Best 10 Last Mile Delivery Companies and Startup in eCommerce

1. Introduction to Last-Mile Delivery Companies and Startups in Ecommerce

Online commerce has changed the way people shop forever. Last-mile delivery companies are the secret behind making the eCommerce revolution a reality. The ever-evolving eCommerce ecosystem has skyrocketed customer expectations with the introduction of Amazon Prime’s Same Day delivery service.

In light of growing customer demands in terms of faster, same-day, next-day, and on-demand delivery, last-mile delivery companies have geared up to help eCommerce businesses meet customer demands. 

Last-mile delivery is the costliest part of eCommerce shipping operations and is also fraught with many difficulties and challenges. The main roadblocks to ensuring a smooth last-mile delivery experience are failed deliveries or delivery exceptions, delayed orders, lack of proper order tracking mechanisms, etc.

These pain points make last-mile delivery a problematic aspect of eCommerce shipping. Customer satisfaction and customer retention are every online business’s goals. Therefore, e-commerce enterprises must do their best to enhance customer satisfaction by streamlining their last-mile delivery operations.

This article will list the top last-mile delivery companies that provide shipping services to eCommerce customers. We will also take a detailed look at what last-mile delivery means, what challenges it faces, and whether or not picking a last-mile delivery company is right for your business. Let’s start!

2. What is Last-Mile Delivery in eCommerce Shipping?

Last-mile delivery, or final mile delivery, as the name suggests, is the final leg of the shipping process. The forward logistics, or the forward journey of a product from a warehouse or seller to the customer, is divided into three logistics phases - the first mile, the middle mile, and the last mile.

Last-mile delivery begins when an order is picked up from the hub of the destination city and ends with the order being delivered to the customer. The last mile delivery is carried out by a delivery or carrier agent who picks up the order and carries it in a delivery vehicle to the customer.

3. Top 10 Last Mile Delivery Companies and Startups for Online Business [Updated List 2023]

Too many logistics and courier companies provide last-mile delivery services to eCommerce companies. We have decided to shortlist the industry-leading last-mile delivery companies & startups so that it’s easier for you to pick one that suits your needs.

3.1) FedEx 

FedEx needs no introduction to e-commerce logistics and supply chain management. FedEx is one of the largest eCommerce shipping giants, with a vast network of warehouses and carrier vehicles across the globe. In 2020, FedEx doubled up as the last-mile delivery company by opening up last-mile delivery solutions for eCommerce companies. 

FedEx is equipped to carry items weighing upto 68kgs. It is also authorized for cold chain supply chain management and transportation of dangerous goods like lithium batteries and other electronic parts. FedEx can handle customs on arrival and provide expedited express shipping for urgent orders.

3.2) ClickPost 

ClickPost is an intelligent logistics SaaS platform that automates last-mile delivery shipping processes for eCommerce stores. ClickPost is pre-integrated with 150+ carriers, so your orders can reach anywhere globally.

It offers warehouse management, inventory management, and shipment tracking for online businesses. Like a last-mile delivery company, it sends order updates to customers and gets feedback from customers after the completion of the order fulfillment process.

For companies looking to sort out product returns, ClickPost can provide excellent returns management services, starting with the customer placing a return request on a self-serve returns portal. The page also collects feedback on the reason for the return. The returns management module also enables real-time tracking of orders.

3.3) USPS 

USPS (United States Postal Service) is the official government-led postal service system of the United States. It offers last-mile delivery solutions to eCommerce businesses in USA or U.S.A. at extremely reasonable rates.

It works through its massive connection of post offices across the country and makes doorstep deliveries. Even FedEx and UPS use USPS’s amazing supply and delivery network to provide last-mile deliveries for their customers. 

USPS is one of the few last-mile courier delivery companies operating worldwide with no holidays. It provides some of the cheapest rates on domestic and international shipping. It is known to be one of the most economical ways of shipping small and medium-sized packages.

3.4) UPS 

United Parcel Service is a logistics and parcel delivery company that can also be called a last-mile delivery company because of its solutions for online retailers in managing last-mile delivery woes. UPS is operational throughout the US and in several other locations worldwide.

