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US Same-Day Delivery Market Size 2025-2029

The US same-day delivery market size is forecast to increase by USD 28.28 billion, at a CAGR of 25.4% between 2024 and 2029.

The market is witnessing significant growth due to several key factors. The burgeoning B2C e-commerce sector is driving market expansion, as consumers increasingly demand faster delivery times. Automation is another major trend, with companies implementing advanced technologies such as drones and robots to streamline their delivery processes. Established players are also responding to this competitive landscape by establishing their own in-house delivery networks, further fueling market growth. These trends are shaping the future of the same-day delivery market In the US, offering significant opportunities for businesses that can adapt and innovate to meet evolving consumer demands.

What will be the Size of the market During the Forecast Period?

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The market has experienced significant growth due to increasing customer expectations for swift and efficient shipping. With the rise of e-commerce and the prevalence of smartphones and tablets, consumers can place orders from anywhere at any time, leading to a rise in same-day delivery demands. Customer satisfaction is paramount in this market, as shipping costs and reliability play a crucial role in customer confidence. Same-day delivery models require a composite infrastructure, combining advanced technological capabilities such as AI and machine learning with an extensive network of vehicles and efficient logistics.
The digitization of business inventory management and B2C transactions has enabled stationery retail stores and brick-and-mortar businesses to compete with online platforms. Lockdowns and social distancing measures have further accelerated the adoption of same-day delivery services, as consumers seek contactless shopping options. The same-day delivery market is continuously evolving, with technological advances and innovations in vehicle costs, shipping model efficiency, and customer loyalty programs shaping the competitive landscape.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  B2C
  B2B
  C2C


Service

  Regular service
  Priority service
  Rush service


Geography

  US

By End-user Insights

The B2C segment is estimated to witness significant growth during the forecast period.

The market is witnessing significant expansion, primarily due to the escalating e-commerce industry. Consumers' preference for swift order fulfillment is driving the demand for same-day delivery services, making it a competitive differentiator among major retailers such as Amazon, Walmart, and Target. Impulsive purchases and urgent deliveries, including medical supplies, further fuel this trend. Technological advancements, including AI and machine learning, are enhancing delivery efficiency and speed. The B2C segment is poised for continued growth, as e-commerce adoption increases, and online platforms cater to the need for instant gratification. The integration of digital streaming, cloud computing, and express postcode shipment tracking further strengthens the same-day delivery market.

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Market Dynamics

Our US Same-Day Delivery Market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of the US Same-Day Delivery Market?

The growing B2C e-commerce market is the key driver of the market.

The market has witnessed substantial growth due to the widespread use of smartphones, tablets, and internet access. Same-day delivery has emerged as a crucial aspect of the e-commerce experience, with customer satisfaction and confidence being key drivers. E-commerce businesses aim to provide quick turnaround times to stay competitive, with consumers often willing to pay higher shipping costs for same-day delivery. Technological advances, including AI and machine learning, have streamlined the shipping model, enabling real-time order processing and efficient vehicle routing. The need for temperature-controlled vehicles for medical supplies and specimens further underscores the importance of same-day delivery.
E-commerce platforms and stationery retail stores are expanding their reach through acquisitions and expansion plans, while domestic and international shipping options continue to broaden. The convenience of same-day delivery contrib

The India online food delivery market size attained a value of USD 48.07 Billion in 2024. The industry is expected to grow at a CAGR of 27.30% during the forecast period of 2025-2034. By 2034, the market is expected to reach USD 537.23 Billion.

The growth of the India online food delivery market has been driven by increased convenience, variety, and time-saving benefits. Consumers can explore a wide range of cuisines with ease, without the need to visit restaurants. Platforms operate 24/7, offering access to meals at any time and highlighting local delicacies. In March 2024, Zomato introduced 'Pure Veg Mode' and 'Pure Veg Fleet' to cater specifically to vegetarian customers, ensuring food preparation and handling meet their dietary requirements.

Online food delivery platforms provide several advantages, such as convenient payment methods, promotions, and discounts, enhancing affordability and impacting the India online food delivery market revenue. Customisation options allow users to personalise orders, while reviews help with informed choices. Cashless payments improve safety and hygiene, benefiting both businesses and consumers.

