Influence of spatial locations on parcel lockers' utilisation

Abstract

Last-mile delivery has gained more traction with the advent of the e-commerce industry, which was significantly enhanced by the COVID-19 pandemic. Consequently, parcel lockers, in particular, are growing in importance as they are recognised as a sustainable alternative to last-mile delivery that saves delivery time of parcels and is more environmentally friendly. Singapore’s officials have recognised its prominence and proceeded to establish a nationwide parcel locker network operated as Pick Network in 2021, predominantly located in Housing Development Board (HDB) regions. However, such lockers were reported to have low utilisation. In this regard, the effectiveness of a parcel locker has been shown in various studies to be significantly influenced by location and the ability of users to trip-chain parcel retrievals. Therefore, this study aims to offer valuable insights into the effects of spatial location on the utilisation of parcel lockers by conducting regression analysis to model the relationships between spatial characteristics and parcel locker utilisation. Four parcel locker stations — 471A Fernvale Street, 310B Anchorvale Road, 212B Compassvale Drive, and 230 Compassvale Walk — were selected to conduct further investigation. Furthermore, consumer perceptions were captured via three approaches: interviews, online consumer reviews, and survey questionnaires. These methods helped to substantiate and offer a better understanding of the links found in the spatial characteristics of parcel lockers and their utilisation. The findings of this study are of relevance and interest to parcel locker service providers. As such, practical recommendations on spatial factors to consider when installing future parcel lockers are discussed to enhance their utilisation and prevent the waste of resources associated with the installation of such lockers.