1

Corresponding author: Eric Mogire

Email: [email protected]

29

Vol. 04, No. 01 (2026) 29-40, doi:

10.61552/JIBI.2026.01.004 - http://jibi.aspur.rs

GREEN INNOVATIONS IN LAST MILE DELIVERY: A

RESEARCH AGENDA

Eric Mogire

1

Received 09.10.2024.

Revised 12.02.2025.

Accepted 23.04.2025.

Keywords:

Green innovations, last mile delivery,

electronic commerce, research agenda,

review.

A B S T R A C T

The surge in electronic commerce calls for the potential for green innovations

in last mile delivery. Existing studies on the topic are fragmented, and have

explored

diverse

green

innovations

across

different

regions,

reporting

conflicting findings. Thus, this review aims to fill this gap by conducting a

comprehensive study to identify underlying themes and propose future research

agendas on the topic. A word analysis was performed on 628 publications

extracted from the Scopus database for the period between 2000 and 2024.

Findings reveal an increasing trend in publications, covering five themes:

sustainability,

optimisation

and

vehicle

routing,

consumer

behaviour,

technological

innovations,

urban

mobility

and

freight

transportation.

Sustainability is the most dominant theme. In addition, the underexplored areas

include social aspects of sustainability, intangible technological innovations,

and consumer behaviour on emerging delivery technologies. Future studies

should

target

under-researched

areas,

such

as

regulatory

interventions

required to increase the uptake of green innovations, real-world application of

intangible technologies (e.g. artificial intelligence), demand and willingness to

pay for emerging delivery technologies (e.g. electric vehicles), integrating

smart city innovations and renewable energy sources into last mile delivery.

However, this review is limited to publications extracted from the Scopus

database.

© 2026 Journal of Innovations in Business and Industry

1.

INTRODUCTION

Globally, electronic commerce (e-commerce) sales are

forecasted to reach $8.034 trillion in 2027 from $5.784

trillion sales in 2023 (eMarketer, 2023), a 38.9% increase

in four years. China, which is known to be a global leader

in e-commerce, contributed $2.931 trillion (more than

half)

of

the

total

global

e-commerce

sales

in

2023

(eMarketer, 2023). China’s success in e-commerce is

driven by a developed last mile delivery system, among

other factors (Hongfei, 2017; Zandi, Torabi, Mohammad

& Dan, 2021). Even though last mile delivery (LMD) is

considered crucial for e-commerce, research has shown

that it faces environmental challenges. These include the

negative

impacts

of

high

carbon

emissions,

urban

congestion, habitat loss, air, and noise pollution (World

Economic

Forum,

2020;

Mucowska,

2021;

Mogire,

Kilbourn & Luke, 2022). The negative impacts can be

attributed to the increasing number of delivery vehicles

expected to grow by 36% until 2030 in the top 100 cities

in the world (World Economic Forum, 2020).

Green innovations, as well as other alternatives, are

increasingly being explored in the last mile delivery to

resolve

the

environmental

challenges

for

the

sustainability of e-commerce. Research has shown a

significant

and

positive

relationship

between

environmental performance and sustainable performance

(Demir, Akdemir, Kara, Sagbas, Sahin & Topcuoglu,

Green Innovations in Last Mile Delivery: A Research Agenda

30

2025). Thus, green innovations refer to those innovations

utilised by e-commerce firms to improve competitiveness

in the last mile delivery while enhancing environmental

performance (Franceschin, Faria & Jurowetzki, 2016;

Degler, Agarwal, Nylund & Brem, 2021). These include

but are not limited to cargo bikes, electric vehicles (EVs),

autonomous vehicles, smart lockers, drones, micro hubs,

big data analytics, and Internet-of-Things (IoT). These

green innovations are transforming last mile delivery by

enhancing

delivery

speed,

reducing

environmental

impact, and increasing customer trust in e-commerce. In

addition, electric vehicles and drones are powered by

clean and renewable energy sources such as hydro, wind,

and solar power, contributing to reduced demand for

fossil fuels. Industry 4.0 technologies such as IoT, big

data

analytics,

and

blockchain

technology

promote

efficient

use

of

resources,

and

minimise

waste

and

pollution (Kumar, Dubey, Mehdi, Kalla & Krishanan,

2023).

Despite

their

potential,

adopting

green

innovations in last mile delivery is hindered by various

barriers,

such

as

high

capital

investments

and/or

operational expenses (Engelhardt, 2023). In addition,

prior studies have reported that customers do not favour

emerging delivery carriers such as drones, which are

reliable, safer, and efficient (Mogire, Kilbourn & Rose,

2024a).

Research in existing studies on green innovations is

fragmented

and

differs

across

different

regions.

For

instance, existing studies have identified diverse green

innovations (Ranieri, Digiesi, Silvestri, & Roccotelli,

2018; Mohammad, Nazih, Elomri & Triki, 2023; Mogire,

Kilbourn

&

Rose,

2024b),

underexplored

aspects

(Mucowska, 2021; Mogire, Kilbourn & Rose, 2025),

conflicting findings (Mucowska, 2021; Mogire et al.,

2025), and regional differences (Schnieder, 2024; Mogire

et al., 2025). A keyword search in the Scopus database

(Article title: ("green innovation*") AND ("last mile" OR

"last-mile") failed to identify a study directly aligned

with the focus of this review. One relevant study was

found in Google Scholar: Green innovations in last mile

delivery for electronic commerce: A bibliometric review

(Mogire et al., 2024b). Even though the study was a

bibliometric review, it lacked the in-depth word analysis

necessary to identify the key themes in the field. Thus,

there is a need for a deeper textual analysis to identify

underlying themes and emerging trends on the topic. This

gap highlights the need to go beyond the bibliometric

metrics to offer deeper insights into green innovations in

last mile delivery. This is crucial in supporting policy

development and accelerating the broad adoption of

green innovations in last mile delivery. The objectives of

this review are:

i.

To identify the key themes that have been used

in

green

innovations

and

last

mile

delivery

research.

ii.

To propose future research agendas on green

innovations in last mile delivery.

