Is Quick Delivery Related to Quick-Commerce Environmentally Sustainable?
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The rapid expansion of quick-commerce (q-commerce) businesses, which promise quick last-mile delivery, requires an urgent assessment of their environmental sustainability. This study investigates the sustainability of the q-commerce business model, which relies heavily on electric vehicles (EVs) and dark stores for last-mile delivery services, and assesses the environmental impact of express-delivery operations, particularly in terms of greenhouse gas (GHG) emissions. It examines the ability of EVs and dark stores under Q-Commerce to reduce the carbon footprint compared to traditional online last-mile delivery methods and evaluates the environmental pollution potential of increased delivery frequency and faster last-mile delivery in terms of GHG emissions. By analysing data from various q-commerce companies and last-mile deliveries, the paper provides insight into the trade-off between the benefits of fast delivery and its environmental sustainability. The results highlight the complexities of achieving sustainability in the rapid last-mile delivery sector by combustion vehicles and propose a framework for integrating environmentally friendly practices to reduce overall environmental impacts, such as optimizing electric vehicle adoption and delivery routes. The conclusion of the paper discusses the feasibility and significance of establishing a more sustainable q-commerce environment, as well as its limits and future prospects.
Introduction
Urban transportation faces continuous environmental challenges in promoting and building an environmentally conscious transportation environment, with an emphasis on emissions, traffic noise, and cognitive reduction (Caggianiet al., 2021). Within minutes/hours/or same-day delivery is an important tool for online businesses to allow customers to purchase products/services online and have them delivered within minutes/hours, bridging the gap between online and brick-and-mortar purchases. Customers benefit from instant delivery because it eliminates the need for store visits and long line-ups, and they often receive their products in no time. This service has a strong annual growth rate. According to Statista (2023b) report, it was anticipated that 511.8 million consumers will use Quick-commerce services globally by 2023. The user base for Quick-commerce is predicted to grow to more than 788 million by 2027. This phase is very important and challenging, especially for Q-commerce companies, because it only takes a few minutes/hours for the order to reach the customer’s goods. This poses challenges not only in terms of environmental impact, particularly in terms of greenhouse gas emissions such as CO2, but also in terms of delivery cost (Sarkar, 2023). The Paris Agreement, agreed in 2016 by 194 countries (including the European Union), aims to limit global warming and CO2 emissions to reduce carbon emissions by 45% by 2030 and to reach net-zero emissions by 2050. To reduce global warming, the consumption of fuel sources must be shifted so that they do not emit greenhouse gases (GHG). In the transport sector, alternative fuels such as renewable electricity and biofuels are included (Awwadet al., 2018), since dark stores are micro-fulfillment centres specifically designed for quick delivery/fast delivery (Mukhopadhyay, 2022; Raiet al., 2017). Environmentally sustainable last-mile delivery is also discussed, which is the objective of this research.
This paper evaluates the role of EVs and dark stores in fast-delivery and environmentally sustainable products that can reach consumers after they receive orders from them.
Method
The rapidly evolving landscape of quick delivery, or Q-commerce, has gained significant interest due to its global nature. There are approximately 427.7 million fast-commerce users worldwide, generating approximately USD 97.8 billion in revenue (Statista, 2023b). However, the question is, is quick-delivery environmentally sustainable?
A qualitative approach was used to conduct this research. This study reviewed previous studies to review the literature further. Secondary data collection methods, such as descriptive analysis of various references from books, journals, reports, the internet, and other sources, are used. This study aims to examine how electric vehicles and dark stores are used in last-mile delivery to promote energy security as an alternative to reducing environmental pollutants and fuel imports. In order to make the use of electric vehicles a strategic choice and the use of dark stores in the fight against environmental pollution, this research is also linked to environmental challenges.
