Darko Milosevic, Dr.rer.nat./Dr.oec.

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ii deo The Transportation Futures Project: Planning for Technology Change


7.5       Truck-only Toll Lanes


Specialization is a natural response to maturity, as the main network is built out, refinements of supply to better fit markets can result overall gains.
Truck-only toll facilities have been suggested and studied in several states, including Ohio, Indiana, Illinois, and Missouri, for I-70 at the cost of $50 billion for 800 miles[63], as well as Oregon, California, Florida, Texas, Georgia, and Virginia, but to-date none have been realized. The advantages of such systems are several. Separating cars and trucks, which have different operating characteristics, may achieve economies. Compared with cars, trucks require thicker pavements, longer headways, and less steep grades e.g. Interaction with Automated Vehicles could also be interesting, as truck convoys would be possible with 1 driver (in the lead truck, or remotely) running a convoy (See Chapters 1 and 8), though to date platooning is primarily about fuel savings rather than labor cost savings. 
Trucks also have a higher value of time than cars, as in addition to the labor costs of the truck driver, the cargo has value, and reliability is particular importance. That said, such facilities are costly, and new rights-of-way are particularly difficult to construct. So the number of trucks required to take advantage of such a system is large. In contrast car-only or truck-restricted facilities are quite common (see e.g. HOT lanes and many parkways). The best rights of way may already be served by railroads, and so long as there is excess capacity in the rail network, there may be little or no social welfare gains from constructing an additional transportation route in such a corridor. Conversion of little used rail corridors to truck routes may be of some usefulness in particular locations, as trucks have far more spatial flexibility about origins and destinations than trains, as well as lower logistics costs when they require fewer transfers of cargo. Conversion of under-utilized roads may also have some opportunities. 
While the operational characteristics of trucks and cars vary, with automation, the degree to which this is a problem may decline, as computer algorithms can better negotiate when and where to interact with vehicle connectivity. These truck-only routes are most likely to opportunistic rather than systematic, finding under-utilized rights-of-way on road or in railroad corridors, or other under-utilized contiguous stretches, parallel to existing congested facilities, that can be easily and cost-effectively dedicated to truck traffic, with a minimum of disruption to existing land uses and activities. 
Other alternatives include dedicating lanes on existing routes to freight traffic, but the extent to which this is traffic flow improving is site-specific and requires analysis and detailed demand estimates and traffic simulation. With automation coming, some of the advantages of separating cars and trucks diminish, as safety and speed will be greatly improved in any case.  While the benefits decline, the costs decline as well. As the ability to increase lanes with automation increases, the possibility of truck-only lanes becomes more viable, even as the safety need reduces. Electronic toll collection interoperability can remove a barrier here as well.
NET: There are a few opportunities for truck-only tollways in Minnesota, but these are few and unlikely to be a significant trend. Truck lanes on automated highways, especially dynamically created lanes that can be turned on and off with demand, are more likely once automation hits a critical mass. This will not likely require new construction.

7.6       Mileage Charges


Instead of using a gas tax, states could establish a much stronger user fee principle by charging each vehicle by miles traveled, by time-of-day, and by type (weight) of vehicle.
The most obvious opportunity to implement mileage charges is for vehicles that don’t currently use any or much gasoline (Electric Vehicles, Hybrid Electric Vehicles). (See Chapter 6). The advantage of this is that EVs (or users of certain alternative fuels) don’t pay gas tax, so charging a distance tax will be perceived as a fair user fee for roads. 
Off-peak discounts would be the next logical step. This can be made opt-in for non-EVs. 
Depending on how these were implemented, it could be full dynamic pricing, or a simpler schedule of rates that change based on the hour or half-hour.
Geographic differentiation in prices is also a logical step, charging more in congested regions. This too can be made opt-in, with users who do not want to be monitored required to pay the highest charge, but users who opt-in with some form of spatial tracking will be allowed discounts for less expensive areas.
Implementing charges that vary by location does not require GPS, cell-phone tower triangulation can in principle be used. However it is highly likely GPS will in practice be used, as the locational accuracy is much greater. GPS receivers do not normally transmit information but GPS-equipped vehicles can log the vehicle location. Some additional communication technology, which might report a reduced form of information (e.g. total amount owed) would be used to complete the transaction. In addition, back office processing of this information is required, and a new billing infrastructure would be required
For instance, a pilot study in Oregon had a chip in the vehicle log distance traveled by geographic zone and time of day, without storing the precise location. The chip only reported the total charge owed, calculated by an onboard algorithm. So no detailed tracking information was shared. Simpler technologies such as a mileage based user fee would simply record the odometer reading, but this would not allow differentiation by time of day or location. For individuals concerned about privacy, they can pay peak prices all the time. Given patterns in other markets about consumer response to trading privacy for money, most people will probably choose to reveal information about time and location to save money (by getting off-peak rates).[64]
Similarly for fleet vehicles (trucks, taxis) this should be easier to implement, as there is centralized management. This also enables the implementation of a weight-distance tax for trucks. The trucking industry has in the past resisted such taxes.
The disadvantages of such a system are such that it has yet to be implemented. While not as complicated to deploy as toll booths everywhere, there are still significant costs. It is technically more complex than gas tax sources, requiring a new revenue-collection infrastructure to be installed. 
Oregon as of this writing is seeking 5000 volunteers to participate in a test of its mileage-based user fees program (OReGO) at $0.015/mile ($0.024/km). People in the program will not have to use a GPS, but if they don’t they will have to pay for miles driven out of state. This fee is currently lower than the gas tax for vehicles which get less than 20 miles per gallon. 
The OReGO system reportedly loses 40 cents of every dollar to toll collection.[65][66] OReGO has also failed to reach voluntary sign-up targets (only 900 of 5000 desired).[67]  Typically toll collection costs are high, especially at start-up, as fixed costs have yet to be spread over a wide base. London’s Congestion Charge had similar cost issues.[68]
Resistance to a big-bang type deployment can be expected to be very high, which is why other soft-launch strategies may be more successful. For instance, an anti-road pricing petition in the United Kingdom[69] received over 2 million signatures even though such a system was not near rollout and was only being tested. The anti-tolling petition generated a great deal of populist support, indicating the political difficulty with this type of transition. Eight years later, the UK is no closer to deployment of road pricing outside of London’s Congestion Charging scheme (and even that was rolled back from its maximum extent). As evidence of the political if not technical difficulty, no other country has yet gone forward with such a large scale road pricing deployment, and one would expect other countries to lead the United States on this issue.
At this point issues of privacy and perception of privacy remain. The issue might disappear once travelers realize that with cameras and connected vehicles, they already lack privacy, so nothing additional will be lost with road pricing. Perception of double-taxation will also be hard to allay among the general public without sacrificing existing revenue sources during its implementation.
Dynamic pricing as an opt-in strategy for all vehicles, and required for non-gasoline vehicles is a viable deployment path. This is one area (in contrast with the other 7 working papers) which will need to be led by government, so long as government continues to own and operate the roads (which seems likely). By phasing it for selected vehicles, the system will have the opportunity to have the bugs worked out in a low visibility environment compared with a “big bang” style deployment everywhere, all-at-once.
The effects of mileage charges depend very much on the configuration of the system. This analysis assumes a mileage-based user fee to recover the fixed costs of transportation services and timebased user fee to pay for the additional capacity needed in peak times that is not required in the offpeak (a “marginal price congestion charge”).
The consequences of pricing depend on the total level of pricing. Assuming the “economically optimal” scenario, where user fees pay for the full social costs of travel by automobile this means that the per mile charge will be higher than today, as user fees would replace not only the state gas tax, but other sources of revenue at the federal, state, and local levels. In addition, user fees would account for externalities such as congestion, pollution, and crashes (potentially replacing current insurance mechanisms). While the exact amounts of these costs will always be disputed, these higher per mile costs will in the net reduce travel, all else equal (which as other reports in this series demonstrate, will not be the case). 
Higher costs generally result in lower demand. Higher peak prices should move travel out of the peak. Higher overall prices will reduce the total number of trips. The amount depends, the short run elasticity of travel demand with respect to price is on the order of -0.03 to -0.08[70] (A 1% increase in price of fuel reduces demand by 0.03% to 0.08%), though these numbers seem to be lower than in the past. The long run elasticity is higher, on the order of -0.33.[71]
Using user fees rather than general revenue to support roads roughly doubles the out-of-pocket cost of travel by car. Full cost pricing should approximately double that again, for an overall four-fold increase in the direct user-paid costs of roads. (Other costs, such as taxes, health costs, insurance, and time lost due to congestion) would be lowered were this to occur. This moves the overall gastax equivalent from about $0.50 today (state plus federal) to about $2.00, or the price of gasoline from about $3.00/gallon to about $5.50. This is an 83% increase, which implies a long run reduction in per capita demand by about 25-30%. Clearly these percentages will differ depending on how they are assessed. Technologies such as electrification and automation will significantly reduce the pollution and the safety and congestion externalities respectively.  
Nevertheless, this gives a sense of the magnitude of change. Even if only infrastructure and congestion costs are fully internalized (so per mile user charges merely double) there will be a reduction in demand by on the order of 10-15%.
Traditional travel demand theory predicts (and nothing suggests otherwise in this case) that any reduction in demand will be manifested in several ways. 
      Dynamic Road Pricing should reduce the peak demand for roads, and increase demand in the off-peak as some travelers switch time of day. Total travel time on priced sections will reduce, enabling the traversal of longer distances in the same amount of time, so even if pricing is ubiquitous, we may see some longer trips as some people exchange money for time.
      Shortening trips as closer destinations are sought, especially for non-work travel. 
      Relatedly, higher costs of travel will result in denser land development.
      Pricing should also increase demand for non-auto modes (walk, bike, transit) as well as carpooling.
      Pricing should reduce the number of trips made, both due to decisions not to engage in an activity as well as decisions to engage in the activity virtually. Thus we should see increased substitution of delivery for shopping and increased tele-commuting.

