Note (October 2026): This article has been updated. Amazon Prime Air is no longer “under development” (commercial drone deliveries began in December 2022), and sidewalk delivery robots have been in commercial use since 2017.
Last-mile delivery is the final leg of shipping, when a parcel moves from a local hub or store to the customer’s door, locker or pickup point. It is the most visible and usually the most expensive part of fulfillment, because each driver makes many small, scattered stops. Retailers manage it with route optimization, live tracking, flexible delivery options and, increasingly, alternative vehicles.
Key Takeaways
- Last-mile delivery runs from the final transportation hub to the recipient, and it is the stage customers judge a seller on.
- A widely cited industry estimate puts the last mile at about 53% of total delivery cost, so small efficiency gains matter.
- Route optimization, live tracking, electronic proof of delivery and lockers or pickup points are the main levers for cutting cost.
- Drones and sidewalk robots are real but still niche: Amazon Prime Air had made roughly 16,000 drone deliveries by February 2026, while Starship robots had made 9 million deliveries by October 2025.
Definition, Trends, and Tips for Success in Last-Mile Delivery.
One of the primary aspects that differentiate one online seller from another in today’s day is the kind of delivery mechanism they follow. Consumers no longer only care about the prices of products, the emphasis is rather on the speed of delivery.
A consumer’s purchase decisions are increasingly depending on the kind of delivery offered and everybody wants faster and cheaper delivery.
In order to fulfill this requirement, on the other hand, even the sellers need to stretch that extra bit and figure out ways to cut down supply costs, while also increasing the overall delivery efficiency.
If you are into online selling already or in your pursuit to become an online seller, you would know what it all comes down to: the last-mile delivery process. Last-mile delivery has emerged as a challenge to the online retailers and it has remained one of the most expensive and closely watched parts of e-commerce fulfillment.
But having said that, if the challenges have intensified, so has the technology. And hence, the challenges around last-mile delivery can sure be tackled with the help of technology.
Let us dig deeper into this, shall we?
Last-Mile Delivery: What does last-mile delivery mean and what are the steps involved?
Last-Mile delivery is defined as the final leg of the entire delivery process; it is the point where a package is ultimately received by the intended customer at their residence.
This step involves a lot of human intervention since it will be a human being, as a delivery-person, who will be actualizing the process. And hence, this step can be a little tricky if it is not optimized by the last-mile delivery carrier.
The key steps involved in the entire flow process of last-mile delivery are.
- The sender’s requested orders are digitally recorded into the carrier’s system.
- The said order arrives at the transportation hub.
- The order is assigned to the delivery personnel with the relevant information (like a recommended route and recipient’s locations).
- Orders are scanned for the purposes of record-keeping and then loaded on the delivery trucks.
- The order is then delivered to the intended recipient.
- The delivery personnel then records and updates the delivery status.
One software vendor, FarEye, publishes a longer guide to last-mile operations, linked below:
https://www.getfareye.com/insights/blog/last-mile-delivery-guide.
That sounds pretty doable, so where does the last-mile problem lie?
The irony with last-mile delivery is that it sure is the process that determines the satisfaction of the end consumer, but it could also prove to be a rather expensive process for sellers to undertake.
No seller would want to leave their customers unsatisfied, and so, they even undertake the extra costs to ensure efficient last-mile delivery. However, in the process, most sellers forget to optimize the process, eventually incurring all the extra costs on their own. That is the last-mile problem in brief.
Optimization: The ultimate solution to the increasing last-mile delivery costs
Breaking down each element of cost that goes behind the process of last-mile delivery might not be very helpful because there still will be a lot of gray areas. However, as a reverse mechanism, if you instead optimize the already incurring costs, you can realize significant savings month on month.
This amount that you save each month because of optimizing the last-mile delivery process, including enhancing last mile carrier tracking strategies, will then help you understand all the extra money you have been spending on the process.
Last-Mile Delivery Trends to Watch
Last-mile delivery has become much faster since this article was first published in 2020, and it keeps changing as retailers test new vehicles, delivery points and software.
Here are some trends that organizations have chalked to make the best of their delivery processes and to actualize the ultimate goal of customer satisfaction. These trends (along with others that evolve) will play a definite role in the last-mile delivery processes of the future too.
Quick Order Fulfillment
We live in a world of instant gratification. If you want to speak to your friend even countries apart, it can be achieved at the tips of your finger. Hence, consumer behavior, as a whole, has become rather impatient and everybody wants to have their orders delivered as soon as possible; in some cases within a day, if not on the same day.
In order to stay ahead of the curve, even the last-mile carriers need to fulfill this expectation. This entire turn-around process of fulfillment becomes very easy and rapid with the implementation of technology.
