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How would bike registration plates and mandatory insurance impact the last mile?

UK Transport Secretary Grant Shapps recently floated the idea of mandatory registration plates and insurance for cyclists. Shapps appears to have rowed back on the idea since, and an imminent government reshuffle would likely put an end to the plan.

The idea spawned no shortage of debate in the UK media, but little centred on the impact the plan could have on the last mile. In the case of cargo bike deliveries or express food deliveries done via bike, who would likely bear the brunt of the added cost and paperwork?

How would such a move influence the operations of the food delivery companies that are already struggling in an ultra-competitive market?

Marek Różycki of Last Mile Experts provides his analysis.