Dutch Cycloon is stopping its parcel delivery service, resulting in 440 employees losing their jobs. The parcel market has been under pressure for some time. Cycloon says it can no longer compete in that market, pointing to rising costs due to inflation and competitors that could become more sustainable and grow faster. Cycloon (and its parent company, Bol.com) could not find a buyer for the parcel delivery service. That’s unfortunate.
Cycloon demonstrated that social and sustainable values can go hand in hand with doing business. With the establishment of Fietskoeriers.nl in 2015, a nationwide network was created that offered innovative and clean delivery services. Fietskoeriers.nl, later Cycloon, became the first and only cargo bike parcel delivery service with nationwide coverage, the go-to platform for cargo bike deliveries in cities. In 2021, Bol.com acquired Cycloon.
Sustainable and social innovation
Sustainable innovations come mostly from small local players in the Netherlands: Hubbel, MyPup, Cargoroo, Cycloon, CityHub, Oscar Circulair, Rederij Kees, TringTring, and many others. These are companies with a local focus, social involvement, and commitment. I could quickly expand the list to 100 inspiring start-ups and scale-ups.
They aim to provide a local alternative to the large logistics platforms. They consciously choose a socially just, ecologically sustainable, and economically viable society. But how do these young, innovative players survive against the massive giants in the market? Parcls, Red Je Pakketje (Budbee), Local Heroes, Foodlogica, and Cycloon have thrown the towel.
Learning from each other
City logistics requires customer-focused, sustainable innovations. I see those innovations, particularly among many of the smaller players. They offer a vibrant ecosystem where new technologies, services, and business models emerge. Yet, survival is often tricky. It’s important to discuss whether there’s a real problem you’re trying to solve, whether the solution works in practice, and who is willing to pay for it.
Scaling and profitability require collaboration in market approaches, sharing systems and facilities, cooperating in research, and, not least, investing together. You may go faster alone, but together, you’ll go further. Scaling is an old-economy term—bigger isn’t always better. Perhaps we should think more about “twin-scaling”—scaling by planting the seed elsewhere. Together, we can make a more significant impact. These are relevant questions for research.
Walther Ploos van Amstel.