It manages large warehouses and specialized delivery fleets that can carry orders across land, sea, and water. UPS SurePost offers last-mile delivery solutions to customers with the help of USPS’s vast postal infrastructure. However, the company is currently trying to open up a last-mile delivery service of its own at even lower costs.

UPS features a shipping rate calculator on its website that can greatly help. Store owners can enter the shipment details like dimensions, weight, delivery address, pickup location, etc., to figure out approximate shipping rates. UPS also provides pallet boxes and other packaging materials on the website.

3.5) OnFleet 

OnFleet is a last-mile delivery company that offers eCommerce shipping services to hyperlocal delivery companies. With OnFleet, online businesses can connect with as many online marketplaces, inventory management systems, websites, and carriers as they want.

OnFleet sends automatic tracking updates to customers and enables real-time tracking of all orders. It also sends eCommerce companies Proof of Delivery (PoD) after every successful order fulfillment.

OnFleet uses RESTful shipping API to easily transfer data within the system and carriers. This makes for automated and faster delivery management. The Auto-dispatch engine automatically picks up the most urgent delivery assignment and automatically allocates drivers for seamless delivery. OnFleet uses route optimization to provide the fastest route to the customer address.

3.6) Track-POD 

Track-POD is a logistics and last-mile delivery management company that works entirely through a mobile app to provide last-mile delivery solutions to eCommerce stores. The Track-POD app integrates with online marketplaces and eCommerce selling sites to provide accurate EDDs to customers at the checkout window.

It also pushes for a green, paperless transaction by providing digital Proof of Delivery certificates that customers sign on the delivery agent’s mobile. This helps online businesses avoid a lot of unnecessary paperwork. 

Track-POD provides GPS tracking-enabled route planning software that determines dynamic ETAs. The last-mile delivery software helps plan resources better and monitors delivery performance based on several metrics.

Track-POD provides regular transport and vehicle inspection to eradicate any vehicle-related problems for maximum security. It performs regular safety checks and repairs at minimal costs.

3.7) StarShip 

StarShip Technologies uses robots to deliver orders to customers. Its services are a cross between hyperlocal and last-mile delivery solutions. StarShip Technologies has revolutionized last-mile delivery operations by bringing automation and security to package delivery.

The software works through an app which is also the key to opening the delivery robot’s cargo bay. This last-mile delivery company provides immediate ETAs as soon as an order is placed. 

StarShip Technologies provides the greenest shipping option to clients with self-driving robots delivering orders to the customer's doorstep. They provide superbly cost-effective shipping services for food and parcel delivery.

3.8) Purolator 

Purolator is a Canadian logistics and supply chain management brand that provides last-mile delivery solutions to global eCommerce businesses. Purolator guarantees on-time delivery for every shipment and helps online businesses stay ahead of the curve with their QuickShip feature.

QuickShip offers all-day, everyday shipping. You can expedite deliveries and reach your customers even before they expect you. Purolator offers upto 40% discount on shipping rates if you create an account with them.

Canadian businesses can use Purolator to deliver orders within two days or even the same day. Purolator can also transport heavier items through air, land, rail, or ocean freight forwarding fleets. An entrepreneur can buy shipping supplies and packaging materials like tape, boxes, bubble wrap, etc., from the Purolator website.

3.9) DHL 

DHL is a multinational logistics and parcel delivery company that has recently started to up its last-mile delivery game. DHL has numerous warehouses and distribution centers worldwide, allowing them to push out orders faster.

DHL acts as a last-mile delivery company by expediting the order fulfillment process, providing expected delivery dates, and allocating vehicles and drivers for making the drop. It also has a  shipping rate calculator on its website.

DHL provides around-the-clock customer care support and international specialist support for international orders. Most international DHL orders reach customers within 1 - 3 days. All shipping and delivery options include live order tracking. Customers are even notified on their emails and phones. DHL delivers to over 220 countries worldwide.

3.10) Postmates 

Postmates is a logistics and last-mile delivery company that provides flexible delivery services for online shoppers. Ecommerce companies can allow their customers to schedule deliveries when they are available. It also does a thorough validation check at drop-off that includes ID verification.

