Roadblocks Hindering a Fossil-Free Stockholm - Research of the Impact of Food Delivery Technology - Kth Diva ...
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EXAMENSARBETE INOM TEKNIK, GRUNDNIVÅ, 15 HP STOCKHOLM, SVERIGE 2021 Roadblocks Hindering a Fossil-Free Stockholm Research of the Impact of Food Delivery Technology AMEL BJÖRKBOM KIMBERLY NGUYEN KTH SKOLAN FÖR ELEKTROTEKNIK OCH DATAVETENSKAP
Roadblocks Hindering a Fossil-Free Stockholm: Research of the Impact of Food Delivery Technology Amel Björkbom Kimberly Nguyen KTH, Royal Institute of Technology KTH, Royal Institute of Technology EECS School of Electrical Engineering and EECS School of Electrical Engineering and Computer Science Computer Science amelb@kth.se ktqng@kth.se ABSTRACT hållbarhetschef på PostNord, och sekundära data publicerade på English nätet. Resultaten visar att det finns en avvikelse mellan hur maten Online food delivery (OFD) services have become increasingly levererades till kunden och vilken leveransmetod respektive popular and accessible, allowing customers to choose between a matleverans-plattform angav i sin applikation. Visualiseringen i wide range of restaurants conveniently, compare meals and prices applikationen visade att cykel var vanligast för matleveranser i effectively, and arrange the delivery of the meal immediately. Stockholm, men deltagarna i undersökningen indikerade att Thus, the number of last-mile online food deliveries has fossila fordon som bilar och mopeder används oftare än cykel. increased, creating challenges for urban cities. Based on the goal Resultaten tyder också på att det till viss del finns en medvetenhet that the City Council of Stockholm has set up regarding becoming och närvaro av hållbarhetsarbete i förhållande till fossil-free by 2040, this report examines the effects of the koldioxidutsläpp, men arbetet är begränsat i relation till vad som last-mile deliveries in the food delivery sector, particularly how behövs göras för att uppnå målet om att bli en fossilfri stad. the food is delivered to consumers today, and what challenges the Därför behövs ett stort åtagande från både matleverans-företagen OFD companies are facing in relation to lowering emissions from och Stockholms Stad för att påskynda övergången från last-mile deliveries in the urban area. The study consists of fossildrivna till elektriska leveransflottor för att minska empirical data collected from a quantitative survey answered by växthusgasutsläppen från sista milen leveranser inom sektorn. food delivery consumers in Stockholm, a qualitative interview with Sofia Leffler Moberg, Head of Sustainable Transformation at Keywords PostNord, and secondary data published online. The results show Last-Mile; OFD; Fossil-Free transport that there is a discrepancy between how the food was delivered to the customer and what the respective OFD platform recounted in 1. INTRODUCTION their application to be the delivery method. The in-app More than half of the world’s population live in cities, making visualization shows that the predominant vehicle used for delivery them accountable for 70% of global carbon dioxide emissions and was bicycle, however, the answers from the participants in the around two-thirds of global energy demand. If current trends investigation indicate that fossil-driven vehicles such as cars and continue, global urban primary energy use would grow by about mopeds are used for delivering. The findings also indicate that 70% and global urban 2 emissions by about 50% between 2013 there is, to a certain extent, an awareness and a presence of and 2050 [13]. Thus, it is of high importance that the cities break sustainability work in relation to carbon dioxide emissions, the trend and become part of the solution to addressing climate however, the work is argued to be limited in relation to what is change. actually needed in order to contribute to becoming a fossil-free city. Therefore, a large commitment by both the OFD companies The Paris Agreement, a legally binding international treaty on and the City Council of Stockholm is needed to accelerate the climate change, has set out a global framework for avoiding transition from fossil-driven to fossil-free delivery fleets in order dangerous climate change by limiting the increase in temperature to reduce the GHG emissions from the last-mile deliveries within to well below 2 degrees and aiming for 1.5 degrees [7][8]. Cities the sector. play an important role in adapting to this framework to address climate change and its impacts. Urban policies have a critical role Svenska to play in both adaptation and mitigation of climate action by Matleveranstjänster har blivit alltmer populära och tillgängliga, strategically improving urban form, lifestyles, mobility, and vilket gör att kunderna enkelt kan välja mellan ett brett utbud av energy sources that influence greenhouse gas (GHG) emissions restauranger, jämföra måltider och priser effektivt och ordna [13]. leveransen av maten direkt. Således har antalet sista mil matleveranser ökat och skapat utmaningar för städerna. Baserat på In this thesis, we will examine the relationship between online det mål som Stockholms Stad har satt upp om att bli fossilfritt till food delivery (OFD) applications and sustainable urban mobility år 2040, undersöker denna rapport effekterna av leveranserna i in Stockholm. To take action and stay consistent with the Paris sista milen inom matleveranssektorn, särskilt hur maten levereras Agreement ambition, Stockholm as a city aims to be fossil-free till konsumenterna idag och vilka utmaningar and climate positive by 2040. One of the most important building matleveransföretagen står inför i förhållande till att minska blocks in their strategy is: environmentally efficient transportation utsläppen från sista milen leveranser i stadsområdet. Studien [1]. Transport-related GHG emissions are responsible for 50% of består av empirisk data insamlad från en kvantitativ undersökning the GHG emissions in Stockholm and road traffic alone accounts besvarad av personer som konsumerar matleveranstjänster i for 80% [15]. In relation to transports, the explosive expansion of Stockholm, en kvalitativ intervju med Sofia Leffler Moberg, home-delivery services of all types of products is of particular