The growth of online food delivery platforms enables restaurants to expand without heavy investments in delivery infrastructure. These platforms help businesses reach a wider audience, enhance brand visibility, and create jobs for delivery staff, thereby boosting demand for the India online food delivery market. They also offer real-time order tracking and festive discounts to attract more customers. In October 2023, Curefoods, backed by Accel and Chiratae Ventures, acquired Yumlane Pizza, a cloud kitchen brand with cutting-edge pizza technology. This acquisition strengthens Curefoods' market presence by leveraging Yumlane’s network, allowing the company to expand its brand portfolio, including EatFit and Nomad Pizza, in the foodtech industry.

First And Last Mile Delivery Market size was valued at USD 725.01 Million in 2024 and is projected to reach USD 2092.95 Million by 2032, growing at a CAGR of 14.17% from 2026 to 2032Global First And Last Mile Delivery Market DriversE-commerce Is Growing Quickly: E-commerce's explosive growth has raised demand for effective first- and last-mile delivery services. Strong logistics networks are required to manage the growing amount of goods as a result of the transformation in the retail industry brought about by online shopping sites like Amazon, Alibaba, and others. While last mile delivery concentrates on transporting goods from distribution centres to the final customer, first mile delivery deals with delivering goods from producers to warehouses. Delivery procedures must be optimised in order to meet the exponential rise of e-commerce.Higher Expectations from Customers: Contemporary customers anticipate prompt, dependable, and frequently same-day or next-day delivery services. The ease of use and quick satisfaction offered by leading e-commerce companies are the driving forces behind this change in consumer behaviour. To live up to these high standards, businesses are actively investing in their first and last mile delivery capabilities. This entails implementing cutting-edge logistics techniques, accelerating delivery, and raising general service dependability.Developments in Technology: Technology is a major factor in the market transformation of first and last mile deliveries. Delivery times are being shortened and efficiency is being increased by innovations including drone deliveries, autonomous delivery trucks, real-time tracking systems, and route optimisation software. Businesses may forecast demand trends and optimise delivery routes with the use of advanced analytics and machine learning algorithms, which reduces expenses and raises customer satisfaction. A smoother delivery experience is also enhanced by mobile apps and platforms that improve communication between customers and delivery staff.The growth of cities: Growing urbanisation results in a higher customer concentration in urban areas, which raises the need for effective delivery services. Urban settings present special difficulties such gridlock on the streets, parking shortages, and the requirement for exact delivery windows. To meet these issues, businesses are creating specialised urban logistics solutions. Some of these solutions include the employment of bike or pedestrian couriers to efficiently navigate busy cityscapes, urban warehouses, and micro-fulfillment centres.

The courier and local delivery services industry has navigated steady growth over the past five years, buoyed by resilient consumer demand, e-commerce expansion, ongoing investment in operational efficiency and digital transformation. Profit has remained robust, with profit as a revenue share rising from 7.9% in 2020 to 8.1% in 2025 as firms prioritized margin optimization, chiefly via automation, high-value services in the business-to-business (B2B) segment and improved route efficiency. From 2020 to 2025, industry revenue rose at a compounded annual growth rate (CAGR) of 4.2%, reaching $191.0 billion, with 2025 posting a growth rate of 2.7%. However, late-period performance has faced headwinds from rising fuel and labor costs, shifting consumer demand and broader macroeconomic pressures that have tempered the shipment growth of previous years. Intensifying competition in last-mile delivery, particularly from e-commerce retailers like Walmart and Amazon, places pressure on industry revenue because they develop in-house delivery networks and use nonemployers. In response, major players in the industry have initiated consolidation efforts, which have significantly altered the competitive landscape. These efforts, coupled with increasing automation and a shift in focus toward B2B shipment and specialized, value-added services like expedited delivery and supply chain management for small- and medium-sized enterprises (SMEs), have helped the industry adapt to the changing market dynamics. Yet, structural cost pressures, such as wage inflation and compliance spending, have kept overall profit in check. Tariff increases and international trade uncertainties in 2025 have introduced additional volatility, driving up costs for goods in transit and causing some retailers and manufacturers to restructure supply chains, with knock-on effects on shipment volumes and revenue predictability. The industry is shifting toward service diversification, digital capability upgrades and targeted growth in higher-profit business segments. With e-commerce and direct-to-consumer shipping still expected to grow, leading couriers are investing in AI, analytics and fleet modernization to gain further efficiency and adaptability, even as they brace for operational disruptions from ongoing tariff changes and market uncertainty. One significant aspect of this shift is the transition to electric vehicles, which is promising for sustainability, cost savings and the environment. However, the pace of this transition will depend on regulatory support and infrastructure buildout. Profit as a share of revenue will rise from 8.1% in 2025 to 8.2% in 2030 as companies weather market challenges and drive continued innovation. Overall, the sector is projected to maintain forward momentum, with revenue expected to rise at a 3.0% CAGR over the next five years, reaching $221.4 billion by 2030.

