Thriving in the Last Mile Ecosystem

In 2018, the last mile delivery market in North America stood at $31.25 billion, reaching just under $51 billion in 2022. As the crucial link between transportation hubs and final delivery points, last-mile delivery has become the linchpin of the global logistics industry.

Market Size and Projections:

The sector’s 2021 valuation at $131 billion underscores its escalating significance in modern retail. Looking forward, the global final mile delivery market is poised to grow at a robust CAGR of 8.13% from 2022 to 2031.

Global Perspectives on e-Commerce Growth:

In North America, particularly the U.S., e-commerce retail sales surpassed $250 billion by Q3 2022, marking a 10% YoY increase. The region’s focus on price and speed continues to propel this growth. In the Asia-Pacific, led by China, the last-mile delivery market is the fastest-growing, with a predicted CAGR of 12.17%.

European, Latin American, and Middle Eastern Landscapes:

In Europe, a $599 billion market in 2021 is expected to reach $880 billion by 2028. Latin America faces challenges, with a $121 billion retail sales projection by 2023. The Middle East is predicted to reach $100 billion in e-commerce by 2025.

Key Market Segments:
  1. B2C Delivery: Dominated by giants like Amazon and Alibaba, this segment accounts for 63% of all deliveries, with Amazon alone commanding a market cap of around $1 billion.
  2. B2B Delivery: While not dominating in volume, B2B delivery plays a vital role in supporting businesses and supply chains.
  3. C2C Delivery: Enabled by P2P marketplaces, this segment has seen substantial growth, exceeding $6.6 billion in Europe alone.

Delivery Modes: From conventional courier services to the rise of third-party logistics and on-demand services, businesses are navigating diverse delivery modes based on needs, budgets, and customer expectations.

Vehicle and Service Types: Traditional vehicles like vans and trucks remain primary, but personal vehicles, micro-mobility solutions, and eco-friendly options like electric vehicles are gaining traction.

Market Trends:

  1. Same-Day and Instant Delivery: Technology and operational strategies are evolving to meet customer expectations for swift delivery.
  2. Smart Lockers and Pickup Points: Over 70,000 lockers in the U.S. offer a convenient alternative to home delivery.
  3. Contactless Delivery: Post-pandemic, contactless delivery has become standard, addressing health concerns and enhancing the customer experience.


Ride the Wave with KIVO BPO 

As the last-mile delivery market surges, KIVO BPO stands at the forefront, offering an cost effective solution needed for optimized deliveries and increased customer satisfaction. Request a demo today to embark on a journey toward optimized deliveries and propel your business to new heights. KIVO BPO is here to help you make the most of the market boom! 

María Font



Efficiency increase of 42%

Our specialized Business Process Outsourcing (BPO) service provides significant efficiency increases to our clients. We offer up to a 42% increase in efficiency through the following:

  • Cost reduction: Access to a large pool of resources and talent, enables us to handle high volumes of work at a lower cost per unit.

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