concern. Several studies discuss the increased demand for home choices of restaurants, offering product customization, real-time delivery. The growth of the sector has inevitably affected the interactive communication, and fast delivery [18]. While ICT demand for freight transport within the last mile [9]. “Last-mile” platforms such as UberEats, Foodora, BoltFood, and Wolt enable refers to the final stages in the supply chain between production, the customer to shop conveniently, compare products and prices terminals, and end consumers [2], for example, the distance effectively, and arrange the delivery of the meal immediately, they between a restaurant and consumer. also enable the restaurant industry to improve order accuracy, increase productivity, enhance customer relationships and extend This study looks at the OFD sector in relation to Stockholm their market [16]. becoming a fossil-free sustainable city by 2040. Specifically, we studied how the food is delivered from restaurants to customers, In a survey by UberEats published before the Covid-19 pandemic, in order to understand last-mile food delivery in relation to the it is reported that the overall increase in sales after joining the goal of attaining a fossil-free sustainable urban area. Quantitative platform was above 50% in four of the largest capitals in Europe studies with online food delivery customers in Stockholm were [4]. Further, already in 2016, it was reported by DeliveryHero, a expected to reveal somewhat detailed information about how the European multinational online food delivery service which food is delivered to its customers. We have also examined acquired Foodora in 2016, that Sweden was growing considerably challenges that OFD companies face if they are to reduce more strongly than the Eurozone countries [24]. The high usage of emissions from last-mile deliveries in urban areas. ICT platforms in Sweden is explained to be a consequence of the extensive internet user penetration [36]. Accordingly, the Understanding last-mile deliveries, including last-mile online food development of applications for OFD has become increasingly deliveries, is of strategic importance to the City Council of popular, prevalent, and accessible for all [23]. Stockholm in order to be able to develop policies that meet its citizens’ demands while simultaneously staying within the planet's The deliveries executed through the OFD services, i.e., the limits. deliveries from the restaurant to the customer, are realized by a courier. In order to be able to sign up as a courier in any of the The questions we intend on investigating are: OFD platforms present in the city of Stockholm, it is generally required that the individual is at least 18 years old, owns a 1. To what extent are delivery methods of current online smartphone, has registered a sole proprietorship or a limited food delivery services in line with the city of company and in turn also does a VAT registration, since they are Stockholm’s action plan to become fossil-free 2040? selling services through the OFD platform [19][27][30][33]. Further, the individual must own a vehicle for delivery, which can 2. What challenges are online food delivery companies be a bicycle, moped, or a car. If the courier chooses to use a car as facing in relation to lowering GHG emissions released a delivery vehicle, the car must be registered at the Swedish by transport? Transport Agency and be registered for freight traffic. In addition, some companies require that the courier wears clothes and has a delivery bag with the company’s logo on it [19][27][30][33]. 2. BACKGROUND 2.2 Last mile deliveries 2.1 ICT platforms and OFD services 2.2.1 The impact of last mile deliveries 2.1.1 Information and Communication Technology Due to the growth of e-commerce over the last few decades, the Information and communication technology (ICT) is in a demand for last-mile deliveries has increased [2]. The last mile is simplified sense described as “all of the technologies that referred to as “the final link in the supply chain between facilitate communications.”[5]. Since ICT platforms are, production, terminals, and end consumers” [2]. Trends in according to the European Commission (2016), major drivers of e-commerce have changed urban freight patterns and vehicle social and economic change, it is presently one of the prioritized movements in cities, which create challenges for urban cities. The thematic objectives in the European Digital Agenda as part of a increased number of last-mile deliveries challenges partly traffic strategy for smart, sustainable, and inclusive growth in the flows, the environment, and road safety [2]. Likewise, in the European Union. Accordingly, ICT is important as a sector in business-to-consumer environment, the last mile is regarded as itself but it is also an integral part of emerging related sectors, as it one of the more expensive, least efficient, and most polluting is also a means to enable other products, services, and activities sections of the entire logistics chain [2]. Thus, analyzing the such as e-commerce [5] and the rise of online food delivery. functioning of the transport and distribution of goods in urban areas is of further importance both in favor of leading companies and urban cities. However, due to the lack of data, it is 2.1.2 Online food delivery services challenging to analyze the implementation of last mile deliveries. The advance in ICT, which facilitates e-commerce activities, has Research indicates that the difficulties in obtaining this data are transformed the behaviors of both consumers and companies due to the transports in the cities being owned by private [16]del. Specifically, as in many sectors today, the rise of companies [11]. These companies are unable to share data on their technology is reshaping the food industry. While food delivery is services with their competitors and the public sector [11] due to not a new concept for either restaurants or consumers, online food the different methods of measuring data. Companies choose not to delivery (OFD) services enable more restaurants to deliver and disclose these numbers to prevent misinterpretation. Further, lack provide customers more choices [4]. Within one single of standardized study methods in urban freight transport application, the customer can find a wide range of unlimited contributes to the challenge of analyzing last mile deliveries [11].
