11 Top Trends in Last-Mile Delivery to Expect in 2024
Trends are trending, and technology is zapping- the future of last-mile delivery in 2024 definitely looks happening. Here is a list of emerging last-mile trends of 2024.
More Micro Warehouses
The rising requirement for fast order fulfilment is pushing e-commerce platforms to look for ways to supercharge their logistics process. It is making them invest in opening hubs and warehouses closer to urban cities. Resulting in easier and faster access to products.
Benefits of having Urban warehouses:
Easier access to businesses
Easy delivery agent management
Reduces transit time
Hot Gossip Alert!
Amazon is in talks with mall cornerstones like J.C. Penny and Sears to convert mall space into fulfilment centres.
Urban Fulfilment Centres
Urban fulfilment centres are one of the innovative and hottest last-mile trends, supporting fast and efficient hyperlocal or on-demand deliveries. These centres being located at frequent distances helps with the before-time deliveries of groceries, frozen products, or any time-sensitive goods.
It is a successful model in major cities, and some of the Indian companies making it big and establishing dark houses are – Bigbaskst, Blinkit and Swiggymart.
Last-mile delivery excellence seems like the ultimate goal for brands, and omnichannel retailing is rapidly becoming the golden ticket for successful e-commerce strategies across the globe. What’s omnichannel retailing, you may ask? Omnichannel retailing involves seamless communication of retailers with buyers through offline and online touchpoints, be it websites, ordering apps, or brick-and-mortar retailing shops.
With omnichannel retailing, brands are able to integrate all possible and available channels like e-commerce platforms and social media, to offer a smooth-as-butter shopping experience to customers.
In 2024, we are expecting to see brands pump in more resources to acquire omnichannel capabilities because omnichannel strategy
Improves delivery control
Increases speed of order fulfilment
Improves operational flexibility and cost
Sustainability in Last Mile Delivery
Going green will probably be a last-mile delivery trend every year, and 2024 is no different. Customers are becoming more environmentally conscious and are questioning the delivery channel as well. Is it green enough?
Last-mile delivery companies will have to strive harder to curb their carbon emissions and adhere to green rules. The best possible way could be either through route optimisation, which reduces time on the road and reduces fuel consumption and fume emission. This will require them to adopt the right logistics technology that offers optimised route planning and real-time tracking.
Another possible way is to adopt EVs into the delivery Fleet.
Zypp is the best example of this. This Indian company is offering EV-as-a-Service.Zypp Electric was founded in 2017 with a Mission of Zero Emission by offering electric vehicles and EV-based technology to make last-mile delivery sustainable and emission-free. The company is currently delivering
Zypp is leveraging last-mile delivery technology to automate and optimise to make their deliveries as green as possible..
Drones, Self-Driving Delivery Vehicles and Bots
It’s raining food, hallelujah!
Robotisation is predicted to be the solution to a lot of last-mile delivery challenges. Autonomous vehicles and drones are already being used for order pick and drop. Quite a sci-fi scene, right?
Amazon, for one, has invested millions of dollars in Aurora, an autonomous technology developer. Deliveries from Amazon Pharmacy are possible within 60 minutes of order placing, through a drone. That too at no extra cost!
Autonomous vehicles are slowly being launched to deliver orders, and though it has a long way to go, but still a trend to look out for.
Predictive Analytics and AI-Powered Route Optimisation
Route optimisation software has become a big help for last-mile delivery startup companies. This technology is helping logistics businesses streamline their delivery flow lucratively. Combined with AI and predictive analytics, it further helps last-mile providers diminish the cost of deliveries with good numbers.
Predictive analytics successfully predict weather forecasts and traffic conditions that help companies plan their orders in a manner that can avoid delays and customer dissatisfaction. Tesco, through an AI-powered vehicle routing and scheduling system, is able to save 11.2 million miles and 8% fuel per order.
Something To Interest You!
A Gartner study mentioned that by 2024, 50% of supply chain organisations will invest in applications that support advanced analytics and AI capabilities.