The key findings of this research are:
a) Through the use of scientific literature research and synthesis, the research is trying to find delivery conflicts in the development of ultra-fast delivery and its environmental sustainability. This paper proposes a way to address the identified problem.
b) Finding the most innovative and promising options for future growth in this field, as well as the internet users and the state of the ultra-fast delivery industry.
c) Determining how carbon emissions and last-mile distribution are affected by fossil fuels.
d) The combination of electric vehicles and dark stores should be the main topic of discussion, and the environmental sustainability of quick delivery should be confirmed.
Literature Review
The foundation of all academic research endeavors, regardless of subject, is developing research and linking it to existing knowledge. It can also be useful in providing a comprehensive picture of areas in which multidisciplinary and diverse research is being conducted (Snyder, 2019).
Ultra-Fast Delivery and Environmental Sustainability
The constant emergence and competition of new digital technologies force organizations to adapt their operations digitally (Ferozet al., 2021). Moreover, as a result, organizations are putting more emphasis on last-mile delivery. The last-mile delivery process involves moving goods from a hub or distribution center to the final recipient’s location (Comi & Savchenko, 2021; Klein & Popp, 2022; Manerbaet al., 2018; Siegfried, 2021), usually their home, and providing quick and efficient delivery typically within minutes/hours (Groß, 2022; Stojanov, 2022; Wanget al., 2023). Many researchers focused on environmental challenges related to consumers’ increased online orders like greenhouse gas emissions, traffic congestion, packaging, etc. (Han, 2021; Muñoz-Villamizaret al., 2021; Nogueiraet al., 2022).
Quick-Commerce
Quick commerce, or Q-commerce, is a new type of online shopping that combines digital technology with ultra-fast delivery services, allowing customers to receive their orders within a very short time, usually within a few minutes, an hour, or a few hours after order (Gund & Daniel, 2023; Ranjekar & Roy, 2023; Schorung, 2023; Serrenho, 2022). Q-commerce strongly focuses on speed and consumer convenience to deliver a smooth and frictionless buying experience within 2–3 kilometers (Delivery Hero, 2020; Malik, 2022) from the delivery destination. According to Statista’s (2023b) report, 788 million consumers will use the quick-commerce market worldwide by 2027, which is not only a last-mile challenge but also an environmental challenge.
Dark Store
A dark store is a warehouse or big retail shop located in the city, facilitating quick and responsive logistics activities for perishable goods and groceries in the ultra-fast delivery model (Gund & Daniel, 2023), where customers are physically not allowed to visit the stores (Boylan & Cline, 2021). Contact-free shopping has become increasingly popular since COVID-19, as well as related safety precautions and social distancing. Thanks to dark stores, customers may make purchases from physical retail locations without physically entering them. It helps to reduce carbon emissions, minimize product travel, and reduce individual trips to physical stores (Nobre & Vita, 2021).
Electric Vehicles
A vehicle classified as an electric vehicle (EV) has an electric motor that runs on a battery and can be charged externally (Statista, 2023a). Over 13 million electric vehicles were sold in 2023, generating $769.3 billion in revenue for the market. Moreover, the projection is expected to reach approximately $ 952 billion by 2023, (Markets and Markets, 2024).
Electric vehicles offer a substantial environmental benefit (30) over traditional internal combustion engine vehicles (Hollandet al., 2015). Electric vehicles are more energy-efficient, reduce pollutants in the air, and, over time, create less greenhouse gas emissions. These advantages will be amplified when electricity is generated from renewable energy sources. By using fewer fossil fuels, EVs also help to reduce noise pollution and promote long-term sustainability.
Combustion Vehicles
Using combustion vehicles (fossil fuel vehicles) for last-mile delivery plays a significant role, especially in quick delivery. In cities, especially with high traffic, combustion vehicles use 5–10 times the energy of electric vehicles for transportation. This leads to a substantial global loss of energy (Fridstrøm, 2020). Additionally, combustion vehicles’ greenhouse gas emissions, traffic congestion, and noise pollution contribute to global warming and climate change (Güntheret al., 2015).