2.2.2 Last mile online food deliveries a change of vehicle technology to electric vehicles and vehicles Most research that has been conducted in regards to last mile food powered by renewable fuels is crucial, since a change of fuel deliveries is aimed towards e-grocery businesses, meaning benefits the mitigation of GHG emissions [17]. Specifically, as the companies that deliver groceries or deliver pre-planned meal kits. increase in population automatically generates a greater demand A report indicates that the energy efficiency of freight transports for the supply of goods it is of further importance to consider how is influenced by several indicators: drivers, vehicle route, degree consumption patterns might affect delivery traffic. It has been of utilization packaging (the level of optimization and reduction discussed that delivery traffic could be optimized through of air in each package and the number of packages stacked in for last-mile initiatives to make use of small electric vehicles and example a container), traffic types, coordination, regulations, and bicycles as distributors, as the Climate Action Plan pinpoints the driving forces [10]. A conclusion could be drawn that most of the aspiration to achieve an emission-free inner city [17]. difficulties regarding the last-mile investigation remain for the entire food delivery sector. However, groceries that have been The distinction of sustainable urban mobility in the transport purchased through e-commerce are usually delivered in bulk to sector must be part of a broader strategy. By recognizing the many different households, while pre-made food from restaurants challenges of traffic growth in relation to infrastructure, the city of preferably needs to be delivered warm. Therefore, the challenge Stockholm can actively work to develop a smart and sustainable of time sensitivity, due to temperature maintenance, creates the urban city. The 2040 goal requires Stockholm to take action in inability to distribute orders to an extensive amount of areas such as: expansion of public transport and the expansion of households. Similarly, there might be differences in regard to cycle paths. They must also advocate for new fossil-free mobility vehicle types, considering the distances from the restaurant to the solutions and promote increased electrification as well as consumer might differ significantly. For shorter distances, expanded charging infrastructure [17]. Further, the city should bicycles might be more convenient than for longer travel allow for more sustainable delivery patterns through improved distances. infrastructure [17]. If deliveries are not efficiently distributed, an increased number of purchases through the internet is most likely to increase the 3. METHOD number of deliveries and thus, freight transportation. Therefore it The empirical material that was collected consisted of responses is crucial to consider new strategies for transport and distribution. from a quantitative survey. The initial survey (Appendix 1) was Food delivery services must address the challenges of reconciling executed in order to collect participants. Further, through a review the growing demand for home food delivery along with of the survey, potential participants were assembled to participate sustainability-related issues. Studies show that the adoption of in the second survey (Appendix 2). Accordingly, two quantitative electric vehicles could be of strategic importance in improving air surveys were completed. The data from the second quantitative quality and reducing global greenhouse gas emissions [10]. survey was analyzed in conjunction with secondary data that was However, infrastructure problems, for example, lack of collected from articles published online, documents published by availability of charging stations must be addressed in partnership organizations, and from the companies’ websites, to identify with politicians and governments [7][14]. patterns in the delivery methods of OFD services. Further, a qualitative interview was held with the Head of Sustainable Transformation at PostNord. 2.3 Fossil-Free Stockholm 2040 3.1 Quantitative surveys 2.3.1 Climate ambition The first quantitative survey (Appendix 1) aiming at collecting participants, consisted of 6 questions. It was shared on social The city of Stockholm has the ambition of becoming fossil-free in media platforms and within KTH. The title of the survey was 2040. In addition, the aim is to be climate-positive by 2040. formed to attract as many as possible, especially those familiar Greenhouse gas emissions are declining nationally but not at the with food delivery services and interested in sustainability. rate required by the latest research results from research and expert authorities. The city has therefore raised its ambition for The survey (Appendix 1) was initially shared by the authors of climate work, partly with a higher target for emission reduction, this paper on their personal Facebook and LinkedIn platforms. and partly by introducing measures aimed at reducing the climate Further, it was also shared in several Facebook groups. Alongside impact of consumption and transport. The Swedish Climate Policy the shared survey, a text was inserted describing the theme of the Council points out the transport sector as particularly critical for investigation and a specification of the requirements for further achieving the Swedish goals since transports account for about participation. The target sample was a user group consisting of half of the estimated GHG emissions in Stockholm. Of these participants that work, study and/or live in Stockholm and use emissions, road traffic accounts for about 80% [15]. online food delivery services at least once a month. In total, 2.3.2 Climate action plan thirty-five participants were collected for further participation. In order to achieve a 70% reduction of transport-related GHG emissions by 2030, and become fossil-free by 2040, the city of After the assembly of the user group, a following 5 question Stockholm has developed a Climate Action Plan. The Climate survey (Appendix 2) was sent out to the participants to gather Action Plan indicates that vehicular traffic within the city limits quantitative data regarding the deliveries from OFD services. has grown by 1.15 % per year in recent years and unless this trend Their participation lasted for two weeks. On the first day of the is broken, emissions throughout the whole transport sector will period, an email was sent to the participant describing when and increase with 40 000 tonnes of 2 by 2023 and a further 150 000 how they should fill out the short survey. After one week the participants received a second email reminding them to fill out the tonnes by 2050. In order to break the trend, traffic must decrease survey whenever they had ordered food from OFD services. A and a transition to other fuels must be realized [17]. In particular, third and last email was sent out when the two-week period ended,
