8 Best Last-Mile Delivery Companies & Startups: Complete Guide 2024

These days, logistics managers, supply chain professionals, and e-commerce business owners are all actively seeking ways to optimize the final leg of the delivery process, known as last-mile delivery.

Why the sudden focus on last-mile delivery, you ask? 

Well, consider this – 

According to a survey conducted by Statista, customers nowadays want their online orders delivered at lightning-fast speed, with 41% expecting delivery within 24 hours and 24% craving delivery in under two hours.

Last-mile delivery companies can only fulfill this demand for faster, more convenient, and cost-effective delivery options. 

But with so many last-mile delivery options available, how do you know which one is right for your business? 

That’s where our comprehensive guide comes in. So, whether you’re a logistics manager seeking to optimize your delivery operations, a supply chain professional looking to integrate last-mile delivery services, or an e-commerce business owner aiming to enhance the customer experience, this blog post has got you covered.

Understanding Last-Mile Delivery Solutions

Key Features of Top Delivery Companies

1. Auto-Dispatch

Look for a last-mile delivery solution that has auto-dispatch capabilities. It will help auto-assign your orders to your drivers based on their availability and proximity. It will enable you to ensure on-time delivery orders while saving time, and decreasing failed deliveries, returns, and associated costs. 

2. Live / Smart Tracking

Live or GPS-enabled tracking is an important solution to look for in your last-mile delivery software. It lets you view drivers’ and vehicles’ real-time locations to determine the estimated time of arrival for each package. 

It will also ensure complete visibility into your delivery operations, building trust and transparency among customers. 

3. Data Analytics

The data analytics feature provides you with insights into delivery performance. This lets you track metrics, including delivery times, average time per run, customer satisfaction, and missed or failed deliveries per driver. It, thus, lets you identify and eliminate bottlenecks and inefficiencies to improve your delivery performance, preventing delivery delays and failures.

4. Proof of delivery

Proof of delivery allows you to collect customers’ e-signatures and photos of products after each successful delivery. This lets you prove you delivered the product to the right address, on time, and in optimal condition. For this, your solution must provide a smart app for smart app that helps collect pictures, notes, and customers’ signatures on digital receipts.

5. Route optimization 

This feature enables you to create optimal routes based on delivery distances, customers’ preferred time, drivers’ shifts, and vehicle capacity specifics. It helps reduce travel time and distance and maximize deliveries per journey, increasing operational efficiency and profit margins.   

4 Selection Criteria for Last-Mile Partners

When partnering with a last-mile delivery company, you must thoroughly research and analyze the top last-mile companies based on the following criteria: 

• Speed and reliability: Getting your customers their orders quickly and safely is everything.
• Coverage: We considered companies that can reach your target audience, no matter where they are.
• Cost-effectiveness: Keeping your bottom line healthy is essential, so we’ve focused on companies that offer competitive rates.
• Technology: Real-time tracking and efficient route optimization are essential technologies for last-mile delivery, and we’ve prioritized companies that embrace such solutions.

Leading Last-Mile Delivery Companies in 2024

Here are the top 8 last-mile delivery companies and startups of 2024:

Company	Started	Founders	Headquarters	Best for
Upper	2019	Jeel Patel	Brampton, Ontario, Canada	Efficient last-mile delivery solutions and route optimization
FedEx	1971	Frederick W. Smith	Memphis, Tennessee, US	E-commerce and global last-mile delivery services
UPS	1907	James E. Casey	Atlanta, Georgia, US	Logistics, express courier, and freight forwarding services
Purolator	1960	Canada Post Corporation	Mississauga, Ontario, CA	Fast delivery in Canada, strong domestic network
Postmates	2011	Bastian Lehmann Sean Plaice Sam Street	San Francisco, California, US	Quick take-out, groceries, on-demand deliveries
Instacart	2012	Apoorva Mehta Max Mullen Brandon Leonardo	San Francisco, California, US	Essential home and grocery delivery services
Nuro	2016	Dave Ferguson Jiajun Zhu	Mountain View, California	Autonomous last-mile deliveries for instant and small parcels
Matternet	2011	Andreas Raptopoulos Dimitar Pachov Paola Santana	Menlo Park, California, US	Healthcare, logistics, and e-commerce deliveries via drones