While more trips will be diverted, some very high value of time trips may be attracted to the priced but uncongested peak. Think particularly of freight, discussed in Chapter 8, which now may travel in the off-peak to avoid congestion, but could return to their preferred travel times in the absence of congestion. The trucking industry is also willing to delivery in off-hours, but shippers and receivers have presented resistance.
Implications for revenue depend on how it is implemented. However charging for marginal cost rather than the average cost of roads should result in more revenue than current approaches. Charging a profit maximizing toll (in a world, e.g., of private operators) would generate far more revenue than current approaches. In any case, pricing presents the opportunity to fully move roads off of general revenue and onto a user-based system, and to internalize congestion and potentially pollution externalities. 
NET: The vehicle mileage charge is the seemingly inevitable end-state for pricing and the funding of roads. Widespread adoption of alternative fuel sources makes this necessary for efficient userbased funding above and beyond fuel tax.  But in the absence of a sudden collapse of the feasibility of the gas tax for revenue, (which seems unlikely, despite periodic politically generated crises, average vehicle age is over 10 years, so even if all new cars were non-gasoline, it would be more than a decade before even half the fleet was replaced) this will be a slow transition.  Instead, anticipate years (or decades) of trials, such as Oregon is currently undertaking, as well as requirements for non-gasoline powered cars, and eventually all new cars, before this becomes a requirement for retrofitting the existing fleet.

           

Chapter 8: New Logistics

  

8.1       Introduction


Nearly a third of the share of world transport energy is dedicated to the movement of freight within and between countries by trucks, ships, and rail [1]. In the Midwest region of the United States trucking leads rail and water transport as the primary means of delivering goods to businesses and end-use customers. The growth in global trade, online retailing and business-tobusiness delivery is not only changing how goods are moved but also the type of goods moved and how far or frequently they are transported. These changes have important impacts on the road network and associated infrastructure used by industry, as well as the cost, and energy and carbon intensity of the trucking sector [2].

Minnesota has seen a 2.3% increase in heavy duty trucks over the last several years (2012 to 2013).  Of the freight shipped within the US, the total domestic weight of shipments has increased by 4.15% over the last five years (Compound Annual Growth Rate, 0.82%) and is officially projected to increase by 45% by 2040 (CAGR, 1.34%) [3], though the basis for this accelerated rate of growth is something we question.

The seasonally-adjusted truck tonnage as tracked by the American Trucking Association and collected by the US Department of Transportation [3], indicates that truck tonnage has been rising steadily since 2010 after a near 15% drop from 2008 to 2009 (see Figure 8.1).  In 2015 nearly 70% of all the freight tonnage moved in the US goes on trucks, moving 9.2 billion tons of freight annually with 3 million heavy-duty Class 8 trucks. The Class 8 truck gross vehicle weight rating (GVWR) is a vehicle with a GWVR exceeding 33000 lb (14969 kg). These include most tractor trailer tractors, as well as single-unit dump trucks; such trucks typically have 3 or more axles. The transport of freight requires over 37 billion gallons (140 B liters) of diesel fuel, which creates revenue for transport infrastructure through diesel tax, but also leads to noxious pollutants and greenhouse gas emissions. 
 

Figure 8.1: Seasonally-adjusted truck tonnage on US road network from 2000 to 2015. [3]


The delivery of goods throughout the economy relies on an intricate multi-modal network of on-road trucking, rail, ships and airplane delivery. Industrial logistics operators, retail suppliers, and independent fleet managers with fleets as small as one vehicle still predominantly control the organization of freight deliveries. Despite the decentralized nature of freight movement, new methods of organization and proposed standardization are hoped to increase efficiency of freight movement and give rise to a new era of goods transport. Advances in logistics systems will be enabled by new technologies, approaches, and desire for increased efficiency.

Tax revenues within the state of MN are proportional the total sales volume of fuel for gasoline and diesel. The MN sales tax for gasoline fuel is $0.285 per gallon ($0.075 per liter) and $0.285 per gallon for diesel fuel with an additional $0.019 per gallon UST/Inspection/Miscellaneous fee[72]. The MN fuel tax revenues are shown in Figure 8.2 for 1980 to 2014. 

 

Figure 8.2: MN motor fuel tax revenue for 1980 to 2014[73]. 8.2            Logistics Organization

New information technology permits sharing of data between and across businesses thus driving efficiency increases and leading to vehicles that are operated nearer to full capacity (mass or volume limited). This may serve to reduce the distance travelled by heavy goods vehicles per unit of GDP. In turn improved logistics may reduce costs, thus enticing more demand for delivered goods and shifting the share of trips made by individual consumers versus delivery options. The net impact of new logistical practices on total vehicle activity is not well understood, though we expect a net reduction in distance traveled due to IT improvements even after accounting for the resulting induced demand.  The elasticity of demand of freight with respect to cost savings is probably less than 1. Some of the potential drivers for changes in the freight industry as a result of logistics reorganization are given below. 

Truck trips are getting shorter as a result of shippers and receivers building many more distribution centers to speed up deliveries. Walmart alone has more than 100 distribution centers in the US, whereas they had 12 a decade ago. Additionally, a truck driver shortage crisis (a mismatch between the wages trucking firms are willing to pay and what potential drivers want) has caused trucking companies to do many more "drop-and-hook" operations -- which splits up longer trips into multiple shorter ones (this gets the drivers home more often and helps with retention). Very long trips (750 + miles) are moving to rail intermodalism which drops the average length of hauls for trips that stay on trucks.[4]

A significant challenge to all new freight business models is that the cost of conversion is high and thus incumbents are less likely to adapt. This has led many to suggest that logistics innovation will come from outside traditional logistics suppliers and organizations, as innovative companies large and small seek to expand business through efficiency improvements.


8.2.1 Supply Chain Network Pooling

The drive to reduce costs, increase efficiency and reduce emissions, has led to significant research focused on the impact of supply chain network pooling. Traditional means of supply chain network pooling seeks to share individual logistic operations between collaborators in warehousing, inventory management and transportation. Consolidators and third party logistics providers like C.H. Robinson exist to wring efficiencies out of supply chains of multiple firms by brokering between shippers and carriers. In practice, for larger firms, sharing occurs at the individual organizational level. A result of network pooling is a reduction in the distance traveled on the overall transport system, but an increase in the weight of individual vehicles within the system.

