The digital age has given rise to a booming e-commerce industry that’s shown no signs of slowing down. In fact, global e-commerce is expected to surpass $4 trillion in market value by 2030, according to Statista. This worldwide acceleration of online buying has put even more pressure on logistics providers to reimagine their last-mile delivery process, or the final step of getting goods to their destination.
Last-Mile Delivery Companies to Know
- UPS
- FedEx
- DHL
- Amazon
- Uber
But traditional supply chains aren’t built to handle the growing volume of online orders, and the transportation industry may not have enough workers to fulfill them. Combine these issues with the usual challenges of last-mile delivery, and logistics providers find themselves in a difficult bind. Here’s a closer look at why last-mile delivery is so crucial to the supply chain, what transportation leaders are doing to complete deliveries faster than ever and how artificial intelligence and robotics are changing the game.
What Is Last-Mile Delivery?
Last-mile delivery refers to the final stage of the supply chain in which goods are transported from a local warehouse or distribution center to their destination, typically a customer’s home. Because this is the only customer-facing step of the logistics process, businesses strive to ensure deliveries go smoothly and arrive on time.
But the last mile is often the hardest to navigate. Traffic shifts and weather patterns make travel conditions unpredictable, while delivering many smaller packages to different locations one at a time is inefficient and costly — especially if drivers have to travel miles between destinations. And keeping customers happy isn’t getting any easier as options like same-day and next-day delivery become standard.
To make matters worse, logistics companies don’t have enough drivers. Some estimates place the shortage between 60,000 and 80,000 drivers, so it’s no surprise that the U.S. Bureau of Labor Statistics projects more than 237,000 truck driver openings every year until 2034. Faced with this massive shortage, big-name brands and nimble startups alike have developed unique approaches to adapt to the growing demands of e-commerce.
Last-Mile Delivery Companies to Know
Legacy Carriers
Established players may have been around for decades, but they’ve evolved to meet the needs of modern-day logistics, including the following transportation titans.
United Parcel Service (UPS) has fulfilled deliveries with its iconic brown trucks for more than a century. For less urgent orders, customers can use “UPS Ground Saver,” a cheaper alternative that only takes a day or two longer than UPS’ regular ground service. UPS also gives customers access to a suite of online tools for receiving quote estimates, tracking shipments in real time and initiating returns.
FedEx is another logistics powerhouse that has adjusted its process to make shipping affordable and flexible. Overnight flat rates keep costs down, while the company’s mobile app lets customers redirect packages to a FedEx location if they know they won’t be home to receive them. To give customers even more options, FedEx has partnered with last-mile delivery company OneRail to support two-hour and end-of-day deliveries.
DHL is a German transportation giant with a global reach. While the company agreed to a deal that ensures the United States Postal Service will continue to fulfill its last-mile deliveries in the U.S., it’s been adding more vans to its fleet of stateside electric vehicles for long-distance orders. To stay on track, DHL designed its own tool called RAPTOR, which uses an algorithm to determine optimal routes and inform scheduling decisions.
In-House Logistics Providers
Rather than rely on third-party logistics providers, the companies below have built out their own last-mile operations to serve their customers.
Amazon established its own logistics team, Amazon Logistics, in 2013. It collaborates with small businesses through its Delivery Service Partner (DSP) program and independent contractors through its Amazon Flex program to complete last-mile deliveries. In May 2026, Amazon announced that it would open up this network to all organizations and consolidate its operations under a single hub, Amazon Supply Chain Services.
Walmart first began delivering orders to customers’ homes in 2019 through its InHome program, which offers free unlimited deliveries by Walmart employees. It has since scaled its operations to serve businesses as well through its GoLocal service. While the company uses thousands of stores to sort and prepare packages, it’s also created parcel stations to speed up deliveries — to the point of fulfilling orders in 30 minutes or less in more than 30 U.S. cities.
Target has spent the past decade expanding its last-mile delivery capabilities. The company uses sortation centers that process and prepare packages from up to 40 local stores, with facilities called Target Last Mile Delivery (TLMD) extensions offering additional support in organizing orders for next-day delivery. In 2017, Target acquired same-day delivery company Shipt, which oversees the final stage of transporting goods to customers’ homes.
