The Network Effects of Truck Platooning

Due to the recent financial crisis, many trucking firms are struggling to run their business profitably. To overcome this problem, the firms could lower their operational costs by employing a recent invention called truck platooning. This technology allows trucks, being connected via advanced Wi-Fi connections and radar systems, to drive very closely behind each other, reducing the fuel consumption by up to 10%. If platooning systems of different truck manufacturers are compatible with each other, truck drivers could from platoons on-the-way, resulting in network effects that increase the benefits of truck platooning with the number of platooning trucks. How these network effects develop is investigated via a case study focussing on a supermarket, where the relative short distances between the distribution centre and the stores are considered an approximation for the spontaneous platooning of independent trucks. It is found that the relative reductions in fuel consumption increase with the number of platooning trucks, while up to 6,9% can be saved on fuel costs by the entire truck fleet. The length of the total routes that platooning trucks cover does not affect the relative fuel reduction, whereas the ratio between kilometres driven in a platoon and independently do determine how attractive platooning is. Potential users of truck platooning can be reluctant from employing the technology as it is uncertain whether the first users can save enough on fuel costs to justify the corresponding investment costs. This research shows that the supermarkets meet the characteristics that make truck platooning attractive and beneficial.