Urbanisation is a global trend that is rapidly accelerating, with over half of the world’s population now living in urban areas. SHQUARED contributes to more sustainable urban development by maximising the use of existing infrastructure and reducing the need for new buildings or parking structures. That´s why we invested in SHQARED!
According to the United Nations, the world’s urban population is expected to reach 68% by 2050, up from 55% in 2018. This rapid growth of urban populations has led to increasing demand for space, resulting in a shortage of land for residential, commercial, and industrial activities. In the context of urban logistics, space is a critical resource that is often limited and expensive.
Micro hubs are a potential solution to this issue, providing smaller and more strategically located logistics facilities that can reduce the need for larger distribution centres and improve last-mile delivery efficiency. And SHQAURED is the answer!
How does SHQUARED contribute to solve this issue?
Finding suitable micro hubs in urban areas can be challenging, especially for small businesses. This is where SHQUARED’s space-sharing platform comes in, providing a practical and sustainable solution to the urban space shortage. The platform enables space owners to rent out and share their under-utilised spaces, such as warehouses, garages, or parking lots as micro hubs for urban logistics companies.
By sharing spaces, urban logistics companies can reduce their carbon footprint and contribute to a more sustainable urban logistics ecosystem. This is of the utmost importance considering that a report by the International Transport Forum showed that micro hubs can reduce delivery distances by up to 40%, resulting in lower delivery costs and reduced congestion and emissions.
Another point to consider is that, according to a study by McKinsey & Company, logistics and distribution centres occupy approximately 12% of urban land while generating up to 30% of total urban traffic. Furthermore, the same study found that logistics and delivery costs account for up to 30% of the final price of goods and services in urban areas. And Shquared also plays a role in it, as it is currently working on a project together with the City of Munich to develop an online B2B Market Place for City Logistics Spaces tailored to the needs of the city. In the next months, the team plans to fully roll out their solution in Germany and subsequently in other European cities.
Working on this important topic with the city of Munich and with the great support of EIT Urban Mobility allows us to use our space sharing expertise and platform infrastructure to solve an urgent infrastructural problem in Munich and other urban areas. After adjusting our platform and processes to logistic-related requirements, we are eager to offer this solution to other cities in Germany and Europe.
Christian Kink, Co-Founder and CTO at SHQUARED
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This article is part of Why we invested? series presenting EIT Urban Mobility equity portfolio.