The subsequent sections of the review are as follows:

Section

2

explores

a

literature

review

on

green

innovations

in

last

mile

delivery,

Section

3

covers

methodology,

Section

4

displays

results,

Section

5

discusses

the

results,

and

Section

6

provides

the

conclusion.

2.

LITERATURE REVIEW

This section examines the key terms used in the review.

It starts by introducing the concept of last mile delivery

and then looks at reviews on green innovations in last

mile delivery.

2.1 Last mile delivery

Last mile delivery is the final leg of transporting goods

to the final destination (Sorooshian, Khademi, Parsaee &

Afshari, 2022; Mohammad et al., 2023). This starts once

a package has arrived at a starting point in an urban area

(e.g., a central depot after long-haul transportation) and

stops once the package has successfully been delivered at

the final customer’s preferred point (Boysen, Fedtke &

Schwerdfeger, 2021). Last mile delivery refers to the

activities necessary for the physical delivery of goods to

the final destination chosen by the receiver (Olsson,

Hellström, & Pålsson, 2019). These include emerging

technologies

and

innovations

(such

as

innovative

delivery vehicles), operational optimisation (e.g., routing

and facility location), and supply chain structures (for

example, urban freight terminals), among other activities.

Last mile delivery is also defined as the service provided

by an online retailer to their customers from the point

when

a

product

is

released

from

the

retailer

(e.g.,

manufacturing site or fulfilment centre) to the point

where a product is delivered to the customer (e.g., at the

customer’s home or a collection point) (Mogire, 2022;

Mogire, Kilbourn & Luke, 2023). From the definitions,

last mile delivery has a start point (i.e., when goods are

released from e-commerce businesses) and an end point

(i.e.,

when

the

final

customer

receives

goods).

In

addition, last mile delivery activities comprise physical/

tangible aspects (e.g., innovative delivery vehicles and

urban freight terminals) and intangible aspects (e.g.,

routing).

2.2 Green innovations in last mile delivery

Innovations are crucial for the survival and growth of any

business organisation (Tohidi & Jabbari, 2012). Without

innovation, a business organisation will fall behind its

competitors. While various e-commerce businesses have

started to offer green delivery options, customers may be

skeptical (Kader, Rashaduzzaman, Huang & Kim, 2023).

Thus,

integrating

green

innovations

into

last

mile

delivery

is

crucial

for

the

sustainability

of

the

e-

commerce industry.

In last mile delivery, innovative services for delivering

packages

have

generated

considerable

interest

in

literature, and attempts are underway to find either new

solutions or improve existing ones (Mohammad et al.,

2023). Over the past few years, various innovations have

Journal of Innovations in Business and Industry, Vol. 04, No. 01 (2026) 29-40, doi: 10.61552/JIBI.2026.01.004

31

emerged to reduce negative effects on the environment.

Bonilla, Bouzon, and Peña-Montoya (2024) noted that

various innovations have emerged to enhance efficiency

and minimise the environmental impacts of logistics.

Innovations

that

reduce

the

adverse

effect

on

the

environment can be classified as green innovation, eco-

innovation, sustainable innovation, and environmental

innovation (Degler et al., 2021). Although the four types

of innovations are often used interchangeably, they differ

in meaning. Dane, Wright, and Montmasson-Clair (2019)

agree

that

the

overlap

between

the

four

types

of

innovation is clear, and the contribution of each concept

is less distinctive.

Sustainable innovation focuses on societal impact, while

eco-innovation focuses on economic impact (e.g., eco-

design) to minimise negative effects on the environment

(Degler et al., 2021). Environmental innovation focuses

on environmental impact, precisely the regulatory and

policy issues, while green innovation focuses on the

managerial impact (e.g., competition) (Degler et al.,

2021). Green innovation is a type of innovation that aims

to

reduce

or

prevent

environmental

damage

while

safeguarding the environment and helping companies to

fulfil new customer demands, create value, and increase

yields

(Albort-Morant,

Henseler,

Leal-Millán,

&

Cepeda-Carrión, 2017). Due to various attempts to define

green innovations, clarity is necessary to enhance the

body of knowledge for academicians and practitioners.

Last

mile

delivery

innovations

are

categorised

differently. Ranieri et al.'s (2018) review of last mile

delivery innovations in an externalities cost reduction

identified various innovations. These include proximity

points or stations (e.g., parcel machines and lockers) and

innovative vehicles (autonomous and electric vehicles).

Ha, Akbari, and Au's (2023) bibliometric analysis on last

mile delivery identified operational optimisation (i.e.,

routing) and emerging technologies/ innovations as the

main research areas. The innovations included electric

vehicles,

smart

locker

systems,

crowdsourcing,

and

drones. Mohammad et al. (2023) broadly categorised

innovative solutions in last mile delivery either as current

innovative solutions (such as cargo bikes, human-driven

delivery vans, and parcel lockers) or solutions for the

near

future

(e.g.,

drones

and

robots).

Intelligent

technologies

for

modern

last

mile

delivery

were

categorised as either tangible technologies (e.g., drones,

autonomous

vehicles,

and

robots)

or

intangible

technologies

(e.g.,

operating

systems

and

decision

support tools) (Sorooshian et al., 2022). Boysen et al.

(2021) addressed alternative last mile delivery concepts

such as transport vehicles (such as drones and delivery

vans), storage facilities (e.g., postal lockers and central

depot), and handover options (for example, self-service

by

customers

and

the

attended

home

delivery).

In

addition, the author indicated that last mile delivery

concepts are surveyed as today's concepts (e.g., cargo

bikes,

human-driven

vans,

and

self-service

parcel

lockers),

near-future

concepts

(such

as

autonomous

delivery robots, drones, and crowd shipping), and further

future

concepts

(for

example

autonomous

vehicles).

Engelhardt

(2023)

indicated

that

environmental

challenges from freight transportation in e-commerce

required radical innovations in environmentally friendly

transportation

modes

(e.g.,

cargo

bikes)

and

consolidation points (such as micro hubs). Silva, Amaral,

and Fontes' (2023) systematic analysis of sustainable

urban last mile logistics identified vehicular solutions

(such as autonomous and electric vehicles, drones, and

cargo

bikes),

organisational

solutions

(e.g.,

urban

consolidation

centres,

parcel

lockers,

and

crowdsourcing), and operational solutions (for example,

technological systems). A systematic literature review on

the adoption of green vehicles in last mile logistics

identified green vehicles that include electric vehicles,

cargo bikes, unmanned vehicles, and drones, among

others (Patella, Grazieschi, Gatta, Marcucci & Carrese,

2020). A systematic literature review on sustainability

practices for last mile logistics networks in e-retail found

that

sustainability

practices

include

consolidation

centres,

shared

freight

transportation,

shared

micro-

depots, electric vehicles (e.g., tricycles and bicycles), and

implementation of collection and delivery points (Bonilla

et al., 2024). A bibliometric review on green innovations

in

last

mile

delivery

for

e-commerce

identified

the

innovations as green vehicles (such as electric vehicles

and drones), green technologies (such as, blockchain,

artificial intelligence (AI), and IoT), and green proximity

points (such as parcel lockers) (Mogire et al., 2024b).

However, the bibliometric review failed to utilise textual

analysis to identify underlying themes and emerging

trends on the topic. From the preceding discussion, it is

evident

that

there

is

a

lack

of

uniformity

on

how

innovations in last mile delivery are classified by prior

research.

3.

METHODOLOGY

A word analysis was utilised to go beyond citation

metrics and gain deeper insights into green innovations

in last mile delivery. A search was undertaken in the

Scopus database on 2nd January 2025. The Scopus is a

trusted

source

of

bibliometric

data

(Baas,

Schotten,

Plume, Côté & Karimi, 2020). The search in Scopus used

a combination of keywords: (ALL FIELDS (“green”)

AND (“innovati*” OR “solution*” OR “technolog*” OR

“drone*” OR “robot*” OR “autonomous vehicle*” OR

“electric*” OR “bike*” OR “bicycle*” OR “tricycle*”

OR “scooter*” OR “locker*” OR “*centre” OR “*hub”

OR “internet-of-things” OR “big data” OR “blockchain”

OR “artificial intelligence” OR “machine learning” OR

“augmented reality” OR “decision support system” OR

“routing

algorithm”

OR

“optimisation

system”

OR

“crowd*”)

AND

("last

mile"

OR

"last-mile")

AND

(“delivery”

OR

“logistics”

OR

“distribution”

OR

“transport”)

AND

("electronic

commerce"

OR

"e-

commerce"

OR

"*retail").

This

resulted

in

944

publications

(i.e.,

review

papers,

journal

articles,

conference proceedings, and book chapters) in Business

Green Innovations in Last Mile Delivery: A Research Agenda

32

Management published in the English language from

2000 to 2024.

The

selected

keywords

specifically

targeted

various

green innovations used in e-commerce for last mile

delivery because an earlier search (Article title: ("green

innovation*") AND ("last mile" OR "last-mile") failed to

identify a study directly aligned with the focus of this

review. A thorough screening of the abstracts and titles

of the publications to assess their relevance ultimately

reduced the number to 628 publications. The excluded

publications were duplicates, irrelevant to the topic, or

missed abstracts. The 628 publications were exported

from the Scopus database as a comma-separated values

(CSV) file for in-depth analysis. The RStudio software

(specifically

the

Biblioshiny

app)

was

utilised

to

undertake a word analysis to reveal current and emerging

themes in the study of green innovations in last mile

delivery.

Table 1 show publications on green innovations in last

mile delivery have a high annual growth rate of 27.45%,

indicating a topic attracting more research attention.

Table 1. Main information about the publications (2000

– 2024)

Description

Results

Timespan

2003:2024

Sources (Journals, Books, etc.)

219

Documents

628

Annual Growth Rate %

27.45

Document Average Age

3.32

Average citations per doc

18.35

References

42659

DOCUMENT CONTENTS

Keywords Plus (ID)

1731

Author's Keywords (DE)

1972

AUTHORS

Authors

1634

Authors of single-authored

docs

50

AUTHORS

COLLABORATION

Single-authored docs

53

Co-Authors per Doc

3.33

International co-authorships %

34.08

DOCUMENT TYPES

Article

526

book chapter

31

conference paper

40

Review

31

The average age per document is 3.32 (

Table

1

), implying a relatively new topic. Most

publications are journal articles (83.8%), with reviews

accounting for 4.9% (

Table

1

), justifying a need for more reviews.

4.

RESULTS

4.1 Number of publications per year

Results showed that research on green innovations in last

mile delivery for e-commerce started in 2003 (Figure 1).

There was minimal research in the early years up to 2013,

with very few publications per year (i.e., mostly 0 to 3)

(Figure

1).

Research

focused

on

expansion

of

e-

commerce, rather than green innovations in last mile

delivery. The period from 2014 to 2018 experienced slow

growth, with 20 publications in 2018 (Figure 1). This

indicates a rising interest in green innovations for last

mile delivery, driven by the high carbon emissions from

conventional

delivery

vehicles

as

researchers

sought

solutions on cleaner alternatives. The period from 2019

to 2021 recorded high growth, with 67 publications in

2021 (Figure 1). This was due to advancements in electric

vehicles, climate change awareness, and the emergence

of more innovations in last mile delivery. In particular,

electric

vehicles

became

common,

highlighting

the

transition from fossil-powered vehicles to clean energy-

powered vehicles. The period from 2022 to 2024 is

expected

to

continue

this

trend,

with

projections

of

significant growth resulting in 163 publications by 2024

(Figure 1). This increase may be linked to technological

advancements

such

as

AI

and

blockchain,

greater

acceptance

of

these

innovations,

and

a

heightened

awareness of sustainability issues.

Figure 1. Number of publications on green innovations

in LMD research (2000 - 2024)

4.2 Word analysis

Word analysis helps to identify key themes and trends by

examining the frequency of keywords. This includes

word frequency analysis, word cloud, words’ frequency

over time, and trend topics.

