Last Mile Delivery Statistics: Key Trends & Insights for 2025

Introduction

Today’s e-commerce ecosystem is evolving at an unprecedented rate. Here, last-mile delivery is no longer a simple hand-off at the customer’s doorstep, but a strategic differentiator. As more consumers demand faster, more transparent, and flexible delivery options, businesses are realizing that mastering this final leg of the supply chain is key to staying competitive.

The last-mile delivery market is undergoing significant transformation in 2025, and businesses that fail to align with emerging trends and consumer expectations risk losing both customers and market share. In this article, we explore key last-mile delivery statistics that help decode the direction this space is taking and what it means for logistics operations.

Understanding last-mile delivery

Last-mile delivery refers to the final segment of the fulfillment process, where goods are transported from a warehouse, distribution center, or local hub to the customer’s doorstep. Although it may represent the shortest portion of a package’s journey, it is the most complex and expensive phase, influenced by factors such as urban congestion, delivery time slots, labor availability, and rising consumer demand for fast and accurate deliveries.

This critical component of supply chain management encompasses various sub-processes, including real-time tracking, route planning, vehicle dispatch, proof of delivery, and customer communication. Businesses today are investing in advanced last-mile delivery software and digital tools to manage these operations effectively. Key elements include:

• Route Optimization: Reducing miles traveled, fuel usage, and delays.

• Real-Time Tracking: Enhancing visibility and reducing failed delivery attempts.

• Returns Management: Streamlining reverse logistics for customer satisfaction.

• Driver Management: Tracking delivery agent productivity and timeliness.

• Customer Communication: Delivering notifications, ETAs, and post-delivery feedback.

The state of the industry: Last-mile delivery statistics 2025

The last-mile delivery market is expanding rapidly as businesses compete on delivery experience, cost effectiveness, and operational efficiency. Below are 25 statistics that highlight how the industry is evolving in 2025.

1. $258.68 billion will be the last mile delivery market size by 2030

The last-mile delivery market is forecast to grow from $132.71 billion in 2022 to $258.68 billion in 2030, indicating sustained momentum in e-commerce and rising customer expectations for prompt deliveries. Businesses must invest in scalable infrastructure and reliable delivery services to meet this demand. (Source)

2. 53% of total delivery costs are attributed to the last mile

Over half of all delivery costs are attributed to last-mile services, primarily due to labor, vehicle maintenance, urban congestion, and tight delivery windows. Optimizing last-mile delivery is now a cost-control imperative for logistics teams. (Source)

3. 5% of deliveries fail, costing $17.78 each

Failed deliveries due to incorrect addresses, missed time slots, or poor coordination result in significant losses. This highlights the urgent need for last-mile delivery software and enhanced customer communication. (Source)

4. 98% of consumers link delivery to brand loyalty

Almost every consumer surveyed considers last-mile delivery part of their overall customer experience. Poor performance here directly affects customer retention and future business. (Source)

5. 84% will not repurchase after a bad delivery experience

Customer loyalty is fragile. If delivery fails to meet expectations, 84% of consumers are unlikely to buy from the same brand again. Delivery experience is now a core driver of customer satisfaction. (Source)

6. 66% of shoppers expect same-day delivery

Same-day delivery is now the norm rather than a premium option. Businesses are adjusting their logistics operations to include hyperlocal warehousing and micro-fulfillment centers in order to meet this demand. (Source)

7. 37% of providers struggle to find qualified drivers

Labor shortages in last-mile delivery services continue to be a top concern. As demand grows, providers are turning to gig workers, automation, and electric delivery trucks to maintain coverage. (Source)

8. 47% of consumers want greater delivery visibility

Nearly half of consumers cite a lack of visibility as a reason for dissatisfaction. Real-time tracking and proactive communication are vital features of any modern last-mile delivery software.

9. 41% of experts prioritize data analysis in last-mile logistics

Business leaders recognize that data is key to refining delivery operations. Analytics helps identify inefficiencies, improve delivery routes, and enhance customer satisfaction. (Source)

10. 76% of consumers will pay more for sustainable delivery

Eco-consciousness is influencing consumer behavior. More than three-quarters of shoppers are willing to pay a 5% premium for sustainable last-mile solutions, such as EV fleets or consolidated routes.

11. Over 25% of delivery failures are due to poor address data

Inaccurate or outdated address information remains a leading cause of failed delivery attempts. Integrating verification APIs and AI-powered address recognition can significantly reduce this. (Source)

12. 81% of retailers are increasing investment in last-mile projects

Retailers understand the competitive edge gained by optimizing last-mile delivery. Increased budgets are being allocated to last-mile delivery software, automation tools, and customer-centric delivery models. (Source)

13. 48% of customers complain about delivery on social media

Negative feedback spreads fast. Almost half of Gen Z and millennial customers use social platforms to highlight poor delivery experiences, directly impacting brand reputation. (Source)

14. Last-mile delivery software market to hit $3.03 billion in 2025

Software solutions for last-mile delivery are growing at a compound annual growth rate (CAGR) of 12.3%, driven by the increased need for automation, route optimization, and predictive analytics.

