New York City recently announced a pilot program to reduce traffic congestion and pollution from delivery trucks utilizing electronic bikes to make deliveries. Amazon (AMZN  ), UPS (UPS  ), and DHL are expected to participate, as they are the city's three largest delivery providers.

Electronic Bike Program

The pilot program is for 100 electronic peddle-assisted bikes under 60th Street in Manhattan. Each bike comes equipped with a large container that will be tested over the next six months to make all types of deliveries including groceries. These zero-emission bikes will be more compact than existing trucks, allowing them to make use of bike lanes.

The program also carves out an exception for peddle-assisted e-bikes which are currently banned in New York City. These bikes will not be allowed to exceed 15 miles per hour and are permitted the use of streets and the sidewalk. New York's efforts follow similar programs in cities like Seattle, Copenhagen, and London which have shown success in reducing congestion. Electric bikes are also being tested for food delivery by companies like Dominos (DPZ  ).

The bikes are also expected to reduce pollution and traffic fatalities. Additionally, it will improve the quality of life for residents as the city's already busy traffic is additionally encumbered by trucks unloading packages in bike lanes and sidewalks across the city. However, this is just the beginning of New York City's efforts to combat congestion and pollution. In 2021, a more intense part of the city's congestion reduction program will begin - charging vehicles up to $14 and commercial vehicles up to $25 to drive in certain areas during peak hours.

Increasing Package Delivery's Effects

It's estimated that 1.5 million packages are delivered every day in New York City. Of course, this is a product of a variety of factors including the high cost of goods in New York City, the rise of online shopping, and the ease, low-cost, and ubiquitousness of next-day and same-day delivery. The increasing truck and sidewalk congestion is one negative effect of this shift. Additionally, it's leading to more retail stores struggling and lower sales tax revenue for the city.