Many cities today are struggling with mobility and logistics-related challenges such as congestion and the decay of city centers and high streets. The boom in e-commerce is partially responsible for putting pressure on urban infrastructure and forcing local businesses out in favor of e-commerce giants. And according to recent studies, approximately 41% of global retail will be online by 2027, up from just 18% in 2017. Imagine if all those products were delivered in large delivery trucks and sprinter vans, double-parked with their blinkers on. 

This struggle exists partially because our cities have been designed for traditional commerce, and infrastructure usually adapts slower than business models, technology and consumer preferences. 

This is where local commerce platforms such as Wolt come in. Now you might be asking, what does a local commerce platform actually mean? Well let’s start with what it’s not. Traditional commerce happened hyper-locally, with people visiting retailers in their neighborhood to get stuff they want and need. Then e-commerce came along and changed the game to where people could buy things online and purchase products that have been transported across oceans and stored in distribution centers across many countries. 

So, onto what local commerce is. We are local by nature: our platform connects people to the best of their communities and keeps local neighborhoods vibrant and resilient, sustaining city revenue and livability. We help local merchants thrive in a world where consumers are looking for more convenience and speed with technology meant for any local business, big or small, online or around the corner. To learn more, have a look at our blog post here. 

All this commerce means more mobility is happening in cities. You’ve probably seen local commerce couriers zipping around on bikes or carrying courier bags. And we are actively working to transform urban mobility and be part of the solution. There are two big ways we do this, 1) developing technical solutions and 2) focusing on the vehicles courier partners use. 

For example, we bundle orders to minimize the distance traveled per order and ensure efficient delivery assignments, while still achieving pretty fast delivery times. In 2023, even though our overall number of deliveries grew, we saw a 10% reduction in emissions from deliveries.

Another initiative we have deployed are low emission or zero emission zones, meaning only electric vehicles or in some cases bikes or moped couriers can access those areas. The reasons we implement these zones range from city requests, urban access regulations, to our calculation of dense urban areas where it’s simply faster to access by bike or moped versus a car.

Our platform uniquely allows courier partners complete autonomy over the vehicles they use for deliveries. Couriers have told us they like choosing their vehicle, and we believe that existing vehicle selection can be optimized. After all, the average car spends 95% of its life parked. However, in some cases we see the need to accelerate the transition to more sustainable vehicles, and to support couriers in upgrading their vehicles. At Wolt, we believe in increasing the use of e-bikes, particularly e-cargo bikes for short and medium distance deliveries, and small e-cars, especially those powered by swappable battery technology for longer distance deliveries. This makes sense also from a courier earnings perspective, as often these types of vehicles are the most efficient options to provide delivery services in our cities.

66% of courier partners report that they want to do more for the environment but can’t afford to. To help address the financial barrier, we have launched initiatives such as the Better Cities Fund, a grant program that courier partners can apply to for subsidized leases on e-cargo bikes like the VOK Cargo, Jensen, and Urban Arrow.

Not only do we believe that sustainability needs to be in the driver’s seat of urban logistics but that we need to lead the transition in a way that doesn’t leave anyone behind. Electric vehicles are still expensive, and we believe this shouldn't be a hurdle for people to reduce their environmental impact.

In our vision, cities will continue to be vibrant hubs for people to live their lives. The individual shops we love are able to compete, thanks to local commerce platforms that unlock online and delivery without massive upfront investments. And our streets are more for active mobility, including mobility that feeds business growth in brick-and-mortar stores.

We’re doing what we can for sustainability and inclusion, but we can’t do it alone. We’re actively seeking collaboration with other organizations, cities, and municipalities. In June, our CFO Kris spoke at the MOVE 2024 conference in London, showcasing our initiatives and pilots, and calling for more cooperation among those shaping our cities. His message was simple: Wolt is a ready and willing collaborator. So, if you have a request for mobility data or want to work on future logistics projects, please reach out to us! We'd love to talk.