IT Spending In Food Delivery Market size is growing at a moderate pace with substantial growth rates over the last few years and is estimated that the market will grow significantly in the forecasted period i.e. 2024 to 2031.

Global IT Spending In Food Delivery Market Drivers

The market drivers for IT spending in the food delivery sector are influenced by several factors that enhance operational efficiency, customer experience, and the overall competitiveness of businesses in this space. Here are some key market drivers:

Consumer Demand for Convenience: Increasing demand for convenience from consumers drives food delivery services to adopt advanced technologies. The need for quick and seamless ordering and delivery has led to investments in app development, user interfaces, and tracking systems. E-commerce Growth: The rise of online shopping and e-commerce has spilled over into the food delivery market, prompting companies to enhance their digital platforms and invest in IT solutions that support online transactions, payment processing, and customer engagement. Data Analytics: Businesses are increasingly utilizing data analytics to understand consumer behavior, preferences, and trends. Investments in IT for data collection, analysis, and customer relationship management (CRM) systems are critical for personalized marketing and operational efficiency. Mobile Technology: The proliferation of smartphones and mobile apps has revolutionized food delivery. Companies invest in mobile-friendly platforms and technologies to ensure they can meet consumer expectations for ease of use and accessibility.

Snapshot img { margin: 10px !important; } Brazil Last Mile Delivery Market Size 2025-2029

The Brazil last mile delivery market size is forecast to increase by USD 5.1 billion at a CAGR of 16.8% between 2024 and 2029.

The last mile delivery market in Brazil is driven by the increasing premiumization of delivery services, where consumers show a distinct willingness to pay higher fees for expedited options such as same-day or instant delivery. This trend creates a strong incentive for companies to enhance their logistical capabilities and invest in technologies that enable faster fulfillment. This evolution is particularly relevant for sectors like the advanced drug delivery systems market, where timeliness is critical. A significant market trend is the growing integration of last mile delivery models with established courier, express, and parcel companies. This collaboration allows for a more diversified service portfolio, catering to a wide spectrum of consumer needs, from economical standard shipping to premium, high-speed options. The development of integrated platforms is crucial for managing these complex, multi-partner ecosystems, ensuring seamless coordination and service quality across the entire delivery journey.Despite these growth drivers, the market faces significant operational challenges that can impede profitability and efficiency. Maintaining a profitable operation is a constant struggle, given the high costs of fuel and labor associated with final-mile logistics. The pressure to offer competitive pricing while also investing in technologies for transparency, such as real-time tracking, adds to the financial strain. The same day delivery market, for example, requires a highly optimized and cost-intensive infrastructure to function effectively. These operational hurdles are compounded by the need to manage customer expectations for both speed and affordability. Successfully navigating these complexities requires a strategic approach to cost management, route optimization, and technology adoption, which are essential for long-term sustainability and competitiveness in the dynamic courier pickup and delivery services market.

What will be the size of the Brazil Last Mile Delivery Market during the forecast period?

