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Executive Summary: Last Mile Delivery Report [2026]

  • Industry Growth Overview: The last mile industry grew 2.58% last year. It includes 21 300 companies that support routing efficiency, delivery capacity expansion, and technology adoption across logistics markets.
  • Manpower & Employment Growth: The sector employs more than 2.4 million workers worldwide. It expanded its workforce by 687 employees last year as companies strengthened operational and technical capabilities.
  • Patents: The industry registered 7100 patents. This activity reflects ongoing development in automation, predictive analytics, electric fleets, and autonomous delivery systems.
  • Global Footprint: Leading country hubs include the United States, India, the United Kingdom, Canada, and Germany. Major city clusters driving logistics innovation include Bangalore, London, New York City, Mumbai, and Singapore.
  • Investment Landscape: The sector recorded 12 600 funding rounds supported by more than 13 670 investors. This activity highlights consistent deal flow and sustained capital deployment across early-stage and scaling companies.
  • Top Investors: The combined investment value from the top investor exceeds USD 21.6 billion. Alibaba Group, SoftBank Vision Fund, and Sequoia Capital represent the three most active investors in the last mile industry.
  • Startup Ecosystem: Five startups, such as Mily Technologies (delivery analytics), Intermode (modular autonomous vehicles), Omniloop (capsule pipeline transport), Potters Technologies (geospatial routing), and M-loka (electronic parcel lockers) show ongoing innovation.

 

 

Methodology: How we created this Last Mile Delivery Report

This report is based on proprietary data from our AI-powered StartUs Insights Discovery Platform, which tracks 9 million global companies, 20K+ technologies and trends, as well as 150M patents, news articles, and market reports.

This data includes detailed firmographic insights into approximately 9 million startups, scaleups, and tech companies. Leveraging this exhaustive database, we provide actionable insights for startup scouting, trend discovery, and technology landscaping.

For this report, we focused on the evolution of last mile over the past 5 years, utilizing our platform’s trend intelligence feature. Key data points analyzed include:

  • Total Companies working in the sector
  • News Coverage and Annual Growth
  • Market Maturity and Patents
  • Global Search Volume & Growth
  • Funding Activity and Top Countries
  • Subtrends within the last mile

Our data is refreshed regularly, enabling trend comparisons for deeper insights into their relative impact and importance.

Additionally, we reviewed trusted external resources to supplement our findings with broader market data and predictions, ensuring a reliable and comprehensive overview of the last mile market.

What Data is used to create this Last Mile Logistics Report?

Based on data provided by the StartUs Insights Discovery Platform, we observe that the last mile market stands out in the following categories relative to the 20K+ technologies and trends we track.

These categories provide a comprehensive overview of the market’s key metrics and inform the future direction of the market.

  • News Coverage & Publications: The industry recorded 6440+ publications in the past year. This reflects steady news coverage and visibility across mainstream and industry-specific media outlets.
  • Funding Rounds: Our database captured 12600 funding rounds, which shows an active investment landscape and continuous capital flow.
  • Manpower: The sector employs more than 2.4 million workers and added 687 employees last year.
  • Patents: The industry registered 7100 patents, which shows ongoing innovation in routing technologies, autonomous delivery systems, and last-mile optimization tools.

Explore the Data-driven Last Mile Industry Outlook for 2026

Consumer demands have reshaped the last mile industry. About 66% of consumers expect same-day delivery, particularly for online shopping. In addition, 84% of customers do not return to a brand after a poor delivery experience.

Further, the last mile delivery industry is projected to grow from USD 229.27 billion in 2025 to USD 1,029.15 billion by 2035. This reflects a compound annual growth rate of 16.2% during the forecast period.

 

 

As per our platform data, the last mile delivery sector includes more than 1560 startups within a wider ecosystem of 21 300 companies. They support growing e-commerce fulfillment needs across global markets.

The industry grew 2.58% last year as companies improved routing efficiency, expanded delivery capacity, and adopted digital tools to manage rising shipment volumes.

Further, the sector holds 7100 patents that reflect investments in automation, predictive analytics, and fleet optimization technologies.

