The final stretch of a delivery or that critical "last mile" from the warehouse to your doorstep, can be a nightmare in cities. Traffic jams, parking woes and a lack of delivery drivers—all conspire to slow things down.

These issues were a focal point at the recent Communitech Fast Track Cities Showcase, where six Canadian companies pitched their innovative solutions to overcome obstacles such as driver shortages, congested streets and limited parking. Gomove, for instance, stood out for its platform that enables businesses to share resources and optimize routes in real time, securing a $10,000 prize. 

Dariusz Grabka, Head of Digital Lab at Purolator, a Canadian courier company and leader in last-mile delivery, shared insights into these challenges and how technology is playing a crucial role in addressing them.

Sustainability and decarbonization

One of the most pressing challenges in last-mile delivery is the need for sustainability. As urban pollution increases and cities push for greener initiatives, the delivery industry must transition from fossil fuels to more sustainable options. 

"Purolator has made significant commitments to be the greenest courier company in Canada, which includes deploying electric vehicles, using clean fuels and switching to greener technologies," Grabka said.

The transition to electric vehicles (EVs) is not without its hurdles. While the availability of EVs has improved, infrastructure remains a significant challenge. 

"We are building the EV infrastructure at our own terminals. This includes ensuring the right chargers are matched with the right vehicles and dealing with cities and electricity providers that may not have the necessary capacity," Grabka said.

Urban spaces and zoning issues

Urban space constraints and zoning laws also pose challenges. Many industrial facilities are being converted into residential areas, reducing the availability of spaces suitable for delivery hubs. 

"Driving things from the suburbs into the city is actually going to get harder as industrial facilities are becoming less and less available over time. We are exploring innovative solutions like micro-distribution centres using shipping containers parked in underutilized spaces, such as parking lots, to overcome this issue," Grabka said.

Urban Quick Stop shipping containers

Purolator is adopting innovative technologies that meet our customers' needs. The company has introduced Urban Quick Stop “mini-hubs” at locations like the University of Toronto's St. George campus and Cooksville GO Station. These mini hubs allow customers to pick up or drop off parcels conveniently, while supporting for our e-bike deliveries. 

"We are trying to get into where the people are with smaller deployments that fit into the fabric of the community. Just a couple of weeks ago, the City of Toronto approved the long-term usage of the Urban Quick Stop model. They can actually become logistics hubs with this model, so there’s lots of energy and potential there," Grabka said.

E-bikes and low-speed vehicles

E-bikes are another significant innovation in last-mile delivery. Purolator has developed its own e-bike models in collaboration with Canadian manufacturers. These bikes are designed to handle various weather conditions and urban environments. 

"We've been learning over the last couple of years and are definitely leading in that space in Canada," Grabka said. 

Collaboration and community engagement

Collaboration with municipalities, universities and community organizations is essential for the successful adoption of these technologies. Purolator sponsors research chairs at universities like the University of Toronto and Université de Montréal, leveraging their relationships with cities to drive innovation. 

"One of the big things is that we have strong organic relationships with all the municipalities. That’s a key piece of the puzzle. There is a general framework for working with federal and provincial levels for success, but working with each individual city is also incredibly important for success,” Grabka said.

Purolator and Communitech have been working together to solve the aforementioned challenges.

“Purolator's engagement with organizations like Communitech and Fast Track Cities is relatively new but holds significant potential. This partnership offers a platform for us to gain exposure to startup innovations and provide mentorship and support to emerging companies,” Grabka said.