thanking them for their participation. The questions were designed for deliveries 46% of the time and cars 10 %. Unknown represents to be fast and easy to answer whenever the participant ordered mainly one OFD application that did not recount the vehicle type food. Once the food had been ordered and delivered from an being used for the delivery. OFD, the participants filled out the survey recounting the delivery method shown in the app, meaning which vehicle the food ought to be delivered with, how the food was actually delivered, why they ordered food from a food delivery service and the distance between the restaurant and the delivery point. Finally, 60 answers were gathered which were used to understand how pre-made foods in Stockholm are delivered in regards to vehicle type. Both surveys were provided in both Swedish and English since Stockholm is an international city and the surveys were shared on platforms containing non-Swedish speakers. Approximately 15% of our participants chose to receive information in English. 3.2 Qualitative interview A qualitative interview was held with Sofia Leffler Moberg, Head Figure 2. The delivery method is shown in-app. of Sustainable Transformation at PostNord. The aim of the interview was to achieve a more nuanced analysis regarding last Question 4 (Appendix 2) discusses the driving factors behind the mile deliveries in Stockholm. Five questions (Appendix 3) were customer’s choice of OFD application. A large majority (56 %) formulated to work as an interview guide. The interview was held recounted that the major driving factor behind the choice of the in Swedish and was recorded through Zoom. The duration of the application was the price of the delivery. Further, 27% valued interview was approximately 1 hour. mostly a fast delivery, and 17% did not recount any specific requirements behind their choice of food delivery application. The survey also offered a fourth alternative: “fossil-free delivery”. 4. RESULTS However, this option was never chosen. This section presents what was learned from the survey in which the user group participated and from the interview with Sofia Figure 3 shows the distances from the restaurant to the delivery Leffler Moberg. point, meaning the travel distance from the restaurant to the customer order. The majority of the orders, which represented 54%, were within a distance of 2-4 kilometers from the restaurant 4.1 Results from survey to the delivery point. Moreover, 30% of the orders were within These are the collected answers from the survey (Appendix 2) the 0-2 km from the restaurant, 15% were deliveries within 4-6 km test group was handed. From thirty-five different participants, 60 and 2% were deliveries of a distance between 6-10 km, which answers were collected in total. The period the survey was represents the longest distance for deliveries recounted in the answered was between the 22nd of March and the 12th of April survey. The option “longer than 10 km” was not chosen once. 2021. All answers were anonymous. Figure 1 shows that 36% of the orders from online food delivery services were delivered by moped, 32% were delivered by car, 22% by bicycle, and 10% were not recounted. Concluding from this figure, moped and car are the most common delivery vehicle types in Stockholm for OFD services. The 10% of “unknown” answers represent those who could not depict the delivery method, for example by looking out the window. Figure 3. Distance from restaurant to the delivery point. In addition to the survey, several participants discovered some further discrepancies regarding the couriers. Besides the vehicle type, certain OFD applications also disclose a picture of who was going to distribute the customer’s order (Image 1). One participant recounted that the courier shown in the application differed from reality. Figure 1. Delivery method Figure 2 presents the delivery method shown in the app when having completed the food order. It shows that bicycles are used
respective OFD platform recounted in their application to be the delivery method. An accumulated number of all companies shows that the predominant vehicle type shown in the application was deliveries by bicycle. However, in reality, mopeds and cars were the predominant vehicles used for delivery. Both Uber Eats and Bolt Food showed discrepancies between in-app visualization and reality. UberEats states that bicycles, mopeds, and motorbikes are the vehicles allowed for delivery in Stockholm [30]. From the results, it is depicted that whenever the order was delivered by car the OFD service recounted it in the applications as being delivered by moped or bicycle. Other OFD companies allow the drivers to register whichever vehicle they find the most comfortable for safe and effective delivery [19][27][33]. The results for Bolt Food show that approximately 50% by moped, 25% by car, and 13% of the orders were delivered by bicycle, with the rest unknown. Due to inconclusive data regarding the delivery method shown in the application, we cannot draw any conclusions if this particular OFD service had any discrepancies between distribution in-app versus reality. However, public data that was shared by the company through email, conveys that approximately 70% of their orders are distributed by bicycle, 15% by moped, and 15% by car [35]. Although the data retrieved from the survey about Bolt Food may not be representative, since only 13% of all orders were made through this particular service, it could be argued that at least a larger segment of all orders should have been delivered by bicycle since the company’s last-mile data states that orders 7 out of 10 times are distributed by bicycle. However, the data from the Image 1. Screen capture from OFD application, containing survey would oppose their statement. This would mean that the delivery vehicle, picture, and name of the courier. companies are not saving the correct data about their used delivery vehicles. It may also mean that the companies are not aware of how the food is being delivered. A bicycle or a moped 4.2 Results from qualitative interview may have been registered as a vehicle of choice by the employee, Leffler Moberg shared the challenges the delivery companies face however, this person might have used a car instead. in relation to efficiency, carbon dioxide emissions, and overall sustainability. She explains that there is an extensive number of Foodora did not share an in-app visualization with the customer home delivery companies competing to deliver the consumers’ regarding the delivery method. Thus, no conclusions regarding the packages, which results in half-filled distribution vehicles discrepancy between reality and the company’s saved vehicle data circulating the urban area of Stockholm. Here she depicts that could be drawn. Further, since Wolt corresponded to a there are some logistical challenges that the delivery sector has to significantly low number of the answers in the survey, no tackle. Further, she mentioned that throughout the industry there is conclusions could be drawn regarding any discrepancies. a lack of transparency in regards to the calculations of the carbon dioxide emissions emitted by a company since all companies use In general, users recounted that when cars delivered the food, it different calculation methods. In order to avoid misinterpretation, was hard to distinguish that these cars belonged to online food companies are therefore careful about sharing data. delivery companies since these were not wrapped with company