Background: The urban freight transportation (UFT) system is an essential facilitator for the smooth functioning of city logistics. It also contributes significantly to transportation-related issues, such as vehicular congestion, pollution, accidents, infrastructure damage and other related problems. Objectives: This study aimed to understand and compare the urban freight traffic characteristics and their impact in two cities: Gothenburg, Sweden and Delhi, India, having high socio-economic differences. The findings of this study will be helpful for practitioners and policymakers in the development and successful implementation of UFT management policies. Method: Using the cordon count (traffic data), retailers’ interviews (receivers’ data) and freight vehicle drivers’ interviews, UFT characteristics such as sector-specific contribution, trip characteristics, vehicular characteristics and negative impacts in terms of external cost to society are evaluated. This study also discusses the prediction of attracted trips in the study zone using freight trip attraction (models. Results: About 75% of the trips in Gothenburg and 92% of the trips in Delhi are made by light commercial and other small-sized vehicles. Gothenburg has formally organised sectors involved in freight vehicle movement; however, Delhi has informally organised sectors. Conclusion: The results revealed substantial differences in characteristics of freight trip operations in both the cities, compared with few similarities. Measures taken considering the specific local attributes of freight traffic and stakeholders’ requirement may lead to a sustainable transportation system in cities. © 2022. The Authors.