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BOGBI – cargo bikes for green logistics

In close cooperation between Norwegian and Colombian competence in technology, design, and industrial production, IDN and its partners aim to develop a local business concept for the use of bicycles in green urban transport solutions worldwide, all integrated with a vocational training component. This will be done by Bogbi and major en Bici (MEB) as experts on bicycle logistics and production of urban cargo bikes and IDN as a Norwegian expert on business development and upscaling with social impact. The long-term aim is to create a business model that enables partners in other developing countries to produce cargo bikes and create a local urban logistics services.

In collaboration with the Refugee Council, Bogbi and MEB offers vocational training for intermarried refugees and demobilized guerrilla members as a component of a major reintegration program. Young people are trained to become highly qualified bicycle mechanics and bicycle contractors in a strongly expanding market in Bogota and Colombia. Vocational training is conducted in cooperation with the state agency for vocational training SENA. Improving this vocational training will be one of the most important components in the main project.

Cities represent 80 percent of the world’s CO2 emissions and in 2016 more than 5.5 million people died of air pollution. Colombia has initiated a peace process after 56 years of civil war, where large groups of young people immediately need education and work experience in order to be integrated into working life.

Developing green mobility products with integrated technology to promote environmentally friendly and efficient transport solutions, as well as offering vocational training will contribute to sustainable development in Colombia and globally, as well as the development of innovative products for smart cities with Norwegian expertise and design. We will include one test pilot with the largest Supermarket chain Exito – group in Bogota. This requires small investment for personnel to conduct the study and some physical investments in software and physical infrastructure. We will also explore how the products and experience can be amplified to other countries in the region and other countries in longs term basis.

Last mile delivery is defined as the movement of goods from a transportation hub to the final delivery destination. The final delivery destination is typically a personal residence. The focus of last mile logistics is to deliver items to the end user as fast as possible. Last mile logistics has become a popular area of interest for retailers due to the growing demand for fully integrated omnichannel retailing.

Bogota is a perfect testing ground for the development of last mile services with the development of both technology and physical bikes. With a large population and already a mature market for home delivery, the market is mature to receive new services and provide valuable feedback for a feasibility study. By developing the product and services on the ground in Bogota, we will be able to adjust the products rapidly, and at the same time provide important vocational training- that also will provide us with important feedback.

With the rise of e-commerce, consumer preferences have grown increasingly important in the formerly business-oriented parcel-delivery market. Large e-commerce players, as well as various start-ups, have identified last-mile services as a key differentiator. In fact, the variety of delivery options and the perceived quality of the delivery service are major decision-making criteria for online customers and hence directly affect e-commerce players’ success in the marketplace. With this in mind, vendors are working hard to offer the best customer experience possible, especially by improving delivery times. A survey of more than 4,700 respondents in China, Germany, and the United States. Using a conjoint analysis to better understand consumers’ relative preferences for different delivery options, including their willingness to pay (Exhibit 1). Nearly 25 percent of consumers are willing to pay significant premiums for the privilege of same-day or instant delivery. This share is likely to increase, given that younger consumers are more inclined (just over 30 percent) to choose same-day and instant delivery over regular delivery.

By combining physical bike production and vocational training we believe the two components will mutually strengthen each other in a raising marked for both smart logistics solution and bike production. We would like to use the development of technology to strengthen the market position of the other products, as well as developing a service that easily can be adapted globally.

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