City logistics promotes a general view of the transport and logistics happenings within a city,rnconsidering the adverse (e.g., congestion and pollution) as well as the positive (e.g., economic,rnmobility, safety) impacts on the city’s population. The main purpose of the research was to assessrnAddis Ababa city logistic challenges, how the challenges affect it and its perspectives. The studyrnutilized mainly quantitative data analysis techniques. The research design employed in this studyrnwas descriptive, which is a theory-based strategy method which is created by gathering, analyzing,rnand presenting collected data. The analyses carried out depending on each specific objective.rnHence, the statistical tool frequency distribution and mean was employed to see the responserndistributions on the 5-point Likert items. The populations of the study were 3,384,754 residents ofrnAddis Ababa city (CSA, 2007) and 235 employees and based on a random number of table andrnCochran’s sample size formula (1977), the sample size was 385 and 125 respectively. Therefore,rnthe total sample size was 510. Mean was used as a measure of central tendency. Furthermore, therndata were encoded, processed and analyzed using SPSS.V23. The findings of the study revealedrnthat emissions and pollution produced from vehicles coupled with congestion and poor road safetyrnwere perceived to be major challenges. These problems pose a threat to the economic, social,rnenvironmental and safety of the city.rnKeywords: