Last-mile delivery: Challenges, logistics solutions, and sustainable mobility
What is last-mile delivery?
The last mile is short—but it is often the most expensive and labor-intensive part of the entire supply chain. According to current statistics, it accounts for around 41% of logistics costs in e-commerce. This refers to the transport from the final distribution center to the customer’s doorstep—a stage that poses significant challenges for companies.
Especially in the age of online retail, the last mile has become a key issue for logistics companies and delivery services. Die Zahl der von der Schweizer Post zugestellten Pakete hat sich zwischen 2010 und 2022 fast verdoppelt (von 110 Millionen auf 194 Millionen Pakete).
As the number of deliveries grows, cities are coming under increasing pressure. For public authorities and urban planners, the question arises of how urban mobility should function in the future as delivery traffic takes up more and more space. Many city centers lack space—streets are overcrowded, loading zones are scarce, and delivery vehicles are in direct competition with cyclists and pedestrians. At the same time, expectations are rising: deliveries should be fast, flexible, and as emission-free as possible. Traditional logistics solutions are increasingly reaching their limits—and the need for practical, sustainable concepts is growing.
Last-mile challenges
While cities struggle with increasing delivery traffic and stricter environmental regulations, rural areas are faced with unprofitable delivery routes. At the same time, customers expect fast and flexible delivery. These challenges call for innovative logistics solutions to make last-mile delivery more cost-effective and sustainable.
Last-mile delivery challenges
In cities, heavy traffic, limited loading zones, and environmental regulations pose major obstacles to smooth delivery:
Traffic jams and a shortage of parking spaces: Delivery vehicles often have to double-park or take long detours. This leads to delays, parking tickets, and higher operating costs.
Restrictions due to low-emission zones: Many cities are tightening access restrictions for diesel vehicles, making traditional delivery models increasingly unprofitable.
Competition for road space: Delivery vehicles compete with pedestrians, cyclists, and public transportation, further reducing delivery efficiency.
Costs and Efficiency in the Last Mile
The last mile accounts for up to 50% of total delivery costs. The main cost drivers are:
- Fuel and energy consumption: Frequent starts, stops, and idling significantly increase consumption.
- High labor costs: Manual delivery requires a significant amount of working time, which further increases costs.
- Inefficient routes: Long, inflexible delivery routes and underutilized vehicles lead to unnecessary additional costs.
- Sustainability Challenges in the Last Mile
Delivery traffic contributes significantly to CO₂ emissions and air pollution in cities. The main problems are:
Conventional diesel delivery trucks emit high levels of pollutants and are increasingly subject to driving bans.
Individual deliveries result in unnecessary empty runs and poor utilization of transport capacity.
Noise and particulate matter pollution from traditional delivery vehicles impair the quality of life in city centers.
Sustainable alternatives include:
- Electric vehicles and cargo bikes for zero-emission delivery.
- Parcel stations and pickup points to reduce traffic at people’s doorsteps.
- Bessere Routenplanung, um unnötige Fahrten zu vermeiden.
- Challenges for last-mile vehicles
Not every vehicle is suitable for the demands of last-mile logistics. Key criteria include:
- Maneuverability in city centers: Vehicles must be flexible and space-efficient.
- Zero emissions: Strict environmental regulations require alternative powertrains.
- Loading capacity: An optimal balance between size and cargo volume is crucial.
The Role of Last-Mile Logistics in Mobility
Delivery traffic now dominates the urban landscape—especially during the last mile. When packages are transported from the depot to the front door, bottlenecks arise: not enough space, too many vehicles, and conflicts with cyclists and pedestrians. These delivery processes have long been influencing overall mobility in our cities. That is why the last mile is not just about logistics, but also about transportation policy, urban planning, and the question of how deliveries should function in the future without overburdening public spaces.
Solutions for efficient and sustainable last-mile delivery
To overcome the challenges of the last mile, more and more companies are turning to innovative solutions. Sustainable modes of transport, modern logistics strategies, and digital technologies make it possible to reduce costs and meet environmental standards.
Electric Vehicles for Last-Mile Delivery
Electric vehicles play a key role in modern last-mile logistics. They reduce CO₂ emissions, are quieter, and have lower operating costs than conventional diesel vans.
Advantages of electric vans:
- Zero-emission delivery – no CO₂ emissions in urban areas.
