The continuous increase in urban deliveries and the ongoing urbanization of large cities require the development of efficient and sustainable transportation solutions. This study investigates the impact of modular vehicle concepts and the consolidation of different demand types in the route planning on the efficiency of the urban freight and passenger transportation system. Modularity is achieved by connecting multiple vehicles together to form a platoon. The consolidation of different demand types is realized by simultaneously consider passenger and freight demand in the optimization algorithm. The considered vehicles are specific for each demand type by can be connected freely, hence it is possible to transport different demand types in the same platoon. The cost terms in the problem formulation are comprised of travel time costs, travel distance costs, fleet size costs, and cost considering unserved requests. The modular vehicle operations are modeled in a novel pickup and delivery problem which is solved using CPLEX and Adaptive Large Neighborhood Search. In an extensive scenario study and case study in Stockholm, the potentials of the new modular vehicle type are explored for different spatial and temporal demand distributions. A parameter study on vehicle capacity, vehicle range and cost saving assumptions is performed to study their influence on the efficiency. The experiments carried out indicate a general cost savings of 48% due to modularity and an additional 9% due to consolidation. The reduction mainly stems from reduced operating costs and reduced trip duration, while the same number of requests can be served in all cases. Empty vehicle kilometers are reduced by more than 60% by consolidation and modularity. The proposed model and optimization framework can be used by companies and policy makers to identify required fleet sizes, optimal vehicle routes and cost savings.