The Key Finding
The global environment now faces significant challenges as a result of climate change. In order to reduce carbon emissions and maintain energy security both present and in the future based on environmental sustainability, alternative last-mile delivery vehicles are desperately needed. Therefore, using electric vehicles to reduce fuel oil consumption significantly reduces pollution and exhaust emissions for last-mile delivery.
Emission Problems by Combustion Vehicles
A newly developed quick last-mile delivery technique is revolutionizing the speed at which packages and items are delivered to customers instantly. However, climate change is a serious and important concern for the environment. Especially the heavy use of fuel vehicles in last-mile delivery.
Table I shows the result of high greenhouse gas emissions by various transportation sectors. The sole purpose of displaying this table is to highlight how much greenhouse gas emissions delivery vehicles produce for last-mile delivery. While the carbon emission levels of plug-in hybrid cars and bikes are close to 100 grams or less, the carbon emissions of other delivery vehicles are very high, especially LPG and CNG cars and CNG vans. Determining how much global last-delivery carbon emissions result from rapid last-mile delivery is difficult. This is now a major area of concern for many researchers. According to the World Economic Forum (WEF, 2020), by 2030, global delivery vehicles will increase by 36%. As a result, emissions from delivery would grow by more than 21%, and emissions from delivery traffic are expected to rise by 32%.
Transport segments | Types of transportation | Carbon emissions (Average value) | Average emission by transport |
---|---|---|---|
Cars | Diesel Cars | Approx. 169 grams/kilometers | 151 grams/km |
“ | CNG Cars | Approx. 175 grams/kilometers | |
“ | LPG Cars | Approx. 197 grams/kilometers | |
“ | Petrol Cars | Approx. 163 grams/kilometers | |
“ | Petrol/Hybrid Cars | Approx. 119 grams/kilometers | |
“ | Plug-in Hybrid | Approx. 83 grams/kilometers | |
Motorbike | Petrol (125–500 cc) | Approx. 101 grams/kilometers | 92 grams/km |
“ | Petrol (Mopeds/Scooters/bikes–upto 125 cc) | Approx. 83 grams/kilometers | |
Vans | CNG Vans (Average) | Approx. 232 grams/kilometers | 218.38 grams/km |
“ | Diesel Vans (up to 1.30 tonne capacity) | Approx. 142 grams/kilometers | |
“ | Diesel Vans (1.30–1.74 tonnes) | Approx. 174 grams/kilometers | |
“ | Diesel Vans (1.74–3.50 tonnes) | Approx. 253 grams/kilometers | |
“ | LPG Vans (up to 3.5 tonnes) | Approx. 255 grams/kilometers | |
“ | Petrol Vans (up to 1.30 tonnes capacity) | Approx. 182 grams/kilometers | |
“ | Petrol Vans (1.30–1.74 tonnes capacity) | Approx. 195 grams/kilometers | |
“ | Petrol Vans (up to 1.74–3.50 tonnes capacity) | Approx. 314 grams/kilometers |
For other online last-mile delivery services such as e-commerce, last-mile delivery is not environmentally sustainable due to long routes. After ordering for product variations, the product goes from Regional Centres to Sorting Stations, or from manufacturers to Sorting Stations or Warehouses and from there to Regional Centres to Sorting Stations (Fig. 1). Moreover, it not only emits more CO2 but also increases the cost of transportation. The variety of products and services here is huge.
Fig. 1. Other online last-mile delivery.
Electric Vehicles and Carbon Emissions
Electric vehicles (EVs) are often promoted as a cleaner alternative to traditional internal combustion engine (ICE) vehicles. EVs do not emit pollutants such as nitrogen oxides (NOx), methane (CH4), and carbon dioxide (CO2) that contribute to air pollution and health problems, which makes them especially useful in urban quick delivery, where there is a serious problem with air quality. On the other hand, E-Scooty, E-Bike, and E-Van produce less carbon emission during their lifespan Table II.