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The last mile delivery market in Brazil is in a state of continuous evolution, driven by the interplay between technological innovation and shifting consumer expectations. The adoption of a sophisticated delivery management platform is becoming a baseline requirement for operators seeking to optimize logistics and enhance service reliability. This includes refining processes for returns management and reverse logistics, which are increasingly integral to the customer experience in the e-commerce landscape. Furthermore, the principles of just-in-time delivery, once confined to B2B supply chains, are now being applied to consumer-facing models, demanding greater agility. The market's dynamism is also evident in the expansion of food delivery services and other specialized segments.Strategic advancements are focused on improving the efficiency of delivery route planning and overall fleet management systems. As the same day delivery market expands, the need for precise coordination and real-time adaptability becomes paramount. This is leading to greater investment in predictive analytics and automation to anticipate demand and streamline operations. The development of specialized solutions, such as a workspace delivery network or services for the advanced drug delivery systems market, highlights the market's diversification into niche applications. These ongoing developments underscore a competitive environment where continuous improvement in both technology and service design is essential for sustaining growth and market relevance.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019 - 2023 for the following segments. ServiceB2CB2BEnd-userE-commerceFood and groceries deliveryPharmaceuticalsOthersTechnologyAutonomous vehiclesNon-autonomous vehiclesDronesGeographySouth AmericaBrazil

By Service Insights

The b2c segment is estimated to witness significant growth during the forecast period.

The B2C segment is fundamentally driven by the surge in e-commerce, which has amplified the importance of efficient final-mile logistics. The growth in online retail, supported by global internet penetration exceeding 65%, encourages service operators to introduce specialized offerings like next-day delivery and seamless parcel returns services. A significant focus is placed on enhancing the consumer experience through

Online Food Delivery Platform Market Outlook

The global online food delivery platform market size was valued at USD 150 billion in 2023 and is projected to reach USD 375 billion by 2032, growing at a compound annual growth rate (CAGR) of 11%. This impressive growth is driven by increasing internet penetration, the rise of mobile phone usage, and changing consumer preferences towards convenience and fast food delivery services.

One of the primary growth factors for the online food delivery platform market is the increasing adoption of smartphones and high-speed internet across the globe. With more people gaining access to the internet, the potential customer base for online food delivery services is expanding exponentially. Additionally, the convenience offered by mobile applications has made it easier for consumers to order food from a wide range of restaurants, leading to a significant boost in the market. Furthermore, advancements in technology have enabled platforms to provide personalized recommendations, enhancing customer satisfaction and retention.

Another significant factor contributing to market growth is the busy and hectic lifestyles of modern consumers, which has led to a surge in demand for convenient food delivery options. Urbanization and the rise of dual-income households have reduced the time available for cooking and meal preparation, making food delivery services an attractive alternative. Moreover, the COVID-19 pandemic has accelerated the adoption of online food delivery services as people sought to minimize physical contact and adhere to social distancing guidelines, thus providing a substantial boost to the market.

The growing trend of partnerships and collaborations between food delivery platforms and restaurants is also driving market expansion. These partnerships enable restaurants to reach a broader audience without investing in their delivery infrastructure. This symbiotic relationship benefits both parties, as food delivery platforms can expand their offerings, and restaurants can enhance their revenue streams. Additionally, the integration of artificial intelligence and machine learning technologies in these platforms has improved route optimization and delivery efficiency, further propelling market growth.

Regionally, the Asia Pacific dominates the online food delivery platform market due to the high population density, rapid urbanization, and increasing disposable incomes. Countries like China and India are witnessing a tremendous surge in online food delivery services, supported by a young and tech-savvy population. North America and Europe are also significant markets, driven by high internet penetration and a strong preference for convenience among consumers. Meanwhile, Latin America and the Middle East & Africa are emerging markets with substantial growth potential, as internet access and smartphone usage continue to rise.

Business Model Analysis

The online food delivery platform market can be segmented based on business models into order-focused, logistics-focused, and full-service models. Order-focused platforms act as intermediaries between customers and restaurants, primarily focusing on facilitating the ordering process. These platforms benefit from lower operational costs as they do not manage the delivery logistics, relying instead on restaurants to handle deliveries. This model is popular among smaller restaurants that do not have the resources to manage their delivery infrastructure but want to reach a broader customer base.

Logistics-focused platforms, on the other hand, manage both the ordering process and the delivery logistics. These platforms invest heavily in building and maintaining a fleet of delivery personnel and vehicles. This model ensures greater control over the delivery process, leading to improved efficiency and customer satisfaction. However, the high operational costs associated with maintaining a delivery fleet can be a significant challenge. Major players in this segment often leverage advanced technologies for route optimization and real-time tracking to enhance delivery efficiency and reduce costs.

