Arval Mobility Observatory

Today, 58% of the world’s population live in urban areas, a proportion that is forecast to increase to 70 % by 2050. This situation generates a lot of challenges such as air quality concerns, congestion, hours lost in traffic (around 163 hours per driver in Paris in 2019), time that could be  spent doing other activities…. All these concerns are increasingly emphasized after the lockdown period. 
More sustainability, a greener environment in the cities are the strong targets that all urban ecosystem strive for. Public and private actors work together in this direction. In our recent video, we have explained that Mobility as a Service could be one of the solutions.
However, would it be a question of thinking the city not in term of city planning but in term of urban life planning?  That is what the concept of the “15 minute- city” is developing. 

What does it mean?

“The last mile” is a term usually used to describe the final link in the supply chain – when an order makes its way from the distribution centre or a retail location to the end consumer.
Worldwide, city governments are battling against air quality concerns and traffic congestion by creating low emission zones, and implementing vehicle entry and parking restrictions.
Recent global trends, like low transport emissions and the e-commerce boom, have brought last mile logistics to the brink of disruption.

So what is this disruptive change that the last mile is facing?

During the last few years, the number of LCVs has increased with the growth of last mile delivery as ever more shopping is carried out online. This trend has been reinforced during the Covid-19 crisis because of the explosion of online shopping due to the lockdown situation, without mentioning the delivery of services in city centers which require LCV usage.

With this significant increase, the challenges around last mile urban operations are becoming crucial for many companies. Congestion, air quality concerns, LEZ implementation and cost of the last mile are perhaps some of the main issues. However, all of these challenges represent real opportunities for OEMs.

What is the current situation? How are these challenges being managed?

Growing interest for electric vehicles and alternative motility solutions: Arval Mobility Observatory reveals its global Fleet Barometer 2020.

In light of the various COVID-19 imposed lockdowns across Europe, all of the manufacturing plants and most of the dealer sites were closed.
Some OEM’s developed or enhanced their respective online purchase processes (such as PSA or Volvo).
Despite these initiatives there was still a significant reduction in new passenger cars registrations.

In the 5 major markets in Western Europe, the automotive industry is a strategic, industrial sector of their respective economies. That is why their governments have decided to support large stimulus plan in order to boost production and sales of vehicles with a strong focus on electric vehicles.

How do they intend to support the demand?

We hope this publication will give you the key to understand what is driving the need fo last mile solutions, the challenges faced in our city centres, the evolution of our way of living and consuming and how it impacts the delivery organization.

Telematics solutions are a key part of any fleet manager’s toolbox, monitoring key factors impacting the Total Cost of Ownership (TCO) of entire fleets but also a precious tool for individuals to become active and responsible drivers.

The coronavirus outbreak is first and foremost a human tragedy, affecting hundreds of thousands of people. It is also having a growing impact on the global economy. The COVID-19 pandemic will certainly lead to a world recession.

Among other industries, the global automotive industry will confront a challenging year with impacts on the mobility landscape. What can we already see on the market? What will be the impacts after this pandemic? What are the impacts on the vehicle manufacturers (OEMs)?

The coronavirus pandemic is firstly a human tragedy that is affecting hundreds of thousands of people. It is also seriously affecting all elements of the global economy. World governments have either imposed an almost total lockdown or containment measures in our daily activity for a significant period regardless of the economic cost.
Many companies have developed digital solutions and home working solutions but this is not possible for all kind of jobs.

Indeed, during this period, we have seen the development of e-commerce, online purchase requiring transportation of goods, food shopping deliveries and service activities such as elevators or plumbers or others. All these activities have one common point: they use LCVs.

What is the impact of COVID-19 on LCVs fleet management?