Reduction of freight vehicle traffic is likely to occur in significant numbers should supply chains be pooled at the strategic level. A recent study [5] explored the effect of pooling supply chain networks on reducing activity from transport with two possible modes, i.e. road and rail, in the context of a national distribution network of two retail chains. The study proposed pooling supply chains at the strategic level, an approach that demands further and long-term collaboration between the actors of supply chains. The results indicate that at the national level (France) network pooling can reduce vehicle activity by 14% when road-based networks are considered. Further (52%) reductions in vehicle activity and greenhouse gas emissions are seen when multi-modal truck and rail transport networks are combined and optimized. 

Other advantages of pooling through horizontal collaboration include increased delivery frequency of 2 to 5 times greater than traditional systems. Cost estimates from Canadian studies indicate that reductions of more than 15% can be had by pooling.

Challenges to horizontal pooling include a mismatch between delivery services and infrastructure between organizations, limits in IT system interfaces and overly complex logistics network systems. Anti-trust issues make pooling challenging as information-sharing relating to pricing between competitors serves as a barrier to collaboration between companies within the same sectors. Recent work by Auburn University and the American Transportation Research Institute found that even platooning of freight had only limited interest. 

8.2.2 Physical Internet

While supply chain network pooling occurs most often by means of collaboration at the individual institutional level, significant transport network changes require homogenization of operations and shipping standards at a national or international level. A concept of homogenization in order to achieve efficiency gains within the shipping industry is the physical internet.
The Physical Internet Initiative seeks to transform the manner in which goods are handled, stored, packaged and transported across the supply chain. Conceived in 2006, the Physical Internet is a recent push in logistics seeking to transport goods in a similar conceptual framework of the digital internet’s data transmission [6]. The digital internet connects networks of information in a transparent manner with a consistent protocol, allowing the transmission of formatted data packets in a standard way permitting information travel because the heterogeneous equipment all respects the TCP/IP protocol.

The physical internet seeks to create standards for packaging called “π containers” that enables a homogenization of freight technology to increase the efficiency of goods transport. With standardization in packaging, the physical internet seeks to transition from a system of individual logistics operations transporting goods to an anonymized network of package transportation. The transition from transporting goods to standardized packages is expected to allow for a change in the distribution network and a shift in the manner in which the transport network is used by heavyduty vehicles. [6] 

Advantages of the physical internet are expected to include increases in individual vehicle efficiency, increased network robustness, specialization of the heavy duty vehicle fleet and more efficient warehousing and distribution center locations. Such changes would likely impact the use of the physical transport infrastructure by shifting traffic patterns, vehicle mass and quantity of service provided by lowering the cost of transportation. 

In the Physical Internet, the goods delivery process would entail a network of distribution centers through which goods are transported. Packages are delivered through the network at a series of transit hubs located every 250 miles. Drivers have specific routes with origins at hub locations where packages are picked up and transported to the next hub location, where packages are unloaded and then the vehicle is filled with a return load to the origin hub. The packages move from hub to hub (535,000 estimated to be required in the U.S.) in a similar manner to anonymized data packages moving through the digital internet. The π packages would conform to standards that allow for multi-modal transport (truck, rail, airplane and ship) and would move through the network of an open supply web by means of a series of privately-owned hubs and transporters working in concert to deliver goods. The system would resemble a hub and spoke network. 
 
The increased efficiency of goods delivery throughout the physical internet is primarily a result of reduced empty load transportation. Currently, trucks and containers are often half empty at departure, with a large portion of the “filled” volume comprising packaging [7]. Within the US trailers are only about 60% full when traveling loaded [8, 9]. In 2009, the US industry average was that 20% of all miles are driven with a completely empty trailer [6] with many more nearly empty. Current research is underway in determining what new load factors would be as a result of the physical internet, but it is envisioned that specialization of the fleet towards π containers would allow for higher load factors for inter-hub transfers and residential delivery.

The homogenization of the packaging industry may ultimately serve to homogenize the vehicles delivering vehicles and allow for specialization of transport infrastructure to best serve a homogenized standard. Currently most cities are not designed and equipped for ease of freight transportation, handling, and storage. The lack of homogenized freight transport vehicles precludes optimization. The physical internet may allow for specialization of on-road heavy duty vehicles, automated warehouses and uniform package smart tagging that could impact transport networks.

The physical internet could lessen the strain on existing high use roadways. Currently there is an extreme concentration of operations in a limited number of centralized production and distribution facilities, with travel along a narrow set of high-traffic routes. This leads to unreliable and vulnerable logistic networks and supply chains for many businesses, insecure in face of disruption and natural disasters, as well as non-responsive to shift in demand. The physical internet could enhance robustness by enabling multiple routes of package delivery throughout the network, enhancing robustness and increasing responsiveness. However, if truck weights increase, pavement damage may follow, even with fewer trucks, as the relationship between truck weight and pavement damage is non-linear.

The physical internet is in early stages of development and requires significantly more research and development before being deployed on a pilot scale, which is ongoing [6, 10].

8.3       Business Delivery


8.3.1 Business-to-business

There are a number of new business-to-business (B2B) systems that are enabled by the sharing economy and new information technologies, allowing task-based work to be easily facilitated, higher delivery vehicle utilization, and outsourcing of chores. The logistics organizational structures discussed above will play some role in defining future B2B delivery, but significant advances are expected regardless of whether supply chain pooling or the physical internet advances. 

E-commerce is a large driver of B2B transactions and will increasingly shape the pricing, product availability and transport patterns. B2B electronic commerce accounts for the majority of e-commerce, where in 2008 almost 40% of manufacturing and 16.3% of wholesale trade were conducted by means of e-commerce. [11]

Some experts believe that legacy fleets and warehousing facilities will prevent the existing transport and logistics leaders from changing from within. Thus disruption from non-traditional ecommerce leaders may drive changes to the transport and logistics patterns of B2B deliveries, as companies like Amazon, Apple, and Google focus efforts on business delivery. Despite the entrance of these new players, existing B2B operators may also serve as models for future systems. Other suppliers of industrial goods may seek to replicate Grainger’s long operation of same day delivery of parts and industrial supplies, since demands for reduced on-site warehousing and increased expectations for responsiveness from e-commerce transactions lead to further demand for such services.

Studies of deliveries to urban environments indicate that deliveries are occurring at shorter intervals, as retailers reduce internal warehouse space. A recent series of surveys indicates that retail businesses could expect up to 10 core goods and 7.6 service visits per week and that vans are increasingly becoming a dominant mode of urban delivery [12]. While these trends are more pronounced in older cities with dense urban cores (Northeast and European Cities), the move by retailers such as Target to open more express stores within the Minneapolis-St. Paul region (two currently) may bring about increased delivery to denser urban areas [13].

Service vehicle activity is a significant contributor to urban freight movements and often requires vehicles to be parked close to the premises being served. Centrally coordinating elements of service provision (e.g. for cleaning, equipment maintenance, recycling, and waste collection), or providing improved, more flexible parking provision for service vehicles could be as, or more, beneficial in reducing overall freight impacts than focusing on core goods deliveries. In the case of the latter, ‘pay-as-you-leave’ car park charging systems could encourage short-stay service vehicles to park off-street. [12]

8.3.2 Same Day Delivery

Same day delivery in the business market has existed for some time. Retailers such as Grainger have offered same day delivery for nearly 20 years, serving business with low to medium quantities of industrial parts. Delivery of large quantities of industrial goods by same-day delivery methods is unlikely as electronic inventory management systems and the presence of some inhouse storage facilities likely offset the need for the added expense associated with same-day delivery of large shipments of goods. 

For shipment of small quantities of goods there is an emerging set of decentralized delivery services seeking to serve primarily urban areas where densities warrant deployment of services required to achieve same-day business deliveries. Last mile delivery services, such as
GrandJunction.com and XPOLastMile are increasingly using a diversity of modes, including light truck, vans, cars and even bicycles. There are an increasing number of online logistics organizers such as Deliv.com and Kanga.com that allow crowd sourced deliveries to be made, although these options still remain expensive

Emerging technologies may also lessen the demand for same-day delivery. Options such as 3D printing/additive manufacturing could allow for production of low quantities of parts that typically require same-day deliveries. While large production of parts is unlikely to be economically feasible by means of 3D printing in the next decade, the delivery of large orders is likely to be known in advanced not requiring same-day delivery. Furthermore tailored manufacturing capabilities can be located close to end users and inventories can be minimized.

