter the elevator of the building, receive packages from almdv and continue transportation. A new retail model can be hatched through almdvs: it can not only be used to transport goods from nearby stores, but also be used for remote display and sales of equipment; It is a “mobile store” in communities, schools and tourist areas.
In order to apply almdv in daily life, the first step should be to establish a management system. Autopilots can be classified in different ways: manned or freight; Driving on public roads or closed parks; High speed or low speed, etc. However, what type of rules should be applied in almdv? Is it a car, a non motor vehicle, a personal distribution device, or a robot? The answer to this question will ultimately determine which lane almdv can drive in. On the road, it can drive faster and share the road with other vehicles rather than with pedestrians. On roads and other roads, there are generally lower speed limits, but accidents are likely to occur. The parties concerned are currently discussing how to define almdvs, and it is expected that a separate classification will be established for them.
The automotive and transportation sector is facing a turning point in decarbonization and digitization plans. Intelligent driving technology provides new business models, user scenarios and lifestyles. The industry will benefit from cross sectoral cooperation, such as cooperation between decision makers and enterprises. Flexible policies and regulations must be adopted to create an enabling environment for innovation and technological breakthroughs. It is gratifying to see the emergence of almdv experimental projects in different regions, the exchange of experience between pioneers and follow-up participants and the strengthening of multi stakeholder discussions. The large-scale application of intelligent driving is at hand – let’s lead it and society to the next stage of development. More reading: KPMG: 2019 autopilot car maturity index HarrisX: 1/3 of Americans do not recognize self driving car AutoTrader: survey shows that consumers’ acceptance of autopilot cars: Reuters & amp; Ipsos: survey found that 2/3 of Americans do not trust autopilot car Navigant Research:2019 auto driving strength ranking. Sella bottom AAA:71% of the respondents are afraid to take the automatic driving car Waymo:2017 auto driving safety report Reuters: the survey shows that 2/3 Americans do not trust autopilot car Morning Consult:2018 auto driving car poll report six diagrams tell you how self driving cars can ease traffic jams. More American car owners prefer autopilot cars. Information map Boston Consulting: it is estimated that the proportion of the global automatic driving vehicle will reach 25%IIHS in 2035. The survey shows that the automatic driving vehicle can not make the road completely safe. SMMT:71% young people think that the automatic driving car will improve the quality of life. California automobile Administration Bureau: 2017 automatic driving “detached report”.
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