logos, and the drivers did not have any working attire that could 5. ANALYSIS be linked to each company. Therefore, a general perception might In the next section, we will present an in-depth analysis of the be that cars are not a common vehicle for delivering food in the results. The analysis is based on the following material: i) public city of Stockholm since these might be hidden at a first glance. information retrieved from open sources about the four companies However, as the results present, there is a considerable number of (Foodora, Uber Eats, Bolt Food, Wolt), ii) a survey answered by cars used for the distribution of restaurant-made foods. The results customers of at least one of the noted companies. iii) interview also showed that when the customer was asked why they chose with Sofia Leffler Moberg, iiii) information retrieved from the the chosen OFD service, the “fossil-free delivery” alternative was background in this paper. The analysis includes comparisons never chosen. This could be speculated to be a result of the between the different OFD service platforms. It should be noted customers' unawareness about the wide presence of fossil-driven that none of the OFD companies contacted by us shared any vehicles as cars, and the belief that most deliveries are executed information regarding delivery data or sustainability challenges by fossil-free alternatives as bicycles, electrical scooters, and within the company. sometimes fossil-driven mopeds. 5.1 Delivery method 5.2 Traveled distance and vehicle type The results (Figures 1 and 2) point out that there is a discrepancy Figure 4 is an integrated analysis from Figures 1 and 3, which between how the food was delivered to the customer and what the shows that for the shortest traveled distance (0 - 2 km), bicycles and mopeds were the most common vehicle types. However, for
the majority of orders located between 2 and 4 kilometers from deliveries. Thus, the OFD companies may argue that using the restaurant to the delivery point, the orders were delivered by fossil-driven vehicles is more economical for the company, the moped or car. In addition, for distances longer than 4 km, moped driver, and its customers since more deliveries per employee and car were also the most common vehicles. In conclusion, cars enhance revenue for the company and the driver while reducing and mopeds were shown to be the most predominant vehicle types delivery costs for the customer [10]. However, these options do used by OFD services for delivering food in the city of emit GHG emissions and do not aid in lowering the 2 Stockholm. emissions and becoming a fossil-free Stockholm. 5.4 Couriers As discovered in the results, there were distinctions regarding the courier distributing orders and the courier visualized in the application. It should be noted that this had only been observed by one participant on one particular OFD application. This aspect was not further investigated. However, it can be discussed that this might indicate a correlation with the aspect regarding the discrepancy between the vehicle visualized in the application and the actual vehicle used for delivering the order. A phenomenon that has been depicted by us when making use of other delivery services within the gig economy, is that there is one registered employee in the company who then distributes incoming orders to a few different couriers of their own. From the results, it could be Figure 4. Distance and vehicle type. argued that the phenomenon of using so-called “middlemen” might occur in the OFD service sector as well. However, this is Considering the shorter distances in the central parts of only up for speculation since no investigation has been done Stockholm, from restaurant to delivery point of the customer, one regarding this topic. could conclude that shorter distances might indicate ease of delivering without a car. We anticipated a result where bicycles Henriksson et al. (2018) mention that the drivers and vehicle would dominate for the shorter distances since we assumed the routes are some of the factors that directly influence the last mile passability between each delivery point would be better than deliveries. For the OFD companies to be able to have control over distributing by car. However, when looking at the travel distances the effectiveness of the deliveries, data regarding the type of between 2 and 4 kilometers, the most common vehicle types were vehicle the couriers use for delivery must be saved correctly. The cars and mopeds. Further, we assumed that longer travel effectiveness of the deliveries is partly affected by driver distances, 4 to 6 kilometers, would consist of a higher number of efficiency and vehicle efficiency [10], therefore, if the food moped deliveries since these enable a faster delivery than bicycles deliveries are delivered by middlemen, the OFD services might but also greater passability than cars. The assumption was not be able to save correct data regarding the deliveries executed affirmed by the results. In addition, the results also show that a through the platform. wide part of the deliveries are executed by car. 6. DISCUSSION 5.3 Customer demand The study’s original purpose was to investigate how the food is The results indicate that the majority of all orders from OFD delivered from restaurant to customer to understand to what extent services were driven by the price of the delivery, meaning that the the deliveries are in line with Stockholm’s action plan to lower its customer chose the service with the cheapest delivery. Further, GHG emissions and become fossil-free in 2040. Whilst doing the 27% of the customers prioritized fast delivery and the rest did not investigation and gathering data from the survey about the have any specific requirements when choosing a service. deliveries, we depicted that the range of fuel vehicles was wider Therefore, the results of our investigation show that the majority than we first had estimated and that the transparency regarding the of the participants prioritized cheap and fast deliveries over deliveries was relatively small. This opens up for discussion fossil-free delivery options. Our data may not be representative regarding transparency, solutions for more sustainable deliveries due to the low number of participants. However, research in line with Stockholm’s Climate Action Plan, method discussion, indicates that a company in a highly competitive OFD market and suggestions for further investigation in the future. driven by revenue prioritizes to satisfy the customer and its demands with their services, to keep its customers [16]. Thus, to 6.1 Sustainability work within the sector meet the customer’s expectations, using cars and mopeds for delivering fast and cheap orders seems to be an effective method. 6.1.1 Access to data Further, the challenge of distributing warm pre-made foods does Our aim with this research was partly to investigate the different also contribute to the need of delivering by car and moped, types of vehicles that OFD services make use of when especially for longer distances, since customers most likely prefer transporting food, by conducting a survey answered by OFD their food warm. A courier will have difficulties in waiting for customers. We wanted to take part in the company’s distribution multiple orders since the challenge of delivering food quickly, patterns, i.e. the different types of vehicles used during delivery, both in favor of temperature maintenance and for the customer’s the number of deliveries realized during a day, and also sake of valuing fast deliveries. Moreover, even though one could investigate the challenges food delivery companies face in distribute multiple orders from the same restaurant at once, it becoming fossil-free. However, in email conversations with Bolt could be argued that the distances between each delivery point Food, Wolt, and Foodora, it was communicated that since they are could differ substantially and therefore lose the aspect of fast operating in a highly competitive market they are not able to share