8.4       Home Delivery


8.4.1 Same Day Delivery

Walmart, Amazon, and Google, among others, are piloting same-day delivery projects in select locations throughout the US that have sufficient density and demand to warrant deployment [14]. Despite the early interest, obstacles remain to wide-scale deployment in all areas. Expedited transport is costly, and last-mile capacity is likely to become even more constrained as e-commerce grows. Moving small volumes over short distances is costly and can induce high traffic volumes if done without consolidation. 

Online shopping has increased the rate of same-day delivery of merchandise shipped directly to consumers. Figure 8.3 represents the actual and projected revenue generated from same-day deliveries in the US from 2013 to 2018. In 2018, the shipping fees generated by same-day delivery is expected by one study [15] to reach $1.01 billion, which is a 100 times increase in shipping fees generated in 2013. With the increasing growth of online shopping in all areas of consumer goods, customers have come to expect the same advantages of shopping online as when shopping in-store, namely the convenience of directly receiving the goods. An October 2014 consumer survey shows that only 13 percent of digital buyers in the United States expect a same-day delivery option from their domestic online retailers. Overall, only three percent of US digital shoppers utilize it as their most frequently used shipping method. Online grocery shopping and same-day delivery services go hand in hand but have not yet been received throughout the entire United States, but penetration rates of grocery home delivery in the EU is much higher. [15]

 

Figure 8.3: Same-day delivery merchandise value and shipping fees generated in the United States from 2013 to 2018 (in billion US dollars) [15]

While same day delivery is clearly on the rise, not all companies are following the trend. EBay recently closed its same day delivery department called EBay Now saying that its customers did not value the faster delivery times that come with a higher cost for non-urgent items. 

Same day delivery is linked with consolidated delivery, as consolidated delivery is the only conceivable method to drastically reduce prices and number of trips by individual retailers. 

With the appropriate distribution system and sufficient demand, same-day delivery need not add to total freight travel. The goods were going to be distributed in any case, and if same-day shippers can be fully loaded, there is no additional infrastructure use. However, while markets are still thin, it is likely that same-day delivery implies more freight vehicle travel, as overall loadings will be lower.

8.4.1.1 Online Shopping


The dot-com boom (from 1997 to 2001) was all about the widespread leveraging of new forms of technology. Companies like Kozmo and WebVan claimed same day if not same hour delivery, but were not then economically viable. 

Recent estimates of e-commerce vary widely. Shares range from 6%,[74] or 7%,[75] to 12%[76] of US retail sales based on definitions (excluding food and car sales would make the share higher). Ecommerce sales in the US totaled $305 billion and were rising about 15% per year in 2014 (while retail as a whole rose about 4%).[77] Only England and China score higher in terms of percentage of online sales.

The rise of online retailing allows people to substitute delivery for fetching, and reduce the amount of shopping trips. Retail catalogs were replaced by the Internet, seemingly a case of the old being dismissed by the new: Sears by Amazon. Notably, Sears phased out its Big Book in 1993 and started shrinking its Wish Book that same year.[78] Amazon was founded in 1994. 

Not only can shoppers do the same thing differently (and better), they can do many more things enabled by the technology of the web. Amazon, which now claims 1% of total retail sales in the
Inventory, Metropolitan Council. Analysis by authors.
           
Shopping trips are down by about one-third in a decade, they now comprise fewer than 9% of all trips, down from 12.5% in 2000.[79] Time spent shopping per day is also down (Figure 8.4). Other evidence for this trend comes from the UK, where sales of vans used for home deliveries are at a record high.[80]

It has been common for some years now to acquire some goods from the digital shopping world. 
Amazon entered the market with books, and dethroned the big box book sellers like Crown, Borders, and Barnes & Noble (who had earlier acquired and then shut many mall-based neighborhood bookstores (Walden, B-Dalton), which had themselves pushed out many independent neighborhood bookstores). The reader now has access to far more content than just a decade ago. Books were relatively easy kindling for this revolution, the ISBN code had been around in some form since 1965. 

Anything that is standardized and commodified, and whose delivery is easily automated is prime ground for the new logistics. All of these deliveries reduce travel to the store, while increasing travel in the logistics supply chain, but generally reduce travel overall.

How far will it go and how fast is informed by preferences for ensuring quality? Preferences for lifestyle (how much time, on average, will people want to spend inside versus outside the home), technology (how quickly can the product arrive), and countless other factors also shape choice of in-person shopping vs. delivery.

On the other end of the spectrum are goods like fresh food that people like to inspect or touch before purchasing. In between these two extremes is what analysts term the 'digital battleground.' This domain includes home decor, office supplies clothing, footwear and all the rest (mattresses, eyeglasses, sweaters, souvenir items). Left to be determined by the market are thresholds for when particular goods transition to e-commerce for any given consumer. 

There remains a long-tail of desired, but still standard, goods that one cannot find at the corner store because it lacks the space to inventory everything. Many are easy to ship (and even easier to ship in electronic versions). Other goods—all commodified though not digitized—would be amenable to new distribution systems, which can all be ordered and delivered within 48 hours (if not sooner). Even custom goods get sold on places like Etsy. While used (and new) items both standard and non-standard are offered on Ebay.

The future of shopping will fall along a continuum of commodified versus uncommodified products. Sometimes it is the overall experience of “shopping,” regardless of the product that people seek.  Stores are revolutionizing the physical shopping experience — as an entertainment option of sorts. While online shopping will continue to grow, we doubt it will reach anywhere near
100% anytime soon (See Chapter 3). Where shopping is a chore, online shopping, and automated ordering, will replace it. When shopping is a pleasure, it won’t.           
Advances and changes in logistics distribution also are important. One can expect similar levels of murkiness from freight transport — a transition that will be influenced by enhanced graphical interfaces, 3-D printing, supply distribution, and changes in freight delivery. The less that is fetched, the more that is delivered. Stuff needs to get in the hands of consumers. While most people shun trucks and delivery vehicles, potato chips still need to get on the shelf of the food store or your home somehow. The amount of freight moved by various modes plummeted during the recent recession. Now truck travel appears to be generally slowly on the rise (Figure 8.5).

The US currently has three national networks (USPS, UPS, FedEx) delivering stuff to consumers in ways that are cost effective for many goods. Specialty services are on top of this—local stores
Figure 8.5: US Ton-km of domestic freight by mode (per capita). Source: US Bureau of

Transportation Statistics National Transportation Statistics Table 1-50: U.S. Ton-Miles of

Freight (BTS Special Tabulation) (Millions)

New delivery models are available and coming. For the “last mile” connecting the home with the final distribution point, new models include: 
         lockers (akin to PO Boxes) where stuff can be deposited for you to collect, 
         peer-to-peer delivery services (friends or strangers will pick up goods for you and deliver them to your home or workplace), 
         firms depositing goods directly in the trunk of your car while you work,[81] 
         deliveries of small packages by drone, and
         neighborhood refrigerators for grocery dropoff.

Google and others are trying to figure out a workable model for same-day delivery. Amazon, the ecommerce giant is currently seeking permission from the Federal Aviation Administration to deliver goods less than five pounds via drones; considering five pound goods comprise 86% of their inventory, this in and of itself would be a game-changer for the delivery business. Even drones will create controversies. How high above a house can you prohibit unmanned aerial vehicles? How often will they be shot out of the sky?

Today simple delivery— following the revolution in online ordering in the 1990s— is itself transforming. Customers in Manhattan can order a mattress this morning (via Casper), have it delivered this afternoon, and sleep on it this evening; if it fails to meet their standard, they can have it picked up tomorrow morning for a full refund. The same holds for eyeglasses (via Warby Parker) and clothing apparel. It used to be important to lie on the mattress, or actually see how new eyeglasses looked on our face and getting to the store to do so was an inconvenience. 

With Amazon's decision to rent a warehouse in Midtown Manhattan for the next 15 years,[82] Manhattanites were introduced to guaranteed one-hour delivery which is doing away with such inconvenience. And now, via tiny plastic adhesives affixed to your dishwasher, coffee machine or refrigerator, you can order your favorite household products with the touch of a single, physical electronic button. Amazon places the order, sends an alert to your phone, and it arrives within 24 hours. AmazonFresh delivers groceries to your door same day or early morning. Amazon Prime Now offers delivery within an hour of selected goods in selected areas. Done. 