1. Upper

Information	Details
Started	2019
Founders	Jeel Patel
Headquarters	Brampton, Ontario, Canada
Best for	Businesses that require efficient last-mile delivery solutions and streamlined route optimization

Core Services:

• No need to spend hours manually planning routes because Upper optimizes delivery routes in just minutes. Whether you’re managing a handful of stops or hundreds, Upper’s advanced algorithms ensure the most efficient paths, reducing fuel costs and saving valuable time.
• Upper seamlessly integrates with existing business workflows. It allows companies to import delivery/customer data directly from spreadsheets or popular e-commerce platforms like Shopify, eliminating manual data entry and reducing errors.
• Upper simplifies dispatching with one-click driver dispatch and accurate driving directions. Through this, you can easily assign optimized routes to multiple drivers, ensuring efficient delivery schedules for your entire team.
• Upper provides comprehensive last mile carrier tracking capabilities, enabling businesses to monitor delivery operations in real time. Dispatchers can track route progress, and customers receive timely updates.
• With features like proof of delivery (POD) and customizable customer notifications with accurate ETA, Upper ensures businesses can provide a seamless and transparent delivery experience, fostering customer loyalty through the use of electronic proof of delivery devices.
• Upper’s reporting capabilities offer invaluable insights into delivery performance, allowing businesses to identify areas for improvement and continuously optimize their last-mile operations.

Technology & Innovation:

• Upper’s core offering is its advanced route optimization software technology.
• Using sophisticated algorithms and real-time data, Upper last-mile delivery route scheduling software generates the most efficient routes. It considers factors like traffic, delivery times, priority stops, delivery vehicle capacity, and other time and distance-based constraints.
• Upper’s Excel import feature automated route planning, saving 10 hours weekly and completing tasks in minutes instead of hours.
• Upper’s duplicate address recognition eliminated errors and improved delivery efficiency.

Pricing & Availability:

Upper offers flexible pricing plans tailored to accommodate businesses of all sizes, from small startups to large enterprises, providing scalable last-mile delivery software that grows with your business.

Best Use Cases:

Businesses that require efficient last-mile delivery solutions and streamlined route optimization.

2. FedEx

Information	Details
Started	1971
Founders	Frederick W. Smith
Headquarters	Memphis, Tennessee, US
Best for	eCommerce businesses that want to reach a global audience and for delivery services with primary products.

Core Services:

• With a global presence and investments in last-mile capabilities, FedEx ensures seamless deliveries worldwide, including Sunday residential services and large package handling facilities.
• FedEx offers a range of time-definite delivery options, including same-day and next-day delivery, catering to the growing demand for a faster order fulfillment process.
• Offering low-cost last-mile delivery services to businesses and consumers, including the launch of Sunday residential delivery for most of the U.S. population.
• Expanding residential and business freight delivery options, catering to bulky items with specialized handling.
• Extensive retail partnerships provide convenient pick-up and drop-off services at over 14,000 FedEx hold locations.
• Empowering customers to customize their delivery schedules, redirect shipments, and leave instructions for drivers, enhancing flexibility and convenience.

Technology & Innovation:

• By investing in new technologies like electric carts for last-mile delivery and continuously expanding coverage for heavy-good deliveries, FedEx demonstrates a dedication to reducing environmental impact while efficiently reaching diverse markets.
• Advanced tracking capabilities and proactive communication ensure customers have end-to-end visibility on last-mile operations.

Pricing & Availability:

With a global presence and investments in last-mile capabilities, FedEx ensures seamless deliveries worldwide.

Best Use Cases:

Businesses that require efficient last-mile delivery solutions and streamlined route optimization.

3. UPS (United Parcel Service)

Information	Details
Started	1907
Founders	James E. Casey
Headquarters	Atlanta, Georgia, US
Best for	Logistics, express courier services, and freight forwarding services that prioritize reliability and comprehensive logistics support.

