Locating in informally-developed spaces: Disentangling the spatial preferences of e-commerce logistics microhubs

Abstract

The growing demand for first- and last-mile delivery services, driven by the boom in online retailing, makes it crucial to establish a network of microhubs with relatively high density. This need prompts an investigation into how parcel delivery companies (PDCs) balance the goals of increasing microhub density while minimizing facility costs in the deployment process. Although several studies have examined the spatial distribution of microhub locations, few have fully explored the heterogeneity of urban spaces, including formally- and informally-developed spaces, and how these influence microhub placement across different PDC types. Focusing on Shenzhen, this study uses near analysis and identifies the spatial types where microhubs are located across different parcel delivery company (PDC) types. Furthermore, a discrete choice analysis is performed to explore the factors that influence location selection. The results indicate that informally-developed spaces, characterized by low rental prices and loose administrative regulation, are preferred by most types of PDCs. However, the degree of preference for informally-developed spaces varies across different PDC types. Such preference is primarily driven by affordability in terms of rental costs and proximity to customers. Variations in these factors across PDC types, each with different historical contexts, result in distinct patterns of microhub location distribution. These findings provide insights that can inform policy and urban planning strategies regarding the management and development of informally-developed spaces.