In the mid 2010s, food and grocery delivery has turned into a hot sector receiving huge investments from venture capital.[83] As the Wall Street Journal says "There's an Uber for Everything: Apps do your chores: shopping, parking, cooking, cleaning, packing, shipping and more."[84] The article cites startups (mostly Bay Area) with apps that dispatch someone for flower delivery (BloomThat),  delivering anything in town (Postmates), package pickup (Shyp), healthy meals (Sprig, SpoonRocket, Munchery), less healthy meals (Push for Pizza), washing your clothes (Washio), washing your car (Cherry), parking your car valet-style (Luxe), packing your suitcase (Dufl), babysitting (UrbanSitter), dog sitting (Rover), medical house calls (Heal), self-medicating alcohol (Saucey),  medicinal delivery (pot) (Eaze),  and in-home massage (Zeel). We don't expect most of these (or their customers) will survive. 

8.5       Atoms into Bits


Thomas Edison first captured sounds as waveforms and recorded them as physical deviations (i.e., grooves) etched into a disc. The means of production, acquisition, and sound dissemination changed over the years. Record players are largely gone for modern forms of music playing, having been converted to data (via listening services like iTunes, Spotify, or Pandora); stereo speakers are one-tenth the size of those in the 1970s. 

Prior to the availability of 'the cloud,' bits somehow needed to be made available in different physical locations (not unlike records or tapes or CDs, but much more of it). Most commonly, this meant inserting a floppy disk (or connecting a hard drive) into one computer, transferring data, and then ejecting that disk and physically moving the information storage device to another computer. Big data producers (e.g., Google) continue to rely on Fed Ex[85] to move large data more quickly than the internet can. That too will one-day end.

Analogous processes have transformed video. The miniaturization of consumer goods has been ongoing for decades now (e.g., microwaves substituted for big ovens; portability also kicked in— master-blasters, boom boxes, Walkmans, etc.)  

Books—with the advent of online retailing (Amazon)—took a similar turn. Then, Amazon
Journal. 2014-01-07

Delivery is easily automated for bit-based, standardized, commodified goods like books, music, video, and software; it is in the active process of being transformed from shop-based selling to screen-based, as shown in Figure 8.6. By 2013 the legal video market was split between declining physical and rising electronic delivery.[86] The rise of online shopping for material goods detailed earlier is a prime culprit in traffic’s slow death. The dematerialization of information goods has also profoundly affected how the access to goods is conceived of and acquired.

Some things that could only be satisfied by moving things can now be done by moving data. 
It is now easier to organize thinking about other forms of exchange. Think of the book, movie, meeting in person, people transmit moving pictures of themselves in the form of data over digital networks (e.g., Skyping with video calling, or broadcasting live with Meerkat or Periscope). While it is difficult to conceive of things moving over digital networks, the rise of 3D printing means data is being sent and instantly manufactured at physically remote locations. 

Alternative 3D printing scenarios are currently playing out that have different implications.[87] But it is clear that most goods will be manufactured closer to their point of final consumption. Freight shipments will still occur, and the dry weight will be similar, in that the material used in the printing is still shipped as a raw commodity (though the water will be added later like in those freeze dried camping meals or Coca-Cola from a fountain). Overall volumes will be much smaller as water, air, and packaging will not need to be shipped for as long a distance.

The nearest scenario centers on prototyping only. 3D printers already are used for this purpose, but who gets to prototype, or design, consumer products might be turned on its head as serious, enthusiastic consumers (prosumers) show manufacturers what they want, even if they don't have the materials to build a working version.

A second scenario involves considerably advanced desktop printers in the home. People will design and share Intellectual Property (IP) — data files describing goods (e.g., cups, kitchenware, pens, guns.)[88]  There are already several repositories of files to download. Subject to reverse engineering, pirated files might become the norm (following the well-worn path of music and videos). To the extent that personal travel is occupied with acquiring small, printable objects, travel will decrease.

A third scenario envisions a new industrial revolution focused on a new form of manufacturing. Smaller printing 'factories' will spring up across communities with the ability to make products. These may be private enterprises (new market opportunities will arise) or these resources may be provided in central locations. Libraries will continue to reinvent themselves away from the traditional reading-and-learning mission and transform into the digital age of providing a wider range of club goods that are under-provided to society thanks to transaction costs. Thus, libraries
(along with community centers) might be the homes for community 3D printers. Mass customization will likely be a hallmark of these products but customized designs would shortly follow suit; altering designs will not require retooling, merely tweaking the code for the software. Large communities of "modders" are likely. In this model, there is still a role for traditional freight (matter along physical networks) but based on much shorter distances, the ‘last-mile' from the printer to the house. 

We have been shrinking consumer goods, and getting more output per unit of energy and matter, for a long time. Microwaves can substitute for ovens, the WalkMan, the iPod, and now just a software app substitute for the stereo and boom box. Dematerializing from things into data is perhaps the final stage of shrinkage.

8.5.1 Consolidated Home Delivery

The vast majority of e-commerce deliveries are conducted by UPS, FedEx and the USPS. The scale and ability of these delivery services to provide consolidated home delivery of goods is difficult to challenge for low volume carriers [16]. 

Opportunities exist in fast delivery services that are able to consolidate multiple deliveries with low cost structures. As more brick and mortar retailers begin to offer home delivery enabled by ecommerce, there will be additional demand for low cost, last mile delivery companies to provide these service. Companies such as Zipments.com are offering consolidated delivery services for retailers. A recent study identified that most companies in this sector have fewer than 250 trucks and half operate in 3 states or less [17]. 

Peer-to-peer deliveries represent another form of consolidated home delivery option. While small startups are emerging in the US such as Roadie.com, EU companies have reached a higher maturity and are offering services within urban areas. Nimber is a Norwegian company with over 30,000 users and delivers 10,000 packages a year. The company recently expanded to the UK this year. Larger US companies such as Amazon are reported to be making forays into the peer-to-peer delivery market as well [18].

8.6       S-Curves


The US freight ton miles are projected to grow nearly into the future as is consistent with the last two decades worth of data from the Freight Analysis Framework. The projections indicate that freight ton miles will grow by ~6% over the 2020-2030, whereas the population is expected to grow by 7.4% over the same period [19]. Therefore, the US Freight Ton per capita is projected to decline over the period.
           
 
Figure 8.7: US freight deliveries where the blue dots represent historic data and black line represents predicted future freight deliveries by S-Curve (S(t) = K/[1+exp(-b(t-t0)], K=8×106, b=0.035, t0=1980). Source: Data in this table are improved estimates based on the Freight
Analysis Framework (FAF). Technical Summary of Updated Methodology is available at http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/FreightTonMilesMethodology.pdf

The adoption of supply chain network pooling has been investigated by a number of researchers in the EU and responses to surveys indicate that early adoption of supply chain networking (SCN) has begun. Based on survey results for the UK Committee for Climate Change on road freight transport the penetration rate of SCN logistics operations is expected to reach 10% in 2015 and ultimately mature to 50% of the total market possibility by 2025 (see Figure 8.8). Here the market possibility represents those instances where pooling could fill loads that are not already at maximum mass or volume capacity. A similar growth rate can be expected in the US although drivers for supply chain network might be different and limited by the anti-trust regulations as discussed previously. The EPA Smartway program incentivizes such networking and may be the primary facilitator of the adoption.
           
 
Figure 8.8: European adoption of supply chain networking as a percentage of freight movements where pooling could fill loads that are not already at maximum mass or volume capacity. The blue dots represent expert responses to surveys and black line represents predicted percentage of synchronized consolidation as predicted by S-Curve (S(t) = K/[1+exp(-b(t-t0)], K=0.5, b=0.7739, t0=2017, R2=0.8462).

The adoption of urban consolidation networks was also surveyed by the Committee for Climate
Change on road freight transportation. The adoption of urban consolidation is expected to reach 6% by 2015 and will likely reach a 50% penetration rate in 2025 for EU logistics suppliers (see Figure 8.9). In the US where urban population density is 2.7 times lower than EU densities, the drive for urban consolidation centers is lower. Recognizing the delay in adoption of consolidation centers and lower drive for consolidation, we expect that consolidation centers in the US will likely be delayed by 5 years and reach a penetration of just below 20%.
           
