What is Last Mile Delivery?
Last mile delivery is the last leg of the supply chain. It is the shipment of goods from a store, fulfillment center or warehouse to its final delivery destination. Typically, the drop off point is a home or small business. Last mile delivery services are growing in importance because the customer expects deliveries to arrive faster than ever before.
Companies realize delivery speed is crucial to keeping business. To match customer expectations, updating the last mile delivery model remains a priority for companies.
If you want more details on last mile delivery, checkout our complete guide on last mile delivery.
What is the Last Mile Delivery Problem?
The last mile is easily the most expensive part of the supply chain. Last mile distribution can cost up to 41% of all delivery costs. Large retailers are scrambling to develop and integrate a plan to make last mile deliveries more efficient.
One major factor of the last mile delivery problem is delivering to retailers and small businesses in areas of high population. Making big and bulky deliveries in urban areas slows the supply chain down due to traffic and congestion.
The Best Last Mile Delivery Services
1. Legacy Companies
There are a few traditional companies we’re all familiar with who continue to remain relevant and change with the times. Both FedEx and UPS now offer same day delivery in all 50 states. FedEx also offers same day freight services for shipments over 150 lbs. Each company continues to push hard to claim their stakes in the last mile delivery space with their more traditional approach to delivery.
2. E-commerce Companies
Amazon and Walmart are both trying out all kinds of last mile delivery solutions to grow their competitive advantages. From same day grocery delivery to considering self driving cars or drones to deliver smaller items, these commerce giants are willing to innovate and test anything to make delivering goods easier on their customers.
3. App Based Startups
Postmates was one of the first major services to focus on food delivery from restaurants that had limited or no delivery options in the past. With their extensive network of drivers and easy-to-use app, Postmates was able to put countless meals at their users fingertips.
Hitch is a Tampa Bay based startup that offers “on the way” deliveries for small items. You can sign up as a Shipper, Traveler, or both. If a user needs to deliver something from Atlanta to Miami, Traveler’s who are already making the trip can pick up the item and make the long distance courier delivery.
Bungii is a same day, local delivery service that specializes in hauling large items and big and bulky goods.
Bungii is in the middle of how the gig economy is changing delivery. Whether you’re buying a mattress from a store, need to get a craigslist purchase home, or anything in between– Bungii is a perfect option when you need to deliver large goods or heavy goods.
The reason why the Bungii app, and other app based delivery services, have been successful is because most stores and large item retailers cannot provide same day delivery at an affordable price. It’s not uncommon for stores to have a 1-3 week waiting period before delivery.