Core Services

• UPS provides a range of features, including API integration, simple return services, delivery status notifications, cold chain solutions, and a dedicated customer service team.
• As the last-mile delivery space continues to evolve, UPS has introduced a hyperlocal delivery service for fast next-day delivery options.
• With a presence in more than 220 countries and territories, the company handles an average daily volume of 24.3 million packages and documents, showcasing its unparalleled reach and capacity.

Technology & Innovation

• UPS is at the forefront of technology integration in logistics. It has embraced AI, drone delivery, electric cargo tricycles, and other innovations to improve delivery efficiency and sustainability.
• Additionally, the company’s acquisition of Delivery Solutions, a leading delivery orchestration platform, enhances its omnichannel delivery capabilities and showcases its commitment to innovative last-mile solutions.

Pricing & Availability:

With a presence in more than 220 countries and territories, the company handles an average daily volume of 24.3 million packages and documents.

Best Use Cases:

UPS caters to a diverse range of industries, including tech, healthcare, eCommerce companies, and retail. Whether you need global or national shipping solutions, UPS offers services to meet your delivery business requirements.

4. Purolator

Information	Details
Started	1960
Parent Company	Canada Post Corporation
Headquarters	Mississauga, Ontario, Canada
Best for	Speed within Canada, strong domestic network, commitment to sustainability, understanding of the Canadian market

Core Services:

• According to research, Purolator offers the “fastest Canadian delivery” with their Purolator Express service.
• Purolator offers a range of services beyond standard delivery, including large goods management, less-than-truckload service, and automated self-serve lockers. These offerings cater to businesses with diverse and unique delivery requirements.
• Purolator’s exceptional customer service team ensures seamless communication and support for businesses, enhancing the overall last-mile delivery experience for both senders and recipients.

Technology & Innovation:

Sustainability is a priority for Purolator. They’re investing heavily in electric vehicles and charging infrastructure, aiming to electrify 60% of their last-mile fleet and over 60 terminals. They’re also committed to using renewable energy sources.

Pricing & Availability: 

Purolator excels in Canadian deliveries, but its international shipping reach is not as extensive as some competitors. This may be a limiting factor for businesses with a global customer base.

Best Use Cases:

Speed within Canada, strong domestic network, commitment to sustainability, and understanding of the Canadian market.

5. Postmates

Information	Details
Started	2011
Founders	Bastian Lehmann, Sean Plaice, Sam Street
Headquarters	San Francisco, California, United States
Best for	Busy consumers who need easy access to take-out, groceries, or on-demand deliveries

Core Services:

• Postmates connects you with local couriers to fulfill your on-demand needs. This means you can use their user-friendly app or website to order anything from groceries and restaurant meals to everyday essentials.
• Postmates boasts an extensive network of couriers, allowing them to deliver your order within an hour in most cases. Plus, their 24/7 operation ensures you can satisfy late-night cravings or grab forgotten essentials anytime.
• While Postmates started with food delivery, it has expanded its reach. It now partners with a wide range of stores, including pharmacies, restaurants, and grocery stores, offering planned deliveries to cater to various needs.

Technology & Innovation:

• The platform allows local retailers to expand their reach and offer on-demand delivery to compete with larger chains. The “Shop” feature is a win-win, giving consumers more options and supporting local businesses.
• User-friendly app and website interface.

Pricing & Availability:

From food and groceries to retail items and more, Postmates has established itself as a one-stop shop for quick and reliable deliveries in 2,490 cities in all 50 states of the United States.

Best Use Cases:

Busy consumers who need easy access to take-out, groceries, or on-demand deliveries.

6. Instacart

Information	Details
Started	2012
Founders	Apoorva Mehta, Max Mullen, Brandon Leonardo
Headquarters	San Francisco, California, United States
Best for	Essential home and grocery delivery services

Core Services:

• Founded in 2012, Instacart is an online delivery platform that connects customers with personal shoppers who fulfill grocery orders from local stores and deliver them directly to their doorsteps. 
• Instacart prioritizes speed. They offer same-day delivery services in most cases.
• While groceries are Instacart’s bread and butter (pun intended), the Company isn’t limited to them. They’ve expanded their reach to include stores like Costco, Aldi, and Sephora, offering a wider selection of everyday essentials.

