Top 8 Last-Mile Delivery Companies: Established & Emerging

Today’s world is fast-paced and e-commerce-driven. That has emphasized the efficiency of last-mile delivery in the logistics chain. This final step in the delivery process is crucial as it directly impacts customer satisfaction and the overall success of a business’s supply chain operations.

In this article, we will dive deep into the intricacies of last-mile delivery, explaining how it works and why it is so essential. We will also look at the top established and emerging last-mile delivery companies making significant strides in the industry.

Whether you’re a business looking to enhance your delivery operations or simply curious about the logistics behind your online orders, understanding the key factors to consider when evaluating last-mile delivery companies and startups is essential.

Stay with us as we explore the leading last-mile delivery companies and startups in the market, discuss the essential criteria for selecting the right, and answer some of your most frequently asked questions about last-mile delivery.

What Is Last-Mile Delivery and How Does It Work?

Last-mile delivery is the final part of the supply chain, where goods are transported from a distribution center or a local warehouse to the end customer’s doorstep. Also known as final mile delivery, this stage is regarded as the most critical and challenging part of the delivery process.

The process begins when an order is placed online or through a retailer. The item is picked, packed, and transported to a local distribution center. From there, the last-mile delivery company takes over, ensuring the package reaches the customer’s specified address within the promised timeframe.

The primary goal of last-mile delivery is to ensure quick, efficient, and reliable delivery while minimizing costs. However, the unpredictability of traffic, weather conditions, and precise delivery windows can make this a complex task.

Efficient last-mile delivery is vital for businesses aiming to meet the growing expectations of consumers who demand fast and flexible delivery options.

In the following section, we will review the top last-mile delivery companies that are setting industry standards and shaping the future of logistics.

Top 4 Established Last-Mile Delivery Companies

Several companies have distinguished themselves as leaders in the last-mile delivery space, consistently setting the bar for speed, reliability, and innovation.

In this section, we explore some of the top last-mile delivery companies that have earned their reputation by ensuring packages reach their final destination with precision and efficiency.

UPS (United Parcel Service)

UPS is a global logistics and package delivery leader renowned for its reliable and efficient services. This last-mile delivery company was founded in 1907 by James E. Casey and Claude Ryan in Seattle, Washington.

It began operations as a simple messenger service and has grown from a small local operation to a global logistics powerhouse thanks to its commitment to innovation and customer-centricity.   

UPS is a pioneer in last-mile delivery. Its services are characterized by an extensive local and international network, technology integration, flexibility, and sustainable initiatives. 

UPS offers a range of last-mile delivery options to cater to diverse customer needs:

• UPS Ground: UPS Ground is the most economical last-mile delivery option for non-time-sensitive shipments within the continental United States.
• UPS Air: UPS Air services expedite shipping to major US cities, ensuring packages get to their recipients quickly.
• UPS Next Day Air: This UPS last-mile service guarantees package delivery by the end of the next business day.
• UPS 2nd Day Air: Guaranteed delivery in two business days.
• UPS Same-Day: This service delivers to recipients within hours of pickup.
• UPS Standard: Economy shipping for less time-sensitive shipments.
• White Glove Delivery: High-end delivery with specialized handling and installation.
• UPS Worldwide Express: With UPS Worldwide Express, businesses benefit from rapid international delivery service that connects them with global customers.

UPS offers robust last-mile tracking services that provide detailed information about a package’s journey, including its exact location.

FedEx

FedEx, a global leader in transportation, logistics, and e-commerce solutions, has a rich history dating back to 1971. The company, founded by Fred Smith, revolutionized the shipping industry by introducing overnight shipping as a core service, emphasizing speed and reliability. Today, FedEx operates a complex network that spans the globe, delivering millions of packages daily.

A standout feature of FedEx is its robust last-mile delivery service. FedEx offers a variety of options to cater to diverse customer needs:

• FedEx Ground: Provides economical shipping for less time-sensitive packages.
• FedEx Express: Offers a range of expedited shipping options for urgent deliveries.
• FedEx Freight: Handles larger, heavier shipments requiring specialized handling.
• FedEx Home Delivery: Focuses on residential deliveries. The service provides day-definite residential delivery for packages requiring faster transit times.
• FedEx Delivery Manager: Allows customers to customize delivery preferences.
• FedEx Retail Network: Provides convenient pick-up and drop-off locations.
• FedEx SameDay: Offers critical, time-sensitive deliveries within a single day.   
• FedEx Freight: Handles larger, heavier shipments requiring specialized handling and transportation.
• White Glove Delivery: A premium delivery service for high-value items. It includes unpacking, assembly, and installation.
• FedEx International Priority DirectDistribution: Offers efficient distribution of large volumes of packages to multiple residential and commercial addresses.