any information or data with us. As a result, they did not and mopeds, and not cars. An absence of transparency regarding participate in a qualitative survey to discuss their stance in their the presence of fossil-driven vehicles for delivery can be argued to sustainability-related work in relation to the city of Stockholm’s be greenwashing, a term used for describing when a company is Climate Action Plan. A common denominator delivery companies misleading their consumers about their sustainable performance or generally seem to share is being cautious regarding the sharing of the environmental benefits of a product or service [12]. For data concerning carbon dioxide emissions from their deliveries. example, when the in-app visualization shows a fossil-free vehicle All companies are measuring and reporting these numbers used for delivery, while in reality, the food is delivered by a differently [11], therefore, in order to avoid misinterpretation, the fossil-driven vehicle. If the companies do make statements of their companies can choose not to disclose the numbers. delivery fleets that do not correspond to reality it is interpreted as greenwashing. Therefore, if there are any uncertainties regarding As depicted from the results, the participants expect fast and their used vehicles, the food delivery companies should refrain cheap deliveries. Reports argue that the internet is causing price from making statements about their delivery methods in order to wars due to accessibility of comparing prices, thus consumers will avoid greenwashing. Further, making false statements or giving most likely buy the cheaper product when comparing between two misleading information about the vehicles used for delivery may platforms [18]. A conclusion could therefore be drawn that be considered and reported as a violation of the Marketing Act. customers will choose the OFD service that offers the cheapest and fastest delivery. Further, if the customer is informed that their order is going to be delivered by bicycle, although in reality, it is 6.2 Becoming fossil-free Stockholm 2040 not, the customer will believe that what the application says 6.2.1 Last mile deliveries in general corresponds to reality. In cases where the customer does not look To investigate to what extent the OFD services are in line with the out the window to control what vehicle was used, one will not city of Stockholm’s Climate Action Plan and what challenges are know that reality differs from theory. This possibly results in an faced in relation to lowering and mitigating emissions from the absence of requirements and demands from the customer to have last-mile online food deliveries, it is interesting to understand both their order delivered in a sustainable and trustworthy manner initiatives and challenges for the last-mile deliveries in general. since they already think the deliveries are fossil-free. Thus, if the Besides restaurant-made food delivered by online food delivery OFD customers’ main priority is fast and cheap delivery, the services, there is an extensive number of deliveries being executed companies’ uninterest in sharing data could be due to low within the last mile in Stockholm. Among those are the e-retailers prioritization of facing and handling sustainability-related issues. delivering directly to households and larger deliveries to stores, for instance, daily food deliveries to grocery stores or weekly 6.1.2 Calculate and compensate 2 deliveries to retail stores. These deliveries together have a While discussing to what extent the OFD companies seem to be collective impact on the GHG emissions released in the city. interested in taking responsibility for their ecological footprint, it However, the existing solutions for lowering greenhouse gas is of high importance to take into consideration and discuss what emissions differ. Within the market of home deliveries related to they are sharing with the public about their climate activity. Even e-retail and e-commerce, there is customer demand for fast and though none of the OFD companies, recounted in our survey, were effective home delivery [37]. As a result, new companies are interested in sharing country-specific data with us, there is some emerging, challenging the traditional delivery firms by offering information shared about general sustainability work on the not only fast and effective but also sustainable deliveries, which is respective website. Despite that the different OFD companies pushing the market to move toward emission-free solutions [28]. show different levels of engagement, Foodora and Wolt have Nonetheless, it is important to highlight that a high number of presented a method for carbon emission compensation [25][34]. different delivery services competing for the packages is resulting First, they calculate the carbon dioxide emissions from their in half-filled vehicles circulating the city [37]. Unlike home offices and deliveries. Second, they offset the emissions by distributions, large deliveries to warehouses are mostly delivered supporting internationally recognized projects, which reduce in large trucks that are not fossil-free. Altogether, these last-mile carbon emissions elsewhere in the world [25][34]. Measuring and deliveries do all contribute to releasing GHG emissions and offsetting their carbon footprint may reduce the overall climate creating logistical challenges in the urban area. Putting this into impact on their activities. However, compensating for this perspective, the online food delivery sector probably stands for a elsewhere does not lower the released GHG emissions in the city smaller amount of the GHG emissions within the last-mile of Stockholm. In turn, it does not necessarily contribute to deliveries in Stockholm. However, the OFD sector must also Stockholm becoming a fossil-free city in 2040. Further, a potential address their emissions released through deliveries, since a discrepancy between the vehicle registered for delivery and the fossil-free city requires an integrated approach of all actual vehicle used for delivery may result in a miscalculation stakeholders. between the carbon dioxide emissions being compensated for and the actual emissions released. 6.2.2 Fossil-free delivery alternatives In the Climate Action Plan for a fossil-free Stockholm 2040, it is 6.1.3 Greenwashing discussed that last-mile deliveries should make use of small The investigation revealed that deliveries by car are at first glance electric vehicles and bicycles as distributors to achieve an normally hard to distinguish since the cars used by the couriers emission-free inner city [17]. A city that allows and enables are privately owned and are not marked with the company’s logo. sustainable transport alternatives encourages emission-free In comparison, when the food is delivered by bicycle or moped, deliveries [9]. An example of how the city of Stockholm enables the customer is able to depict the courier delivering the food since deliveries by bicycle is the public bicycle storage in the city center they are wearing a backpack or similarly marked with the where OFD employees store their bicycles. Further, enhanced company’s logo. Generally, this gives an impression that the encouragement for electrical vehicles creates incentives for use of delivery vehicles used by the couriers do mainly include bicycles electric scooters and mopeds for deliveries. Even though the use
