The global Last Mile Delivery Market size was USD 36100 million and it is expected to reach USD 66000 million by the end of 2026, with a CAGR of 9.1% during 2021-2026.
Major key players in the last mile delivery market contains UPS Supply Chain Solutions, DHL Supply Chain & Global Forwarding, FedEx, Kuehne + Nagel, SF Express, XPO Logistics, DB Schenker Logistics, Nippon Express, GEODIS, CEVA Logistics, J.B. Hunt (JBI, DCS & ICS) and Agility.
May 2020 Fleet drivers, these days, are usually in the tense ‘eleventh-hour’ exam prep mode when they are set for delivery. With increasing complexities in last-mile deliveries, it is becoming challenging to fulfill deliveries on time. Insufficient technologies prevent E-commerce retailers from meeting fulfillment timelines. The need for efficiency in last-mile logistics operations is increasing with the rising density of deliveries. Last mile delivery innovations incur a significant proportion of expenses in E-commerce logistics. A small glitch in the last-mile delivery leads to loss of customer satisfaction. Thus maintaining efficiency standards is crucial to compete in the E-commerce market. Groundbreaking innovations are creating new standards of efficiency in the last-mile delivery. Hence, modern enterprises that are looking to enhance their efficiency of last-mile operations should ideally be looking to ride this innovation wave.
The UPS Foundation, which leads the global citizenship programs for UPS and Gavi, the Vaccine Alliance, announced May 2020 a commitment of US$3 million in new funding and in-kind logistics support spanning two years, provided by UPS and The UPS Foundation to Gavi. The new support will enable Gavi to continue to strengthen supply chain networks that deliver life-saving vaccines to children in the world’s poorest countries, and expand coverage of essential childhood vaccines with the mission of eliminating childhood deaths from avoidable diseases. The UPS Foundation’s contribution of US$2 million in cash and US$1 million in UPS in-kind services, combined with a match of US$2 million from the Gavi Matching Fund results in a total of US$5 million toward an expansion of previous shared efforts by the organizations. The contribution will apply to Gavi’s 2021 to 2025 strategic period.
New innovation- DHL supply chain progressively leaner supply chains have sped production and have optimized delivery costs worldwide, but they have revealed their heightened vulnerability in the face of unpredictable forces. Sourcing from multiple suppliers along a supply chain, from raw materials to last-mile delivery, can effectively mitigate risk by adding flexibility and build competiveness for logistics players on the global stage. There are many factors that enable logistics companies to more feasibly pursue multisourcing, such as improved performance and costs in Automation and computing along with rising labour costs in previously cheaper regions resulting in production becoming more expensive. Additionally, governments globally are playing a more active role in luring foreign companies and investment while promoting domestic entrepreneurialism and healthy competition.
Based on service type, the market is categorized into Business-to-Business (B2B), Business-to-Consumer (B2C), and Customer-to-Customer (C2C).Based on application it has splits into 3C Products, Fresh Products and Others. Based on region, the global last mile delivery transportation market has been segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa. Asia Pacific and North America are projected to be highly lucrative markets during the forecast period. This is primarily due to the improvement in road network transport, and inclination toward development of industries over the years in these regions.