What will it take to make ultra-fast delivery work for cities?

Ultra-fast urban delivery has become the new normal but cities remain unprepared. In the time it takes to read this sentence, thousands of parcels will arrive at doorsteps across major urban centres.

Powered by dense logistics networks and intense market competition, groceries, meals and parcels now arrive within the hour. However, while consumer habits have changed rapidly, urban infrastructure has remained relatively the same. Many streets haven’t been designed for this scale or speed of commercial activity.

By 2030, deliveries could account for 13% of urban transport emissions and drive a 60% increase in vehicle numbers, exacerbating congestion, air pollution and pressure on public space.

Cities and companies are adapting but often in isolation from one another. Without closer coordination, urban logistics risk becoming further fragmented, where public goals and private operations work at cross-purposes.

Cities could be locking in a system that erodes liveability while failing to offer industry the stability it needs to invest in cleaner logistics.

Ultra-fast delivery is here to stay and it’s time to treat it like critical infrastructure – governed by clear rules, sustained through joint investment and built on data that serves the public good.

To curb the impact of ultra-fast deliveries, some municipalities are implementing regulations, from closing dark stores (distribution centres for super-fast delivery), introducing low-emission zones or setting requirements for fleet electrification.

These efforts are rooted in real urban concerns and, in many cases, public demand.

The result, though, is a fragmented ecosystem where rules not only differ from one city or neighbourhood to the next but also evolve in ways that are difficult to predict.

That variation reflects the different needs of different places and makes it harder for companies to plan sustainably.

To move forward, cities must develop structured and transparent frameworks that clearly outline how delivery services should interact with urban space.

Clear expectations improve enforcement while giving operators the predictability they need to invest in cleaner and more efficient systems.

Amsterdam offers a strong model. From 2025, its zero‑emission zone bans polluting vans and trucks, with access rules tightening in phases until 2030, when only zero‑emission vehicles will be allowed. Backed by the Dutch national Climate Agreement, the approach is consistent across multiple cities, giving operators the clarity they need.

A clear regulatory path developed by cities is one step. Yet, cities cannot deliver outcomes on their own. Logistics infrastructure, such as curb space, to urban consolidation hubs, is an asset central to reducing delivery emissions and easing road pressure.

Many cities lack the budget or political capital to build commercial logistics infrastructure. Strong policy visions often exist but financing and implementation lag behind.

At the same time, delivery platforms face rising costs and intense competition. Without targeted incentives, the economics of ultra-fast delivery may push companies toward short-term solutions that are less sustainable.

Shared investment offers a pragmatic path forward: pooling resources, designing solutions together and aligning incentives, whether through joint ventures or public co-funding.

As Pedro Somma, Impact Growth Director at iFood, Brazil’s largest food delivery and online ordering platform, put it:

“Shared investment means more than funding. It means co-designing solutions with cities. At iFood, we’re partnering with local bike-sharing systems to deploy e-bikes for couriers, which are more affordable and sustainable. When cities and companies plan together, we can make last-mile delivery cleaner and more efficient for everyone.”

When structured properly, shared investments create win-wins: cities meet policy objectives and companies reduce costs and improve reliability.

Even where regulation and infrastructure exist, many cities lack the one thing that would make their planning truly effective: data.

Most urban authorities don’t have reliable visibility into how many deliveries are happening, where delivery congestion is worst or what types of vehicles are on the road. This makes it challenging to make evidence-based decisions about kerbside space, zoning and environmental impact.

At the same time, delivery companies are cautious. Operational data is commercially sensitive and market competition is fierce. This misalignment creates blind spots for both sides. Cities regulate without full information, while companies operate without knowing what standards or needs are on the horizon.

Solutions are emerging. Organizations such as the Open Mobility Foundation are helping cities and companies standardize how mobility data is collected and shared through open-source tools. These frameworks allow cities to access anonymized, non‑competitive data while protecting company confidentiality.

Even sharing non-competitive data, such as delivery density or electric vehicle registration patterns, can help cities better target infrastructure and companies improve planning.

Alan Murphy, Regional Manager of Smart Dublin said:

“Bringing together stakeholders from across the delivery ecosystem gave us a much clearer picture of both the data gaps and the real-world challenges businesses face on the ground.

"That dialogue helped move us beyond assumptions, align on shared priorities and pinpoint the solutions with the greatest potential to improve how goods move through our city.”

Ultimately, better data will mean better outcomes for traffic management, emissions reductions and the design of more liveable streets.

Cities will continue to feel the pressure of fast-growing delivery volumes. However, with smart governance, collaborative planning and targeted investment, this challenge can become an opportunity to make deliveries more compatible with urban life.

The emerging blueprint is clear:

At the World Economic Forum, the Centre for Urban Transformation is working with partners across sectors to scale solutions that make deliveries cleaner, safer and more integrated into cities. This means both sustainable innovation from the private sector and stronger governance models from cities.

The way forward demands coordination: through joint regulation, shared investment and trusted data. With these tools, cities can turn a delivery dilemma into an opportunity; one that works for residents, companies and the planet.