4.2.1 Word frequency analysis

Word

frequency

analysis

was

conducted

to

identify

frequently discussed concepts and keywords on the topic.

Table 2 presents the top 50 most frequent words on green

innovations in last mile delivery. Five main themes

emerge:

sustainability,

optimisation,

technology,

consumer

behavior,

and

urban

mobility.

The

sustainability theme includes keywords like sustainable

development,

environmental

impact,

sustainability,

environmental technology, economic and social effects

(Table 2). This shows that green innovations leverage on

1

0

2

0 0 0

1

2

3

0 0

4

7

10

15

20

39

35

67

112

147

163

0

50

100

150

200

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

2023

Number of publications

Year

Publications per year

Journal of Innovations in Business and Industry, Vol. 04, No. 01 (2026) 29-40, doi: 10.61552/JIBI.2026.01.004

33

environmental

technology

to

address

environmental,

social, and economic effects in last mile delivery. The

optimisation

theme

includes

keywords

like

vehicle

routing, decision-making, costs,

optimisation, vehicle

routing problems, profitability, cost-effectiveness, fleet

operations, competition, and efficiency (Table 2). This

indicates that green innovations can improve last mile

delivery through efficient routing and cost reduction.

Table 2. Top 50 most frequent words on green

innovations in LMD research (2000 – 2024)

Word(s)

Occur

rences

Word(s)

Occurr

ences

1

sustainable

development

45

26

fleet

operations

11

2

consumption

behavior

39

27

location

11

3

sales

38

28

transportati

on

planning

11

4

vehicle

routing

33

29

autonomou

s vehicles

10

5

decision

making

21

30

freight

transport

10

6

vehicles

20

31

consumer

behavior

9

7

costs

18

32

customer

satisfaction

9

8

optimisation

18

33

technologic

al

developme

nt

9

9

pickups

17

34

urban area

9

10

transportation

system

17

35

algorithm

8

11

COVID-19

15

36

city

logistics

8

12

vehicle

routing

problems

15

37

competitio

n

8

13

crowdsourcin

g

14

38

perception

8

14

drones

14

39

routings

8

15

environmental

impact

14

40

service

quality

8

16

genetic

algorithms

14

41

service

sector

8

17

sustainability

14

42

shopping

activity

8

18

urban

transportation

14

43

unmanned

vehicle

8

19

freight

transportation

13

44

artificial

intelligence

7

20

profitability

13

45

economic

and social

effects

7

21

trucks

13

46

economics

7

22

China

12

47

efficiency

7

23

cost

effectiveness

12

48

environme

ntal

technology

7

24

technology

adoption

12

49

food

delivery

7

25

urban

transport

12

50

informatio

n and

communica

7

tion

technology

The

technology

theme

includes

keywords

like

transportation system, crowdsourcing, drones, genetic

algorithms, technology adoption, autonomous vehicles,

technological

development,

algorithm,

unmanned

vehicle, artificial intelligence, environmental technology,

information and communication technology (Table 2).

This implies that green innovations integrate intelligent

systems and automation.

The consumer behaviour theme includes keywords such

as consumption behaviour, sales, COVID-19, consumer

behaviour,

customer

satisfaction,

perception,

service

quality, and shopping activity (Table 2). This means that

understanding customer preferences helps in the uptake

of green innovations in last mile delivery. The urban

mobility

theme

includes

keywords

such

as

urban

transportation, freight transportation, urban transport,

freight transport, urban area, and city logistics (Table 2).

This implies that green innovations in last mile delivery

can

enhance

urban

freight

transport.

Thus,

green

innovations

leverage

on

automation

to

enhance

efficiency, while addressing environmental, social, and

urban freight challenges.

4.2.2 Word cloud

A word cloud is used to visually represent words in a text

according to their frequency in different colours. This is

important in research because it helps to identify key

themes and trends in a research topic. This review used

the

word

cloud

to

identify

key

themes

on

green

innovations in last mile delivery.

Figure 2. Word cloud on green innovations in LMD

research (2000 – 2024)

Figure 2 reveals five key themes: consumption behaviour

(maroon colour), sales and profitability (lime green),

vehicle routing and optimisation (dark green colour),

sustainability

and

environmental

impact

(dark

blue

colour), and technological innovations in transportation

(light green).

i) Consumption behaviour

Consumption behavior is the most dominant keyword in

the word cloud (Figure 2). This indicates that consumer

demand and purchasing habits drive green innovations in

last mile delivery. Grouping consumption behaviour,

fleet operations, profitability, and China in the same

Green Innovations in Last Mile Delivery: A Research Agenda

34

colour (Figure 2) suggests a close connection between the

keywords.

This

implies

that

the

profitability

of

e-

commerce businesses and last mile fleet operations in

China are heavily influenced by consumption behaviour.

The dominant keyword consumption behaviour is also

very close to sales, revealing that e-commerce sales are

directly related to consumer purchasing behavior, thus

driving the demand for green innovations in last mile

delivery.

Consumption

behaviour

is

surrounded

by

transport-related

keywords

such

as

transportation

system, urban transport, and freight transport (Figure 2).

Thus,

existing

research

focuses

on

consumption

behaviour in transportation systems, urban transport, and

freight transportation in last mile delivery. At the outer

left part of the word cloud, close to transportation

system, is the keyword COVID-19 (Figure 2). This shows

that the emergence of COVID-19 accelerated the shift to

green, innovation-driven transport systems in last mile

delivery

to

meet

customer

demand

and

sales

expectations. Consumption behaviour is also close to

cost-effectiveness

and

optimisation

(Figure

2).

Thus,

research

on

green

innovations

in

last

mile

delivery

enables

e-commerce

businesses

to

improve

their

transportation

efficiency

and

fleet

optimisation.

The

appearance of the keyword sensitivity analysis at the

outer edge of the word cloud placed near consumption

behaviour

(Figure

2),

implies

that

e-commerce

businesses

must

assess

consumer

behavior,

such

as

preferences for cost-effectiveness and profitability when

implementing green innovations in last mile delivery.