Transportsegments | Type oftransportations | Carbon emission (life-cycle carbon footprint) | Average single charge mileage | Speed(Kilometers/hour) |
---|---|---|---|---|
E-Scooty | Electric | Approx. 35–67 grams/km (Cenex, 2020) | Approx. 30–40 miles (Flynn, 2022) | Average 46 kilometers/hrs (E-Scooter Nerds, 2024) |
E-Bike | Electric | Approx. 20–35 grams/km (Cenex, 2020) | Approx. 50–100 miles (Latham, 2023) | Average 20 miles/hours (32 kph) (Velotric, 2023) |
E-Van (Light vehicles) | Electric | Approx. 49 grams/km(Nowak, 2021) | Approx. 182 miles (Molliere, 2022) | Depends on model |
The adoption of EVs in last-mile transport can lead to a significant reduction in CO2 emissions, congestion, and noise pollution (WEF, 2020). In Fig. 2, the E-scooters, E-bikes, and E-vans produce less carbon emission (lifespan) than combustion vehicles but zero tailpipe emission.
Fig. 2. Quick-commerce last-mile delivery.
On the other hand, under Q- Commerce (quick delivery) only those products in stock in the dark store will be seen by the consumer online. Directly from the dark store, the product will be delivered to the customer within minutes by delivery vehicle (Fig. 2). Electric vehicles are the most efficient delivery mode since the destination is within a few kilometers.
Dark Store and Quick Last-Mile Delivery
Dark stores play a significant role in enabling quick last-mile delivery, especially in Q-commerce. Dark stores are typically located in urban centers, which reduces the distance and time required for last-mile delivery, allowing them to be closer to the end consumers (Nobre & Vita, 2021). Dark shops are metropolitan centers, closed-to-the-public establishments used only for storing, gathering, sorting, and shipping items ordered online. Promising quick delivery to the destination, dark stores play a significant role in delivery.
In Table III, the average delivery time after an order taken by the companies is a few minutes or hours, and the radius of the delivery destination is within 2.2 kilometers. According to Scriven (2022), more than 6000 dark stores exist all over the globe, and by 2030 the number will reach 45,000 globally. In Table I, the carbon emission (grams/ km) by combustion vehicles is very high, whereas the destination from the delivery is very low, within a 2.2-kilo meter radius (assuming maximum delivery radius). On the other hand, Electric Vehicles are not only environmentally friendly when on the road but also perfect for delivery time.
Q-Commerce company | Number of dark stores | Deliveries to destination | Distance covers (Radius) |
---|---|---|---|
Zepto | Approx. 200 stores (Choudhary, 2024) | Average within 10 minutes (Choudhary, 2024) | Average 1.8 kilometers (Choudhary, 2024) |
Flink | Approx. 190 stores (Sterling, 2022) | Average Within 10 minutes (Narang, 2021) | Not mentioned |
Delivery Hero | Approx. 932 stores (Delivery Hero, n.d.) | Average within 1 hour, sometimes 20–30 minutes (Delivery Hero, n.d.) | Average 2.2 kilometers (Delivery Hero, 2020) |
Blinkit | Approx. 526 stores (Shrivastava, 2024) | Average within 15 minutes (Blinkit, n.d.) | Average 2 kilometers (Blinkit, n.d.) |
Gorillas | Approx. 180 stores (Sterling, 2022) | Average within 10 minutes (Criterion Global, n.d.) | Average 1.5 kilometers (Torkel, 2022) |
Gopuff | Approx. 250 stores (Wells, 2021) | Average within 20–40 minutes (Wells, 2021) | Not mentioned |
Discussion
The study mostly used secondary data collection techniques, such as searching the internet, books, journals, and reports for relevant material. The research focuses on the carbon emissions of various transportation segment types and their related values in order to build a hypothetical relationship between Tables I–III supplied in the text within a 1.8-kilometer radius (e.g., for Zepto).