Full-service platforms offer a comprehensive solution by managing the entire process, from taking orders to delivering food and even preparing meals in some cases. These platforms often operate cloud kitchens or virtual restaurants, which are designed specifically for online orders and do not have a physical dining space. This model allows for a higher degree of control over the entire customer experience, from food quality to delivery times. However, it also

The Courier Pick-up and Delivery Services industry has undergone significant structural changes over the past few years, driven by soaring demand for food delivery services and online shopping in the wake of the pandemic. The booming sales of food delivery platforms have fuelled the gig economy's growth, resulting in a surging number of sole operators. Meanwhile, growth in online shopping sales has driven up revenue and boosted demand for higher-priced specialised services. Overall, revenue is expected to expand at an annualised 8.5% over the five years through 2024-25, to $13.7 billion, including a drop of 0.7% in 2024-25, as larger couriers pass on declines in terminal gate petrol and diesel prices to customers through reduced fuel surcharges.Retailers, especially online-only stores, are heavily reliant on couriers to deliver goods to customers in a timely and efficient manner. Over the past decade, this segment has surged, crowding out many other services traditionally offered by couriers. While local retailers have been responsible for most of this growth, international ecommerce sites have contributed a significant portion of demand. As online shopping has continued to boom, couriers have shifted their focus away from mining and wholesale markets towards parcel delivery. This dynamic has fuelled a hike in the number of sole operators, which are typically subcontracted by larger businesses. Sole operators now make up 89.0% of industry enterprises. These operators tend to have less pricing power and are more susceptible to rising fuel prices, contributing to falling margins over the past few years.The Courier Pick-up and Delivery Services industry is on track to expand as online retail continues to grow in popularity and demand for specialised services supports higher pricing among larger firms. Industry revenue is forecast to climb at an annualised 4.7% through the end of 2029-30, to $17.2 billion. Retailers will continue to gain importance as online shopping continues its meteoric rise. Conversely, digital platforms like Uber Eats and DoorDash are becoming increasingly saturated, and they face a tighter regulatory climate. Rising saturation in this sector will lead to slower growth and an easing in the rate of new entrants into the market.

Postal Last-Mile Delivery Market Outlook

As per our latest research, the global postal last-mile delivery market size stood at USD 62.8 billion in 2024 and is expected to reach USD 124.3 billion by 2033, reflecting a robust CAGR of 7.8% during the forecast period. The market’s growth is primarily fueled by the exponential rise in e-commerce, technological advancements in delivery modes, and increasing consumer expectations for fast and reliable delivery services. The adoption of automation, smart logistics, and innovative delivery solutions continues to reshape the landscape, driving efficiency and competitiveness across the sector.

One of the primary growth factors for the postal last-mile delivery market is the relentless expansion of the global e-commerce sector. The surge in online shopping, particularly in emerging economies, has created unprecedented demand for last-mile delivery services. Consumers now expect rapid, same-day, or next-day delivery, compelling postal and logistics companies to invest heavily in technological innovations and operational enhancements. The proliferation of mobile commerce, coupled with the increasing penetration of internet-enabled devices, has further accelerated parcel volumes, pushing postal operators to optimize their last-mile networks for speed, reliability, and cost-efficiency. As a result, the market is witnessing a significant transformation, with companies leveraging data analytics, route optimization, and digital platforms to meet evolving customer expectations.

Another critical driver is the integration of advanced technologies such as autonomous vehicles, drones, and smart lockers into last-mile delivery operations. These innovations are addressing some of the most pressing challenges in the sector, including labor shortages, high operational costs, and urban congestion. Autonomous delivery vehicles and drones are being deployed for contactless, efficient deliveries, especially in densely populated urban areas and remote rural locations. Additionally, the adoption of real-time tracking and dynamic routing solutions has enhanced transparency, improved delivery accuracy, and reduced delivery times. These technological advancements are not only streamlining last-mile logistics but also enabling postal operators to offer value-added services, such as flexible delivery windows and secure package drop-offs, further strengthening their competitive edge.