The appearance of the keywords vehicles and pickups

close to consumption behaviour (Figure 2) shows that last

mile delivery options in e-commerce should be aligned

with consumer expectations such as economic and social

effects

(sustainability),

and

cost-effectiveness.

The

keywords

such

as

cost-effectiveness,

crowdsourcing,

genetic algorithms, drones, and autonomous vehicles are

close

to

consumption

behavior

(Figure

2).

Thus,

increasing customer demand for cost-effective last mile

delivery options has resulted in the development of green

innovations in last mile delivery, such as crowdsourcing,

genetic

algorithms,

drones,

and

other

autonomous

vehicles.

ii) Sales and profitability

The keyword sales is at the center of the word cloud

(Figure

2).

This

indicates

a

close

link

between

e-

commerce growth (i.e., sales) and green innovations in

the last mile delivery. Green innovations in last mile

delivery can enhance sales for e-commerce businesses

and

strengthen

competitive

advantage.

Grouping

keywords sales, perception, and optimisation in the same

colour (Figure 2), suggests a close connection between

the

keywords.

Thus,

optimising

last

mile

delivery

enhances

e-commerce

sales

by

improving

delivery

efficiency while shaping consumer perception of green

innovations. In addition, artificial intelligence-powered

route optimisation algorithms can be used to enhance last

mile delivery efficiency in the e-commerce industry.

Sensitivity

analysis

and

optimisation

research

have

helped

e-commerce

companies

understand

cost-

effectiveness, profitability, and delivery efficiency. This

strengthens

their

competitive

advantage

over

other

companies in last mile delivery. According to Figure 2,

the keyword sales appear next to consumption behavior,

implying a close connection between the two keywords.

This shows that consumer purchasing decisions directly

drive e-commerce sales, influencing demand for green

innovations in last mile delivery. The keyword sales is

also close to other keywords like pickups and drones

(Figure 2). This means green innovations in last mile

delivery have seen a rise in pickup models that reduce

emissions. The pickup models include drone-assisted

collection points in urban areas.

iii) Vehicle routing and optimisation

Grouping keywords vehicle routing, routing algorithms,

economics,

costs,

economic

and

social

effects,

and

freight transportation in the same colour (Figure 2),

suggests

a

strong

thematic

relationship

among

the

keywords. This means optimising vehicle routing and

routing algorithms in freight transportation reduces costs,

enhances economic and social effects, and improves

overall economics in last mile delivery. The keyword

vehicle routing is located close to urban transport, urban

area, fleet operations, and freight transportation (Figure

2). Thus, vehicle routing facilitates freight transportation

in last mile delivery. The keywords such as artificial

intelligence,

drones,

environmental

technology,

technological

development,

information

and

communication technology are positioned around the

keyword vehicle routing (Figure 2). As the last mile

delivery shifts towards cost-effective and sustainable

solutions,

e-commerce

businesses

must

prioritise

research and development on green innovations, such as

drones, and artificial intelligence. Artificial intelligence

can improve vehicle routing through predictive analytics,

dynamic scheduling, and real-time traffic optimisation.

Drones

can

improve

delivery

route

efficiency

by

enabling fast, low-emission deliveries in urban areas. The

keywords

sustainability,

environmental

technology,

economics, and social effects are located around the

keyword

vehicle

routing

problems

(Figure

2).

This

suggests a strong connection between green innovations,

cost-effectiveness,

and

social

impact

in

last

mile

delivery.

New

green

innovations,

such

as

electric

vehicles, can assist e-commerce businesses in reducing

carbon emissions. In addition, optimising delivery routes

can minimise fuel consumption, traffic congestion, and

operational costs. The close positioning of the keywords

vehicle routing problem and consumer behavior in the

word cloud (Figure 2) suggests a strong relationship

between last mile delivery and customer expectations.

This

may

include

customer

preferences

for

cost-

effective, efficient, and sustainable green innovations in

the last mile delivery. Thus, green innovations are used

to

optimise

last

mile

delivery,

reducing

costs

and

enhancing delivery efficiency.

iv) Sustainability and environmental impact

Journal of Innovations in Business and Industry, Vol. 04, No. 01 (2026) 29-40, doi: 10.61552/JIBI.2026.01.004

35

The keyword sustainability is located at the bottom of the

word

cloud

(Figure

2).

Grouping

keywords

sustainability, vehicles, and routing in the same colour

(Figure

2),

suggests

a

strong

thematic

relationship.

Optimising

vehicle

usage

and

routing

can

improve

sustainability in last mile delivery. This can help reduce

carbon emissions, costs, and negative effects on the

environment. The keyword sustainability is located close

to

the

keywords

urban

transportation

and

freight

transport (Figure 2). This highlights the relationship

between

green

innovations

and

last

mile

delivery.

Sustainability

relies

on

optimising

urban

transportation and freight transport to reduce emissions,

enhance efficiency, and support green innovations in the

last mile delivery. The keyword sustainability is also

located close to vehicle routing problems, economic, and

social effects (Figure 2). This highlights the challenge of

designing

efficient,

low-emission

last

mile

delivery

routes

while

balancing

with

delivery

cost.

Thus,

e-

commerce

businesses

should

invest

in

research

and

development on vehicle routing solutions to minimise

fuel

consumption

and

carbon

in

last

mile

delivery.

Sustainability

is

also

located

close

to

the

keyword

consumer behaviour (Figure 2). This demonstrates that

customer

preferences

influence

green

innovations

e-

commerce businesses use for last mile delivery. Online

customers increasingly prioritise carbon-free, energy-

efficient, and less-polluting last mile green innovations.

Adopting alternative fuels for last mile delivery vehicles

helps cut carbon emissions and supports the global shift

toward

cleaner

energy

systems.

The

keyword

sustainability

is

also

located

close

to

the

keyword

information and communication technology (Figure 2).

This highlights the role of digital innovations in enabling

green

last

mile

delivery

solutions.

Research

and

development

in

information

and

technology-driven

vehicle routing algorithms can help achieve sustainability

by minimising fuel consumption, carbon emissions, and

pollution.

