By Yasmine Fage
Current logistics solutions on the market present a number of shortcomings that will only increase over time. Consumers are increasingly demanding and recent surveys indicate that 55% of them are willing to switch to a competing retailer/brand if it offers a faster delivery service. A trend that will predictably continue as demand for e-commerce will only keep increasing (e-commerce grew in Europe by 22% during the 2019-21 period, reaching €844Bn.).
Based on the current data, over 25% of EU consumers are not willing to pay for delivery and 40% expect free delivery for high-value orders. This puts even more pressure on retailers, whose margins are already being squeezed by increased fuel and wage costs as well as shortages. Expected shorter delivery times and an increasing need to manage returns, together with new public policies pushing for fleet electrification place a high burden on companies.
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Cities will also suffer the consequences of sub-optimal logistics solutions. Even when logistics only accounts for 10% of total vehicles on the roads, it contributes to 20% of traffic and 40% of emissions. Additionally, the lack of efficiency in the current system also contributes to higher levels of pollution. Data shows that in Europe, 24% of road freight km are carried out by empty vehicles.
The current trends in logistics and transportation require immediate and innovative changes. We at Goggo Networks believe the most effective last-mile logistics solution involves autonomous vehicles and robots, and relies on the following three key pillars:
- A proprietary technology operating platform, focusing on AV technology and leveraging different types of on road vehicles and sidewalk robots all working together as a unified fleet, allowing for the optimization of logistics operations.
- An in-depth collaboration with key stakeholders in the industry, such as public entities and regulatory bodies for obtaining operating licenses, a wide range of leading retail partners, and selected autonomous vehicle providers that are building Goggo’s unique AV fleet;
- An extensive on-ground operating expertise and specialized workforce, taking care of the complex daily operations with autonomous vehicle fleets.
This innovative end-to-end solution considerably reduces prices, guarantees a more reliable service, and provides a more sustainable alternative to traditional logistics.
Zaragoza: The first city in Spain to welcome autonomous robots
Goggo’s sidewalk delivery robot project in Zaragoza is the first of its kind in Spain, and among the first autonomous logistics projects in Europe. The gradual implementation is designed to ensure the security of the technology, as well as public acceptance and commercial viability.
Goggo’s delivery robots move in a similar way as pedestrians. Unlike scooters or bicycles, these devices are designed to adapt to regular traffic on sidewalks, avoiding people and/or animals, and are always remotely supervised by a teleoperator. All the robots that Goggo works with have been designed with the safety of citizens in mind. Although other traditional transport and delivery methods depend on the human factor (which can be the main responsible for accidents), robots circulate at a limited speed and make decisions in real time, always prioritizing people.
As of September 2022, Goggo Network’s delivery robots have already mapped over 36 kilometers of Zaragoza streets, an area of 1.2 km2, of which a part is already operating in autonomous mode. The response from citizens has been very positive and there has also been a lot of interest from businesses in the area, mainly restaurants and grocery stores.
The first commercial tests will begin in October 2022 and Goggo is set to deploy up to 80 robots by mid-2023. This new logistic solution will help diversify the traffic and also contribute to making Zaragoza a greener, more organized, and inclusive city, so far the service has had a lot of commercial interest from over 15 local business partners interested and has created local jobs.
Goggo and the city of Zaragoza are already discussing the potential implementation of other autonomous technologies, such as using autonomous vehicles for deliveries, that will contribute to maintaining the city at the center of innovation.