Last Mile Delivery Market in the United States - Segmented by Service Type - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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Last Mile Delivery Market in the United States - Introduction

The Last Mile Delivery Market in the United States is proliferating owing to the rapid growth in the e-commerce industry. The growing consumer preferences for faster deliveries and Omni channel retailing gaining popularity are some other factors that drive the market. Apart from these, the economy, GDP per capita, urbanization, and the logistics infrastructure in the country are some of the underlying factors that drive the online sales and the last mile delivery market.

In order to accommodate the growing demand, the companies are expanding its resources to increase the number of deliveries per day. With this, alternatives, such as click-to-collect locations and local regional carriers are also gaining popularity.

Besides these, the last mile delivery market is associated with some challenges, such as traffic in the urban areas leading to high fuel costs and the regulations of the government on trucks regarding the environmental concerns, which may hamper the growth of the market up to some extent. The lack of proper tracking systems and transportation management systems (TMS) to handle increasing services may lead to high costs effecting the final mile delivery market.

Last Mile Delivery - Crucial Piece of Logistics

The last mile delivery, being a final leg of logistics is very important, time consuming and also takes a major share in the overall delivery cost. Unlike the normal shipping, where large amount of cargo is transported along a fixed route, the last mile delivery involves transportation of goods in multiple routes with low parcel sizes. This cost has been vital for the retailers as the customers’ expectations toward the fast and free delivery are growing. So, the companies and retailers are looking at advanced technological solutions and new delivery models to improve the overall process. According to various industrial estimates, the costs associated with the last mile stands around 50% of the overall logistics cost.


E-Commerce - Biggest Driver

The rapid growth in the e-commerce is the major driver of the last-mile logistics in the United States. In 2017, the online retail sales in the United States reached USD 453.5 billion registering a growth of 16% from USD 390 billion in 2016. The physical retail store sales increased by 3.4%. The online retail sales accounted for 8.9% of the total retail sales in 2017. This represents the huge potential that still exists for the penetration of the e-commerce fostering the demand for final mile logistics and fulfillment.

Refrigerated Last Mile Delivery

Cold storage last mile logistics is one of the emerging sectors and the growing consumer preferences for fresh products is driving the sector. The e-commerce industry is responsible for the massive growth of perishable goods sales. According to industrial sources, the share of online grocery sales stands at around 2%, which is expected to reach 20% of grocery retail by 2025. The growing demand is also leading to a rise in the refrigerated warehousing, which is estimated to be worth USD 17.98 billion in 2017.

The US online grocery sales stood at USD 14.2 billion in 2017, which is expected to reach USD 30 billion by 2021. The business for meat kits is expected to grow by 25-30% in the next five years, which stands at USD 2.2 billion in 2017. Pharmaceuticals and Flowers are others, which boosts the cold chain logistics. In April, 2017, Walmart acquired Parcel, a last-mile delivery start-up based in New York for last-mile delivery of general merchandise and fresh and frozen groceries to the customers in New York City.

Technology is set to disrupt the Industry

With rapid growth, the last mile delivery also involves challenges in terms of increasing the effectiveness and reducing the costs by optimization. The technologies, such as automation, robotics, data analytics, and Internet of Things (IoT) reshape the way the products are catered by the retailers to consumers. As the consumers are expecting transparency throughout the fulfillment process, the software services are also crucial in providing better customer experience. The technologies, such as Blockchain are expected to transform the transportation management.

Some of the Key Developments in Last Mile Delivery Market in the United States

  • Apr 2018: Ryder System Inc. acquired MXD Group, last mile delivery carrier for USD 120 million to expand the growth of e-commerce. This acquisition includes 109 MXD e-commerce fulfillment facilities across the United States and Canada, including 21 MXD-operated cross dock hubs, 16 dedicated operations, and a network of 72 third-party agent facilities.
  • Mar 2018: DHL announced launch of its Parcel Metro service in seven US cities in 2018 to meet the growing e-commerce demand for same day and next day delivery. In order to ensure maximum flexibility and capacity over the last mile, the service utilizes customized software that allows DHL e-commerce to create a ‘virtual delivery network’ of local and regional delivery vendors and crowd-sourced providers.

Some of the Key Players in Last Mile Delivery Market in the United States

Some of the major players include United Parcel Service of America, Inc., FedEx Corporation, USPS (United States Postal Service), XPO Logistics Inc., DHL International GmbH, Ryder System Inc. / MXD Group, Schneider National Inc., and J.B. Hunt Transport Inc.

