Travel behaviour in the context of parcel pickups

Abstract

The last decade has seen a rapid growth in business to consumer parcel deliveries, driven to a large extent by a corresponding growth in online shopping. However, the ‘last mile’ of parcel distribution, which involves the final physical transfer of goods to the customer, is particularly problematic for many customers. Failed deliveries are common, notwithstanding some market moves to extend delivery hours and narrow delivery windows. An alternative that has become increasingly prevalent is the collection/delivery point (CDP). Parcels are delivered to a CDP of the customers’ choosing, and then picked up at the customers’ convenience. This study investigates travel behaviour in the context of choice between conventional delivery and CDPs. A stated choice survey is employed to test the impact of alternative delivery and CDP offerings. An error components logit model is estimated which handles the joint choice of delivery verses pickup, and pickup location, travel mode, trip chaining, and trip scheduling. The results reveal complex interactions between the various choices, with key differences across the choices in the influence of the attributes of the choice alternatives, the characteristics of the households that constitute the decision makers, and the nature of the parcel being delivered. This study shows that as last mile delivery and pickup services evolve, the changing quality of these services will have an impact on shopping travel behaviour.