A Revolutionary Delivery SystemFebruary 2, 2020
A British start-up called Magway has just raised over £1.2 million using Crowdcube which is a crowdfunding platform. The original target was to gather £750.000. The company has attracted over 1.700 investors, a majority of them was between 18 and 30 years old.
Magway, an e-commerce delivery system co-funded by the UK’s innovation agency, Innovate UK, aims to improve both air quality and congestion by creating an infrastructure for delivering goods. The company claims that they will be able to reduce operating costs and their system is also supposed to be much safer and fully independent of weather conditions as opposed to the traditional delivery solutions.
The start-up used Crowdcube to fund their project of an underground delivery system. The general idea is to build a network of pipelines and use them to deliver parcels between distribution and consolidation centres.
The goal of this whole undertaking is to minimize air pollution as much as possible. It is a serious problem in most developed countries and it is, in part, caused by vehicles that are burning fossil fuels. Nowadays, almost all businesses leave a carbon footprint. Especially the e-commerce players who are mainly focused on the speed and efficiency, not on their impact on the environment.
Magway decided that they want to go for a magnetic linear synchronous motor technology, creating an open-source hyperloop system that will contribute to reducing CO2 emissions.
Magway predicts that they would be able to accommodate all of the online grocery deliveries in the United Kingdom and possibly 90% of online general merchandise purchases from companies such as Amazon.
Anna Daroy, a managing director in Magway, stated that their solution could help reduce the CO2 emissions in the UK by 6 million tons per annum by 2050. This is equivalent to a third of the delivery vehicle emissions in the entire country.
It seems as right now is the best time to introduce this innovative solution as the World Economic Forum, in their recent report, found that urban last-mile delivery emissions are going to increase by more than 30% by 2030 in the top 100 cities globally (by population).
“Once installed, Magway will significantly reduce the operational costs of transportation and deliveries by more than 70% with minimal ongoing costs for decades to come.” Said co-founder and commercial director of Magway, Phill Davies.
To build their initial commercial pilots, the company would need between £3 million and £10 million. The numbers are dependent on the complexity and the length of the system. It would be a network of short, dedicated routes that would deliver goods from consolidation centres to airport terminals.
After that, Magway wants to create a wider network of pipelines that could go on for hundreds of kilometres. Ideally, the construction could begin in 2023. The estimated cost of an 850-kilometre network of pipes in London is between £5 billion and £7 billion and completing this project could take even up to 25 years.
What is interesting is that not only UK citizens were interested in donating to this project. And even more surprisingly, most of the investors were under 30 which proves that the younger generations are now more environmentally aware than the previous ones.