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“The last mile” is a term usually used to describe the final link in the supply chain – when an order makes its way from the distribution centre or a retail location to the end consumer.
Worldwide, city governments are battling against air quality concerns and traffic congestion by creating low emission zones, and implementing vehicle entry and parking restrictions.
Recent global trends, like low transport emissions and the e-commerce boom, have brought last mile logistics to the brink of disruption.

So what is this disruptive change that the last mile is facing?

Arval announced today that its Austrian subsidiary has signed an agreement with UniCredit Leasing (Austria) GmbH to purchase 100% of the shares of UniCredit Leasing Fuhrparkmanagement GmbH. A long-term exclusive cooperation settlement between Arval Austria and UniCredit Bank Austria is part of the agreement, allowing Arval to offer to the Bank’s corporate customers its fleet management and mobility services.

During the last few years, the number of LCVs has increased with the growth of last mile delivery as ever more shopping is carried out online. This trend has been reinforced during the Covid-19 crisis because of the explosion of online shopping due to the lockdown situation, without mentioning the delivery of services in city centers which require LCV usage.

With this significant increase, the challenges around last mile urban operations are becoming crucial for many companies. Congestion, air quality concerns, LEZ implementation and cost of the last mile are perhaps some of the main issues. However, all of these challenges represent real opportunities for OEMs.

What is the current situation? How are these challenges being managed?

Growing interest for electric vehicles and alternative motility solutions: Arval Mobility Observatory reveals its global Fleet Barometer 2020.

With a new plan in place until 2025, Arval, a global leader in full service vehicle leasing and new mobility solutions, and the Spanish CaixaBank through CaixaBank Payments & Consumer, the bank’s subsidiary specialised in consumer finance and payment methods, will continue to work together on mobility innovation and the development of new products and services for their customers.

In light of the various COVID-19 imposed lockdowns across Europe, all of the manufacturing plants and most of the dealer sites were closed.
Some OEM’s developed or enhanced their respective online purchase processes (such as PSA or Volvo).
Despite these initiatives there was still a significant reduction in new passenger cars registrations.

In the 5 major markets in Western Europe, the automotive industry is a strategic, industrial sector of their respective economies. That is why their governments have decided to support large stimulus plan in order to boost production and sales of vehicles with a strong focus on electric vehicles.

How do they intend to support the demand?

We hope this publication will give you the key to understand what is driving the need fo last mile solutions, the challenges faced in our city centres, the evolution of our way of living and consuming and how it impacts the delivery organization.

Arval Relsa opens new offices in Bogota, Colombia. The new centre, fully operational as of April 2020, will help develop full-service leasing and new mobility solutions across the country with special focus on passenger vehicles and light commercial fleets. The offices, led by Francisco Pardo, General Manager in Colombia for Arval Relsa, will be located at Urban Plaza, calle 90 #11-13, Bogota.

Arval, the specialist in full service vehicle leasing and a leading mobility player, is constantly adapting its offer and anticipating the needs of companies and individuals in terms of mobility.