Last-mile delivery is the most expensive and challenging part of the delivery process for retailers in the United States due to complex routes, failed deliveries, returned products, and rising costs of fuel and labor. According to Capgemini, last-mile delivery accounts for more than half of the total cost of shipping and as much as $41 of every $100 spent on supply chains is spent on last-mile operations.
However, industry projections offer hope, as the global last-mile delivery market is expected to grow from $128.5 billion in 2022 to over $200 billion by 2027, driven by a wide range of startups and pre-IPO firms across verticals such as robotics, autonomous vehicles, delivery management platforms, microfulfillment, warehousing, and courier services.
Coresight Research has identified the top 10 last-mile solution providers among more than 150 private US companies that are driving the future of the industry with a strong focus on innovation and market potential. The Innovator Matrix: Last-Mile Delivery report highlights the firms that have the greatest potential to disrupt the space, based on their level of innovation, market potential, product vision, and ESG contributions.
Coresight evaluated how these companies use innovation to disrupt their specific industry, the benefits they provide to both retailers and consumers, and the clarity of their product vision. To assess market potential, researchers looked at metrics like brand awareness, ability to scale, and competitive edge in terms of product quality, pricing power, market penetration, and other factors. They also examined each firm's momentum as measured by short-term employee growth, social media followers, unique website visitors, and venture capital funding.
Overall, the last-mile delivery market is poised for significant growth in the coming years, driven by a wave of innovation and disruptive technology.
Source: freightwaves.com
