Market Size of Australia Last Mile Delivery Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 10.55 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Australia Last Mile Delivery Market Analysis
The Australia last mile delivery market is expected to record a CAGR of more than 10.55% during the forecast period, 2022-2027.
The COVID-19 pandemic caused worldwide lockdowns, disrupted commercial activities and challenged the economy but created widespread opportunities for the last mile delivery market in Australia. There was a shift in consumer buying behaviour causing a surge in e-commerce retail sales fueling the powerful opportunity for logistics industrialists to push through real and lasting change. COVID-19 triggered exponential growth in e-commerce and spurred many smaller retailers to utilize the supply chain mechanism to deliver their products directly to consumers. According to the Australian Bureau of Statistics, online sales in Australia registered a 55% rise in December 2020 compared to the same period last year. Australia Post's Online Shopping Report published in January 2021 reveals that over 5.6 million Australian households shopped online in December 2020, a 21.3% growth compared to the 2019 average. A 2020 global study showed on average 22% of people shopped online weekly, up from 17% in 2019, Australia exceeded the global average with 26.5% giving surplus opportunities to logistics sector.
The online retailing boom has driven logistics occupiers in Australia to consider different ways to manage last mile logistics requirements in the country. Amid E-commerce growth rates, the last mile has become a critical aspect of the supply chain. Demand for 'last mile' is led by grocery giants like Coles and Woolworths. Coles reported 48% growth in e-commerce sales in their 2021 half yearly result, generating USD 1.0 billion in sales revenue. Similarly, Woolworths reported USD 1.8 billion in e-commerce sales and 91.8% growth rate over H1 2020. Woolworths also accounted that average weekly traffic to digital assets increased 62.4% to 20.2 million visits per week, as customers increasingly looked to engage digitally as part of their shopping experience.
Consumer demand for omnichannel offerings has accelerated as Australia continues to close the gap on leading e-commerce countries. Gaining market share will require a customer-centric and economically sustainable supply chain. Companies such as Australian based, DriveYello, Zoom2U, Sendle and Sherpa are stepping in to fulfil 'the last mile' requests. These companies allow private drivers/cyclists to become couriers and thus have an incredible network to make point-to-point deliveries. And with an easy to use interface, an offer of USD 11 same day delivery (and 3 hours in metropolitan regions), these start-up couriers are disrupting 'the last mile' market for the benefit of online retailers. Uber is also venturing into the space with UberRUSH - effectively utitlising their network of Uber drivers to act as couriers for retailers. The ongoing evolution of the supply-chain will continue to drive the pursuit of 'last mile' logistics solutions.