Key Variables
Based on the data, the following parameters were prepared:
Delivery Parameters
• Average Delivery Distance (DD): 1.8 km radius (e.g., for Zepto)
• Number of Deliveries per Vehicle (DPV): 15 delivery (Assumed)
Carbon Emission Values
• Combustion Vehicle Emissions:
• Average emissions for Combustion cars (AECE): 151 g/km
• Average emissions for Combustion vans (AECV): 218 g/km
Electric Vehicle Emissions:
• Average emissions for electric vans (AEEV): 49 g/km
• Average emissions for electric scooters (AEES): 51 g/km
Cost Parameters:
Parameters | Quantity | References |
---|---|---|
Fuel consumption for combustion vehicles: | ||
Cars | 8 L/100 km | (BrokerLink, 2024) |
Van | 10 L/100 km | (Swiss Vans, n.d.) |
Fuel Price (FP) | 1.17 Euro/L | (Global Petrol Prices, n.d.) |
Energy consumption for EVs | 0.20 kWh/km | (EVBOX, n.d.) |
Electricity price (ELP) | 0.12 Euro/kWh | (Host Dime, 2020) |
Average speed for combustion vehicles (Scv) | 30 km/hours | (MOVOTIV, n.d.) |
Average speed for electric vehicles (Sev) | 25 km/hours | (Vanderwerp, 2022) |
Performed Calculations
1. Carbon Emissions Calculation
For Combustion Vehicles (Cars): ECVcar = DPV × DD × AECE
ECVcar = (15 × 1.8 × 151) g. = 4,077 g (Approx. 4.08 kg)
For Combustion Vehicles (Vans): ECVvan = DPV × DD × AECV
ECV van = (15 × 1.8 × 218) g. = 5,886 g (Approx. 5.89 kg)
Total Carbon Emissions for Combustion Vehicles:
ECVtotal = ECVcar + ECV van = 4.08 + 5.89 = 9.97 kg
For Electric Vehicles (Vans): EEVvan = DPV × DD × AEEV
TEEV = (15 × 1.8 × 49) g. =1,323 g (Approx. 1.32 kg)
For Electric Vehicles (Scooters): EEVscooter = DPV × DD × AEES
TEES = (15 × 1.8 × 51) g. = 1,377 g (Approx. 1.38 kg)
Total Carbon Emissions for Electric Vehicles:
EEVtotal = TEEV + TEES = (1.32 + 1.38) g. = 2.70 kg
2. Cost Calculation
For Combustion Vehicles (Cars): FCcar = (8/100) × DPV × DD × FP (FC = Fuel Cost)
FCcar = (8/100) × 15 × 1.8 × 1.17 = 2.53 euros (Approx.)
For Combustion Vehicles (Vans): FCvan = (10/100) × DPV × DD × FP
FCvan = (10/100) × 15 × 1.8 × 1.17= 3.16 euros (Approx.)
Total Fuel Cost for Combustion Vehicles:
Average FCCV = (2.53 + 3.16)/2 = 2.85 euros (Approx.)
where FCcv = Fuel Cost of Combustion vehicles.
For Electric Vehicles : Total ECEV = DPV × DD × Energy Consumption × ELP
ECEV = (15 × 1.8 × 0.2 × 0.12) = 0.648 euros (Approx. 0.65 euros)
3. Delivery Time Calculation (T)
For Combustion Vehicles: TCV = DPV × (DD /SCV) = 15 × 1.8/30 = 0.9 hours (Approx. 54 minutes)
For Electric Vehicles: TEV = DPV × (DD /SEV) =15 × 1.8/25 = 1.08 hours (Approx. 65 minutes)
The calculations provide a comparative assessment of Comparative analysis (Table IV) of combustion vehicles and electric vehicles. From the calculations, electric vehicles produce less carbon emissions than combustion vehicles which is 73%, and the total travel cost for electricity is 77% lower than the total fuel cost for combustion vehicles (Table IV). On the other hand, electric vehicles take a slightly longer time for delivery (20% Increase) compared to combustion vehicles. The environmental and cost benefits are substantial.