Enabling Order Traceability
Most last-mile carriers are increasingly understanding the importance of enabling traceability and tracking of the shipped order. Tracking and traceability have become essential elements that assure a package is properly counted for. This is rather important because it avoids potential confusion around a lost package.
Live-tracking through GPS further adds to the feasibility of monitoring the real-time location of a package and a fleet driver; all of it contributing to increased awareness on the carrier as well as the user end.
Other similar additional features like proof of delivery and tracking information helps reduce the potential disputes that can otherwise take place between a consumer and a shipper.
Self-Sustaining Delivery Ecosystem
A lot of medium and big players in the e-commerce industry have now shifted to an in-house delivery system. The biggest, obvious example here being Amazon. With an in-house delivery system, the retailer doesn’t have to depend on a third-party carrier to be able to effectively ship the product packages; they do it on their own.
With in-house/self-sustaining delivery systems, the company essentially builds its own fleet and hires drivers on their own payroll. This primarily reduces dependencies and cuts down a lot of costs for the companies.
The in-house delivery system also, obviously, is reliant on the use of technology which might come across as a big first-time cost; but it is worth the money saved due to it in the long run.
Micro Warehousing: Renting of Additional Warehouse Spaces
Renting additional spaces and converting them into your company’s warehouse can further help the fulfillment of one’s delivery orders. This is simply because, with more volume of orders, one obviously will need more space to be able to fulfill the increased orders.
With more establishments dedicated to fulfilling orders, one can also segregate them on the basis of the kind of delivery they’d be used for. For example, one-day, same-day (useful for companies that sell perishable items such as groceries), and no-rush delivery warehouses.
Deliveries Through Robots and Drones
When we spoke about the evolution of technology being a continuous process, this is what we were referring to. Both are already in commercial use, though on a small scale compared with van and bike delivery. According to Wikipedia’s entry on the company, Starship Technologies launched commercial sidewalk-robot deliveries in 2017 and reported 9 million deliveries by October 2025, mostly on university campuses and in selected towns in the US and Europe.
As we have already established, human intervention is one of the biggest facets that cause delays in last-mile deliveries and makes the process much tricker. You cannot control issues like unavailability of delivery personnel or their inability to work a particular shift but that elements should be quite controllable with robots and drones.
Besides, human involvement also means a lot of labor costs in the form of salaries. With the advent of robots and drones, that aspect will be easier to handle too.
FAQs: Last-Mile Delivery Trends and Tips for Success
How to improve last-mile delivery?
Here are some of the ways to improve last-mile delivery services.
- Planning ahead.
- Optimized routing and mapping of the fleets.
- Flexibility with delivery options.
- Automation of the dispatch process.
- Consistent communication with the consumers.
- Verified, electronic proof of deliveries.
- Live tracking and Updates.
Does Amazon use drones for last-mile delivery?
Amazon Prime Air is Amazon’s drone delivery service. Amazon received an FAA Part 135 air carrier certificate in August 2020 and began commercial drone deliveries in December 2022 in College Station, Texas, and Lockeford, California. As of October 2026, its MK30 drones carry packages of up to 5 pounds and typically deliver within 60 minutes of ordering, according to Wikipedia’s summary of Amazon’s announcements; the under-30-minute and 15-mile figures quoted in earlier versions of this answer do not match the service’s published terms. So yes, Amazon uses drones for some last-mile deliveries, but only in a handful of areas.
What companies are reliable last-mile delivery players in India?
Far Eye (FarEye) is a delivery management software company founded in 2013 and based in Noida, India. As of October 2026 its homepage does not publish a total customer count, so the earlier “over 150 enterprises” figure should be treated as dated.
Far Eye’s software covers delivery scheduling, order allocation, route planning and real-time tracking and tracing. It is a software platform rather than a courier, so it is one option among several for businesses that run their own fleets or manage multiple carriers.
FarEye’s last-mile delivery software is used by retailers and carriers to plan routes and track deliveries; businesses should compare it with other delivery management platforms and with full-service couriers such as Delhivery before choosing.
Why Is Last-Mile Delivery So Expensive?
Last-mile delivery is expensive because the cost of the trip is spread over very few parcels. A truck moving goods between warehouses carries thousands of items on one route; a delivery van in the last mile stops dozens of times, often for a single package, and pays for the driver’s time, fuel and parking at every stop.
A widely cited industry estimate puts the last mile at about 53% of total delivery cost. Treat that figure as an order of magnitude rather than a precise current statistic: the real share varies by country, parcel size, delivery density and carrier.
The main cost drivers are:
- Low drop density: rural routes and scattered suburban addresses mean more miles per parcel.
- Failed deliveries: a missed customer means a second attempt, a return to the depot or a trip to a pickup point.
- Urban congestion: traffic, parking and building access slow down dense city routes.
- Speed promises: same-day and next-day options leave less time to batch orders into efficient routes.