15. 32% of eCommerce deliveries take longer than promised

Delivery delays are still common, and they erode trust. Businesses must streamline their last-mile operations to meet or exceed delivery time promises. (Source)

16. 79% of consumers expect free return shipping

Returns are integral to e-commerce, and offering free returns is becoming a standard industry practice. Last-mile logistics providers must develop efficient reverse logistics capabilities to ensure seamless returns and exchanges. (Source)

17. 30-35% of the delivery cost is tied to the last-mile segment

In many cases, the final mile accounts for a third of total delivery spend. Businesses are under pressure to deliver cost-effective, scalable, and responsive last-mile delivery services.

18. 90% of consumers say customer service drives decisions

Customer service now encompasses every touchpoint, including delivery. Prompt deliveries, accurate tracking, and smooth returns all impact how customers perceive service quality. (Source)

19. 59% choose retailers offering transparent delivery options 

Consumers increasingly base purchasing decisions on delivery experience. Offering slot selection, real time tracking, and flexible returns improves conversions. (Source)

20. 73% of eCommerce providers focus on last-mile communication 

Retailers are prioritizing delivery communication to manage expectations, reduce customer complaints, and increase overall delivery experience ratings. (Source)

21. 46% of logistics companies are using cloud-first delivery management

Cloud-first strategies in delivery management are improving scalability, visibility, and coordination across multiple delivery points.

22. 25% of operational costs are driver wages and benefits

Labor remains the largest expense in the marginal cost per mile. Solutions like route optimization and delivery scheduling are helping businesses contain these costs. (Source)

23. 20% growth expected in the delivery robot market

Automation continues to reshape the last-mile delivery market. Delivery robots are projected to grow at a 20.4% annual rate, with applications in urban and campus environments.

24. 60% of millennials shop online for sustainability reasons 

The environmental impact matters more than ever, especially to younger shoppers. Brands offering low-emission delivery options are winning long-term loyalty. (Source)

25. 25% reduction in delivery costs via load pooling and route optimization 

Dynamic scheduling, route planning, and shipment consolidation are generating major savings for last-mile delivery services. These innovations improve delivery efficiency and environmental impact. (Source)

Why last-mile delivery matters, and how businesses can stay ahead

Last-mile delivery is a defining part of the brand experience. For businesses, particularly in retail and e-commerce, this final phase has a direct impact on everything from conversion rates to long-term customer loyalty. A single failed or delayed delivery can have disproportionate consequences, damaging a brand's reputation and prompting consumers to switch to competitors. In contrast, reliable, real-time, and flexible delivery options can elevate the entire purchase journey and drive customer retention. In a competitive landscape, where consumers value convenience as much as price, getting the last mile right has become a strategic necessity.

However, executing an efficient and scalable last-mile delivery operation is easier said than done. Businesses face a unique set of challenges, ranging from rising delivery costs, driver shortages, and failed delivery attempts to complex reverse logistics and environmental pressures. Urban congestion, fluctuating fuel prices, and growing expectations for same-day delivery further complicate matters.

The reality is that many companies, especially those scaling rapidly, struggle to meet these demands without burning cash or compromising service quality. However, businesses can mitigate many of these issues by adopting technology, implementing more effective planning, and designing customer-centric delivery.

Key pointers to keep in mind

• Last-mile costs account for more than 50% of total logistics spend. Hence, optimizing this phase can drive significant cost savings.

• Delivery delays and failed attempts not only increase operational expenses but also negatively impact customer satisfaction metrics.

• Modern customers expect flexible delivery options, real-time tracking, and seamless returns, and companies must deliver on these expectations.

• Driver shortages and urban traffic are ongoing challenges; businesses must explore automation and multimodal transport strategies.

• Sustainability in last-mile delivery is becoming a key differentiator, with EVs, route consolidation, and greener packaging gaining favor.

• Without robust last-mile infrastructure, even the most sophisticated front-end experience can collapse at the final step.

Discover how ClickPost can optimize your last-mile operations.

In a competitive market where last-mile delivery operations define customer loyalty, ClickPost delivers the technology that modern businesses need to thrive. As demand for speed, transparency, and sustainability grows, ClickPost equips retailers and logistics providers with intelligent automation to drive cost-effectiveness and a superior delivery experience.

ClickPost transforms the last mile from a logistical burden into a strategic opportunity. Book a free demo today and explore how our platform can help you reduce costs, delight customers, and scale efficiently in 2025.

Closing thoughts: The future is won at the final mile

Gone are the days when last-mile delivery was merely the tail end of logistics. Today, the last mile is where brands build loyalty, win repeat business, and outperform competitors. In 2025, the mile delivery market is defined by its complexity and opportunity. Brands that embrace data, sustainability, and automation will find themselves ahead, while those clinging to legacy systems risk customer churn and rising operational costs.

The trend analysis reports suggest that the path forward lies in bold innovation, human-centric delivery models, and a willingness to rethink how goods reach customers' doorsteps. As businesses recalibrate their strategies for the years ahead, the final mile is proving to be the ultimate competitive advantage for customer trust, rapid growth of a brand, e-commerce sales, and long-term profitability.