Z100 research shows that 39% of new patents from large retailers in the last mile sector mention AI and ML technologies.

Also, the industry employs about 2.4 million people worldwide. The workforce expanded by 680+ employees last year as organizations strengthened operational and technical capabilities.

The United States, India, the United Kingdom, Canada, and Germany represent leading country hubs anchoring last-mile logistics activity and innovation.

Moreover, Bangalore, London, New York City, Mumbai, and Singapore serve as key city hubs. Companies in these locations test urban delivery models, localized distribution systems, and emerging logistics technologies.

A Snapshot of the Global Last Mile Market

The last mile industry continues to expand, recording an annual growth rate of 2.58%. This reflects a mature logistics segment that evolves through efficiency gains and technology adoption.

The ecosystem includes more than 1560 startups, creating a pipeline of early-stage companies focused on delivery automation, micro-fulfillment, routing optimization, and urban logistics solutions.

Patent activity also indicates steady innovation, with 7100 patents filed across 3300 applicants. The participation spans technology developers, logistics operators, and mobility companies.

The industry achieved a yearly patent growth rate of 3.43%, advancing areas such as electric fleets, autonomous delivery systems, warehouse robotics, and data-driven routing engines. Further, the United States issued 2190+ patents, while Japan issued 1790+.

Explore the Funding Landscape of the Last Mile Market

The investment landscape in the last mile industry shows steady capital deployment. The average investment value is USD 45.7 million per round, which reflects continued interest in infrastructure, automation, and delivery optimisation technologies.

Investor participation remains broad, with more than 13 670 investors active in the sector. In addition, the industry has recorded over 12 600 funding rounds. This activity demonstrates consistent deal flow and ongoing support for both early-stage innovation and late-stage scaling.

Further, more than 3230 companies have received investment. These figures highlight a wide distribution of capital across startups and established logistics players.

Who is Investing in the Last Mile Market?

The combined value invested by top investors in the last mile industry exceeds USD 21.6 billion, which reflects capital concentration among global funds and corporates.

 

 

  • Alibaba Group invested USD 5.8 billion across 10 companies.
  • SoftBank Vision Fund invested USD 3 billion in 10 companies. Swiggy closed a USD 1.25 billion financing round led by SoftBank Vision Fund 2 and Prosus in July 2021.
  • Sequoia Capital invested USD 2.1 billion across 29 companies.
  • HSBC invested USD 1.9 billion in 11 companies.
  • Ant Financial invested USD 1.6 billion across 2 companies.
  • JPMorgan Chase invested USD 1.6 billion in 4 companies.
  • Grab invested USD 1.5 billion across 5 companies.
  • Cainiao invested USD 1.4 billion in 4 companies.
  • Citi invested USD 1.4 billion across 4 companies.
  • Tiger Global invested USD 1.3 billion in 28 companies. It led a USD 40 million Series C in LoadShare Networks, a last-mile logistics startup, in February 2021.

Top Last Mile Innovations & Trends

Discover the emerging trends in the last mile market along with their firmographic details:

 

 

  • Autonomous Robots remain a key trend in last-mile logistics, supported by 3100 companies working in hardware, navigation, and delivery automation. The segment employs 238 900 workers and added 140+ employees last year. The annual trend growth rate is -68.95%, which reflects a correction phase as companies refine commercial models, scale pilot projects, and adjust cost structures for autonomous fleets.
  • Smart Parcel Lockers continue to expand as a last-mile solution, with 125+ companies active in this infrastructure-focused segment. The category employs 16 200 workers and added 6 employees last year, indicating modest operational adjustments. Further, the annual trend growth rate of -9.09% points to slower expansion shaped by consolidation, retailer partnerships, and demand for unattended delivery options.
  • On-Demand Delivery remains widely used despite market rationalization, with 2500 companies driving rapid-response logistics across food, grocery, and retail. The trend employs 365 100 workers and added 130+ employees last year. Besides, the annual trend growth rate of -74.25% signals tighter operational discipline as companies focus on efficiency, route optimization, and sustainable delivery models.

