Technology and the Future of Last Mile Delivery
11 Jun, 2019

A lot has been happening to the last mile in recent times. Global parcel delivery without sorting, line-haul, and pick-up, is somewhere around $86 billion. Though the market may not appear so huge, it’s still very dynamic and growing. The parcel delivery market in the USA, Europe, and most of the other mature markets have seen growth rates between 7% to 10%. Developing markets like that of India, on the other hand, are seeing explosive growths, nearly 300%. SendMyShipment share in the belief that even the mature markets can expect 100% within the next decade, meaning that most European and North American countries would deliver parcels that may be close to about 25 billion annually.


E-commerce-driven growth

E-commerce has been the major catalyst in this explosive growth. B2B used to have the largest share of the parcel delivery market but that has changed today. B2C now accounts for more than 50% in most of these mature markets. 

The last mile accounts for about 50% of total parcel delivery cost in most cases. It is therefore worthy of consideration for any business hoping to gain an edge over the competition. But as it turns out, most retailers struggle at the last mile, mostly faced with labor costs that put them at a significant disadvantage.


But then… welcome to the future!

The unprecedented growth in e-commerce coupled with important and evolving customer demands have changed the face of parcel delivery. What was once business-oriented has now become largely customer-centric. For companies that want to make a difference, the last mile presents a lot of potentials.

For most customers, delivery options and service quality are two of the key reasons they’d patronize or remain with a retailer. This means the last mile thus have a direct effect on the bottom line. Little wonder everyone involved with the supply hair is now occupied with making the most of this. 


Like most experts, SendMyShipment also believes that parcel lockers, autonomous vehicles, and various other technologies will be commonplace in parcel delivery within the next decade. There is definitely a lot of cost benefits to this. Being able to reduce last mile costs significantly will also have a significant effect on profitability. It is believed that most of the costs associated with the last mile may be reduced by as much as 40% within the next decade as well as we approach an era of automated delivery. 


Bottom Line

There will definitely be challenges but we are optimistic that the industry will overcome these. One barrier that remains very important is the industry’s attitude to accepting new technologies. Still, it’s not hard to see that many large companies, within and outside the logistics and e-commerce industry are already investing in these technologies. Hopefully, we’ll see combined efforts to truly convince the public of the benefits and safety of these technologies. In the no distant future, automation beckons the industry, set to change the face of last mile delivery. 



In an ever-evolving and fiercely competitive market, it’s always important to make a difference with the last mile delivery. SendMyShipment guarantees maximum value as a global platform that connects retailers, businesses, and individuals to credible logistics providers in the post and parcel industry. 

You can log on to our website at with details of your shipment to get free quotes at competitive rates, from multiple carriers, and at no cost. If you want more information, you can also contact us at We’ll be more than glad to help.