Last Mile Commercial Package Delivery as a Revenue Generation Tool for Rural Public Transportation Systems in Wyoming

University Montana State University
Principal Investigators Karalyn Clouser
Jaydeep Chaudhari
PI Contact Information Western Transportation Institute
Montana State University
PO Box 174250, Bozeman, MT 59717
• (406),
Funding Source(s) (Amounts provided by each agency or organization) Small Urban and Rural Livability Center – $73,142.67
Wyoming Department of Transportation – $36,571.33
Total Project Cost $109,714
Agency ID or Contract Number RS10216
End Date  November 30, 2017
Brief Description of Research Project The “last mile” has emerged as the most important segment in supply chain management of package deliveries. It is a daunting task to achieve for manufacturers (sellers) at local, regional, state, national, and global levels. Many e-commerce giants are creating their own delivery service in order to reduce shipping costs and improve shipping services to customers. It is likely that Amazon and other delivery companies may turn to the urban and rural transit industry to partner in last mile package delivery. Given the growth in the delivery market, it appears to be the right time to investigate how rural transit may have a role in the last mile package delivery system.

The goal of this project is to assess the feasibility of last mile package delivery as a revenue generation tool for rural public transportation systems in Wyoming. In an effort to assess the feasibility, the research team conducted an in-depth literature review and surveyed local Wyoming businesses, state department of transportation officials, and transit managers. The survey results, literature review, and demand and potential revenue suggest that the transit agencies have the capacity to add a package delivery service Looking at the number of households in Wyoming, the researchers estimate that on average, each county could see $215,373 in potential revenue from package delivery via public transportation systems. The following are specific recommendations that, if implemented, would help to initiate package deliveries in rural areas:
1) Build a relationship with riders, businesses, and stakeholders;
2) Access potential markets;
3) Develop a level of package delivery services;
4) Develop integration of passenger and package delivery services;
5) Collaborate with Intercity Bus Services and other package delivery companies; and
6) Begin building a package delivery infrastructure.
A strong and continuing support of WYDOT to transit services to add last mile package delivery will benefit transit agencies, their parent organizations, local communities, businesses, organizations, and e-commerce and shipping industries.

Implementation of Research Outcomes (or why not implemented) The information contained in the report is being reviewed by the Wyoming Department of Transportation and transit systems for potential implementation.
Impacts/Benefits of Implementation (actual, not anticipated)  As noted above, the information in the report is being reviewed. As of January 2018, no implementation has yet occurred.
Web Links  FinalReport-Last Mile-Revenue Generation