Using Autonomous Modular Vehicle Technology as an Alternative for Last-Mile Delivery

With the rise of e-commerce, there is an increasing demand for efficient and timely delivery of goods. The emerging Autonomous Modular Vehicle Technology (AMVT) may provide a promising solution to achieving greater efficiency and agility in last-mile delivery. In this system, vehicles can be coupled together to form a train, optimizing operational costs by creating pods and traversing links as a train. This connection will decrease fuel consumption and also reduce the number of cars in a city, thereby decreasing congestion. These vehicles, or “pods,” will be dispatched to different zones and stations within specific time windows. Upon arrival, customers will be notified to pick up their packages. However, the efficiency of this technology and its benefits for last-mile delivery are not yet clear. The objective of this research is to evaluate the effectiveness and operational cost of the proposed system for package delivery. Additionally, the study aims to explore features that contribute to the cost reduction of this system in comparison to the current scenarios. A mixed-integer programming model is formulated to optimize pod use and determine optimal routes and schedules. Results show that using this system will add some waiting time to the system to allow a pod train to travel. However, it will decrease the overall operation cost of the system compared to classical depot-based methods where trucks deliver packages. Moreover, these cost savings are more significant in areas with higher demand variations and overall demand. Implementing this innovative approach can help delivery companies cut transportation costs while maintaining delivery times and service levels, promoting environmental sustainability to meet the demands of the growing e-commerce industry.