Retail-Tech Landscape: Last-Mile Delivery Solutions

Last-mile delivery—the movement of goods from a centralized hub to their final delivery destination, the end consumer—accounts for a significant share of total supply chain costs for retailers: According to a Coresight Research survey of 150 US-based executives conducted in June 2021, last-mile delivery accounts for at least 40% of supply chain costs for nearly all mall-based retailers.  The last mile plays a significant role in enhancing the customer experience and can provide a significant competitive advantage for brands and retailers that offer speed and convenience in delivery, driving revenues. We expect the market to grow through 2022 and beyond as retailers to continue to focus on enhancing their last-mile capabilities amid rising customer demand for fast, convenient and low-cost (or free) delivery. This Retail-Tech Landscape covers selected startups globally that offer last-mile delivery technologies. We have identified 33 innovators across the following categories:

• Automated dispatching
• Autonomous driving
• Parcel locker systems
• Robotics integration
• Route optimization technology

Last-Mile Delivery Trends in Retail Below, we highlight two key industry trends in last-mile delivery. 1.  Retailers are turning to autonomous delivery solutions to enhance the customer experience We are seeing retailers and logistics firms invest in autonomous driving technologies to increase delivery efficiency as well as drive down their carbon footprint and achieve their corporate sustainability targets. Furthermore, implementing autonomous robots can be an effective cost-saving measure for retailers: Adopting autonomous robots can slash the cost of last-mile deliveries from $1.60 per delivery (via human drivers) to $0.06 per delivery, according to Robotics Business Review.

• In April 2021, Mobileye, Intel’s autonomous vehicle subsidiary, announced its partnership with US-based self-driving delivery vehicle manufacturer Udelv, which is set to deliver more than 35,000 autonomous delivery vehicles by 2028. According to Amnon Shashua, Mobileye’s President and CEO, the deal with Udelv “is significant for its size, scope and rapid deployment timeline, demonstrating our ability to deliver Mobileye Drive for commercial use now and in volume.”
• In April 2021, Domino’s Pizza started delivering pizzas using a self-driving robot developed by robotics firm Nuro. Domino’s entered into a partnership with Nuro in 2019, but the pilot program was not launched until early 2021.

2.  The adoption of smart lockers is gaining traction in retail Retailers are investing in smart lockers—electronic storage solutions to which retailers can deliver orders for customers to pick up at various locations, such as shopping centers, parking premises and residential areas. These automated smart lockers can be accessed by consumers through RFID (radio-frequency identification) tags or by scanning barcodes. Smart lockers gained popularity amid the Covid-19 pandemic as the solution allows convenient, contactless deliveries of packages.

• Pickup, La Poste Group’s pickup/drop-off subsidiary, is planning to launch 50 smart lockers in 45 underground train stations and RER regional train stations around Paris, France, by the end of the first quarter of 2022.
• Cainiao Network, the logistics arm of Chinese e-commerce giant Alibaba Group, launched a parcel locker network in France and Spain in September 2021. The rollout is a part of the company’s strategy to enhance its last-mile logistics. Cainiao Network plans to introduce 2,000 lockers across the two countries by March 2022.

For more on autonomous delivery robots, smart lockers and more, read our separate report, US Retailers Leverage Technology To Make the Last Mile a Competitive Advantage.

Retail-Tech Landscape: Last-Mile Delivery Solutions—Infographic 

 

Retail-Tech Landscape: Last-Mile Delivery Solutions, by Category

Automated Dispatching: Helping businesses reduce their reliance on manual processes by automatically coordinating the movement of people, goods and services [wpdatatable id=1719 table_view=regular] Autonomous Driving Technology: Self-driving vehicles or transport systems that move without the intervention of a human driver, used to fulfill deliveries [wpdatatable id=1720 table_view=regular] Parcel Locker Systems: Providing a secure and smart parcel pickup option for consumers [wpdatatable id=1721 table_view=regular] Robotics Integration: Using robotic systems in strategic areas to perform automated tasks in order to facilitate last-mile deliveries [wpdatatable id=1722 table_view=regular] Route Optimization Technology: Enabling delivery companies to shortlist the most cost-effective route based on factors such as the customer’s location, delivery timelines and the driver/vehicle required [wpdatatable id=1723 table_view=regular]