- Lower operating costs – lower energy and maintenance expenses compared to diesel trucks.
- Ideal for low-emission zones – unrestricted access to emission-controlled areas.
The biggest challenge remains the charging infrastructure. Companies need more fast-charging stations and smart charging solutions that can be integrated into existing logistics processes.
Cargo bikes and e-cargo bikes for the last mile
Cargo bikes are one of the most efficient solutions for sustainable inner-city logistics. They don’t require parking spaces, avoid traffic jams, and produce zero emissions.
Why cargo bikes are becoming increasingly important:
- Flexibility – faster than delivery vehicles in congested city centers.
- Space-saving – no need to search for parking, no double parking, less traffic congestion.
- Sustainable – CO₂-free and with lower operating costs than motorized alternatives.
With the new regulations taking effect in July 2025, cargo e-bikes will become even more attractive to the transportation sector in Switzerland. Find out what changes businesses can expect in our article: New Rules for Cargo E-Bikes in Switzerland Starting in July 2025
Alternative last-mile delivery solutions
In addition to electric vehicles and cargo bikes, companies are increasingly testing new concepts to make last-mile delivery more efficient.
- Autonomous delivery robots—small, self-driving vehicles that deliver packages directly to your doorstep. They reduce staffing costs and are already being used in initial pilot projects.
- Drone deliveries—a fast and direct delivery solution, especially for time-sensitive shipments such as medications or documents. However, technical and legal hurdles are slowing down widespread adoption.
- Parcel stations and pickup points – Customers can conveniently pick up their packages at central locations, thereby reducing the number of door-to-door deliveries and inner-city traffic.
Some of these concepts are still in the testing phase, but they could play a crucial role in the coming years.Some of these concepts are still in the testing phase, but they could play a crucial role in the coming years.
Micro-warehouses and logistics centers for last-mile delivery
Micro-depots are small, inner-city distribution centers that bring packages closer to end customers and enable more efficient, eco-friendly delivery.
Advantages of micro-deposits:
- Shorter travel times – delivery vehicles no longer have to drive all the way across town.
- Greater use of alternative vehicles—cargo bikes or small electric vehicles can handle deliveries.
- Lower emissions and less traffic congestion – fewer vans on the roads ease the burden on city traffic.
When combined with intelligent logistics management, this can significantly reduce both costs and environmental impact.
Technologies for Optimizing the Last Mile
Digital tools and modern technologies play a crucial role in improving the efficiency of last-mile logistics.
- AI-powered route optimization – Artificial intelligence analyzes traffic data in real time and plans the most efficient delivery routes.
- Real-time tracking – Customers can track their orders at any time, while businesses can identify bottlenecks early on and take proactive action.
- Automated delivery solutions – Robotics and machine learning help further optimize processes and reduce labor costs.
Legal Developments and Regulations for the Last Mile
Politics is playing an increasingly important role in shaping last-mile logistics. Stricter environmental regulations and new rules are influencing which modes of transport and delivery models can be used in the future.
- CO₂ reduction targets and low-emission zones: Many cities are introducing driving bans on diesel delivery trucks and promoting zero-emission delivery methods. As a result, companies must switch to electric vehicles or cargo bikes.
- Funding programs for sustainable logistics: Government subsidies support the purchase of electric vehicles, the expansion of charging infrastructure, and the establishment of micro-depots.
- New labor guidelines for couriers: Stricter working hour regulations and better social security for delivery workers could transform the industry and increase pressure on companies to develop more efficient systems.
Companies must adapt to these regulatory changes early on in order to remain competitive and comply with environmental regulations.
Conclusion: The Evolution of Last-Mile Delivery
The last mile is not a new issue, but it presents companies with new challenges today. Tight deadlines, rising costs, and limited space in cities make delivery more challenging than ever before.
At the same time, new opportunities to work more efficiently and flexibly are constantly emerging—whether through better-planned routes, the strategic use of electric vehicles, or the placement of drop-off points in logistically optimal locations. Those who have a thorough understanding of their processes and are willing to refine them can not only operate more cost-effectively in the last mile but also significantly improve the daily experience for both customers and delivery personnel.
Want to know how to make the last mile more efficient in your company?
Then take a look at our solutions—from cargo e-bikes to flexible body concepts: