Our People Take a look into our corporate culture and view our open roles. Contact Us Speak to a member of our team to learn more about Insider Intelligence. Newsroom See our latest press releases, news articles or download our press kit.

Events Browse our upcoming and past events, recent podcasts, and other featured resources. Podcasts Tune in to eMarketer's daily, weekly, and monthly podcasts. Open Menu Menu. Our Story Methodology Our People Contact Us Newsroom. User Log in Envelope Newsletter sign-up Phone Become a Client.

Close Menu Close. Alexandra Samet October 12, Powerful data and analysis on nearly every digital topic Become a Client. Want more research? What is last-mile delivery? Benefits of effective last-mile delivery strategy Faster delivery and increased convenience delights consumers: Last-mile delivery offers consumers the ability to get their purchases quicker and enjoy the convenience of having their packages brought directly to their door, rather than having to travel to a store or designated pickup point to retrieve their items.

Increase sales and revenues: Companies with quick and dependable delivery services are more likely to acquire and retain clients, which boost revenues. If last-mile delivery allows businesses to provide delivery services to remote and rural areas, their sales and revenues may rise as a result of greater access to new clients.

Increase efficiency: Last-mile deliveries can help businesses streamline their operations by reducing the time and resources required for delivery. By leveraging automation and digital technologies, retailers can eliminate manual labor and administrative tasks, resulting in more efficient and cost-effective delivery operations.

Want to learn more about same-day delivery and other retail trends? Sign up for the Retail Daily newsletter. Retailers Major retailers have invested significantly in their own end-to-end delivery infrastructure to offer faster delivery speeds.

Delivery intermediaries Delivery intermediaries have joined forces with retailers to offer same-day delivery services. Quick commerce Quick commerce startups focus on ultrafast deliveries, usually catering to consumers who need a smaller assortment of goods in a matter of minutes.

What retail, logistics, post, and parcel companies need to know about the future of last-mile delivery What is the last-mile problem? What are the costs of last-mile delivery? How does crowdsourcing solve the last-mile problem? Want more marketing insights?

Sign up for eMarketer Daily, our free newsletter. Sign Up. Newsletter Chart. By selecting the right vehicle, businesses can optimize their last mile delivery operations and achieve their goals. Choosing the right last mile delivery vehicle is a critical decision that can impact the efficiency and success of your delivery operations.

Here are some key considerations to keep in mind when selecting a vehicle:. Payload Capacity: The payload capacity of the vehicle refers to the maximum weight it can carry. Overloading a vehicle can lead to safety issues, increased fuel consumption, and potential damage to the goods being transported.

Range and Battery Life: For electric vehicles, range and battery life are crucial factors to consider. The range refers to the distance the vehicle can travel on a single charge, while battery life indicates how long the battery can last before needing to be recharged.

Size and Maneuverability: The size and maneuverability of the vehicle should be compatible with the areas where you operate.

If you deliver in urban areas with narrow streets and limited parking spaces, a smaller and more agile vehicle may be more suitable. On the other hand, if you cover larger distances or transport bulky goods, a larger vehicle with more storage capacity may be necessary.

Maintenance and Repair: Consider the availability of maintenance and repair services for the chosen vehicle. Regular maintenance and prompt repairs are essential to keep your delivery operations running smoothly and minimize downtime.

Cost: Last but not least, consider the cost of the vehicle, both upfront and ongoing. Evaluate the total cost of ownership, including purchase or lease price, fuel or electricity costs, insurance, maintenance, and potential resale value.

By carefully considering these factors, businesses can choose a last mile delivery vehicle that aligns with their specific needs and goals. Remember, the right vehicle can make a significant difference in the efficiency, cost-effectiveness, and customer satisfaction of your delivery operations.

When it comes to last mile delivery, cost optimization is a top priority for businesses. The choice of the right vehicle can have a significant impact on the overall cost of delivery operations. Vans: Vans are a popular choice for last mile delivery due to their versatility and storage capacity.

