The Use of Drones for Last-Mile Delivery: A Numerical Case Study in Milan, Italy

Abstract

The increasing use of e-commerce introduces major challenges for last-mile delivery, which is critical to ensure smooth functioning of supply chains. Besides the speed and cost of delivery, which are the most important factors for last-mile logistics, environmental and social sustainability factors are taking on an increasingly important role, especially in urban areas. In this perspective, last-mile delivery by drones could be a good choice both in terms of transport speed and sustainability. Being electrically powered, drones can reduce environmental impact; moreover, they enable the reduction of road congestion since they do not interfere with land infrastructures. The goal of this study is to analyse the viability of drones for last-mile delivery in the Italian city of Milan. A stated preference survey was carried out to assess end-user propensity towards drones. Using these results, a goods delivery service by drones was designed. Furthermore, a preliminary financial analysis was performed to evaluate the benefits for a company that would provide such a transport service. Findings show that last-mile delivery by drones can be successfully used to deliver small and light packages, reducing environmental and social impacts, and ensuring profits for the transport provider.