Matrix | Combustion vehicles | Electric vehicles | % of Differences |
---|---|---|---|
Total carbon emission (KG) | 9.97 | 2.70 | 73% reduction |
Total energy consumption (Euros) | 2.85 | 0.65 | 77% reduction |
Delivery time (Minutes) | 54 | 65 | 20% increase |
Results
The majority of the material for the study comes from secondary sources, including literature reviews found online and in books, journals, and reports. The findings and discussion illustrate the significance of environmental sustainability, dark stores, and electric vehicles for the acceptability of delivery methods; the discussion’s findings add to the body of research on sustainability perceptions in last-mile delivery.
According to Villa and Monzón (2021), urban freight transportation increases tremendously, negatively impacting both the environment and society in the cities. Also, EVs take less road space and often use cycle lanes, which can avoid traffic congestion, take delivery time, and are environmentally friendly.
On the other hand, single-charged EVs like E-scooters, E-bikes, and E-van ride a distance of approximately 56 km, 120 km, and 293 km, respectively. EVs are highly automated, minimize traffic congestion in urban delivery, and help to improve operational efficiency from dark stores in urban quick last-mile delivery.
An important aspect is the environmentally friendly sustainability of dark stores or micro-fulfillment centers for last-mile delivery, which can decrease delivery times and progress effectiveness in urban last-mile delivery (Paché, 2022). Dark stores work as logistical centers, delivering within 10 to 15 minutes after an online order by operating the nearest-to-dark store radius system and enhancing consumer satisfaction. Strategically positioned in urban areas for ultra-fast delivery (Pache, 2023), dark stores efficiently prepare orders to reduce the distance between customers and warehouses, and logistics service provides quick product access (Peppelet al., 2022).
If we will see Figs. 1 and 2, after an order by a consumer online, Q-commerce covers fewer fleets than the traditional E-commerce business model. Q-commerce delivers goods/services from dark stores within a few kilometers of the delivery destination (Fig. 3). Within a specific radius, electric vehicles reduce 72.9% (approximately) less carbon emission than conventional vehicles.
Fig. 3. Delivery destination.
Conclusion
The research on the sustainability of quick-commerce (q-commerce) in relation to quick delivery concludes that the rapid expansion of q-commerce business models, emphasizing quick last-mile delivery, necessitates a thorough assessment of their environmental sustainability. The study investigates how q-commerce relies on electric vehicles (EVs) and dark stores for last-mile delivery services and evaluates their environmental impact, particularly regarding greenhouse gas emissions. By analyzing data from various q-commerce companies and logistics strategies, the research sheds light on the trade-offs between the benefits of quick delivery and the environmental consequences associated with increased delivery frequency and quick last-mile delivery. The study focuses on the complexities of achieving sustainability in the quick last-mile delivery sector and proposes a framework for integrating environmentally friendly practices to reduce overall environmental impact.
The findings emphasize the importance of optimizing EV adoption and delivery routes to minimize carbon footprints compared to traditional online last-mile delivery models. The research highlights the significance of establishing a more sustainable q-commerce environment by leveraging strategies that promote energy security, reduce environmental pollutants, and decrease fuel imports.
In conclusion, the study advocates for a strategic approach to addressing environmental challenges in the q-commerce sector, emphasizing the need for q-commerce companies to prioritize sustainability and environmental responsibility. By implementing environmentally friendly practices, such as utilizing EVs and dark stores, q-commerce businesses can work towards creating a more sustainable and environmentally friendly last-mile delivery system for the future.
Limitations
The paper has several research limitations that warrant further investigation and research in the context of quick last-mile delivery operations. The research is trying to address the environmental sustainability of quick-commerce models. However, there is a dearth of research data on overall greenhouse gas emissions associated with quick-delivery activities, especially since quick-commerce is a new concept. This research also does not discuss the challenges and limitations of governments’ and stakeholders’ initiatives to increase EVs.
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