However, they can be expensive to purchase or lease, especially if you opt for larger or specialized models. Additionally, vans require regular fueling or charging, which adds to the ongoing operational costs. Bicycles: Bicycles offer a cost-effective solution for last mile delivery, especially in urban areas.

They have low upfront costs and require minimal maintenance compared to motor vehicles. The main cost associated with bicycles is the labor involved in pedaling or maintaining an electric-assist system.

However, this can be offset by the lower fuel or electricity costs and the potential for faster delivery times in congested areas. Electric Vehicles: Electric vehicles EVs can be more expensive upfront compared to traditional gasoline or diesel-powered vehicles.

However, they offer long-term cost savings in terms of fuel or electricity costs, as well as reduced maintenance requirements. Depending on the availability of government incentives or tax credits, the cost of EVs can be further reduced.

Over time, the cost of EVs is expected to decrease as the technology becomes more widespread. Motorcycles and Scooters: Motorcycles and scooters are generally more affordable than vans or electric vehicles.

They have lower upfront costs, require less fuel compared to larger vehicles, and are easier to maintain. Drones: While drones offer the potential for faster and more efficient last mile delivery, they can be expensive to implement.

The cost of drones themselves can vary depending on the size, range, and payload capacity. Additionally, there are costs associated with training pilots, obtaining necessary licenses and permits, and ensuring compliance with aviation regulations.

Additionally, factors such as fuel efficiency, maintenance requirements, labor costs, and potential government incentives should be taken into account. By comparing the total cost of ownership for different vehicles, businesses can make an informed decision that aligns with their budget and operational needs.

As businesses strive to become more sustainable and reduce their carbon footprints, the environmental impact of last mile delivery vehicles has become a key concern. Gasoline and Diesel Vehicles: Traditional gasoline and diesel-powered vehicles are the most commonly used for last mile delivery.

However, they contribute to air pollution and greenhouse gas emissions, which have a negative impact on the environment and public health. These vehicles emit carbon dioxide CO2 , nitrogen oxides NOx , and particulate matter PM , which contribute to climate change and air quality issues.

Additionally, the extraction, refining, and transportation of fossil fuels further add to their environmental impact. Electric Vehicles: Electric vehicles EVs offer a more environmentally friendly alternative to gasoline and diesel vehicles. They produce zero tailpipe emissions, meaning they do not emit any harmful pollutants or greenhouse gases during operation.

However, the environmental impact of EVs depends on the source of electricity used for charging. If the electricity comes from renewable sources such as solar or wind, the overall environmental impact is significantly reduced.

Charging infrastructure and battery disposal or recycling are other important factors to consider when assessing the environmental impact of EVs. Bicycles: Bicycles are the most sustainable option for last mile delivery.

They produce zero emissions and have a minimal environmental impact compared to motor vehicles. By using bicycles for delivery, businesses can reduce their carbon footprint, improve air quality, and promote a healthier and more active lifestyle.

Additionally, bicycles do not contribute to noise pollution, making them ideal for deliveries in residential areas or during quiet hours. Drones: Drones are still in the early stages of development and implementation for last mile delivery.

While they offer the potential for faster and more efficient deliveries, their environmental impact is not yet fully understood.

Drones powered by electricity have the advantage of zero emissions during operation. However, the manufacturing and disposal of drone components, as well as the potential for noise pollution, need to be considered when assessing their environmental impact.

To minimize the environmental impact of last mile delivery, businesses can adopt several strategies. These include transitioning to electric vehicles, promoting the use of bicycles or other non-motorized vehicles for short-distance deliveries, optimizing delivery routes to reduce mileage and fuel consumption, and exploring alternative energy sources such as solar or hydrogen for charging or powering vehicles.

Efficient management of last mile delivery vehicles is crucial for optimizing operations and meeting customer expectations. Amazon Hub is another way that Amazon expands its delivery network, but in a way that mutually benefits businesses.

Companies partnering with Amazon Hub offer spots for Amazon package pickups and returns, allowing Amazon customers convenient access to their packages. Amazon is known for its quick delivery, typically getting Prime-eligible orders to shoppers in just two days.

To speed its processes further, Amazon recently announced the restructuring of its warehousing and delivery model by creating eight regions designed to work within smaller geographical areas to improve delivery times. As a result, more customers may experience same-day and next-day shipping.

Image: Amazon Prime Delivery Trucks by Todd Van Hoosear licensed under CC BY-SA 2. In addition to its main warehouses, Amazon has created a network of 46 mini fulfillment centers dubbed sub-same-day delivery facilities.

This network helps Amazon utilize Amazon Flex drivers to deliver thousands of its most popular products to customers within a minute drive from its sub-same-day facilities. Screenshot via The App Store. Darkstore is a tech-based fulfillment company with fulfillment centers in hundreds of U.

The company partners with brands that store their products in Darkstores for customers to buy and get delivered quickly. Darkstore recently launched an app available in Los Angeles known as FastAF , allowing app shoppers to buy products stored within those Darkstores for same-day delivery.

Flexport recently acquired Shopify Logistics, including Deliverr , which offers a full-service solution for e-commerce businesses to improve their last-mile delivery strategies.

With Deliverr by Flexport, businesses can take advantage of discounted shipping labels, storage solutions, wholesale fulfillment, freight deliveries, and more, all with one platform.

Available in Germany, DHL Packstation has more than 11, locations. These delivery lockers allow people to send and receive packages without worrying about being home to get deliveries or dealing with the opening times of brick-and-mortar locations.

DoorDash began as a delivery service for food items but has since expanded to include deliveries from convenience stores, grocery stores, flower shops, pet stores, and more. It also offers shipping from restaurants and stores across the country.

Additionally, businesses can reduce their delivery costs by partnering with DoorDash and letting DoorDash handle the delivery portion of customer service. FedEx specializes in residential and commercial shipping across the globe.

The company offers multiple modes of shipping, including freight, international shipping, heavy-duty shipping, and express shipping, helping people and businesses get packages to their final destinations reliably and quickly. GoShare gets packages from businesses and into the hands of customers the same day as a contracted delivery service.

With a network of delivery drivers nationwide, businesses using the service can track packages and pay for GoShare services via a convenient mobile app.

Grubhub has an extensive network of independent delivery drivers who help deliver food from restaurants to customers who use its app or website to place orders. Restaurants can also use Grubhub with their own ordering apps to take on the delivery portion of their service.

Companies partner with Instacart to offer digital ordering, while Instacart handles the shopping and delivery. By using the Instacart ordering app or website, customers can get their shopping and deliveries completed by Instacart shoppers quickly. Instacart customers can also communicate directly with their shoppers in real-time to manage their orders and ensure accuracy.

Locktec makes smart lockers for various types of deliveries, like residential or commercial parcels or groceries. Customers receiving groceries can get their orders placed in a refrigerated locker to keep their orders fresh until they can pick them up.

Luxer One creates storage lockers, refrigerators, and rooms for seamless deliveries in universities, libraries, housing spaces, and other public and private areas. Matternet creates delivery drones and stations to deliver packages between locations quicker, more efficiently, and more affordably than traditional delivery methods.

Technology company Nuro improves last-mile delivery through robotic vehicles that deliver restaurant meals, groceries, and parcels to customers. Parcel Pending specializes in convenient self-service solutions for package deliveries with indoor and outdoor smart lockers, package rooms, and more.

Additionally, refrigerated lockers hold groceries at the proper temperature for freshness. Pico Delivers takes the app-based delivery model on a unique journey with its efficient scooters provided to its drivers. Plus, customers can get their food delivered conveniently and quickly to their homes.

Postmates partners with grocery stores, restaurants, convenience stores, and other businesses to get deliveries to customers fast. Purolator specializes in Canadian shipments, whether you ship within, into, or from Canada. Businesses can get customized solutions to help them handle their shipments.

In addition to deliveries, Purolator also handles logistics management, operational technology, and more. Roadie is a UPS company that runs on crowdsourcing to deliver packages the same day or the next day across the United States.

RXO specializes in large-scale deliveries that require truckloads to move from destination to destination. population lives within miles of an RXO facility. ShipBob fulfills orders from the US, UK, EU, Canada, and Australia with numerous solutions, including freight delivery, warehouse fulfillment, and in-house fulfillment.

