How Will E-Commerce Growth Impact Our Transportation Network?

How Will E-Commerce Growth Impact Our Transportation Network?

"As e-commerce grows as a percentage of total retail sales, consumers are choosing delivery options with shorter delivery cycles. Not only does this mean that Amazon Prime customers (65 million subscribers in September 2016) can choose Prime Now two-hour deliveries for some high-volume items, it means other retailers are offering same-day deliveries, as are some package delivery companies (United Parcel Service [UPS], Federal Express [FedEx], and United States Postal Service [USPS]) in certain cities. This report reviews how express delivery services now operate, how they are regulated, and how they may affect the state’s transportation system."

Key findings

An impact assumed through e-commerce expansion is a change in urban logistics. Land may become more widely used for distribution centers, owner by e-commerce companies.

Similar to the business of ridehailing and food delivery, personal vehicles may be used in express deliveries.

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