Technology & Innovation:

• They’ve recently launched Instacart Health, a program focused on delivering food prescriptions and catering to specific dietary needs.
• They provide a user-friendly app interface.

Pricing & Availability:

• Their expansive reach covers over 50,000 stores across North America, making it likely they deliver in your area.
• While Instacart offers undeniable convenience, delivery fees can add up, especially for frequent orders. They also offer a membership option (Instacart+) that waives delivery fees for a monthly subscription.

Best Use Cases:

Essential home and grocery delivery services

7. Nuro

Information	Details
Started	2016
Founders	Dave Ferguson and Jiajun Zhu
Headquarters	Mountain View, California
Best for	Ideal for e-commerce and food delivery services requiring autonomous last-mile deliveries for instant and small parcels

Core Services:

• Nuro’s custom-built vehicles are electric, compact, and designed solely for navigating streets and sidewalks to deliver packages safely. This eliminates the need for human drivers, reducing shipping/delivery costs and emissions.
• Nuro’s vehicles are packed with sensors and cameras, allowing them to navigate roads safely and avoid obstacles.
• Nuro focuses on speedy package deliveries, but their vehicles have a limited cargo capacity, typically around 250 lbs (115 kg). This means they’re ideal for smaller deliveries like groceries, restaurant meals, or everyday essentials.

Technology & Innovation:

• What makes Nuro unique is its approach to delivery—completely driverless.
• Nuro recently partnered with Foretellix, a leader in autonomous vehicle safety, to ensure their self-driving systems meet the highest standards.
• Nuro has partnered with major companies like FedEx, Domino’s, and Kroger, showcasing the potential of autonomous delivery for various industries. Their recent collaboration with chipmaker Arm will lead to faster production of Nuro’s vehicles and a wider range for their self-driving robots.

Pricing & Availability:

Their last-mile delivery operations are currently limited to specific geographic areas, and regulatory hurdles remain before widespread adoption.

Best Use Cases:

Ideal for e-commerce and food delivery services requiring autonomous last-mile deliveries for instant and small parcels.

8. Matternet

Information	Details
Started	2011
Founders	Andreas Raptopoulos, Dimitar Pachov, Paola Santana
Headquarters	Menlo Park, California
Best for	Healthcare, logistics organizations, and e-commerce companies requiring small essential deliveries via drone technology

Core Services:

• Matternet utilizes custom-designed drones, like the M2 model, to deliver goods. These delivery drones can travel up to 12 miles and carry a payload of 4.4 lbs (2 kg), making them ideal for smaller, essential deliveries.
• Matternet’s drones are equipped with advanced navigation systems and fly beyond visual line of sight (BVLOS), meaning they can operate without a pilot’s direct view.

Technology & Innovation:

• Matternet has partnered with companies like UPS to explore the potential of drone delivery for various applications. In 2022, they launched the world’s longest urban drone delivery route in Zurich, Switzerland, showcasing the potential for wider adoption.
• Custom-designed M2 model drones with advanced navigation systems.

Pricing & Availability:

While innovative, Matternet drone delivery is still in its early stages. Their current operations are limited to a handful of regions in the US and Switzerland.

Best Use Cases:

Healthcare, logistics organizations, and e-commerce companies require small essential deliveries via drone technology.

The Last Mile: Conquered

The world of last-mile delivery is booming, and for good reason. E-commerce continues to soar, and customer expectations are high. This blog post revealed eight of the top last-mile delivery companies, each with unique strengths.

Whether you prioritize speed, eco-friendly solutions, or expansive coverage, there’s a last-mile delivery partner out there for you.  

From well-established options like FedEx and UPS to newer, tech-savvy companies like Upper, Nuro, and Matternet, each offers its unique blend of speed, cost-effectiveness, and innovative solutions. 

So, consider your business needs and explore these innovative companies to find the perfect fit.