Two-Wheeler Logistics Market Trends & Drivers
Increased Adoption of Electric Two-Wheelers
- To encourage the use of environment-friendly vehicles with low emissions, reductions in the registration tax and other liabilities, such as subsidies and tax rebates, have been offered by governments in different countries.
- Subsidies have helped the market by making electric scooters and motorcycles more viable for customers for personal and business purposes.
- Such factors are responsible for the rise in the adoption of electric scooters and motorcycles in various countries.
- While the incentive depends on the battery size and vehicle traveling range, some countries have even extended the benefits to electric scooters and motorcycles that are to be used for rather small distances, commercially.
- Due to such incentives, logistics companies are also adopting electric two-wheelers for their business purposes.
- For instance, DHL International GmbH, an international courier, package delivery, and express mail service, announced plans to purchase 8,000 e-bikes and around 14,000 e-trikes (three-wheeled electric cargo bikes) by 2025. The company announced this investment during its strategic meeting held in August 2021.
- In the same vein, Amazon is also planning to deploy 100,000 EVs (including two-wheelers) in its delivery fleet by 2030.
Cost-Effectiveness and Accessibility of Services
- For small and medium-sized companies, there is an age-old debate over how to best handle delivery services. Due to the low production, low market demand, cost factor, and many other issues, several B2B customers are unable to provide sufficient volume of shipping, which leads to no long-term contracts with logistics companies.
- Furthermore, for individual customers, online goods transport companies offer on-demand transportation in both the partial-load and full-load capacities, at convenient prices and time.
- When a customer books for transport through a contractor or on a call, the cost incurred for transportation is hidden. But, on-demand logistics service providers charge on the basis of the distance to be traveled, and the structure of the cost incurred is transparent.
- For instance, in delivering a package of instant noodles to customers, a company is not relying on heavy vehicles, such as trucks and other four-wheelers.
- Utilizing motorcycles becomes a cost-effective option as they are less expensive compared to cars and trucks. Such factors boost the two-wheeler logistics market globally.
Health and Safety Issues Among Riders
- Motorbikes, mopeds, and scooters are becoming an increasingly popular mode of transport, particularly for e-commerce, food, and other delivery companies.
- It has been seen that food delivery is typically done by young workers or by those who have had no job training. They work mostly part-time and on a contractual basis.
- Additionally, food delivery riders work mostly at night between 8 pm and 1 am, when they are often confronted by aggressive or drunken clients. As they work alone and after dark, their job carries perpetual dangers.
- Delivery riders are also at risk of robberies because they handle money. Most of the delivery persons also suffer from back problems because of the heavy weight carried by them on their shoulders for about 40–50 km a day.
- Therefore, it is really important for delivery companies to ensure the safety and health of their delivery riders.