Last Mile Delivery Market, By Service Type (B2C (Business to Consumer) and B2B (Business to Business)), By Delivery Mode (Road, Drone, Bicycle, Walking, and Others), By Geography (North America, Latin America, Asia Pacific, Europe, Middle East, and Africa)

Published In : Sep 2024

Code : CMI7430

Pages :172

Formats :

Excel and PDF

Industry : Information and Communication Technology

Market Concentration and Competitive Landscape

Last Mile Delivery Market Concentration By Players

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Increasing consumer demand for quick and efficient delivery

With Amazon setting the benchmark of delivering packages within a day or same day, customer expectations around delivery speeds have risen manifold over the past few years. Consumers now want their online orders delivered to them without any unnecessary delays, especially for urgent or time-sensitive purchases. In fast-paced urban lifestyles, people have little patience or time to wait for packages to arrive. Same-day or instant deliveries within few hours of orders are gaining tremendous popularity.

Moreover, COVID-19 related restrictions during the pandemic have further ingrained the need for contactless and efficient deliveries among customers. As fear of virus transmission looms large, customers prefer getting their packages delivered at their doorsteps at the earliest rather than visiting stores. Ensuring safety and hygiene standards has also become a top priority for delivery workers and fleets.

This demand from customers to receive orders instantly is a big challenge for last mile service providers to address. Their entire operation from warehousing to routing needs to be designed for quick turnarounds. Adopting technologies like IoT, machine learning for optimized logistics planning and vehicle routing is crucial. Companies are experimenting with micro-fulfilment centers, smaller vehicles for last mile connectivity. Partnerships between retailers, logistics firms will help establish an ecosystem for seamless convenient deliveries. With consumer focus firmly on speed, flexibility and visibility, last mile industry needs continuous innovation and upgrades.

For instance, In October 2023, DPDgroup , Europe's largest parcel delivery network, announced its merger with a local delivery service to strengthen its market position. This strategic move aims to enhance DPD's service offerings and expand its capabilities in the rapidly growing same-day delivery segment, further solidifying its leadership in the logistics industry. The merger is expected to provide customers with improved access to a wider range of delivery solutions, reflecting the increasing demand for efficient logistics services.

Key Players Insights