In 2019, CO2 equivalent emissions from domestic road transport accounted for 27% of the UK’s total emissions. Of this, over one quarter was attributed to road freight.

Whilst some of the negative externalities associated with road freight (i.e., exhaust emissions) can be addressed through electrification, others (e.g., non-tailpipe emissions) require alternative approaches.

To address this, Eunomia Research & Consulting (Eunomia) was awarded grant funding by the Foundation for Integrated Transport (FIT) to test a market-based mechanism whereby an urban area would be managed by a municipal authority or purchasing organisation who would award, by competitive tender, a franchise agreement to a single supplier.

The single supplier would provide all multi-drop courier services for the region, aiming to reduce the number of light duty vehicles (LDVs) on the road and, ultimately, the total distance driven to complete all deliveries.

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