20+ Last-Mile Delivery Statistics Must Know in 2025
Last-mile delivery is essential in the logistics industry and has a direct impact on customer satisfaction. But just how important is this final step in the delivery process?
With that in mind, I’ll cover key last mile delivery statistics that show trends and challenges in last-mile delivery.
Last Mile Delivery Statistics: Key Data
- Last mile delivery was valued at $140.48 billion in 2023 and is expected to reach $200.42 billion by 2027.
- 53% of the total delivery costs are attributed to last-mile delivery.
- 66% of retailers want next day delivery from last mile delivery services.
Source: (Statista, Insider Intelligence, Whitepaper Reports)
Last Mile Delivery Cost Breakdown
According to industry data the cost of last-mile delivery is split among various expenses each influencing the marginal cost per mile. Here’s a closer look at how these costs are distributed:
- 39% of the marginal cost per mile is attributed to driver wages and benefits.
- 25% of the marginal cost per mile goes to fuel costs.
- 14% of the marginal cost per mile is for truck/trailer lease or purchase payments.
- 10% of the marginal cost per mile is spent on repair and maintenance.
- 6% of the marginal cost per mile covers truck insurance premiums.
- 5% of the marginal cost per mile is made up of other costs.
Source: American Transportation Research Institute, 2016
Last Mile Delivery Costs
According to Insider Intelligence, last-mile delivery is a major expense, making up 53% of total delivery costs, while regular delivery costs are only 47%. This shows how pricey the last stretch of delivery really is.
Businesses must become more strategic in optimizing their last-mile logistics in order to save money and increase efficiency. Getting this part right can result in significant savings and satisfied customers.
Why is Last-Mile Delivery Expensive?
Last-mile delivery incurs high costs due to urban congestion, parking limitations, and labor expenses (50–60% of the costs). Consumer demands for rapid, free shipping and easy returns add extra pressure on delivery companies.
Fuel volatility, vehicle maintenance, and regulatory compliance (emissions, insurance) significantly increase financial pressure. Market dynamics like carrier rate hikes and seasonal demand spikes further inflate expenses.
These structural, economic, and consumer-driven factors combine to make last-mile delivery disproportionately expensive, often resulting in losses despite technological solutions requiring costly upfront investments.
Last Mile Delivery Market Size
By 2027, the global last mile delivery market is expected to exceed $200 billion, up from $108.1 billion in 2020. The increased volume of online orders is driving the growth of the last mile delivery market.
| Year | Market Size (in billions) |
|---|---|
| 2020 | $108.1 |
| 2021 | $117.61 |
| 2022 | $128.54 |
| 2023 | $140.48 |
| 2024 | $153.53 |
| 2025 | $167.8 |
| 2026 | $183.38 |
| 2027 | $200.42 |
Source: Statista
Biggest Challenges in Last-Mile Delivery Statistics
Efficiency and end-customer interaction are significant hurdles in last-mile delivery for businesses. Here are the primary challenges identified by Logistics Study:
- Delivery Efficiency: 25%
- Margins: 14%
- Customer Demands: 14%
- Delivery Agility: 13%
- Costs: 13%
- End Customer Interaction: 10%
- Missed Deliveries: 8%
- Other: 5%
Source: The Last mile Logistics Whitepaper Reports, 2018
To learn more about package delivery in details, we recommend checking our package delivery statistics page to learn more on delivery trends and consumer behavior.
What Retailers Want From Last-Mile Delivery Services
Retailers know exactly what they want from last-mile delivery: speed, transparency, and flexibility. Here’s a breakdown of their top priorities:
- Next Day Delivery: 66%
- Full Visibility: 57%
- Same Day Delivery: 50%
- Returns: 48
- Rescheduling: 43%
- Delivery Slot Selection: 42%
- Delivery Hour Notification: 41%
- Delivery Slot Notification: 36%
- Returns Processing: 28%
Source: The Last mile Logistics Whitepaper Reports, 2018