Last Mile Delivery Market in the United States, Report Summary




Last Mile Delivery Market in the United States

Study Period

2014 - 2023

Market Size in 2017

Provided in the Full Report

Market Size in 2023

Over USD 65 billion

Growth Rate

Provided in the Full Report

Largest Market Share

B2C accounts for major share of the market

Key Developments

  • TransForce, Canada’s largest trucking operator acquired Hazen Final Mile, US based last mile delivery company.
  • Ryder System Inc. acquired MXD Group, last mile delivery carrier for USD 120 million to expand the growth of e-commerce.
  • DHL announced launch of its Parcel Metro service in seven US cities in 2018 to meet the growing e-commerce demand for same day and next day delivery.

Companies Covered

United Parcel Service of America, Inc., FedEx Corporation, USPS (United States Postal Service), XPO Logistics Inc., DHL International GmbH, Ryder System Inc. / MXD Group, Schneider National Inc., J.B. Hunt Transport Inc., and others

Report Offerings

Latest trends in the US Last Mile Delivery Industry, growth prospects, industry competitiveness, major players, value/supply chain, regional market share, and forecast to 2023.


Reasons to Purchase the Report

  • To study current and future market outlook in the developed and emerging markets
  • Analyzing various perspectives of the market with the help of Porter’s five forces analysis
  • Detailed analysis of the segment that is expected to dominate the market
  • Regions that are expected to witness the fastest growth during the forecast period
  • Identify the latest developments, market shares, and strategies employed by the major market players
  • 3-month analyst support, along with the Market Estimate sheet (in Excel)

Report Customization and Benefits

This report can be customized to meet the desired requirements. Please connect with our analyst, who will ensure that you get a report that suits your needs.

1. INTRODUCTION                          

                1.1 Scope of the Market               

                1.2 Market Definition     

                1.3 Executive Summary

2. RESEARCH METHODOLOGY                  

                2.1 Study Deliverables  

                2.2 Study Assumptions

                2.3 Analysis Methodology           

                2.4 Research Phases     

3. MARKET INSIGHTS                   

                3.1 Current Market Scenario       

                3.2 Technological Trends            

                3.3 Insights on E-Commerce Industry   

                3.4 Insights on Trucking Industry           

                3.5 Insights on Warehousing and Distribution Centers  

                3.6 Insights on Refrigerated Last Mile Delivery   

                3.7 Insights on Return Logistics              

                3.8 Insights on Deliveries during Festive season               

4. MARKET DYNAMICS - (Drivers, Restraints, Opportunities)                        

                4.1 Rapidly Growing E-Commerce and Onichannnel retailing gaining popularity drives the market             

                4.2 High cost arising from fuel costs and road congestion in urban areas may hamper the growth of the market               

                4.3 Crowdsourced Delivery, Advancements in Technology and Growing consumer preference for same-day delivery presents opportunity   

                *Not Exhaustive              


                5.1 By Service Type        

                                5.1.1 B2B (Business-to-Business)

                                5.1.2 B2C (Business-to-Consumer)

                                5.1.3 C2C (Customer-to-Customer)

6. COMPETITVE LANDSCAPE                     

                6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements 

                6.2 Market Concentration Overview        

                6.3 Strategies Adopted by Major Players              


                7.1 United Parcel Service of America, Inc.             

                7.2 FedEx Corporation  

                7.3 USPS (United States Postal Service)

                7.4 XPO Logistics Inc.    

                7.5 DHL International GmbH      

                7.6 Ryder System Inc. / MXD Group        

                7.7 Schneider National Inc.         

                7.8 J.B. Hunt Transport Inc.        

                7.9 ArcBest Corporation              

                7.10 SEKO Worldwide LLC (SEKO Logistics)         

                7.11 LaserShip Inc.         

                7.12 Postmates Inc.*         

                *List Not Exhaustive      

8. Other Companies (Delivery Companies, Fulfillment Companies, Software providers, etc) Covered in the Report Include                               

                8.1 Averitt Express Inc.,  Estes Express Lines, Instacart, Final Mile Logistics, Fidelitone Inc., C.H. Robinson Worldwide Inc., Uber Eats, Caviar Inc., DoorDash Inc., Grubhub Inc., Deliv, Cargomatic Inc., Cargo Chief, Convoy, Darkstore, SHipHawk, Bringg Delivery Technologies Ltd., Narvar Inc.*     

                *List Not Exhaustive      

9. Appendix                       

                9.1 Retail sector share of GDP   

                9.2 E-commerce sales as share of GDP  

                9.3 E-Commerce Sales by Type of Products        

                9.4 Domestic and International Road Freight Transport Statistics            

10. DISCLAIMER                              

**Subject to availability on public domain

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