Gig Economy and Crowdsourcing
The last-mile delivery service providers have begun leveraging the gig economy and crowdsourcing for the Uberification of the fulfilment process. It links businesses with consumers who need packages delivered to the same location as people who are already travelling in that direction. This economical and environmentally responsible method minimises emissions associated with transportation while optimising delivery routes.
However liberating it may sound, crowdsourcing last-mile delivery isn’t without challenges. As it doesn’t involve the use of any advanced technology, visibility becomes questionable. Plus, tracking both the rider and orders en route can become difficult. If something is to go wrong, the last-mile delivery company is responsible.
Customers can pick up their packages at convenient locations, like retail stores, gas stations or automated lockers, with PUDO or smart lockers and pickup points. This method lowers the possibility of missed deliveries and minimises the need for multiple delivery attempts.
Rise in Outsourcing Delivery Services
Brands, manufacturers and restaurants have started outsourcing their deliveries to field experts, aka last-mile delivery companies. Instead of opting for in-house delivery, small companies have found that depending on logistics companies to deliver the orders gets the job done more economically.
Maintaining an in-house delivery fleet can be taxing, especially when you lack knowledge, resources and contacts in logistics. One of the reasons behind the growing demand for outsourcing delivery services is that it can deliver orders in a day or two.
Another reason this last-mile delivery trend is also on the rise is because it allows businesses to focus on consumer needs. They may also not be able to meet expectations for quick delivery, such as a two-hour service.
Statistics Supporting the Trend
65% of consumers who use grocery delivery services, such as Google Express, Instacart, or Ocado, say they provide a better delivery service than traditional retailers.
67% of consumers who use grocery delivery services say they get greater flexibility in scheduling deliveries compared to retailers.
Customer-to-customer (C2C) is another last-mile delivery trend of 2024 that is gaining momentum. In this business model, customers trade directly with customers, generally through an online medium. Online marketing is propelling the popularity of C2C on platforms such as Etsy, eBay and Craiglist.
These platforms connect people selling products, services, or situations with their potential customers. For example, Craiglist requires the seller to deliver items directly to the buyer in person. Meanwhile, Etsy has a “sell on Etsy” app that helps sellers easily manage their orders, listings, and customer queries.
The reason C2C is growing is because it is a cost-effective model because of the rising popularity of social media and the decline of third parties.
Robust Investment in Last-Mile Delivery Software
A trend that is here to stay!
As businesses continue to rethink and redefine their last-mile tech capabilities to improve their competitiveness, we expect to continue to witness a flurry of investments in last-mile logistics solutions.
Logistics companies are keen to invest in software that automates their fulfilment process with the latest technology-integrated solutions such as Artificial Intelligence, Predictive Analytics, Machine Learning and advanced analytics.
Mind Boggling Numbers!!
Verified Market Research said the last-mile delivery software market was valued at $7 billion in 2021. With a CAGR of 9.3% from 2023-2030, it’s expected to reach $16 billion by 2030.
New Year, New Me Last mile delivery trends.
Besides the fact that adopting last-mile delivery trends can help businesses gain and retain customers, let’s not forget that embracing them can also be problem-solving.
Right from sustainability goals to delivery targets, 2024 has a lot of last-mile delivery trends emerging that will help businesses navigate the evolving logistics landscape with greater efficiency and cost-effectiveness.
We at TrackoMile are excited and ready to embrace the last-mile delivery trends 2024 is bringing. Our last-mile delivery software is already automated and readily offers optimised solutions such as dynamic dispatch management and route planning.
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If you don’t want to spend hours tracking shipments, planning routes and organising delivery and driver schedules, it’s best to adopt dispatch tracking software. Read further for efficient and optimised deliveries.
Hyperlocal deliveries have become a common part of society. We are expecting more and more brands to fulfil their orders and execute faster deliveries each day. This system has allowed businesses to create a network that helps them purchase goods from local vendors for delivery.