Businesses can also create custom packaging and delivery experiences with ShipBob. In some areas, deliveries can be made in under one hour. The lockers can come in multiple storage sizes, and refrigerated lockers are available for food deliveries.

Signifi also offers touchscreen vending machines for retail companies to sell their goods in other locations, like shopping malls or airports.

These lockers can include company branding and are available in indoor and outdoor versions. Smartmile uses smart lockers as hubs for deliveries that multiple couriers can use to reduce delivery time and mileage. Starship Technologies creates delivery robots designed to optimize the efficiency of neighborhood deliveries.

Restaurants and retailers can partner with Starship Technologies to quickly send off purchases to their customers via the automated, no-driver-needed robots.

Logistics professionals understand that the last mile is the least efficient, most complex and most expensive step in a package's journey. A The last mile accounts for between 41% and 53% of total supply chain costs, depending on who you ask. We'll dive deeper into the reasons in the The average last-mile cost per delivery for a large package to a low-density area is $ (SupplyChainDrive); Most delivery drivers earn $16 to

Video

Budget-friendly last-mile delivery - Missing Logistics professionals understand that the last mile is the least efficient, most complex and most expensive step in a package's journey. A The last mile accounts for between 41% and 53% of total supply chain costs, depending on who you ask. We'll dive deeper into the reasons in the The average last-mile cost per delivery for a large package to a low-density area is $ (SupplyChainDrive); Most delivery drivers earn $16 to

How companies acquire these vehicles is where many unnecessary operating expenses arise. Companies like Postmates and Amazon Flex rely on crowdsourcing and gig economy workers, which involves recruiting independent drivers. Upfront, this seems like a cost-effective method.

The drivers are not considered full-time employees and they use their own vehicles. However, this is an unreliable means to an end, as independent drivers are less efficient, hard to find, inconsistent, and may use older vehicles.

These factors can end up tarnishing the brand image. Many companies also rely on daily car rentals for busy days, which carry high costs and little to no stability.

With rentals, there are also limitations to the types of vehicles available. If customers are expecting large packages, like furniture or electronics, you need to have a commercial pickup truck rental that can fit the items securely. If a rental company only has sedans in stock, this could delay delivery times.

In , Nuro debuted its third-generation autonomous, zero-occupancy delivery vehicle. This vehicle can carry pounds, with space for up to 24 grocery bags in its compartments. Amazon has recently announced its delivery drone service in College Station, Texas.

The drones will be able to carry up to 5 pounds and can travel at a speed of up to 50 mph at feet. This pilot program is being met with some concerns, such as frightening and compromising livestock safety, economic impact, crashes that can cause damage and wildfires, and more. With any new technology, there is criticism.

Only time will tell if these new technologies can succeed. Vehicles equipped with telematics and GPS tracking technology provide valuable insights into fleet operations.

Most modern vehicles are connected capable, meaning the GPS and telematics hardware is built into the vehicle at the factory. With these connected vehicles, programs such as TotalConnect can help detect unsafe driving habits, offer route optimizations for quicker deliveries, and ensure that vehicles are kept up to date on maintenance to maximize uptime.

Companies like Amazon have created a culture of immediacy. In the U. alone, there are over Here are a few ways to keep the customer at the forefront of operations:. Omnichannel operations give customers options for purchases and returns by integrating all sales outlets.

Customers can place an order from a computer, mobile web browser, mobile app, phone, or in-store. Then they can choose to receive their products through at-home delivery or by picking them up in the store.

Returns can be made by visiting the store or by mailing the items back to the merchant. Deliveries cannot be made quickly if the products are not in stock. Based on this forecast, items can be moved to nearby fulfillment centers, so they are available and ready for fast delivery.

Amazon One of the most popular online retailers, Amazon has been working to solve its last mile delivery problem. In addition to having multiple avenues of delivery — fleet including electric vehicles , air, Amazon Scout, and drones — Amazon also has a Delivery Service Partner Program.