Integrating

renewable

energy

technologies

with smart routing systems can create a more sustainable,

resilient, and adaptive last mile delivery. Thus, green

technologies

improve

sustainability

and

reduce

environmental impact in last mile delivery. However, it

was noted that the social aspect of sustainability is

underexplored in the topic.

v) Technological innovations in transportation

The keyword technology adoption at the top of the word

cloud with similar keywords like artificial intelligence,

algorithm, unmanned vehicle, routing algorithm, electric

vehicles,

autonomous

vehicles,

genetic

algorithms,

drones,

technology

development,

environmental

technology, information and communication technology

are located at the edges of the word cloud (Figure 2).

Terms at the edges often indicate emerging or niche areas

that are relevant but not yet dominant. Thus, green

technological

innovations

like

genetic

algorithms,

unmanned vehicles, and autonomous vehicles are still in

the experimental or early adoption phase in many last

mile

delivery

systems.

While

green

technological

innovations

are

crucial

for

last

mile

delivery,

their

widespread adoption is still evolving and depends on

overcoming cost, infrastructure, and market readiness

challenges.

The

keyword

genetic

algorithms

is

surrounded by keywords such as consumption behaviour,

vehicles, transportation system and autonomous vehicles

(Figure 2). This suggests that genetic algorithms are

being

applied to predict customer

demand, optimise

delivery

routes

based

on

consumer

preferences,

and

personalise last mile delivery options. In addition, these

algorithms help train AI models in autonomous route

planning,

obstacle

avoidance,

and

efficient

parcel

delivery

without

human

intervention.

Environmental

technology

is

surrounded

by

keywords

like

freight

transportation,

vehicle

routing,

and

technology

development

(Figure

2).

This

suggests

that

green

innovations in last mile delivery are closely linked to

operational aspects of last mile delivery.

Artificial intelligence is surrounded by keywords like

algorithm,

vehicle

routing

problems,

efficiency,

and

decision-making (Figure 2). This shows that artificial

intelligence enhances efficiency and decision-making

through

algorithms,

optimising

vehicle

routing

and

logistics solutions. The keyword unmanned vehicle is

surrounded by keywords like COVID-19, transportation

system, and economics (Figure 2). This suggests that the

COVID-19 pandemic accelerated interest in unmanned

last mile delivery innovations like autonomous drones,

robots, and self-driving vans. Electric vehicles are near

keywords

such

as

technology

adoption

and

environmental

impact

(Figure

2).

This

implies

that

technological

advancements

in

electric

vehicles

contribute to reducing adverse environmental effects in

last mile delivery. The focus is to reduce the adverse

environmental effects from last mile delivery through

cleaner

energy

sources,

fuel-efficient

vehicles,

and

sustainable delivery option. This includes integrating

renewable energy sources such as solar, wind, and hydro-

electric power to charge electric vehicles. The keyword

drones is surrounded by keywords like vehicle routing,

fleet

operations,

and

optimisation

(Figure

2).

This

implies

that

e-commerce

businesses

are

actively

exploring how to integrate drones into broader last mile

delivery networks for faster, more sustainable, and cost-

effective

deliveries.

Information

and

communication

technology is located next to keywords such as urban

transportation, economic and social effects (Figure 2).

Thus, technological advancements enable data-driven

sustainability in last mile delivery by optimising urban

transportation,

reducing

costs,

and

supporting

green

innovations.

However,

it

was

noted

that

intangible

technological innovations are underexplored in the topic.

4.2.3 Words’ frequency over time

Figure 3 depicts an increasing trend in the frequency of

keywords used in the study of green innovations in last

mile delivery. From 2000 to 2015, the frequency of

keywords remained relatively low. Sales and vehicles

were the most common keywords during this period

Green Innovations in Last Mile Delivery: A Research Agenda

36

(Figure 3). During this period, green innovations were in

their infancy, with limited integration into last mile

delivery.

Thus,

research

focused

on

expanding

e-

commerce using conventional vehicles rather than green

innovations in last mile delivery. There is a moderate

increase in the frequency of keywords from 2015 to 2019.

In addition to the keywords from the previous period,

optimisation, sustainable development, vehicle routing,

and

consumption

behaviour

became

more

common

(Figure 3). This period saw the integration of advanced

vehicle routing algorithms to optimise delivery routes to

reduce operational costs and the environmental impact of

last mile delivery. In addition, there was a focus on

understanding consumer preferences to tailor last mile

delivery services to green innovations. However, sales

was the most frequent keyword during this period (Figure

3). This is the same period when there was a rapid rise in

e-commerce, which significantly increased the volume of

goods ordered by customers.

Figure 3. Words’ frequency over time on green

innovations in LMD research (2000 – 2024)

A

significant

increase

in

the

frequency

of

all

the

keywords from the previous periods was reported from

2019

onwards.

During

this

period,

sustainable

development was the most frequent keyword from the

year 2020 (Figure 3). This highlights the e-commerce

industry’s

trend

to

incorporate

sustainable

green

innovations in last mile delivery.

4.2.4 Trend topics

Environmental sustainability has been well-established

and consistently studied since 2017 (Figure 4). The rapid

growth

in

online

shopping

significantly

increased

delivery volumes, leading to higher emissions and the

need

for

greener

delivery

innovations.

Sustainable

development, sales, and vehicle routing have experienced

the most significant research (larger bubbles) (Figure 4).

This highlights the need to balance e-commerce growth

(sales), last mile operational efficiency (vehicle routing),

and sustainability (sustainable development). Post-2020,

emerging

topics

include

carbon,

time

windows,

and

urban

logistics

(smaller

bubbles)

(Figure

4).

These

emerging topics highlight the e-commerce industry’s

push for decarbonisation, efficiency, and flexibility in

last mile delivery. This includes exploration of how

electric vehicles and renewable energy infrastructure,

such as solar or wind-powered EV charging stations, can

be integrated into last mile delivery. It was also noted that

research on the topic has moved from broad themes such

as sustainability to narrow themes like carbon reduction

and energy utilisation. This shift highlights the need for

cleaner energy sources to reduce carbon emissions in last

mile delivery.