 
Figure 8.9: Adoption of urban consolidation where the blue dots represent expert responses to surveys and black line represents predicted percentage of synchronized consolidation as
predicted by S-Curve (S(t) = K/[1+exp(-b(t-t0)], K=0.5, b=0.7739, t0=2017, R2=0.8462).

Methodology 


The cycle of technology includes a birthing phase, a growth-development phase, and a mature phase (and perhaps a declining phase). The stage of the life-cycle, it has been argued, determines the nature of transportation policy-making -- both the problems faced and the responses to these problems.
This report uses S-curves (status vs. time), to reflect the level of deployment or use of a mode or
technology. We Use the data to estimate a three-parameter logistic function: where:
                    S(t) is the status measure, (e.g. Passenger-km traveled)
                    t is time (usually in years),
                    t_0 is the inflection time (year in which 1/2 K is achieved),
                    K is saturation status level,
                    b is a coefficient.
           

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Appendix A

Logistic Growth Curve Analysis



Autonomous Vehicles (2000 - Present) Estimated


Intercept
-1856
b (Coefficient)
0.9138
K (maximum deployment)
3,064,839,000,000
t0 (year of half deployment)
2032
R-Squared
0.93

S(t) = K/[1+exp(-b(t-t0)]

 

A-1

Appendix B

ATUS activity codes categorized by suitability for travel time use in the era of self-driving cars and better mobile technologies


Category 1: Suitable for travel time use in private vehicles
Six-digit ATUS code
Activity categories
010201
Washing, dressing and grooming oneself
010299
Grooming, n.e.c.*
010301
Health-related self care
010401
Personal/Private activities
010499
Personal activities, n.e.c.*
030102
Reading to/with hh children
030104
Arts and crafts with hh children
030201
Homework (hh children)
030203
Home schooling of hh children
040102
Reading to/with nonhh children
040104
Arts and crafts with nonhh children
040201
Homework (nonhh children)
040203
Home schooling of nonhh children
110101
Eating and drinking
110199
Eating and drinking, n.e.c.*
119999
Eating and drinking, n.e.c.*
120302
Tobacco and drug use
140102
Participation in religious practices

           
B-1
Category 2. Suitable for travel time use in both public and private vehicles
Six-digit ATUS code
Activity categories
010101
Sleeping
010102
Sleeplessness
010199
Sleeping, n.e.c.*
010399
Self care, n.e.c.*
019999
Personal Care, n.e.c.*
020901
Financial management
020902
Household & personal organization and planning
020904
HH & personal e-mail and messages
020999
Household management, n.e.c.*
030106
Talking with/listening to hh children
030108
Organization & planning for hh children
030112
Picking up/dropping off hh children
030299
Activities related to hh child's education, n.e.c.*
030502
Organization & planning for hh adults
040106
Talking with/listening to nonhh children
040108
Organization & planning for nonhh children
040112
Dropping off/picking up nonhh children
040299
Activities related to nonhh child's educ., n.e.c.*
040505
Financial management assistance for nonhh adults
040506
Household management & paperwork assistance for nonhh adults
040507
Picking up/dropping off nonhh adult
050101
Work, main job
050102
Work, other job(s)
050199
Working, n.e.c.*
050401
Job search activities
050499
Job search and Interviewing, n.e.c.*
059999
Work and work-related activities, n.e.c.*
060301
Research/homework for class for degree, certification, or licensure
060302
Research/homework for class for pers. Interest
060399
Research/homework n.e.c.*
060401
Administrative activities: class for degree, certification, or licensure
B-2
060402
Administrative activities: class for personal interest
060499
Administrative for education, n.e.c.*
070104
Shopping, except groceries, food and gas
070199
Shopping, n.e.c.*
070201
Comparison shopping
070299
Researching purchases, n.e.c.*
079999
Consumer purchases, n.e.c.*
080201
Banking
080202
Using other financial services
080299
Using financial services and banking, n.e.c.*
080301
Using legal services
080399
Using legal services, n.e.c.*
080601
Activities rel. to purchasing/selling real estate
080699
Using real estate services, n.e.c.*
120301
Relaxing, thinking  
120303
Television and movies (not religious)
120304
Television (religious)
120305
Listening to the radio
120306
Listening to/playing music (not radio)
120307
Playing games
120308
Computer use for leisure (exc. Games)
120309
Arts and crafts as a hobby
120310
Collecting as a hobby
120311
Hobbies, except arts & crafts and collecting
120312
Reading for personal interest
120313
Writing for personal interest  
120399
Relaxing and leisure, n.e.c.*
129999
Socializing, relaxing, and leisure, n.e.c.*
150101
Computer use
150102
Organizing and preparing
150103
Reading
150104
Telephone calls (except hotline counseling)
150105
Writing
B-3
160101
Telephone calls to/from family members
160102
Telephone calls to/from friends, neighbors, or acquaintances
160103
Telephone calls to/from education services providers
160104
Telephone calls to/from salespeople
160105
Telephone calls to/from professional or personal care svcs providers
160106
Telephone calls to/from household services providers
160107
Telephone calls to/from paid child or adult care providers
160108
Telephone calls to/from government officials
160199
Telephone calls (to or from), n.e.c.*
160201
Waiting associated with telephone calls
160299
Waiting associated with telephone calls, n.e.c.*
169999
Telephone calls, n.e.c.*
B-4

Appendix C
Logistic Growth Curve Analysis








North American Traditional
North American Traditional

Car Sharing Vehicles
Car Sharing Members



Intercept
-917
-1065
b (Coefficient)
0.4563
0.5297
K (maximum deployment)
25000
2,000,000
t0 (year of half deployment)
2010
2012
R-Squared
0.98
0.97

S(t) = K/[1+exp(-b(t-t0)]


Forecast: North American Traditional Car Sharing Members and


C-1
Appendix D
Logistic Growth Curve Analysis




US Toll Roads (1987-present)
HOT Lanes (1995-present)



Intercept
-24.370
-358.769
b (Coefficient)
0.010
0.176
K (maximum deployment)
150000
64000
t0 (year of half deployment)
2331
2044
R-Squared
0.96
0.97

S(t) = K/[1+exp(-b(t-t0)] 