Postmates is equipped to carry and transport items of high value. Postmates also helps eCommerce businesses to add a delivery channel to their website or mobile app for easy handling.

Postmates provides excellent food delivery services to over 2500+ cities in the United States. It is owned by Uber and competes against the very popular restaurant food delivery services UberEats, GrubHub, DoorDash, etc. Postmates is mostly accessed through its mobile app for easier order placement and quick delivery.

4. How Does a Last-Mile Delivery Company Work?

A last-mile delivery company specializes in the final leg of delivery for products and parcels. This type of company is vital for ensuring that goods make it to their intended destination, often delivering items within a specific timeframe and geographical area.

Last-mile delivery companies come in handy for online retailers and other businesses that must ensure their customers receive their products as soon as possible.

A last-mile delivery company takes care of shipping processes beginning at the last mile. In most cases, a third-party logistics company (3PL) will manage the entire shipping operation of an eCommerce company.

A last-mile delivery company can easily integrate with various carriers and courier delivery companies to deliver orders to numerous locations in the shortest time. 

It can also tie up with online storefronts so that eCommerce companies can upload all their orders into one platform for easy order management. Last-mile delivery logistics companies can also provide accurate EDDs (Estimated Delivery Dates) at checkout on your online store.

By delivering orders on the date promised, eCommerce stores can gain customers’ trust and see increased footfall in their e-store. And finally, it goes without saying that last-mile delivery shipping companies and startups provide customers with real-time tracking features so they never feel out of the loop. 

5. Things to Ask Yourself Before Picking a Last-Mile Delivery Logistics Company

We strongly recommend hiring a last-mile delivery company to look after your shipping operations and better deal with last-mile delivery challenges. But we also believe that this is a decision that every eCommerce business has to make for itself.

Therefore, we have put together a list of questions every online entrepreneur should ask themselves before hiring a last-mile delivery company. We believe that answering these questions will also better understand your expectations from your last-mile delivery company.

5.1) How much of my shipping operations are affected by last-mile delivery?

5.2) What kind of delivery expectations do you want to set for your customers?

5.3) What is the cost of last-mile delivery operations for your eCommerce company?

5.4) Is there any way to reduce last-mile delivery costs without sacrificing quality and efficiency?

5.5) Do you want to oversee last-mile delivery operations on your own or outsource this shipping operation to a last-mile delivery company?

6. How to Choose a Last-Mile Delivery Carrier Company for an Ecommerce Store?

If you're an e-commerce business, you know how important it is to have a reliable and efficient last-mile delivery carrier company. But with so many options available, how do you choose the right one for your needs?

Below, we provide tips on finding the best last-mile delivery carrier for your business. We'll also discuss some of the factors you should consider when making your decision.

6.1) Shipping Costs

Looking at shipping costs is an obvious reminder. Last-mile delivery operations are fraught with difficulties. Therefore, it’s no wonder that last-mile delivery companies charge a decent sum for their exceptional services. Look at what your last-mile delivery company charges and weigh it against the services they offer to get a better picture of the deal.

6.2) Serviceability

Serviceability refers to the number of locations, zip codes, or areas a carrier or third-party logistics company delivers to. A last-mile delivery company should deliver to as many locations as you want to reach to benefit your business.

Speak to your last-mile delivery partner to ascertain if they cover the areas you want or if there is any way they can add those areas to their serviceable regions.

6.3) Order Tracking Feature

No matter the eCommerce business you are running, an order tracking feature is a must. Customers don’t want to stay in the dark about the location and whereabouts of their orders.

In the age of changing consumer needs and growing customer expectations, an online business that doesn’t prioritize its customers’ needs will lose big. Choose a last-mile delivery company with a decent order-tracking mechanism so clients can keep track of their orders.

6.4) Speed of Delivery

Many people confuse hyperlocal delivery with last-mile delivery. Even though hyperlocal and last-mile delivery shares the last or final mile of the shipping journey, they are not essentially the same. And neither are the delivery times the same. Hyperlocal delivery offers much faster order deliveries.

Still, last-mile delivery can be faster if carrier agents and logistic teams work together to avoid delays. Technology has a big part to play here by automating manual processes.