Gig-Economy Platforms and Local Fleet Networks
As online commerce increasingly revolves around an on-demand model, these organizations have tailored their businesses to fill this niche.
Best known for getting people from place to place, Uber has branched out from its rideshare business to deliver goods as well. Uber Eats is Uber’s delivery division that transports restaurant and grocery orders in more than 500 cities internationally. Organizations can also leverage Uber’s network of drivers through Uber Direct, a program that lets businesses offer same-day delivery and real-time updates to customers.
DoorDash is another food delivery provider that relies on its legions of “Dashers,” who complete last-mile orders via car, bicycle, motorcycle or another preferred form of transport. Businesses can use DoorDash’s workforce to fulfill their own orders as well, paying a flat fee per delivery. To stay at the forefront of the sector, DoorDash has begun experimenting with delivery robots, and it received federal approval to launch a drone delivery program.
Route Optimization and Fleet Dispatch Platforms
When logistics providers are struggling to organize their operations, that’s when the companies below step in to help.
Onfleet is a logistics orchestration platform that makes deliveries as cost-efficient as possible with a route optimization tool. This tool is built on a machine learning algorithm trained on more than 100 million deliveries, so it can adjust according to various factors. The platform also automatically incorporates on-demand orders into delivery routes and sends updated ETAs, enabling teams to pivot on the fly and stay on schedule.
Samsara equips transportation companies with a fleet management platform that supports GPS tracking, route planning and vehicle diagnostics. Not only can businesses analyze the routes their drivers take, but they can also assess each vehicle’s health using AI to avoid costly maintenance and keep their workers safe. Based on the insights from Samsara’s platform, teams can refine their routes to minimize vehicle wear and delivery times.
Locus automates much of the last-mile delivery process with its dispatch management software. The company’s platform uses algorithms that plan pickups and deliveries, manage workers’ schedules and finalize contracts with carriers in Locus’ network. Businesses can then track deliveries with a mobile app and compile geospatial data, which is transformed into data visualizations to help delivery teams spot opportunities for improvement.
What Does the Future of Last-Mile Delivery Look Like?
As transportation companies look for more ways to optimize their efficiency, AI and robots have played a larger role in fulfilling orders. DoorDash isn’t the only organization to explore the capabilities of drones, with Walmart launching a drone delivery service in Florida and the Cleveland Clinic using drones to deliver prescription medications to patients. Meanwhile, companies like Serve Robotics are testing autonomous mobile robots for food delivery in urban centers like Chicago.
To counter the driver shortage, companies like Pony.ai are ramping up production of autonomous trucks, and states like California are adjusting regulations to get fleets on their roads sooner — much to the dismay of some labor unions. Pressed to complete faster, more consistent deliveries with leaner teams, last-mile leaders are embracing advanced intelligence to realize new forms of transportation that are increasingly automated and airborne.
Frequently Asked Questions
What company handles the most last-mile deliveries?
In 2025, Amazon delivered 6.7 billion parcels, narrowly beating out the United States Postal Service, which processed 6.6 billion. As a result, Amazon completed the most last-mile deliveries in the United States.
Why is last-mile delivery so expensive?
Last-mile delivery is inherently inefficient, often requiring drivers to deliver smaller packages to different destinations one by one. If two locations are far apart or customers aren’t home to receive deliveries, the process becomes even more drawn out and expensive. Other unpredictable factors like traffic conditions and weather patterns can lead to longer trips and wasted fuel, adding to the costs of last-mile deliveries.
What is the difference between middle-mile and last-mile delivery?
Middle-mile delivery refers to the second stage of the supply chain that involves transporting goods in bulk over longer distances. For international businesses, this could mean moving goods through customs to reach a port or hub. Either way, parcels end up at a regional distribution center where they’re processed and prepared for delivery. Last-mile delivery is the next stage of the supply chain where goods are transported from distribution centers to their final destinations, typically a customer’s residence.