of shared electrical scooters as an OFD method is not depicted in Stockholm’s Climate Action Plan. The Netherlands is an example our presented results, the OFD company Foodora presented on of how governments help municipalities encourage transport their website in 2020 that they had signed a contract with Voi, an services to go carbon-free in urban areas. To only have electrical scooter-sharing platform, to provide their employees zero-emission deliveries by 2025 in Dutch cities, the government with an electrical option for delivering. Also, a collaboration with is offering grants to help businesses buy or lease electric vehicles the electrical moped company Bzzt was established by Foodora [21]. Moreover, a transition to fossil-free delivery methods could and Bolt Food to create a “better urban environment” through also be accelerated through regulations set up by the City Council. fossil-free deliveries [27][32]. In addition, future electrical An example of regulations the City Council could implement in alternatives for delivery are being investigated. “Doora'' is the urban areas of Stockholm in order to create the incentive to Foodora’s new robot which has been developed to deliver food to transform to a carbon-free fleet is to create “Low emission areas”, its customers. The company plans to see hundreds of “Doora’s” where petrol vehicles older than a certain year are banned. This on the streets of Stockholm [22]. This robot drives 6 km/h, which already exists in many European countries for example Italy, means that it can be a complement for short delivery orders. Germany, Spain, UK, and the Netherlands [21]. This approach However, the results show that the distances up to 2 km do not could possibly trigger a change to fossil-free vehicles when it stand for the most carbon dioxide emissions since bicycles are the comes to the shorter (2 - 4 km) last-mile deliveries within the food most common vehicle used for delivery, compared to the 2 - 4 km delivery market, now executed by car and moped. where mopeds and cars are the most common delivery vehicles. Thus, the changes the companies need to realize are the slightly If no regulations or investments are determined by the City further distances (2 - 4 km), but also consider the whole delivery Council, the OFD service companies could create a possibility for fleet. Having hundreds of robots roaming the streets will possibly the customer to choose a fossil-free delivery. This phenomenon have to result in a reduction of other vehicles. The infrastructure does exist when it comes to the taxi services offered by Uber and of Stockholm city might not be able to accommodate all OFD Bolt [20][31]. In order to create an incentive for the couriers to companies and their delivery fleets with hundreds of bicycles, transition to an electrical vehicle, the customer could pay a mopeds, scooters, cars, and in the future, robots. Thus, when slightly higher price for the fossil-free delivery. Here, the introducing a new vehicle, these should replace another, customer could be notified about how much carbon dioxide preferably a fossil-driven vehicle if the companies wish to lower emissions they have saved. However, in the case of the OFD their carbon dioxide emissions and move towards a more deliveries, it might be slightly more complex, since a fossil-free sustainable future. Even though Foodora is an example of how an delivery could be equal to a bicycle or an electrical car. This OFD company can incorporate fossil-free delivery solutions to would result in a conflict of interest when having to pay extra for accelerate towards the net-zero ambition, this is not the present the order being delivered by bicycle. This could eventually result reality for the OFD sector in general. in a decrease in bicycle deliveries. However, coming up with some solutions where the customer can choose to lower its 6.2.3 Taking action ecological footprint could contribute to a lowering of 2 In the Climate Action Plan, it is expressed that the city of emissions released by the OFD services. Stockholm can not achieve the ambitious goal of becoming fossil-free by 2040 by itself and that it, therefore, needs to join forces, not only with the national government and the EU but also 6.3 Method discussion To get an idea of how pre-made foods are distributed in with enterprises within all industries [17]. The change of fuels is a Stockholm we gathered a user group of online food delivery concrete example that is presented in order to achieve the goal, consumers to investigate the phenomenon. However, we had specifically within the transport sector. In addition, expansion of difficulties finding participants to partake in our survey. Even cycle lanes and various measures to improve mobility services though the survey was shared throughout platforms of thousands such as carpools, bicycle borrowing pools, and free-floating of people, we still had difficulties accumulating participants to sharing services is suggested. However, the Climate Action Plan participate in our survey, since our posts did not manage to work does not present any specific measurements regarding the in favor of the algorithms. Thus, it was difficult to draw any collaboration with trade, industry, and private businesses. In order general conclusions from our results. In order to get a realistic to reach the goal of a fossil-free city, the City Council must create picture, we would have needed a larger number of participants. In an incentive for the companies causing the GHG emissions, to be particular, we had difficulties achieving our initial aim of willing to mitigate their emissions and take further responsibility. approximately calculating carbon dioxide emissions that are To take action towards net-zero emissions, we believe that it is released in Stockholm based on our results of how many orders crucial to support innovation and build a private sector that are delivered by car and moped. The anticipation was to either produces climate-compatible goods and services. In the Coalition gather enough participants to be able to make approximations for Urban Transitions, a global initiative supporting national regarding the number of orders delivered during a day/a week or governments in transforming cities to accelerate economic find data