Figure 4. Trend topics on green innovations in LMD

research (2000 – 2024)

5. DISCUSSION

Sustainability is the most dominant theme in existing

research on green innovations in last mile delivery.

Sustainability in last mile delivery covers three elements:

environmental, economic, and social aspects (Ha et al.,

2023). This is reflected in the use of keywords like

sustainable

development,

environmental

impact,

economic

and

social

effects

in

the

word

frequency

analysis. A word cloud displays a connection between

sustainability,

freight

transport,

and

urban

transportation. This illustrates how optimising delivery

routes and adopting electric vehicles can improve urban

mobility while cutting emissions. Existing studies have

identified

environmental

challenges,

including

high

carbon emissions, urban congestion, habitat loss, air, and

noise pollution in last mile delivery (World Economic

Forum, 2020; Mucowska, 2021; Mogire et al., 2022). The

increasing number of delivery vehicles expected to grow

by 36% until 2030 in the top 100 cities in the world

(World Economic Forum, 2020), further highlights the

need to optimise routing to mitigate urban congestion and

carbon emissions. This can be achieved by shifting from

fossil fuels to clean and renewable energy sources like

wind, solar, and hydro-electric sources to power electric

vehicles.

Words

frequency

over

time

shows

that

sustainability has gained importance, particularly after

2020. In agreement, Ha et al. (2023) observed a rapid

growth in recent years in the number of studies focused

on sustainability issues in the last mile delivery.

Optimisation

and

vehicle

routing

has

become

an

important research topic on green innovations in last mile

delivery. Route optimisation is the process of identifying

the most cost-efficient route (Sorooshian et al., 2022).

The word frequency analysis revealed keywords like

vehicle

routing,

genetic

algorithms, decision-making,

and fleet operations. Recent studies have indicated that

artificial intelligence can optimise delivery routes by

using real-time traffic and weather data, leading to last

Journal of Innovations in Business and Industry, Vol. 04, No. 01 (2026) 29-40, doi: 10.61552/JIBI.2026.01.004

37

mile delivery efficiency (Mogire et al., 2025). Keywords

like

optimisation

and

vehicle

routing

in

the

word

frequency over time show that since 2015, research has

increasingly focused on optimising last mile delivery. In

agreement, Ha et al. (2023) noted a growing interest in

optimisation in last

mile delivery, precisely routing,

transport planning, and innovative vehicles. The location

of these keywords around economic and social effects in

the

word

cloud

shows

the

importance

of

routing

optimisation in reducing operational costs and enhancing

delivery efficiency. Optimising delivery routes reduces

costs

and

supports

environmental

sustainability

(Sorooshian

et

al.,

2022),

emphasising

the

need

to

integrate AI-driven innovations in last mile delivery.

Over time, there has been a growing interest in AI-driven

routing solutions to enhance last mile delivery efficiency

and sustainability (Sorooshian et al., 2022; Mogire et al.,

2025). Such developments highlight the importance of

AI-driven innovations as integral for achieving more

efficient vehicle routing solutions in last mile delivery.

AI

routing

can

significantly

reduce

overall

energy

consumption

and

greenhouse

gas

emissions

when

combined

with

low-emission,

renewable

energy-

powered vehicles.

Green

innovations

in

last

mile

delivery

are

heavily

influenced by consumer behavior. The word cloud shows

consumption behavior as a prominent keyword. The

word

cloud

also

highlights

the

strong

relationship

between consumption behaviour, fleet operations, and

profitability, especially in countries like China. The link

between sales and perception suggests that optimising

last mile delivery can enhance e-commerce sales by

increasing

efficiency

and

customer

satisfaction.

For

instance,

China’s

success

in

e-commerce

can

be

attributed

to

a

developed

last

mile

delivery

system

(Hongfei,

2017;

Zandi,

Torabi,

Mohammad

&

Dan,

2021),

which

has

sustained

high

customer

demand.

Words’ frequency over time showed that prior studies

focused

on

consumer

behavior

and

sales

before

sustainability

became

a

priority.

Post-COVID-19

pandemic, most research focused on data-driven last mile

delivery systems. This emphasises the need to align last

mile delivery innovations with customer expectations. In

agreement, after the COVID-19 pandemic, there have

been changes in delivery processes and e-commerce

activities (Toraman, Bayirli, & Ramadani).

Technology innovations in transportation is one of the

topics

researched

on

green

innovations

in

last

mile

delivery.

The

word

frequency

analysis

revealed

keywords

like

artificial

intelligence,

autonomous

vehicles, drones, genetic algorithms, information and

communication technology appear frequently in existing

studies. Existing studies indicate that the role of artificial

intelligence, autonomous vehicles, electric vehicles, and

drones

in

last

mile

delivery

is

increasingly

gaining

attention

due

to

their

potential

to

address

urban

congestion and environmental challenges (Sorooshian et

al., 2022; Mogire et al., 2024b). In the word cloud, these

keywords

are

located

at

the

edges,

indicating

their

emerging role and interest among researchers on the

topic. Ha et al. (2023) assert that innovations like drones,

robots, and autonomous cars reduce labour costs and

enhance

last

mile

productivity.

Without

adopting

emerging technologies, an e-commerce business will fall

behind its competitors.

Urban mobility and freight transportation is a critical

topic on green innovations in last mile delivery. Existing

studies have pointed to the growing significance of urban

mobility as a factor in shaping future green innovations,

with

an

increasing

focus

on

integrating

urban

transportation

and

freight

delivery

systems

(World

Economic Forum, 2020; Mucowska, 2021). The word

frequency analysis identified keywords like urban area,

urban transportation, and freight transportation. The

word cloud displays urban transport near vehicle routing

and sustainability, emphasising their interrelated roles in

improving last mile delivery in urban areas. Existing

studies show that last mile innovations such as electric

vehicles and AI-driven routing solutions are essential for

achieving more sustainable urban transport systems (Ha

et

al.,

2023;

Mohammad

et

al.,

2023;

Dhanush

&

Nanjundeswarswamy, 2025). The increasing number of

delivery vehicles expected to grow by 36% until 2030 in

the top 100 cities in the world (World Economic Forum,

2020), further highlights the need to optimise routing to

mitigate

urban

congestion

and

carbon

emissions.