                 
D-1
D-2





[1] Hull, Dana (2015-10-15) Tesla Model S With Autopilot Isn't Quite `Look Ma, No Hands' Yet. Bloomberg. http://www.bloomberg.com/news/articles/2015-10-15/tesla-model-s-with-autopilot-isn-t-quite-look-ma-no-hands-yet
[2] There is a great deal of uncertainty about what to call autonomous vehicles. Some prefer “self-driving” vehicles. Some maintain these are different things. But just as we had horseless carriages, automobiles, and cars, eventually these will be called autos and cars as well. See the Economist, which maintains they are not the same, as self-driving cars are a step further than autonomous vehicles, which lack steering wheels and human control: http://www.economist.com/blogs/economist-explains/2015/07/economist-
explains?fsrc=scn/tw/te/ee/st/autonomousselfdrivingcarsexplainer . We are unconvinced this terminology sticks. Google uses the term ”self-driving” even for cars which humans can control, thinking the name is softer than “autonomous”.
[3] See             Demo     '97           Proving AHS       Works    in             Public     Roads http://www.fhwa.dot.gov/publications/publicroads/97july/demo97.cfm
[5] Spice, Byron (2015-07-16) “Look, Ma, No Hands: CMU Vehicle Steered Itself Across The Country 20 Years Ago” https://www.cs.cmu.edu/news/look-ma-no-hands-cmu-vehicle-steered-itself-across-country-20-years-ago and Business Week  (1995-08-13) “Look Ma, No Hands” http://www.bloomberg.com/bw/stories/1995-08-13/look-ma-nohands
[6] Authors conversations with Google employees.
[7] There is an assumption that lanes and roads are properly maintained. Knowledge about maintenance problems will be conveyed much more rapidly to road operators with driverless vehicles with automated sensors which are connected to the infrastructure provider. Because better lane-keeping can reduce lanes width, it should reduce total maintenance costs.
[8] See Levinson, D. (2008). Density and dispersion: the co-development of land use and rail in London. Journal of Economic Geography, 8(1), 55-77 and Xie, F., & Levinson, D. (2009). How streetcars shaped suburbanization: a Granger causality analysis of land use and transit in the Twin Cities. Journal of Economic Geography, lbp031.
[9] In addition to speed anything that lowers the generalized cost of travel decentralizes.
[10] Pursuit of high-specification ride-quality raises interesting issues about acceleration and motion sickness (which is worse for passengers than drivers as passengers cannot anticipate as well as drivers). See Scott Le Vine, Alireza Zolfaghari and John Polak (2015), “Autonomous Cars: The Tension Between Occupant-Experience And Intersection Capacity,” Transportation Research Part C: Emerging Technologies
[16] US Census E-commerce Report defines E-commerce sales as “sales of goods and services where the buyer places an order, or the price and terms of the sale are negotiated, over an Internet, mobile device (M-commerce), extranet, Electronic Data Interchange (EDI) network, electronic mail, or other comparable online system” although offline payments are possible. https://www.census.gov/retail/index.html#ecommerce, accessed on August 14, 2015.
[20] Carsharing is by-and-large in the US context not even analogous to a time-share, where different people do share ownership of a property, but get to use it at different times. 
[21] This varies by city, so in Minneapolis and St. Paul, cars are parked on-street at any legal space (metered or otherwise), in other cities like Boston, restriction affect this. 
[22] Zipcar was originally founded by Robin Chase and Antje Danielson in 2000; Danielson was forced out in 2001, Chase in 2003.
[23] For more on carsharing: http://www.shareable.net/blog/should-products-be-designed-for-sharing http://www.bizjournals.com/boston/blog/startups/2013/01/zipcar-acquisition-avis-carsharing.html?page=all http://www.theverge.com/2014/4/1/5553910/driven-how-zipcars-founders-built-and-lost-a-car-sharing-empire
[24] There are several studies on car-shedding due to carsharing. It is too early to form a conclusion, as early adopters may behave differently than later adopters.  Stasko, T. H., Buck, A. B., & Gao, H. O. (2013). Carsharing in a university setting: Impacts on vehicle ownership, parking demand, and mobility in Ithaca, NY. Transport Policy, 30, 262-268.   Ter Schure, J., Napolitan, F., & Hutchinson, R. (2012). Cumulative impacts of carsharing and unbundled parking on vehicle ownership and mode choice. Transportation Research Record: Journal of the Transportation Research Board, (2319), 96-104.
Shaheen, S. A., & Cohen, A. P. (2013). Carsharing and personal vehicle services: worldwide market developments and emerging trends. International Journal of Sustainable Transportation, 7(1), 5-34.
[25] Totten, Kristy (2015-07-01) “The Quiet Exit of Downtown Car-Sharing Venture Shift.” Las Vegas Weekly.
[26] Some have tried to change the language, since ridesharing implies carpooling, preferring to call them “ridehailing” or “ride-sourcing” services, we think the misleading term “ridesharing” is here to stay.
[27] DeAmicis, Carmel (2015-07-18) How Didi Kuaidi Plans to Destroy Uber in China. Re/Code. http://recode.net/2015/07/18/how-didi-kuaidi-plans-to-destroy-uber-in-china/
[28]     A    longer discussion            of               our skepticism          is              here: Levinson (2014-12-01) 
[29] French, Sally (2015-07-01)       “An       8-year-old’s     take              on    ‘Uber      for      kids’” MarketWatch
[30] Hatmaker, Taylor (2014-09-08) “Taxi service by women for women launching in New York.” The Daily Dot. http://www.dailydot.com/business/sherides-shetaxis-uber-women-nyc/
[31] Apparently Based on this NPR story (2013-10-24) In Most Every European Country Bikes are Outselling Cars http://www.npr.org/blogs/parallels/2013/10/24/240493422/in-most-every-european-country-bikes-are-outselling-cars
[32] We use the term “bike” to mean the traditional human-powered “bicycle”, unless otherwise noted as in e-bike or motor-bike.
[33] National Bike Dealers Association (2012) Industry Overview http://nbda.com/articles/industry-overview-2012pg34.htm
[34] Schoner, Jessica, Greg Lindsey, David Levinson (2015) Travel Behavior Over Time: Task 7 report. University of Minnesota Center for Transportation Studies report. Minneapolis, MN
[35] The average US car on the road is 11.4 years; while no similar data exists for bicycles, it must be lower, especially given the higher sales. At 18.7 million bikes per year there would be 1 bicycle for every person in the US after 16.7 years of sales, so the average age would be about 8.4 years if everyone had a bike and there were no losses, and surely that isn't true. This again is in large part due to the growing up of kids.
[36] Few people will of course take a bikeshare bike from Minneapolis to Chicago, but Minneapolitans should automatically be able to use the Chicago system (and vice versa). And like the electric inter-urban users of yore (one could take an electric inter-urban (trolley) from Elkhart Lake Wisconsin to Oneonta, New York, it was said), one should be able to bike share between major places, even if transferring bikes periodically.
[37] Figures    4.3          and      4.4     from     Nice       Ride Five-Year Assessment           and         Strategic      Plan
[38] This idea is also discussed in Enoch, Marcus (2015) How a rapid modal convergence into a universal automated taxi service could be the future for local passenger transport. Technology Analysis & Strategic Management http://dx.doi.org/10.1080/09537325.2015.1024646
[39] Vehicles may likely have customer's preferences pre-loaded (seat position, computing interface, audio environment, video entertainment, computer desktop). 
[40] Adam Jonas, Director and Leader of Global Auto Research Team at Morgan Stanley, has a relatively simple idea that he claims will consume his remaining career. He offers two intersecting axes to, in part, foretell the future of the auto industry. One axis traverses between 'human driver' and 'autonomous'; the other indicates if the assets (the car) is owned or shared. He believes we are moving from the lower left (human driven, privately owned) to the upper right (autonomous and shared).  Chart from Verhage, Julie (2015) Auto Analyst: The Remainder of My Career Will Be Focused on This One Chart. Bloomberg News.  http://www.bloomberg.com/news/articles/2015-04-07/auto-analyst-theremainder-of-my-career-will-be-focused-on-this-one-chart
[41] Automation also structurally transforms transit, making it potentially massively more abundant. Automation is accompanied by unemployment and social dislocation in the sectors it affects (in this case transportation), with associated spillovers, as workers need to find new skills and jobs in new sectors. Given this is not an overnight change, but occurs over decades, it will appear important but not urgent, and much of the labor force reduction will occur through attrition and lack of new hiring.
[42] Assuming range issues have not been resolved.