5 Top Examples from 1500+ Innovative Last Mile Startups

The five innovative last mile delivery startups showcased below are picked based on data including the trend they operate within and their relevance, founding year, funding status, and more. Book a demo to find promising startups, emerging trends, or industry data specific to your company’s needs and objectives.

Mily Technologies creates a Delivery Analytics Platform

German startup Mily Technologies develops a delivery analytics platform that unifies data from parcel and postal networks. The platform generates real-time operational insights across home and out-of-home delivery.

It processes courier activity, route performance, parcel-locker usage, spatial boundaries, and historical delivery outcomes. Then, a combined spatial and business analytics engine organizes this information into clear operational workflows to give a view of last mile network.

The startup structures analysis through Core Analytics and OOH Analytics modules. These modules link courier performance, hub-level metrics, network modeling, and location recommendations into one environment.

In addition, the platform integrates delivery planning, real-time tracking, and spatial AI add-ons. These features enable route optimization, field monitoring, and the creation of precise service areas.

Intermode makes a Modular Robotic Platform

US-based startup Intermode builds the Modal, a modular electric vehicle platform for autonomous delivery and mobile robotics. It operates across sidewalks, bike lanes, road shoulders, and varied terrain.

The platform integrates an automotive-grade chassis with a high-capacity battery pack, independent four-wheel drive, Ackermann steering, suspension, and hydraulic braking. Its durable external body protects electronics and maintains ground clearance during daily use.

It hosts a centralized sensor and compute hat that positions cameras or lidars with an unobstructed field of view. Further, locker modules provide two independently locked compartments with interior lighting and carpeted storage. These features enable secure parcel handling while preserving payload capacity.

Omniloop creates a Capsule Pipeline System

Swedish startup Omniloop makes a capsule pipeline system that transports small goods through underground or ceiling-mounted pipes. The system delivers items directly to users or designated access points.

It moves standardized five-kilogram capsules through sealed routes. The goods either travel immediately to their destination or remain stored in the closed loop until requested.

Further, the system integrates automated loading stations, discreet pipe installations, and an energy-efficient propulsion method. These features reduce climate impact while maintaining continuous operation.

Moreover, its circular design keeps items circulating within the network. This approach minimizes redundant trips and removes the need for last-mile delivery vehicles in dense urban areas.

Potters Technologies advances Route Optimization

Indian startup Potters Technologies creates Maponomy, a geospatial software, and Potters Maps, a data infrastructure that supports enterprise logistics.

 

 

The startup processes large-scale location datasets and offers APIs and SaaS tools that optimize routing, navigation, geocoding, distance calculations, and live asset tracking.

It also delivers enriched map layers through an AI-driven data service. This service supplies place attributes, imagery, and machine-learning features that allow businesses to improve planning and operational visibility.

Moreover, the platform provides delivery-planning algorithms, courier navigation workflows, and real-time tracking interfaces. These tools simplify fleet coordination across logistics and transport operations.

M-loka builds Electronic Locker Parcel Platform

Kenyan startup M-loka creates an electronic locker parcel platform that enables secure sending, receiving, and returning of parcels through a monitored network.

The system assigns users a designated locker for drop-off or collection. It generates unique access codes for retrieval and coordinates parcel handling through an automated workflow, which reduces reliance on home-delivery partners.

Each locker includes controlled electronic locking, continuous CCTV surveillance, and clear digital instructions. These features ensure consistent security and a predictable handover process across parcel interactions.

Moreover, the platform provides e-commerce and courier partners with integrated parcel-management tools. These tools simplify last-mile operations, while its international shipping workflow simplifies cross-border delivery for users sending items to Kenya.

Gain Comprehensive Insights into Last Mile Trends, Startups, and Technologies

The emerging trends, such as micro-fulfillment automation, drone delivery pilots, and AI-driven demand forecasting, are influencing how companies plan the next phase of last-mile operations.

In addition, the industry will expand electric delivery fleets and charging infrastructure. Interoperable delivery APIs and shared logistics platforms will also reduce fragmentation across carriers and retailers to enable coordinated routing and load sharing.

These developments point to a future shaped by greater automation, lower emissions, and more connected delivery ecosystems.

Get in touch to explore 1500+ startups and scaleups, as well as all market trends impacting last mile companies.