Sustainability and regulatory compliance are also shaping the postal last-mile delivery market. With growing environmental concerns and tightening regulations around emissions, postal and logistics companies are increasingly investing in green delivery solutions, such as electric vehicles and bicycle couriers. Governments worldwide are introducing incentives and mandates to encourage the adoption of eco-friendly delivery modes, while consumers are becoming more conscious of the environmental impact of their purchases. This shift towards sustainable logistics is prompting postal operators to rethink their delivery models, optimize route planning, and collaborate with local partners to minimize their carbon footprint. As sustainability becomes a key differentiator, companies that successfully integrate green practices into their last-mile operations are likely to capture greater market share and enhance brand loyalty.

Regionally, Asia Pacific dominates the postal last-mile delivery market, driven by rapid urbanization, a burgeoning e-commerce sector, and significant investments in logistics infrastructure. China, India, and Southeast Asian countries are witnessing explosive growth in online retail, resulting in soaring parcel volumes and increased demand for efficient last-mile solutions. North America and Europe follow closely, with mature markets characterized by high consumer expectations, advanced technology adoption, and a strong focus on sustainability. Meanwhile, Latin America and the Middle East & Africa are emerging as promising markets, supported by improving digital connectivity and rising disposable incomes. Each region presents unique challenges and opportunities, shaping the competitive dynamics and growth trajectories of the global market.

In 2025, it was estimated that the online grocery delivery market had around *** billion users worldwide, while users in the meal delivery segment were estimated at *** billion that year. Both segments were forecast to experience growth in user base by 2030.

Courier Services Market size was valued at USD 438.7 Billion in 2023 and is projected to reach USD 602.49 Billion by 2031, growing at a CAGR of 6.9% during the forecasted period 2024 to 2031.

Global Courier Services Market Drivers

The courier services market is influenced by several key drivers. Here are some of the main factors:

E-commerce Growth: The surge in online shopping has significantly boosted the demand for courier services. As more consumers shop online, the need for reliable and efficient delivery solutions increases.

Urbanization: As cities grow and become more densely populated, the demand for courier services to manage local deliveries and logistics intensifies.

Global Courier Services Market Restraints

The courier services market, like many other sectors, faces several market restraints that can affect its growth and profitability. Here are some of the key constraints:

High Operational Costs: Courier services often deal with significant expenses related to fuel, vehicle maintenance, and labor. Fluctuations in fuel prices and rising wages can impact profit margins.

Regulatory and Compliance Issues: Different regions have varying regulations regarding transportation, safety, and labor laws. Compliance with these regulations can be costly and complex, especially for international operations.

Global vietnam express delivery service market is expected to generate revenue of around USD 10.65 Billion by 2034, growing at a CAGR of around 22.86%.

Delivery Management Software Market size was valued at USD 2.17 Billion in 2024 and is projected to reach USD 4.94 Billion by 2031, growing at a CAGR of 10.82% during the forecast period 2024-2031.Global Delivery Management Software Market Drivers1. Growing Sector of E-CommerceOne important factor driving the need for delivery management software is the e-commerce sector's exponential growth. Businesses are investing in cutting-edge software to manage and optimize their delivery operations in response to the growing trend of online shopping and the need for prompt, effective delivery services.2. Higher Expectations from CustomersCustomers now demand delivery services that are more dependable and swift. By streamlining delivery routes, controlling delivery timetables, and raising overall service standards, delivery management software assists companies in living up to these expectations.3. Developments in TechnologyAdvancements like machine learning, artificial intelligence (AI), and real-time tracking are expanding the potential of delivery management software. Better route planning, real-time updates, and predictive analytics are made possible by these technologies, which encourage market uptake.4. Growing Requirement for AutomationCompanies are looking more and more towards automation to cut down on human labor, decrease mistakes, and boost productivity. Delivery management software is a highly sought-after solution since it offers automation capabilities including automatic routing, notifications, and dispatching.5. The Logistics Sector's GrowthThe need for delivery management software is being driven by the growth of the supply chain and logistics sectors. Businesses in this industry are using the software to improve operational efficiency, handle intricate distribution networks, and optimize operations.6. System IntegrationERP, CRM, and inventory management systems are just a few of the enterprise systems that delivery management software frequently connects with. Better data sharing and coordination amongst different company activities are made possible by this integration, which is why businesses find it appealing.