on the internet on how many orders are delivered in development and tackle dangerous climate change (2019), it is Stockholm during a certain time period. However, we did not presented that a significant amount of national and local research manage to gather enough participants to make valid and development budgets should aim at enhancing economic approximations and the potentially useful data on the internet was competitiveness by “ (...) bolstering local entrepreneurs, classified. Therefore, our aim to estimate carbon dioxide leveraging private research and development investments and emissions emitted from delivery vehicles of OFD services could strengthening regional innovation clusters to support the not be completed. Further, when we first started sharing the initial advancement and adoption of technologies, products, and survey (Appendix 1) to find participants we had a requirement processes that accelerate the zero-carbon urban transition”. This that read: “I Use Bolt Food, Foodora, UberEats, Wolt, or similar approach of investing and supporting companies to accelerate applications at least two times a week.” With this requirement we zero-carbon urban transition could encourage the OFD companies had difficulties gathering participants, thus we changed the to commit to prioritizing a fossil-free delivery fleet in line with
requirement to: “I Use Bolt Food, Foodora, UberEats, Wolt, or that Foodora has designed in regards to the robot ‘Doora’, and similar applications at least once a month.” When this change was investigating what actual effect it has on the overall emissions implemented we had a higher number of participants signing up. from the industry. For this to be well-executed, retrieving a lot of We speculate that the ones signing up were mostly people of our data regarding vehicle types, amount of deliveries, and delivery own age, possibly students. Generally, they have less money than distances should be highly empathized. working individuals which results in them ordering more rarely. In turn, this results in a lower answering frequency per participant 7. CONCLUSION compared to if we would have had a wider range of participants of The study’s purpose was to investigate how the food is delivered all ages and professions, that order food from OFD services more from restaurant to customer in order to understand to what extent often. online food deliveries are in line with the city of Stockholm’s Climate Action Plan to lower its GHG emissions and become For a better understanding of the results regarding delivery fossil-free in 2040. Further, we aimed at studying what challenges methods both in the application and reality, the survey should OFD companies might face in relation to lowering their emissions have contained a question asking the participants “why” they did released through deliveries. not know an answer whenever they picked the option “unknown”. Our study shows that there is a wide presence of fossil-driven These answers could have been due to for example the vehicles, i.e., cars and mopeds, used for online food deliveries in participants’ inability to see the vehicles from their windows. the city of Stockholm. Even though there are examples of certain Also, given that the survey was conducted throughout Stockholm, companies taking measures for carbon dioxide compensation and both in the inner city as well as adjacent areas, we should have the use of electrical vehicles, the study demonstrates that considered the possibility of making the participants account for encouragement of the use of fossil-free vehicles for instance where they ordered their food from. This information would have bicycles and e-scooters is in general not fully prioritized. Further, allowed a more in-depth analysis regarding the different types of the lack of transparency in the OFD sector contributes to the vehicles used for different travel distances. In addition, qualitative incertitude of how the deliveries are actually executed and the interviews could have been done with the participants to better continued use of fossil-driven vehicles for deliveries. Therefore, understand how much they knew about the delivery method to accelerate the shift to a fossil-free Stockholm 2040, the Climate before they took part in the investigation, and also how important Action Plan concludes that collaboration between the City it is for them as customers to have control over how their order is Council, the national government, and the European Union, but delivered. Moreover, in survey question 4 (Appendix 2), asking also with enterprises within all industries is crucial. Thus, we why the participant chose the particular OFD service, “fossil-free argue that the City Council must work in close collaboration with delivery” was an alternative. Based on the results, this alternative companies to encourage them to accelerate a zero-carbon was never chosen. Perhaps this alternative could have been transition by investing in transitioning to fossil-free fleets. explained more in detail, by giving an example e.g. bicycle or scooter. Since a fossil-free city requires an integrated approach of all stakeholders, the online food delivery sector must address their 6.4 Future work deliveries and secure net-zero emissions. When the survey period had been completed it was surprising to see that the results showed that there was a discrepancy between 8. ACKNOWLEDGMENTS what the OFD applications recounted as the delivery method for We would like to thank our supervisor Daniel Pargman for the food from restaurant to customer, and what the customer guidance throughout the work process and Sofia Leffler Moberg recounted as the reality. In addition to the survey, it was for contributing valuable insights. We would also like to extend mentioned that there was a discrepancy between the person our thanks to those who participated in our survey, and our peer delivering the food according to the application and the actual reviewing group members for helping and inspiring us. person delivering it. These events may be of further interest for future investigations. Thus, with more resources further investigation could be done within the field to understand what the real delivery methods are and the reason behind the potential discrepancy. To be able to draw any conclusions from the results, it should preferably be prioritized to gather a large number of participants of all ages and professions. We would suggest not only accumulate many OFD customers but also find people that deliver the food through the food delivery companies and interview them. The employees for each company might have an approximate number of how many orders are delivered per day. Data could also be gathered from several restaurant owners, as they could also have an idea of how many orders they receive. With these statistics, one could calculate more accurately how much emissions are released from deliveries by fossil-driven vehicles and draw further conclusions regarding last-mile food deliveries. It could also be interesting to investigate what further possibilities there are for effective and sustainable food deliveries in Stockholm. By looking at examples of the innovative solutions
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