The urban freight sector provides an essential service by delivering goods that are required by shops, companies, and households at a specific place and time. However, the growth of e-commerce and the dawn of on-demand logistics (hereinafter ODL) have raised citizens’ expectations of logistics systems, further stressing them and thereby increasing their operational and environmental costs. To the authors’ best knowledge, there are no extensive literature reviews specifically on the topic of ODL and on suggestions for policy prioritisation for tackling its effects. This paper aims at addressing this issue by providing an extensive literature review of ODL and its enablers. This research, after a thorough explanation of the ODL rationale, its trends, and its effects, analyses possible solutions to its inefficiencies, focusing on enablers and barriers. Furthermore, it illustrates and clarifies the role of external factors in influencing ODL. Finally, it proposes a systematic evaluation approach by identifying knowledge gaps and consequently defining the subsequent actions needed, broken down by the individual influencing components, rendering these solutions compatible with the status quo
and effective for solving the highlighted issues.
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