The battle for supremacy between specialist food delivery services continued across the United States in 2018. With a market share of ** percent, Grubhub was ranked as the leading service, while competitors Uber Eats and DoorDash were ranked second and third, respectively.

Is technology transforming food delivery? In 2018, around ** percent of adults in the United States used online ordering to have their food delivered. The use of mobile delivery apps is growing, particularly among young adults, but the leading method of ordering food for delivery was via the restaurant’s own delivery service. The boom in food delivery has led to soaring revenues for some of the largest delivery companies: the worldwide revenue of Grubhub nearly doubled between 2017 and 2019.

Big spenders in the Big Apple In 2019, New Yorkers spent the most per capita on food delivery in the United States – consumers in the city spent around *** U.S. dollars per capita more than those in San Francisco. In 2017, Grubhub was the leading takeout food delivery service in New York, with an overwhelming market share. However, consumers in San Francisco favored another delivery service: Caviar. The company had a market share of **** percent in the Californian city, whereas its market share in New York was only *** percent.

According to Cognitive Market Research, the global Last Mile Delivery Transportation market size will be USD 133524.5 million in 2025. It will expand at a compound annual growth rate (CAGR) of 9.00% from 2025 to 2033.

North America held the major market share for more than 40% of the global revenue with a market size of USD 53409.80 million in 2025 and will grow at a compound annual growth rate (CAGR) of 7.2% from 2025 to 2033.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 40057.35 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 30710.64 million in 2025 and will grow at a compound annual growth rate (CAGR) of 11.0% from 2025 to 2033.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 6676.23 million in 2025 and will grow at a compound annual growth rate (CAGR) of 8.4% from 2025 to 2033.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 2670.49 million in 2025 and will grow at a compound annual growth rate (CAGR) of 8.7% from 2025 to 2033.
The light duty vehicle category is the fastest growing segment of the Last Mile Delivery Transportation industry

Market Dynamics of Last Mile Delivery Transportation Market

Key Drivers for Last Mile Delivery Transportation Market

Growth of E-Commerce and Consumer Demand for Fast Deliveries to Boost Market Growth

The rapid growth of e-commerce is a major driving factor in the expansion of the last mile delivery transportation market. With more consumers shopping online, there is an increasing demand for fast, reliable, and cost-effective delivery services. Consumers expect quicker delivery times, often with options for same-day or next-day shipping. This shift in consumer expectations has forced retailers and logistics providers to optimize their last mile delivery operations, using advanced technologies such as real-time tracking, route optimization, and autonomous delivery solutions. The rise in e-commerce, especially in urban areas, has led to an increase in the number of deliveries required in the final leg of the supply chain. As a result, businesses are investing heavily in last mile delivery services to meet consumer expectations and stay competitive, driving the growth of the market.

Advancements in Technology and Automation to Drive Market Growth

Advancements in technology and automation are transforming the last mile delivery transportation market, making it more efficient and cost-effective. Technologies like route optimization algorithms, artificial intelligence (AI), and autonomous delivery vehicles are improving delivery speeds and reducing operational costs. AI-driven solutions can analyze traffic patterns, weather conditions, and real-time data to determine the most efficient routes for drivers, minimizing delays and fuel consumption. Additionally, the emergence of drones and autonomous vehicles is paving the way for faster, more environmentally friendly deliveries. These innovations are not only improving efficiency but also enhancing the customer experience, offering features like real-time tracking and delivery updates. The adoption of these technologies is particularly beneficial in congested urban areas where traffic and logistical challenges can significantly impact delivery times.

Restraint Factor for the Last Mile Delivery Transportation Market

Infrastructure and Traffic Congestion will Limit Market Growth

Last-mile delivery often faces logistical challenges due to poorly designed roads, limited access to certain areas, and bottlenecks in traffic, especially in densely populated cities. These issues can significantly delay delivery times, increase operational costs, and reduce the overall efficiency of the supply chain. The lack of efficient transportation networks or last-mile hubs further exacerbates these challenges, making it difficult for delivery companies to meet customer expectations for speed and reliability. Moreover, traffic congestion not only contributes to delays but also adds to the carbon footprint of delivery operations, which is becoming an increasing concern for sustainability-focused businesses.

