Volkswagen and D-Wave Partner to Pilot Quantum Optimization for Urban Freight Logistics in Beijing
May 22, 2018
A Major Leap Toward Real-World Quantum Applications
In a groundbreaking development that blended real-world logistics challenges with next-generation computing, Volkswagen Group and Canadian quantum computing company D-Wave Systems announced on May 22, 2018, the launch of a pilot program focused on optimizing urban logistics through quantum computing.
The program, conducted in Beijing, utilized D-Wave’s 2000Q quantum annealer to tackle one of the most critical aspects of smart city logistics: dynamic route optimization for commercial vehicles under congested, real-time conditions.
Volkswagen’s data science team, led by Dr. Martin Hofmann, the company’s Chief Information Officer at the time, had already been working with D-Wave for nearly a year. But this pilot marked a significant evolution—from proof-of-concept traffic prediction models to live simulations focused on commercial freight delivery in megacities.
Quantum Annealing Meets Traffic-Driven Logistics
Quantum annealing, unlike universal quantum computing, is particularly suited for solving combinatorial optimization problems—a staple challenge in logistics. Urban freight distribution, especially in cities like Beijing, presents these challenges at scale due to:
Constantly shifting congestion patterns
Limited delivery windows
Regulatory time slots for commercial vehicle access
High-density stop locations with variable loads
Volkswagen input real-time and historical traffic data from Beijing into D-Wave’s system, which then used quantum annealing to generate optimal routes for delivery fleets based on multiple objectives, including time, energy use, and distance.
According to Hofmann, the quantum approach “generated results within seconds that, on classical hardware, might require exponential increases in processing time as the problem scales.”
Implications for Last-Mile Delivery and Fleet Dispatch
While the initial focus was on urban traffic flows, the partnership aimed to eventually integrate the system into Volkswagen Commercial Vehicles’ dispatch models, with a particular emphasis on:
Dynamic rerouting of delivery vans in real time
Optimizing parcel consolidation based on location and timing
Predictive fleet distribution staging before congestion peaks
These capabilities are central to solving the global “last-mile problem,” which accounts for up to 53% of total logistics costs in dense urban centers.
At the 2018 Smart Cities Conference in Beijing, Volkswagen and D-Wave revealed simulations showing up to 25% improvement in delivery efficiency and 15% reduction in fuel consumption when quantum-optimized routes were used versus baseline classical models.
Expanding Quantum Use Beyond Passenger Vehicles
Volkswagen’s previous experiments with D-Wave centered on predicting taxi demand and traffic flow for passenger vehicles in Barcelona and Lisbon. But with the May 2018 announcement, the company expanded its quantum ambitions into the more complex and commercially lucrative field of urban freight logistics.
Dr. Florian Neukart, a lead scientist at Volkswagen’s Data:Lab in Munich, emphasized the broader vision:
“The applications for freight logistics are immense. From reducing delivery delays to minimizing carbon emissions, quantum computing offers a powerful new toolset. Our work in Beijing represents a critical proof point.”
Competitive Reactions in the Global Auto and Logistics Sectors
The Volkswagen-D-Wave announcement in May 2018 stirred interest from other automakers and logistics giants. Notably:
Daimler AG expressed its intent to explore quantum-enabled logistics optimization in its Mercedes-Benz Van division.
UPS Advanced Technology Group released a white paper shortly after the pilot was announced, exploring hybrid quantum-classical route planning for last-mile logistics.
Toyota Research Institute mentioned quantum logistics modeling as a long-term goal in its AI roadmap presented at the 2018 IEEE Intelligent Transportation Systems Conference.
Even retail logistics companies like JD.com and Cainiao (Alibaba Group) quietly reached out to D-Wave following the pilot’s reveal, according to a source cited in the South China Morning Post.
Beijing as the Ideal Quantum Pilot Lab
Beijing was chosen not only for its traffic complexity but also for its strategic fit with smart city and AI initiatives already underway in China. The city:
Hosts one of the world’s largest and most monitored urban traffic systems
Has government interest in AI-enabled freight automation
Is central to China's Belt and Road Initiative, which aims to digitize trade and transport corridors
The city’s cooperation with Volkswagen and access to traffic sensor data made it an ideal sandbox for quantum logistics modeling.
In fact, China’s National Development and Reform Commission (NDRC) had already earmarked quantum computing and AI for logistics as priority sectors under its 13th Five-Year Plan, further boosting Volkswagen’s access and support.
D-Wave’s Strategic Entry into Asia’s Logistics Sector
For D-Wave, this partnership marked a strategic beachhead into the Asian logistics market. While the company had previously worked with Lockheed Martin and NASA for aerospace simulations, entering a high-growth, high-density logistics environment like Beijing allowed the company to prove:
Scalability of quantum annealing solutions
Viability of real-time logistics modeling
Integration pathways with commercial dispatch systems
Alan Baratz, then Chief Product Officer at D-Wave, stated in a May 22 press briefing:
“Our collaboration with Volkswagen is about moving beyond theory. We’re solving real-world problems that impact commerce, sustainability, and urban life.”
What Comes Next: Toward Real-Time Integration
Although in 2018 D-Wave’s systems were not yet deployed in Volkswagen’s actual vehicle systems, the project was a critical stepping stone. Both companies revealed plans to:
Begin integrating quantum models into simulated fleet management environments
Develop APIs that could bridge D-Wave’s quantum solutions with classical logistics platforms
Explore partnerships with smart infrastructure providers to co-develop quantum-aware traffic systems
By 2019, Volkswagen planned to scale tests to other cities, potentially including Shanghai, São Paulo, and Los Angeles, depending on progress and city data availability.
Conclusion: A Practical Quantum Milestone in Urban Logistics
The May 2018 partnership between Volkswagen and D-Wave marked one of the first verifiable uses of quantum computing for real-world logistics planning. In choosing one of the most complex urban environments and applying quantum optimization directly to the heart of last-mile freight problems, both companies signaled that quantum logistics is no longer just theoretical.
While full deployment remained in the future, this project laid the groundwork for a future in which route optimization, energy savings, and urban freight efficiency are not just enhanced by quantum systems—they may one day depend on them.