Essential Last-Mile Delivery Statistics and Trends for 2024

Do you know that the customer retention ratio is directly linked to the efficiency of last-mile delivery?

When deliveries are timely, accurate, and cost-effective, customer satisfaction soars, leading to repeat business and positive word-of-mouth. 

However, achieving this level of efficiency is a challenging task.

Because of unwanted delivery delays, unhappy customers, and unnecessary wastage of fuel costs over missed or failed deliveries, it becomes difficult for logistics operators to streamline this final leg of the supply chain journey.

So, what’s the key to overcoming these challenges and excelling in last-mile delivery? Staying informed about the latest statistics and trends can be the one. 

In this blog, we’ll delve into the emerging trends and current industry statistics shaping last-mile delivery operations in 2024. 

By understanding and leveraging these insights, logistics professionals can enhance delivery processes, reduce costs, and improve customer satisfaction.

Overview of Last-Mile Delivery Statistics

Global market overview

Market growth and projections

The global last-mile delivery market was valued at $132.71 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 8.8% from 2023 to 2030.

Key growth factors include:

• Rising consumer expectations for same-day or next-day deliveries
• Need for real-time tracking and visibility
• Growth of on-demand services
• Challenges posed by urban congestion and sustainability considerations

As per the World Economic Forum’s report, last-mile deliveries in urban areas are predicted to increase by 78% in the year 2030.

E-commerce and its impact

Trends in E-commerce sales

Revenue in the e-commerce market is projected to reach $4,117.00 billion in 2024. Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.49%, resulting in a projected market volume of $6,478.00 billion by 2029.

McKinsey’s research says that the e-commerce industry experienced a growth rate of 10 years in just 3 months, especially after the COVID period.

Consumer behavior patterns

Key consumer trends

• 80% of American consumers seek speedy, convenient, and friendly delivery service
• 60% of users pay for faster deliveries
• 69% of them pay for next-day delivery
• 55% of retailers will switch to another retailer or brand that offers faster delivery service
• 68% of online consumers consider shorter delivery windows the determining factor when placing an online order
• 72% of online shoppers prioritize convenient delivery time slots over fast delivery

Digital shopping statistics

• In 2022, there were 268 million online shoppers in the United States
• This number is projected to increase to almost 285 million online shoppers in 2025
• Less than half of these digital shoppers say retailers meet their delivery expectations

Ensuring same-day delivery at scale presents challenges like real-time order visibility and lengthy travel times between delivery points.

Modern solutions like Upper’s route planning software address these challenges with advanced GPS tracking, real-time adjustments, and optimized routing to ensure timely deliveries.

Technological advancements

Automation and AI in delivery

• The autonomous last-mile delivery market should reach $4.96 billion by 2030
• The Asia-Pacific autonomous last-mile delivery market will grow at a CAGR of 17.5 percent from 2021 to 2028

Real-world implementation

• Domino’s Pizza is experimenting with self-driving vehicles and autonomous vehicles
• Starship Technologies operates a team of 1,700 robots and records about 10,000 deliveries daily
• DHL implemented a dynamic routing algorithm, Greenplan, saving 20% on delivery costs
• Tesco’s AI-powered vehicle route scheduling system saved 11.2 million miles and 8% fuel per order

Software solutions optimization

The last-mile delivery software market was valued at $7 billion in 2021 and is expected to reach $16 billion by 2030, with a CAGR of 9.3% from 2023 to 2030.

Urban and consumer delivery dynamics

Expanding urban deliveries

Last-mile deliveries in urban areas are expected to grow by 78% by 2030, as per the World Economic Forum’s report.

Short delivery windows

Survey data by Capgemini shows 68% of online consumers prioritize shorter delivery windows, and 72% of shoppers value convenient, customer-preferred delivery slots over speed.

With Upper’s time window feature, businesses can align deliveries with customer availability, reducing failed deliveries.

Address challenges and failed deliveries

Incorrect addresses cause nearly 25% of failed deliveries, with 74% of businesses identifying poor address data as a major problem, according to Enterprise Times.

Modern route planning and optimization software, like Upper, provides solutions through:

• Real-time insights for drivers on the road
• Advanced GPS tracking capabilities
• Route adjustment for unexpected situations
• Last-minute order accommodation
• Time window optimization for customer availability

Trends Shaping Last-Mile Delivery

Wondering what’s shaping the future of last-mile delivery? Here are some key trends that are significant reasons behind the effortless delivery of packages from the warehouse to the customer’s doorstep.