6.5) Payment Options

Lack of payment options during checkout can deter customers from completing their orders, resulting in cart abandonment. Take care that your last-mile delivery company offers several payment gateways to avoid such scenarios. Payment options include bank transfers, PayPal, credit points, UPI, etc.

6.6) Returns Management

Product returns in eCommerce are extremely common. Therefore, looking for a last-mile delivery company that provides returns management services is a good idea. It can take a lot of load off your shoulders by handling pickup and drop-offs, refund processing, reverse shipping, stock management, and other services.

A last-mile delivery startup with robust returns management services can help companies reduce the loss on product returns and turn them into profitable scenarios. A good return experience will make customers want to return to your store in the future.

6.7) Tech Abilities

A lot of last-mile delivery problems are caused because of manual handling and interventions. Managing an influx of orders, allocating them to the right carriers, and designating drivers to delivery vehicles puts too much pressure on the staff and ground force.

For all these reasons and better efficiency, last-mile delivery companies use highly advanced technology and software. This allows them to automate many shipping processes and reduces delays and losses. When choosing a last-mile delivery company, make sure they use the latest technology to make order fulfillment a breeze.

6.8) Shipment Insurance

When shipping products, it's important to protect your investment by ensuring that the items are properly insured. Many businesses purchase shipping insurance to cover losses if something goes wrong during transit.

However, not all companies offer this protection, so it's important to research your options before shipping. By understanding the different types of shipment insurance available, you can decide which policy is best for your business.

6.9) Customer Support

As an ecommerce business, you know that providing excellent customer care is essential for your success. Happy customers are more likely to return and make repeat purchases, so providing them with the best possible experience is important.

Customers expect to know where their product is at every step of the delivery cycle. If the order status is not updated for any technical glitch, they will look for ways to reach you. A customer support team can help soothe anxious customers by providing relevant order information. 

6.10) Customer Reviews 

If you are an ecommerce business looking for a shipping company to partner with, it is important to do your research first. A shipping company's previous track record can tell you a lot about how they operate and how reliable they are.

A last-mile delivery startup company that has a history of on-time deliveries and reliable service will be more likely to meet your expectations. Customer reviews on Capterra and g2 can help you understand if your chosen last-mile delivery startup is a good fit.

6.11) Weight Limitations and Shipping Restrictions

When shipping products to customers, it's important to be aware of weight limitations and other shipping restrictions. Knowing these and working around them can help ensure your products reach their destination safely and on time.

Not all last-mile delivery companies are equipped to handle heavy items or bulk shipments. If your business deals in such products, discussing it with your preferred carrier before signing the deal is particularly important. 

It’s also a good idea to discuss shipping restrictions, working days, and holidays in advance. You don’t want to be in the middle of sale season with no carrier to deliver orders to customers.  

7. Final Thoughts

Last-mile delivery is the costliest segment of eCommerce shipping. Mapping routes, assigning drivers to find the exact address, and making the delivery within the stipulated time are challenging. Yet, today’s customers want nothing less than perfection when ordering fulfillment. So, eCommerce companies must oblige. 

As industry experts, our honest suggestion for any eCommerce company is to outsource last-mile delivery operations, if not the entire shipping process, to a last-mile delivery company.

Not only is that immensely cost-effective and efficient, but it also leaves businesses with a lot more time to do what they do best. Create, network, and sell. We hope this article gave you an insider’s look into last-mile delivery and how last-mile delivery companies can help ease the process. We wish you the best of luck in your future endeavors!

8. FAQs on Last Mile Delivery Companies and Startups

1) What are the top last-mile delivery companies?

ClickPost, FedEx, UPS, and USPS are the top last-mile delivery companies and startups. SaaS companies like ClickPost can better assist online companies in automating their last-mile delivery operations because of AI-driven software and shipping APIs.

2) Is it important to optimize last-mile delivery?

Yes, last-mile delivery operations need to be optimized to earn greater profitability for the business. Studies show that last-mile delivery losses cause more than a 26% decline in profits annually. Unless last-mile delivery is optimized, companies will continue to incur losses.