Microhubs May Transform Home Delivery

The number of parcels delivered may increase by up to 25% per year thanks to the rapid expansion of e-commerce. This poses serious challenges for both road traffic and the parking situation in the inner districts. According to DODO, a provider of smart logistics services, in the long term, the creation of delivery distribution points (microhubs) in Budapest could provide a solution that any delivery company may use under certain conditions. This model has already been proven in Prague: based on the experience gained so far, the distribution points contribute to reducing both delivery traffic and parking burdens.

E-commerce has been growing continuously for years, with online orders increasing by 15% last year, while demand for home deliveries is also on the rise. Home delivery is now part of the everyday shopping experience, and fast, punctual delivery has become a core consumer expectation. At the same time, however, the number of road users is also increasing, with the number of vehicles up by 24% over the past ten years, causing increasingly frequent traffic jams and parking difficulties. According to experts at DODO, a technology company specializing in urban logistics and sustainable delivery, the creation of delivery hubs (so-called microhubs), which have already proven effective in several European cities — including Prague — can help address this problem.

Common goals: faster delivery, more liveable cities

Urban delivery points are smaller logistics bases jointly used by delivery companies, from which parcels can be forwarded into the inner districts with environmentally friendly, space-saving vehicles such as electric cargo bikes. These distribution points support parcel delivery while reducing traffic heading into the city centre, and they also make couriers’ work easier. Shorter, optimised routes from these points reduce the need for vehicles, thereby decreasing road traffic and the demand for parking spaces.

“The development of urban logistics is in the common interest of all of us: the goal is to make deliveries fast, punctual and sustainable, while also improving the quality of life in the city. This is exactly why we promote fixed-slot delivery — a model that allows customers to choose the exact day and time of delivery. DODO is looking for solutions that support both the daily work of couriers and the long-term achievement of the city’s transport goals,” said Máté Préda, head of DODO in Hungary.

Préda Máté

A positive European example that can work in Budapest

Several major European cities, such as Prague, Berlin and Madrid, are already successfully operating similar urban distribution points. Experience shows that these infrastructures not only ease traffic, but also contribute to achieving emission-reduction targets.

According to DODO’s experts, the challenges affecting road traffic and parking in the capital can be effectively managed by applying the following solutions:

1. the creation of new urban delivery points in the inner districts;

2. encouraging the use of environmentally friendly vehicles and electric solutions;

3. and the wider adoption of digital route and traffic planning.