This paper is a reflection on the dynamics of the fast moving cycle logistics sector and the horizontal collaboration potential between cycle logistics companies (local to European wise) to contribute to the sustainable development of urban logistics. Stakeholders willing to manage part of the transition of the urban freight transportation or to support the scaling up of local cycle logistics carriers while getting rid of the competition paradigm would find important insights to do so. The results, using a multi-paradigm approach, are showing a comprehensive proposition of the opportunities and challenges that collaborative innovations represent. Among other, the possibility to set collective inter-city offer, to answer larger tenders, to gain visibility, credibility and support from various stakeholders and to achieve economies of scales through numerous mechanisms are discussed taking a supply side perspective. However, collaborative achievements remain difficult and its ambitions and configurations are function of the partners commitment, eventual public support or the involvement of an external coordinating party.