Impact of Covid-19 on the Last Mile Delivery Transportation Market

The COVID-19 pandemic had a significant impact on the last-mile delivery transportation market, driving b...

The global Last-Mile Delivery and Value-Added Service market is poised for substantial growth, driven by the relentless expansion of e-commerce and the increasing demand for faster, more convenient delivery options. With a projected market size of approximately $500 billion in 2025, this sector is expected to witness a robust Compound Annual Growth Rate (CAGR) of around 15% through 2033. This surge is fueled by evolving consumer expectations for same-day and next-day deliveries, particularly in the food and e-commerce sectors, which represent the dominant applications. The proliferation of digital platforms and the adoption of advanced technologies like AI-powered route optimization and real-time tracking are crucial enablers, enhancing efficiency and customer satisfaction. Furthermore, the growing emphasis on value-added services, such as installation, assembly, and returns management, is contributing significantly to market expansion as businesses seek to differentiate themselves and build stronger customer loyalty in an increasingly competitive landscape. Despite the optimistic outlook, the market faces certain restraints that warrant strategic attention. These include rising operational costs, particularly fuel prices and labor wages, which can impact profitability. The complexity of urban logistics, including traffic congestion, parking restrictions, and limited delivery windows, also presents significant challenges. Additionally, the need for substantial investment in technology and infrastructure to support evolving delivery models, such as drone and autonomous vehicle delivery, could be a barrier for some smaller players. However, these challenges are often outweighed by the immense opportunities presented by emerging markets and the continuous innovation in delivery solutions. Companies are actively exploring partnerships, adopting electric vehicles, and leveraging gig economy models to mitigate cost pressures and enhance service reach, ensuring continued market momentum. Here's a unique report description on Last-Mile Delivery and Value-Added Services, incorporating the requested elements:

This comprehensive report delves into the dynamic and rapidly evolving landscape of Last-Mile Delivery and Value-Added Services. Spanning a study period from 2019 to 2033, with a base and estimated year of 2025, this analysis provides an in-depth examination of market dynamics, emerging trends, and future projections. The report leverages historical data from 2019-2024 and forecasts crucial insights for the 2025-2033 period, offering a forward-looking perspective critical for strategic decision-making in this high-stakes industry. We will explore the intricate interplay between traditional logistics giants and agile new entrants, examining how they are transforming the delivery experience for consumers and businesses alike. The report will quantify market potential and identify key growth drivers, presenting an invaluable resource for stakeholders seeking to capitalize on opportunities and navigate the inherent complexities of the last mile.

In 2023, the Last Mile Delivery (LMD) Robot Market reached a value of USD 6.54 billion, and it is projected to surge to USD 30.26 billion by 2030.

The market size of the global online food delivery sector was estimated at nearly *** trillion U.S. dollars in 2025, of which *** billion dollars were generated in the grocery delivery segment, and *** billion dollars in the meal delivery segment. By 2030, the online food delivery market is forecast to generate revenues reaching *** trillion U.S. dollars.

In 2025, over ************* consumers globally used online food delivery services (grocery and meal delivery). Looking at the regional breakdown, Asia remains, by far, the biggest market for online food delivery, with approximately ****billion users in 2025. Europe comes in second place, with around *** million online food delivery users.

In 2025, China was forecast to be the biggest market for online food delivery worldwide, generating nearly *** billion U.S. dollars in revenue. The United States ranked second, with the online food delivery revenue reaching approximately *** billion U.S. dollars that year. Food delivery market in the U.S. The online food delivery landscape in the U.S. is mainly divided into two segments: meal delivery and grocery delivery. In 2024, the grocery segment was estimated at *** billion U.S. dollars, while meal delivery revenues were estimated at ** billion dollars. Such a lucrative online food delivery market entails high consumer expectations: nearly ** percent of U.S. consumers surveyed in 2022 said they expected their online food orders to arrive in ** minutes or less. DoorDash: homegrown champion San Francisco-based DoorDash was the leading food delivery operator in the United States as of January 2024, controlling two-thirds of the online food delivery market in the country. In 2023, DoorDash revenues reached approximately *** billion U.S. dollars. More information on DoorDash can be found here.