1. Transformative technological advancements: 

Adopting drone delivery has numerous perks, including reduced emissions and minimal reliance on human labor. Drones consume up to 94% less energy per package than traditional vehicles, making them ideal for less-populated, remote areas. Autonomous last-mile delivery solutions, including drones and robotic carts, can navigate traffic congestion and free up trucks for other deliveries, showcasing their efficiency in modern logistics.

However, they face crucial challenges like vehicle capacity constraints and special landing requirements.

2. Sustainability initiatives:

Achieving a sustainable last-mile supply chain is a collaborative effort among businesses and suppliers adhering to environmental standards. 

Eco-friendly delivery practices

A few things to consider while practicing sustainability in your last-mile delivery operations are:

• Determine your carbon footprint: Understanding the carbon footprint from shipping, packaging, and shopping habits is crucial. Consolidating purchases can reduce the carbon impact per item.

• Reusable packaging: Customers prefer recyclable or reusable packaging. Companies should use eco-friendly materials like recycled cardboard and plastic.

• Embrace eco-friendly transportation: Using hybrid vehicles, drones, and electric fleets like CitySprint’s and DHL’s Cubicycle helps lower environmental impact.

• Streamline delivery routes: Route optimization tools can simplify logistics, accounting for real-world constraints to improve efficiency and sustainability.

3. Real-time tracking and transparency: 

Customers now expect real-time tracking of their packages. Enhanced transparency through GPS tracking, delivery status updates, and notifications helps improve customer satisfaction and trust. However, manual planning and optimizing delivery routes might fall short of these expectations. 

By leveraging advanced technology and automated route planning solutions like Upper, businesses can provide more accurate and timely information to their customers, ensuring a seamless delivery experience.

4. Same-day and instant deliveries: 

The demand for same-day and instant deliveries is on the rise. Retailers and logistics providers are focusing on shortening delivery times to meet customer expectations for speed and convenience.

5. Micro-fulfillment centers: 

The use of micro-fulfillment centers located closer to urban areas is increasing. These centers help reduce delivery times and costs by storing inventory closer to the customer location. By strategically placing these centers, businesses can ensure faster deliveries and better inventory management, enhancing overall efficiency in the supply chain.

6. Crowdsourced delivery: 

Utilizing gig economy workers for last-mile delivery is becoming more popular. This approach offers flexibility and scalability, especially during peak times, though it currently represents a small percentage of last-mile delivery methods. Crowdsourced delivery can help businesses manage fluctuating demand and expand their delivery capabilities without needing a large permanent workforce.

7. Predictive data analytics: 

Leveraging big data and analytics to optimize delivery routes, predict demand, and improve operational efficiency is becoming standard practice. Data-driven insights help companies make informed decisions and enhance overall performance.

Challenges and Solutions in Last-Mile Delivery

Managing delivery expectations

Optimizing delivery windows

One of the critical challenges in last-mile delivery is aligning delivery schedules with customer availability. Businesses face significant pressure to minimize failed deliveries and improve customer satisfaction by offering precise delivery windows.

Case Study: Northern Express Logistics

“After implementing Upper Route Planner, we automated route planning and optimized delivery windows, resulting in a 92% reduction in manual planning efforts and a 3x increase in daily deliveries. With real-time GPS tracking, we adjusted routes on the go, ensuring timely deliveries that aligned with customer schedules.”

— Kam Kendell, Northern Express Logistics

Real-life results show that using advanced tools like Upper can help businesses enhance efficiency while meeting customer expectations.

Addressing failed deliveries

Failed deliveries, often caused by inaccurate addresses or missed delivery windows, pose a significant challenge. These issues lead to higher operational costs, strained resources, and unsatisfied customers.

• The problem: Studies reveal that 74% of businesses attribute 25% of failed deliveries to incorrect address data.
• The solution: Advanced route optimization and real-time address validation tools, like those offered by Upper, mitigate such challenges. For instance, Northern Express Logistics leveraged Upper’s real-time GPS tracking and automated route planning to drastically reduce errors.

Companies that proactively address these challenges with technology and effective planning can reduce inefficiencies, improve delivery rates, and enhance customer satisfaction.

Conclusion

After considering all the trends and industry insights shared in the blog, it is much easier for any logistics or supply chain professional to kickstart their journey toward optimizing last-mile delivery operations. By staying informed about the latest advancements and implementing best practices, professionals can significantly enhance efficiency, reduce costs, and improve customer satisfaction.

For those looking to gain a competitive edge, Upper’s route planning and optimization software offers the perfect solution. With features designed to streamline delivery processes and provide real-time insights, Upper ensures that every package reaches its destination efficiently and on time. Try Upper Today!