FedEx customers can track their packages from the moment they ship until delivery, providing visibility and peace of mind.

USPS (United States Postal Service)

USPS, a cornerstone of American infrastructure, traces its roots back to the Continental Congress in 1775. Initially tasked with delivering mail between the colonies, the USPS has evolved into a renowned delivery company with a vast network capable of excellent last-mile services, including:

• Standard Delivery: This is the most common service, offering affordable and reliable delivery within a specific timeframe.
• Priority Mail: Priority Mail provides expedited shipping options for small packages.
• Retail Ground: An economical shipping service for e-commerce merchants and brands.
• Priority Mail Express: This USPS service guarantees overnight or next-day delivery for small packages.
• First-Class Package Service: Reliable international shipping and delivery service for packages below 4 lbs.
• Parcel Select Ground: Parcel Select Ground is USPS’s more economical shipping service for less-time-sensitive shipments up to 70 lbs.
• Additional Services: USPS offers convenient package pickup from your doorstep, insurance, and signature confirmation services.

USPS places a strong emphasis on package visibility. Its tracking system allows customers to monitor the progress of their shipments from the moment they are created to delivery.

Amazon

Amazon was founded in 1994 by Jeff Bezos as an online bookstore and has evolved into a global e-commerce giant. Its relentless focus on customer experience and operational efficiency has redefined industry standards.

The company’s vast network of fulfillment centers and advanced logistics infrastructure have enabled unparalleled speed and reliability in delivering products to customers worldwide.

Amazon has invested heavily in last-mile delivery solutions, recognizing their impact on customer satisfaction and overall business success. The company has single-handedly led to a shift in customer expectation with its variety of last-mile delivery options, including:

• Amazon Fulfillment: Businesses can store their products in Amazon’s fulfillment centers, and Amazon handles the entire fulfillment process, including picking, packing, shipping, and customer service.
• Amazon Logistics: This service provides delivery and returns solutions for businesses that manage their inventory but want to benefit from Amazon’s delivery network.
• Delivery Service Partner (DSP) Program: Amazon partners with independent delivery service providers to deliver Amazon packages.

Amazon provides detailed tracking information, allowing businesses to monitor the delivery status of their products.

Top 4 Emerging Last-Mile Delivery Startups

The last-mile delivery landscape is rapidly evolving, thanks mainly to innovative startups transforming how goods are delivered.

These emerging companies leverage cutting-edge technology and fresh approaches to solve longstanding logistical challenges, offering faster, more flexible, and sustainable delivery options.

Below are some of the most promising last-mile delivery startups making waves in the industry and redefining the future of delivery.

Dropoff

Dropoff is a technology-driven delivery company specializing in same-day delivery services. It was founded in 2014 in Austin, Texas. The company focuses on providing reliable, efficient, and customizable last-mile delivery solutions for businesses of all sizes.

Some of Dropoff’s last-mile delivery services include:

• Same-day Delivery: Dropoff’s primary objective when it was founded was to deliver packages within the same day, ensuring swift and timely delivery.
• Customizable Solutions: This final mile delivery company understands that every business has unique needs. Dropoff offers tailored logistics programs to fit specific requirements, from scheduling to delivery preferences.
• Guaranteed On-Time Delivery: Dropoff prides itself on delivering packages on time, every time. They back this up with their “no excuses” policy. Dropoff has 95%+ success with on-time delivery within ten minutes of ETA.
• Advanced Technology: Dropoff’s digital platform provides real-time tracking, proof of delivery, and other features to help businesses enhance visibility and control over the shipping process.

Onfleet

Onfleet is a robust platform specializing in last-mile delivery management. The company was founded with the vision of transforming the last-mile delivery industry. Since its inception, the company has adopted a customer-centric approach focused on developing innovative solutions to address business challenges.

It offers a comprehensive suite of last-mile delivery software designed to optimize delivery operations, enhance customer experience, and provide real-time visibility into the delivery process. Onfleet’s last-mile delivery services include:

• Route Optimization: Onfleet’s advanced algorithms efficiently plan delivery routes, considering factors like traffic, distance, and driver availability to minimize travel time and costs.
• Real-Time Dispatch: This last-mile logistics platform enables efficient task assignment to drivers based on their location, availability, and delivery preferences, ensuring optimal resource utilization.
• Driver Management: Onfleet provides tools to manage and communicate with drivers, including navigation, delivery instructions, and status updates.
• Customer Communication: Customers receive timely notifications about order status, estimated delivery times, and driver information, enhancing transparency and satisfaction.
• Package Tracking: Onfleet offers robust package tracking capabilities, providing customers real-time visibility into the delivery journey.

Nuro

Nuro is an emerging delivery company focused on transforming the last-mile delivery process through autonomous vehicles. Since its founding in 2016, the company’s mission has been to improve everyday life by delivering goods safely, efficiently, and sustainably.   

