The New York City Department of Transportation is touting the success of a microhub delivery pilot program, which officials said replaced more than 3,000 truck trips with alternative delivery methods in the first year.

“The data is clear: microhubs are reducing the number of trucks trips on our road, and creating the opportunity for smaller, safer delivery options that are better sized for our dense city,” said NYC DOT Commissioner Mike Flynn.

Congestion and delays cost the city an estimated $20 billion annually in lost productivity and increased maintenance.

The pilot provides dedicated space for truck operators to transfer deliveries to smaller, alternative modes of transportation for the last leg of delivery, including e-cargo bikes, handcarts, and smaller electric vans.

Launched in April 2025 with three on-street locations in Manhattan’s Upper West Side, the pilot assigns a single microhub to each delivery partner. The microhubs recently expanded to the Upper East Side and Financial District, and the city is seeking new partners for the next phase of the pilot.

Through the pilot, about 860 packages are delivered daily by handcart rather than truck. This replaces about 1.5 miles of truck vehicle miles traveled each day. Another 110 packages were delivered daily via cargo bike, helping to replace around 3 miles of truck-miles traveled.

Zach Miller, vice president of government affairs at the Trucking Association of New York, said the group backs the program. 

“We’ve supported microhub distribution for years because it offers strong operational alignment for certain segments of last-mile freight and the small businesses that provide these delivery services,” Miller said. “We’re pleased to see NYC DOT continue expanding microhubs as part of a broader, holistic freight strategy that includes Blue Highways, off-hour deliveries, package lockers, and a modernized truck route network. Together, these initiatives can help reduce vehicle miles traveled, improve efficiency, support local businesses, and keep goods moving reliably throughout New York City.”

The off-hour deliveries incentive program encourages goods delivery during the off-peak hours of 7 p.m. and 6 a.m. Businesses can receive monetary reimbursements for switching to off-peak deliveries.