- Returns: collecting items back from customers adds a reverse journey (see our guide on handling common reverse logistics issues).
Last-Mile Delivery Options Compared
Retailers rarely rely on a single method. The table below compares the common last-mile options and where each one fits.
| Option | How it works | Best for | Main drawback |
|---|---|---|---|
| Doorstep delivery | A driver brings the parcel to the customer’s address | Most consumer orders | Failed attempts when nobody is home |
| Parcel lockers | The parcel goes to a secure locker the customer opens with a code | Dense cities and apartment buildings | The customer must travel to the locker |
| Pickup points | A partner shop or store holds the parcel for collection | Cutting failed deliveries and cost per parcel | Less convenient than home delivery |
| Same-day or on-demand delivery | Orders are dispatched within hours from nearby stock | Groceries, urgent items, food | Highest cost per order |
| Cargo bikes and small electric vans | Low-emission vehicles cover short urban routes | City centers with traffic or emission rules | Limited range and load size |
| Drones and sidewalk robots | Autonomous vehicles carry small parcels short distances | Light items in approved service areas | Small payloads and limited regulatory approval |
Where Drone and Robot Delivery Stand Today
Drone and robot delivery moved from tests to commercial service in the years after this article was first written, but both remain small next to conventional delivery.
- Amazon Prime Air: commercial deliveries began in December 2022. The Lockeford, California, service ended in April 2024, service in the West Valley Phoenix area of Arizona launched in November 2024, and Richmond, Texas, followed in May 2026. A service in San Salvo, Italy, launched in December 2024 and ended in December 2025. In October 2025, two MK30 drones collided with a construction crane in Arizona, prompting FAA and NTSB investigations and a temporary pause. Prime Air had completed roughly 16,000 deliveries by February 2026, according to Wikipedia.
- Starship Technologies: its sidewalk robots began commercial deliveries in 2017. By October 2024 more than 2,000 robots operated in over 100 locations in the United States, the United Kingdom, Germany, Finland and Estonia, and the company reported 9 million deliveries in October 2025.
For most businesses, the practical takeaway is that drones and robots are not yet a replacement for drivers; they are an add-on in specific, approved areas. For a broader look at business uses of drones, see ways to improve your business with drones.
How to Choose a Last-Mile Delivery Partner
Choosing a last-mile partner comes down to coverage, reliability and data. Before signing with a courier or a delivery software platform, check:
- Coverage: does the carrier serve all the pin codes or ZIP codes your customers live in, including rural areas?
- Delivery speed options: can it offer same-day, next-day and standard tiers at different prices?
- Tracking and proof of delivery: does it provide live tracking links, photo or signature proof and automatic customer notifications? A unified view across carriers helps, as explained in our article on unified last mile carrier tracking.
- Failed-delivery handling: how many attempts are included, and can parcels be redirected to a locker or pickup point?
- Returns: does it collect returns, and at what cost?
- Integration: does it connect to your store platform or order management system without manual data entry?
In India, businesses typically choose between full-service couriers and software platforms. Delhivery, founded in May 2011 and headquartered in Gurgaon, is a logistics company that handles delivery itself and listed on the BSE and NSE in May 2022. FarEye, founded in 2013 and based in Noida, sells delivery management software that companies use to run their own or third-party fleets. For more options, see our list of eCommerce shipping solution providers in India.
Common Last-Mile Delivery Mistakes
- Promising speed the network cannot hit: a missed delivery promise frustrates customers more than an accurate, slightly longer estimate.
- Planning routes by hand: manual routing wastes miles once a fleet has more than a few vehicles.
- Ignoring failed deliveries: without lockers, pickup points or customer time slots, repeat attempts quietly raise costs.
- Poor communication: customers who receive no tracking link or delivery window call support and are more likely to miss the driver.
- Treating the warehouse separately: slow picking and packing pushes the whole last mile later; see how to make your warehouse more efficient.
Frequently Asked Questions
What is last-mile delivery?
Last-mile delivery is the final step of the shipping process, when a parcel travels from a local hub, store or warehouse to the end customer’s address, locker or pickup point.
What is the difference between first-mile and last-mile delivery?
First-mile delivery moves goods from the seller or manufacturer to the first transportation hub, while last-mile delivery moves them from the final hub to the customer. The middle mile covers the trips between hubs and warehouses.
Why is last-mile delivery the most expensive part of shipping?
Last-mile delivery is costly because each stop usually serves only one or a few parcels, so driver time, fuel and failed delivery attempts are spread over very few items. A widely cited industry estimate puts it at about 53% of total delivery cost.
Are delivery robots and drones actually used?
Yes, but on a small scale. Starship Technologies reported 9 million sidewalk-robot deliveries by October 2025, and Amazon Prime Air had made roughly 16,000 drone deliveries by February 2026 in a few US service areas.
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