Integrating

emerging

technologies

(such

as

IoT

and

artificial

intelligence)

into

urban

mobility

systems

optimises delivery processes and reduces negative effects

on the environment (Sorooshian et al., 2022; Mogire et

al., 2025). Such developments highlight the importance

of AI-driven innovations as integral to achieving more

efficient

urban

mobility

solutions

in

the

last

mile

delivery. In addition, incorporating renewable energy

infrastructure, such as electric vehicle charging stations

powered by clean energy, can reinforce sustainability

efforts in last mile delivery.

6. CONCLUSION

Notably, existing research on green innovations in last

mile delivery is on the rise, signaling a promising future

for

e-commerce.

This

growth

is

attributed

to

technological

advancements,

regulatory

policies

and

compliance, consumer demand, and the United Nation

SDGs. This review identified key themes on existing

research: sustainability, optimisation and vehicle routing,

consumer behaviour, technological innovations, urban

mobility,

and

freight

transportation.

The

themes

collectively contribute to the competitive advantage of e-

commerce

businesses

by

enhancing

sales,

delivery

efficiency, and reduced emissions.



Despite considerable attention being given to

sustainability, current research has not fully

examined

the

social

aspect.

For

instance,

regulatory and policy frameworks are necessary

for promoting the widespread uptake of green

innovations

in

last

mile

delivery.

Future

research

should

investigate

regulatory

Green Innovations in Last Mile Delivery: A Research Agenda

38

interventions required to increase the uptake of

green

innovations,

such

as

autonomous

and

electric delivery vehicles. It was also noted that

renewable energy sources are underexplored in

current research. Future research can explore

regulatory interventions to enhance the adoption

of renewable energy to power autonomous and

electric vehicles in last mile delivery.



Current

research

has

focused

on

tangible

technologies such as electric vehicles, drones,

and unmanned vehicles. Intangible technologies

such

as

algorithmic

advancements

are

not

widely researched, e.g., addressing real-world

implementation

challenges,

such

as

infrastructure

limitations,

regulatory

barriers,

and

cost

feasibility.

Future

research

should

focus on the practical application of intangible

technologies such as AI-driven routing in real-

world logistics networks. Most studies focus on

technological

innovations

like

autonomous

vehicles and drones and their contribution to

environmental

effects.

These

studies

fail

to

address scalability, regulatory challenges, and

social acceptance. Future research should focus

on regulatory and legal challenges in different

regions and investigate cybersecurity threats in

AI-powered

last

mile

delivery.

In

addition,

future research can explore the role of AI in

optimising

energy

consumption

by

delivery

vehicles and reducing carbon emissions in last

mile delivery.



While existing research has examined consumer

preferences, there is a limited understanding of

how

behavioural

nudges

and

incentives

can

drive

consumer

acceptance

of

green

innovations. Future studies should investigate

consumer willingness to pay for sustainable

delivery and assess the impact of incentives and

regulations on green last mile delivery adoption.

In addition, future research should focus on

customer demand for emerging technologies

like unmanned and electric vehicles.



Most

studies

have

examined

freight

transportation in urban areas. There is limited

research

that

combines

urban

design,

transportation engineering, and environmental

science

to

develop

comprehensive

green

innovations

for

last

mile

delivery.

Future

research

should

focus

on

integrating

urban

freight

planning,

assessing

how

smart

city

technologies can improve last mile delivery, and

analysing the effects of regulations on their

efficiency.

This review provides a comprehensive framework for

analysing green innovations in last mile delivery by

identifying

five

key

themes:

consumer

behavior,

technological

innovations,

sustainability,

optimisation

and vehicle routing, and urban mobility. Unlike current

research that treats these elements separately, this review

provides an integrated perspective, showing how green

innovations

can

optimise

delivery

networks,

reduce

urban congestion, and support environmental goals. The

integrated framework helps e-commerce managers and

policymakers comprehensively clarify the meaning of

green innovations in last mile delivery. Dane et al. (2019)

highlight that the overlap between the four types of

innovation is clear, and the contribution of each concept

is

less

distinctive.

This

review

indicates

that

green

innovations

improve

delivery

efficiency,

reduce

emissions, and increase sales, thus contributing to the

competitive

advantage

of

e-commerce

businesses.

Sustainability is a dominant theme in existing research.

However, there is a theoretical gap in understanding how

regulatory and policy frameworks influence the adoption

of green innovations in last mile delivery. This study

emphasises

the

need

for

interdisciplinary

research

integrating policy into green innovations in last mile

delivery.

Logistics

firms

and

policymakers

should

collaborate to develop standardised policies and provide

incentives

for

adopting

green

innovations

and

legal

frameworks

that

facilitate

innovation

in

last

mile

delivery.

This

word

analysis

has

limitations.

First,

the

word

analysis was based on specific keywords outlined in

Section

3

(i.e.,

methodology).

Even

though

these

keywords are relevant, green innovation is a dynamic

topic. Future studies should incorporate emerging terms

to ensure a more comprehensive word analysis on the

topic. Secondly, this word analysis utilised publications

extracted from the Scopus database. Even though the

Scopus database is reputable, some niche studies might

have been missed. Future studies should consider other

databases like ScienceDirect and Web of Science to have

a more comprehensive word analysis on this topic.

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Baas, J., Schotten, M., Plume, A., Côté, G., & Karimi, R. (2020). Scopus as a curated, high-quality bibliometric data

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10.1162/qss_a_00019

Bonilla, M. A. M., Bouzon, M., & Peña-Montoya, C. C. (2024). Taxonomy of key practices for a sustainable last mile

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10.1016/j.clscn.2024.100149

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Eric Mogire

Department of Transport and

Supply Chain Management,

University of Johannesburg,

South Africa.

[email protected]

ORCID: 0000-0002-1477-2568