IKEA Urban Multi Hub : Concept development for future mobility and last-mile delivery

Abstract: Since more and more customers switch to online purchases, the last-mile delivery problemhas created a huge burden on companies and cities. The increasing parcel delivery leads toextra operational costs in logistics and congestion in cities. IKEA, the furniture retailcompany, is going to propose a project – IKEA Urban Multi Hub to solve this problem byallowing customers to carry back orders themselves. This study collaborates with IKEA toinvestigate and formulate a robust hub that customers are willing to visit. The aim of thisresearch is to identify appropriate locations for the hub and possible future mobility that thehub should provide. Moreover, develop concepts and strategies for two cities - Shanghai cityand New York City.Research and customer interview were fundamental parts of this project. The research partincludes literature review and background that helps to preliminary clarify urban conditions,possible future mobility, and travel behavior. The customer interview part investigatescustomers’ preferences in two selected cities which helps to realize their needs and gaininspiration. The results showed that clustering with metro stations and providingautonomous mobility may create a smooth customer self-delivery experience for IKEA UrbanMulti Hub. Besides, cooperating with logistic companies can reduce the operation risk of theHub and strengthen the business model. Further concepts and strategies developed for twoselected cities are described in the thesis.