In recent years, the levels of e-commerce in the modern commercial environment have significantly increased, necessitating the adoption of measures and policies capable of complementing each other to achieve a sustainable urban freight transport system. Beyond traditional approaches, a new array of automation-based technologies has been developed offering dynamic, and reliable solutions. This research designs a next-generation multimodal last-mile delivery system of lunch boxes at the JRC campus, in Ispra, Italy, based on a service design approach that embraces three dimensions of engagement in participatory design for sustainable change; scoping, developing and scaling. Analytically, the “scoping” phase focuses on establishing and operating a living lab as a platform for co-design, fostering dialogue, shared understanding, and iterative learning among stakeholders. The “developing” phase involves mapping the service through user journeys and service blueprints while integrating digital practices. The “scaling” phase focuses on co-developing cooperative business models that generate value, manage resources effectively, and foster sustainable, community-driven networks. The pilot demonstrated significant operational improvements (droids navigated 77 % autonomously and sender waiting time averaged 5.17 % of the total journey), while 90 % of users rate the service as satisfactory or very satisfactory. However, the financial viability remains highly dependent on sponsorships and grants. © 2025 The Authors