[43] There are many blocks in Minneapolis (1100 miles of street), so moving from some 500 cars in Minneapolis and St. Paul to some 5000-10000 (as a rough approximation of where it needs to be so a member doesn't have to walk more than a block to find one) is a 10 or 20-fold expansion. While reviews are favorable, finding one of today's 300 cars (assuming the other 200 are in St. Paul) in a city of 58 square miles means about 5 cars per square mile. As of this writing, there are 6 cars within a 10 minute walking distance (an area of about 50 very non-square blocks), and 1 within a five minute walk of the author’s house. On 1100 miles of street, this is not going to be a dominant mode without significant expansion. But 5000 cars is less than the several hundred thousand registered in Minneapolis, and could replace many of them. Some of this information is gleaned from the Car2Go website https://www.car2go.com/en/minneapolis/ April 3, 2015.
[44] As quoted in Thomas Friedmans' column: "just think how much better all this is for the environment — for people to be renting their spare bedrooms rather than building another Holiday Inn and another and another. ... The sharing economy  — watch this space. This is powerful." See: http://www.nytimes.com/2013/07/21/opinion/sunday/friedmanwelcome-to-the-sharing-economy.html?pagewanted=2&_r=0
[45] Forecasts of the shared economy and local regulation, see: Rauch, Daniel E. and Schleicher, David (2015) Like Uber, But for Local Governmental Policy: The Future of Local Regulation of the "Sharing Economy" (January 14, 2015). George Mason Law & Economics Research Paper No. 15-01. Available at SSRN: http://ssrn.com/abstract=2549919
[46] National          Multi-family                       Housing                          Coalition                     (2015-09)
[48] http://www.zsw-bw.de/en/support/press-releases/press-detail/weltweit-ueber-400000-elektroautosunterwegs.html
[49] See Henchman, Joseph (2014) Gasoline Taxes and User Fees Pay for Only Half of State & Local Road Spending http://taxfoundation.org/article/gasoline-taxes-and-user-fees-pay-only-half-state-local-road-spending and by the same author the previous year (excluding license fees) Gasoline Taxes and Tolls Pay for Only a Third of State & Local Road
Spending http://taxfoundation.org/article/gasoline-taxes-and-tolls-pay-only-third-state-local-road-spending 66 March, J. W. (1998). Federal highway cost allocation study. Public Roads, 61(4).
[50] Williams, Michelle (2014) Automatic gas tax indexing repealed by Massachusetts voters by close margin
MassLive on November 05, 2014 at 12:15 AM http://www.masslive.com/politics/index.ssf/2014/11/massachusetts_question_one_gas_tax.html Accessed July 6, 2015
[51] Opoien, Jessie (2015) Joint Finance rejects Democrats’ proposal to reinstate Wisconsin gas tax indexing. The Cap Times. July 3, 2015. http://host.madison.com/news/local/govt-and-politics/joint-finance-rejects-democrats-proposal-toreinstate-wisconsin-gas-tax/article_e6ca5192-20e0-11e5-9d67-635a901f85f1.html Accessed July 6, 2015
[52] Mitchell, Josh (2014-04-04) States Raise Gas Taxes to Pay for Infrastructure: As Congress Only Takes ShortTerm Steps, Governors Seek More Funds for Roads. Wall Street Journal.  
[53] Zmud, J. (2008). The public supports pricing if… A synthesis of public opinion studies on tolling and road pricing. International Bridge, Tunnel and Turnpike Association Tollways. Winter. Available at http://www. ibtta. org/files/PDFs/win08_Zmud. pdf
[54] Parry, I. W., Walls, M., & Harrington, W. (2007). Automobile externalities and policies. Journal of economic literature, 373-399. http://www.jstor.org/stable/27646797?seq=1#page_scan_tab_contents
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[57] Parthasarathi, P., Levinson, D. M., & Karamalaputi, R. (2003). Induced demand: a microscopic perspective. Urban Studies, 40(7), 1335-1351. http://usj.sagepub.com/content/40/7/1335.short
[58] However, higher prices on MnPASS appear to attract travelers, who seem to use the prices as a signal of time savings in the absence of other real-time traveler information. See Janson, M. and D. Levinson (2014) HOT or Not: Driver Elasticity to Price on the MnPASS HOT Lanes. Research in Transport Economics Volume 44 pp. 21-32
[59] See: Lindsey, Robin (2006)  Do Economists Reach A Conclusion on Road Pricing? The Intellectual History of an Idea. Econ Journal Watch 3(2) pp. 292-379
[60] Chris Swenson, David Ungemah and Hal Kassoff  (2014) “The Roadway Usage Charge: A View from 2050.” Parsons Brinckerhoff.
[61] US             FHWA   2013       Highway                Statistics,               Table      SF1 http://www.fhwa.dot.gov/policyinformation/statistics/2013/sf1.cfm
[62] Cambridge Systematics (2010) MnPASS System Study Phase 2. Prepared for Minnesota Department of Transportation. August 2010 http://www.dot.state.mn.us/rtmc/pdf/mnpass9-24.pdf
[63] Larsen, David, (2010-10-29) Truck-only lanes along I-70 could fuel growth Dayton Daily News http://www.daytondailynews.com/news/news/local/truck-only-lanes-along-i-70-could-fuel-growth/nNJLd/
[64] See: Zhang, L., McMullen, B., Valluri, D., and Nakahara, K. (2009). Vehicle mileage fee on income and spatial equity. Transportation Research Record: Journal of the Transportation Research Board, 2115(-1):110–118.
[65] Oregon launches program to tax drivers by the mile Kellan Howell - The Washington Times - Saturday, July 4,
[67] Borrud, Hillary (2015-10-04) State seeks more drivers for mileage tax test. East Oregonian http://www.eastoregonian.com/eo/capital-bureau/20151004/state-seeks-more-drivers-for-mileage-tax-test
[68] Levinson, David and Andrew Odlyzko (2008) Too Expensive to Meter: The influence of transaction costs in transportation and communication. Philosophical Transactions of the Royal Society A: Mathematical Physical and Engineering Sciences 366(1872) pp 2033–2046 
[69] Woodward, Will, Patrick Wintour and Dan Milmo (2007) Downing Street to send Blair emails to 2 million road pricing protesters. http://www.theguardian.com/politics/2007/feb/14/transport.publicservices
[70] Jonathan E. Hughes, Christopher R. Knittel and Daniel Sperling. Evidence of a Shift in the Short-Run Price
Elasticity of Gasoline Demand
The Energy Journal Vol. 29, No. 1 (2008), pp. 113-134
[71] Goodwin, P. B. (1992). A review of new demand elasticities with special reference to short and long run effects of price changes. Journal of transport economics and policy, 155-169.
[74] US Census Bureau (2014) QUARTERLY RETAIL E-commerce SALES 3RD QUARTER 2014 http://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf
[75] eMarketer (2013) Total US Retail Sales Top $4.5 Trillion in 2013, Outpace GDP Growth - http://www.emarketer.com/Article/Total-US-Retail-Sales-Top-3645-Trillion-2013-Outpace-GDP-Growth/1010756
[76] Center for Retail Research (2015) Online Retailing: Britain, Europe, US and Canada 2015 http://www.retailresearch.org/onlineretailing.php
[77] USDOC (2015). "Quarterly Retail E-commerce Sales: 4th Quarter 2014." US Census Bureau News. US Department of Commerce (DOC).
[78] philly.com               (1993-01-29)        “Sears'    Wish       Book      What      Does       Its           Passing   Say         About     Us?” http://articles.philly.com/1993-01-29/news/25961807_1_middle-class-sears-tools
[79] Shopping trips based on analysis of The Travel Behavior Inventory from the Twin Cities (Minneapolis and St. Paul) in Minnesota (US), see: Brosnan, M and Levinson, D. (2014) Accessibility and the Allocation of Time: Changes in Travel Behavior 1990-2010 . Presented at the 2015 Transportation Research Board Conference, Washington DC
[80] Johnston, Chis (2015) Online shopping 'boosts van sales'. BBC http://www.bbc.com/news/business-32279715 accessed April 18, 2015
[81] Rubin,      Ben         Fox         (2015-04-22)        “Amazon              deliveries               coming   to            car          trunks”. C|Net http://www.cnet.com/news/amazon-deliveries-coming-to-car-trunks/
[82] Amazon setting up shop in Manhattan, see: 
http://blogs.wsj.com/digits/2014/11/20/amazon-to-lease-entire-manhattan-building-hinting-at-retail-ambitions/
[83] Mignot,    Martin    (2015-07-11)        “The       Billion    Dollar     Food       Delivery                 Wars”     TechCrunch http://techcrunch.com/2015/07/11/the-billion-dollar-food-delivery-wars/
[84] Fowler, Geoffrey (2015) "There's an Uber for Everything Now Apps do your chores: shopping, parking, cooking, cleaning, packing, shipping and more" Wall Street Journal 2015-05-05 http://www.wsj.com/articles/theres-an-uber-foreverything-now-1430845789
[86] This does not even consider the unknown amount of illegal video traffic (such as BitTorrent), nor the fact that some legal downloads (like Netflix) show many more hours of video per dollar spent than legal rentals. Eventually (and not too far away) about 100% of this genre of product will be acquired online.
[87] Thomas Birtchnell (2012, 11th of December), « 3D printing: towards a freightless future? », Mobile Lives Forum. Connnexion on 16th of December 2014, URL: http://en.forumviesmobiles.org/video/2012/12/11/3d-printing-towardsfreightless-future-510
[88] Andy Greenberg (2014-05-14) How 3D Printed Guns Evolved into Serious Weapons in Just One Year. Wired http://www.wired.com/2014/05/3-D-printed-guns/

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