NYC Tests Cargo Bikes with Amazon, UPS and DHL

In an effort to reduce congestion in New York City, Amazon Inc. (NASDAQ: AMZN), UPS (NASDAQ: UPS), and DHL (ETR: DPW) are the first participants in a pilot program testing cargo bikes. 

New York City is launching a trial program that will have some deliveries completed by drivers on bikes instead of cars and vans. The New York City Department of Transportation has set a goal of 100 cargo bikes in the trial. 

Testing is set to happen in Manhattan below 60th street, the same area where the city is planning to commence “congestion pricing” starting in 2021. According to that plan, passenger vehicles will be charged about USD14 and commercial trucks about USD25 to access the area during peak hours. 

“DOT is excited to announce this pilot to make freight deliveries in NYC safer and greener by encouraging the use of pedal-assist cargo bikes instead of trucks,” said NYC DOT Commissioner Polly Trottenberg.

The commissioner also acknowledged that trucks have been involved in a large number of cyclist casualties this year. 

“We are especially interested in the safety benefits this pilot can bring to our streets,” Trottenberg said. “We thank UPS, DHL, and Amazon for their participation and invite other interested freight companies to join and help us make this pilot a success.”

UPS and DHL, having already been part of similar trials in other locations, are prepared to participate in the upcoming testing within NYC. 

“DHL has set a number of ambitious environmental targets, including achieving net zero emissions from transport activities by 2050 and performing 70% of last-mile deliveries with green vehicles by 2025,” said Mike Parra, CEO of DHL Express Americas. “Cargo bicycles will play an important role in hitting both of those targets.”

According to DOT’s Mobility Report which was released in August, 45% of residents receive a package at their home at least once per week. Additionally, for-hire vehicle trips have grown by 81% from 2013 to 2017.