The Pandemic Has Boosted Online Shopping and Delivery: What Does It Mean for Transportation?

Even before COVID-19 arrived, online shopping and delivery has increasingly become a part of our lives. From Amazon to Uber Eats to Instacart, ordering goods and food with a smartphone is commonplace for most people.

But with the arrival of the public health crisis – along with social distancing practices and a major shift to working from home – we’ve seen a massive increase in online shopping and delivery. And with this trend have come many impacts, some good, some bad. So, what does this trend mean for the future of transportation?

How much more are people shopping online?

It’s clear that the pandemic has lit a fire on a trend that’s been increasing for years. Online shopping had been growing by one per cent per year, as a share of total retail sales. The pandemic has only accelerated this trend. According to Statistics Canada, online retail sales more than doubled between May 2019 between 2020, driven in part by more people staying at home and wanting to shop safely.

What’s more, the upcoming holiday season is expected to throw yet even more fuel to this fire. Thirty-five per cent of Canadians who’ve never shopped online before plan to buy their holiday gifts online. A recent survey by Deloitte found that the average shopper will spend half their holiday budget online this year.

What does it mean for transportation?

To meet this unprecedented demand, major shippers like DHL, Purolator, and UPS have hired thousands of new staff and added more vehicles.

This rise in delivery vehicles could mean changes to our traffic patterns. Though it’s uncertain if it would lead to more or less congestion – since conceivably more deliveries means less people driving to go shopping.

One thing we do know is that increasing deliveries is leading to increased competition for space in neighbourhood streets. A pressure that’s been felt acutely in places like New York City, where just two delivery companies racked up half a million parking violations in one year – and that was before the pandemic even began.

What’s more, demand for quick delivery – in some cases, same-day shipping – is putting new demands on shippers and on the transportation system. Including requiring using large trucks for “last mile” deliveries, where an alternative vehicle could be more suitable.

On top of more trucks trundling through neighbourhood streets, we’re also seeing increasing demand for curb space, leading to conflicts with parking and with cycling lanes. With more curbside delivery, on top of rising ride-hailing pick-ups and drop-offs, more multi-modal transportation options, including scooters and bike sharing stations, there’s growing competition for space on curbs and sidewalks.

And increasing delivery is not without environmental impact. Transportation is one of the country’s leading sources of greenhouse gas emissions (GHGs) – and a major source of air pollution. As cars become more efficient and green, freight carbon emissions are expected to surpass that from passenger vehicles by 2030.

What about the future?

Online shopping and neighbourhood delivery are popular for a reason. The convenience and time savings of ordering products online and receiving them in the safety and comfort of your own home is appealing. The pandemic has likely accelerated this trend by years.

It’s also forced us to consider how online shopping and delivery could be a bigger part of our transportation future.

So, what could that look like?

Major shippers are increasingly looking at ways of making delivery more efficient, cleaner, and quieter. That includes delivering in off-peak hours, shifting to smaller electric vehicles, and even testing e-cargo bike deliveries in major cities – like Purolator is doing in Montreal.

With a bump in deliveries, developers are increasingly integrating receiving lockers into buildings. TransLink – in partnership with PigeonBox – is testing smart lockers in major transit stations.

What about delivery drones? No longer a question of whether or not they’re coming, drones are already here.

Starship Technologies’ six-wheel robots have been delivering groceries to thousands of people in the British town of Milton Keynes for two years. Food delivery bots are also being tested in Toronto. Closer to home, in Vancouver, InDro Robotics has partnered with UBC and Canada Post to trial aerial delivery drones – capable of carrying up to 20 kilograms.

With increasing demand for online shopping – combined with innovation in goods movement and delivery – it’s clear that the future will look different than today. For its part, TransLink will be working with municipalities to reduce congestion stemming from urban freight. TransLink will also be piloting digitally managed curbs across the region and “e-freight hubs” where goods can be transferred to low emissions or active transportation options for “last mile” delivery.

And Transport 2050 will consider these trends and technologies so that the region can make the best of these changes for the regional transportation system.