Nuro’s core product is a fleet of self-driving delivery vehicles designed specifically for transporting packages. These vehicles rely on advanced sensors, cameras, and AI to navigate roads and deliver packages to customers’ doorsteps.

Some key features of Nuro’s last-mile delivery service include:

• Autonomous Delivery: Nuro’s self-driving vehicles operate independently, from picking up orders to delivering them to customers.
• Efficiency: By eliminating human drivers, Nuro aims to increase delivery speed and reduce costs. Nuro also aims to boost last-mile logistics reliability by ensuring 24/7 deliveries, helping businesses fulfill customer promises.
• Contactless Delivery: Nuro’s autonomous last-mile delivery service provides customers with a convenient and contactless delivery option.
• Safety: The company prioritizes safety and has invested heavily in developing robust safety systems. The company’s cars are fitted with the latest sensors to minimize the chances of accidents and inaccurate delivery.
• Sustainability: Nuro’s electric vehicles contribute to a greener environment by reducing carbon emissions. Businesses that use Nuro’s service can also meet their sustainability goals.

To ensure transparency and customer satisfaction, Nuro offers real-time tracking capabilities. Customers can monitor the progress of their deliveries in real time through a mobile app or online portal.

Postmates

Postmates is a prominent player in the on-demand delivery space, specializing in last-mile logistics. This last-mile delivery company connects customers with local couriers who deliver a wide range of items directly to their doorsteps, from food to groceries, retail products, and even prescriptions.

Postmates was founded in 2011 by Bastian Lehmann, Sean Plaice, and Sam Rattner. The company rapidly expanded across major US cities, building a solid customer base. In 2020, Uber acquired Postmates. Following its acquisition, Postmates has been integrated into Uber’s delivery operations.

Features of Postmates’ last-mile delivery services include:

• Wide Range of Deliverable Items: Postmates caters to diverse consumer needs by offering delivery for food, drinks, groceries, medicine, and more within a certain radius.
• On-Demand Delivery: Customers can order items whenever they need them, with delivery often taking place within an hour.
• Local Focus: Postmates primarily partners with local businesses, supporting the community and offering a variety of options to consumers.
• Technology-driven Platform: The delivery company relies on a robust iOS and Android app to connect customers, couriers, and merchants efficiently. It also provides order-tracking functionality within its app, allowing customers to monitor the progress of their deliveries in real time.

Established Company vs. Emerging Startup, Which Is Better?

Choosing between established last-mile delivery companies and startups involves weighing their pros and cons. Established companies have extensive networks, resources, and proven track records, while startups are agile and offer flexible solutions. Startups also often specialize in specific aspects of delivery and use technology-driven solutions. 

Ultimately, the best choice to help you boost your last-mile delivery operations depends on business needs, budget, and strategic goals.

Key Factors to Consider When Choosing the Right Last-Mile Delivery Partner

Selecting the right last-mile delivery company is crucial for businesses to ensure efficient and effective last-mile delivery operations. Here are some key factors to consider when making this decision:

Shipping Costs

Consider the partner’s pricing structure, including base rates, additional fees like fuel surcharges and handling fees, and any discounts or volume-based pricing options. Analyze the impact of last-mile delivery costs on your overall profit margins. Ensure the partner’s rates align with your business model and customer expectations.

Order Tracking Feature

Look for a delivery company that offers real-time order tracking capabilities, allowing customers to monitor the status of their deliveries through a user-friendly online portal or mobile app. This feature enhances transparency and builds customer trust, reducing inquiries and increasing satisfaction.

Speed of Delivery

Assess the partner’s delivery timeframes and track record for on-time deliveries. Consider the partner’s geographic reach, fleet size, and technology infrastructure. Align the partner’s delivery speed with customer expectations. Fast and reliable delivery can lead to increased customer satisfaction and repeat business.

Delivery Coverage

Evaluate the delivery network of the last-mile delivery company, including the number of cities, states, or countries they serve. Assess their ability to deliver to rural or remote areas and their expertise in handling international shipments. Additionally, examine the delivery services, such as same-day, next-day, or standard delivery, and ensure they match your business requirements.

Last-Mile Delivery Company FAQs

• What is a last-mile delivery company?

A last-mile delivery company is a business that specializes in delivering packages to customers’ doorsteps. These companies typically operate in urban areas and use various transportation methods, such as cars, vans, and bicycles, to make deliveries.

• What are the last-mile delivery companies in the United States?

Some last-mile delivery companies in the United States include Amazon, FedEx, UPS, Onfleet, and USPS.

• Who is the largest last-mile delivery company?

Amazon is the largest last-mile delivery company in the United States in terms of efficiency and coverage.