20+ Last-Mile Delivery Statistics Must Know in 2024
Last mile delivery is crucial for keeping customers happy and making supply chains work smoothly.
But just how important is this last step in delivery? With that in mind, we’ll cover some key stats that show the impact of last mile delivery on businesses today.
Last Mile Delivery Statistics: Key Numbers
- Last mile delivery was valued at $140.48 billion in 2023 and is expected to reach $200.42 billion by 2027.
- 53% of the total delivery costs are attributed to last-mile delivery.
- 66% of retailers want next day delivery from last mile delivery services.
Source: (Statista, Insider Intelligence, Whitepaper Reports)
Last Mile Delivery Costs
According to Insider Intelligence, last-mile delivery is a major expense, making up 53% of total delivery costs, while regular delivery costs are only 47%. This shows how pricey the last stretch of delivery really is.
Businesses must become more strategic in optimizing their last-mile logistics in order to save money and increase efficiency. Getting this part right can result in significant savings and satisfied customers.
Last Mile Delivery Market Size
By 2027, the global last mile delivery market is expected to exceed $200 billion, up from $108.1 billion in 2020. The increased volume of online orders is driving the growth of the last mile delivery market.
| Year | Market Size (in billions) |
|---|---|
| 2020 | $108.1 |
| 2021 | $117.61 |
| 2022 | $128.54 |
| 2023 | $140.48 |
| 2024 | $153.53 |
| 2025 | $167.8 |
| 2026 | $183.38 |
| 2027 | $200.42 |
Source: Statista
Breaking Down the Marginal Costs of Last-Mile Delivery
Last-mile delivery costs add up in surprising ways, from paying drivers to keeping trucks running. Here’s a breakdown of what businesses are spending on:
- 39% of the marginal cost per mile is attributed to driver wages and benefits.
- 25% of the marginal cost per mile goes to fuel costs.
- 14% of the marginal cost per mile is for truck/trailer lease or purchase payments.
- 10% of the marginal cost per mile is spent on repair and maintenance.
- 6% of the marginal cost per mile covers truck insurance premiums.
- 5% of the marginal cost per mile is made up of other costs.
Source: American Transportation Research Institute, 2016
Biggest Challenges in Last-Mile Delivery Statistics
Last-mile delivery faces a number of challenges, including efficiency issues and meeting customer demand. Here’s a breakdown of the toughest obstacles businesses deal with:
- Delivery Efficiency: 25%
- Margins: 14%
- Customer Demands: 14%
- Delivery Agility: 13%
- Costs: 13%
- End Customer Interaction: 10%
- Missed Deliveries: 8%
- Other: 5%
Source: The Last mile Logistics Whitepaper Reports, 2018
What Retailers Want From Last-Mile Delivery Services
Retailers know exactly what they want from last-mile delivery: speed, transparency, and flexibility. Here’s a breakdown of their top priorities:
- Next Day Delivery: 66%
- Full Visibility: 57%
- Same Day Delivery: 50%
- Returns: 48
- Rescheduling: 43%
- Delivery Slot Selection: 42%
- Delivery Hour Notification: 41%
- Delivery Slot Notification: 36%
- Returns Processing: 28%
Source: The Last mile Logistics Whitepaper Reports, 2018