With the program Amazon partners with entrepreneurs interested in starting a logistics business delivery team. Walmart Big box store Walmart uses drones, food delivery robots, and fully autonomous box trucks to deliver to customers in certain locations.

Walmart is now in the process of securing a patent to combine the technologies. They plan to decrease failed ground deliveries by incorporating autonomous vehicles and drones. If there is a roadblock or obstacle on the ground, then a drone can complete the delivery.

FedEx In , FedEx was the first company to use hybrid vehicles for pickup and delivery. EVs work well for last mile delivery services since they avoid vehicle idle laws in certain cities, and can make use of stop-and-go city driving to recharge through regenerative braking.

In addition, EVs also emit no carbon emissions from the tailpipe and require less maintenance. FedEx has a new plan to optimize resources by merging FedEx Express, Ground, and Freight, previously three separate operating entities. Unique challenges call for unique solutions. The industry is continually introducing new strategies to get products into the hands of customers more quickly and cost-effectively.

By relocating products into pop-up warehouses that are closer to customers, retailers can significantly reduce transportation costs. Nearly every merchant provides updates to customers when orders are received and shipped.

The more high-tech providers send step-by-step tracking updates. For example, Amazon Prime customers receive mobile alerts when packages are a few stops away, and even maps that show exactly where the driver is. Customers who order heavy items or pieces that require assembly may be inclined to purchase white glove services.

This involves the delivery person s unpacking and assembling a product for an additional fee. If you outsource your last mile deliveries, there are third-party transportation companies that offer this service.

As mentioned above, EVs are ideal for last mile delivery services since most batteries can provide enough charge for a daily route and the stop-and-go city driving can help extend drive time through regenerative braking.

Many states have laws that limit the amount of idling a vehicle can do. The so-called Closing Loopholes bill could result in contract workers being paid the same total rate as direct workforce employees.

This means bonuses and overtime are included. The government says this is to protect workers who are deliberately underpaid. Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media.

She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.

Do you have a story you would like her to expose, report on, or consider? Please send your request to Newsdesk locate2u. We work hard and move fast to help your business. To keep up to date subscribe here:. Locate2u Free Trial. Locate2u Customer Login. News Desk.

For customers. Media Services. View All Articles. Route Planning. Last Mile Delivery. GPS Tracking. Does my company subscribe? Log in Login.

Become a Client Become a Client Get a Demo Pricing. Industries Products Insights Events Pricing About. Industries Overview Our research focuses on the five core coverage areas below.

We apply our rigorous research methodology to our reports, charts, forecasts, and more to keep our clients at the forefront of key developments and trends before they hit the mainstream.

All Topics. Most B2B content marketers have trouble creating the right content for their audience Article. Products Insider Intelligence delivers leading-edge research to clients in a variety of forms, including full-length reports and data visualizations to equip you with actionable takeaways for better business decisions.

Reports In-depth analysis, benchmarks and shorter spotlights on digital trends. Charts Proprietary data and over 3, third-party sources about the most important topics.

Industry KPIs Industry benchmarks for the most important KPIs in digital marketing, advertising, retail and ecommerce. Briefings Client-only email newsletters with analysis and takeaways from the daily news.

Analyst Access Program Exclusive time with the thought leaders who craft our research. Spanning five core coverage areas and dozens of industries, our research on digital transformation is exhaustive. Our Story Learn more about our mission and how Insider Intelligence came to be. Methodology Rigorous proprietary data vetting strips biases and produces superior insights.

Our People Take a look into our corporate culture and view our open roles. Contact Us Speak to a member of our team to learn more about Insider Intelligence. Newsroom See our latest press releases, news articles or download our press kit. Events Browse our upcoming and past events, recent podcasts, and other featured resources.

Podcasts Tune in to eMarketer's daily, weekly, and monthly podcasts. Open Menu Menu. Our Story Methodology Our People Contact Us Newsroom. User Log in Envelope Newsletter sign-up Phone Become a Client. Close Menu Close. Alexandra Samet October 12, Powerful data and analysis on nearly every digital topic Become a Client.

Want more research? What is last-mile delivery?