the last-mile market | France

1.1 Definition and scope of the study

The term "last mile" refers to the last link in a distribution logistics chain, the last part of the journey before reaching the final consumer. The explosion of e-commerce and delivery services has brought new interest to this issue, which has become essential. In fact, it is estimated that the management of the last mile can account for up to 30% of the total delivery cost. The closer we get to the end consumer, the more diversified the delivery routes become, especially as express delivery is becoming the standard. Confronted with ever shorter lead times, growing volumes, and a real ecological challenge (it is estimated that one car in five in Paris delivers goods), the logistics industry in general and the last kilometre in particular is evolving very rapidly.

The global market for the last mile is therefore booming, with a projected compound annual growth rate (CAGR) of 9.3% until 2024. North America is the dominant region in the market, but it is in Asia-Pacific that the growth prospects are most significant. In France, the market is also very dynamic with strong growth of 10% per year until 2025.

The main drivers behind the rapid expansion of last-mile delivery are increasing urbanization and, above all, the explosion of online commerce.

Moreover, the last mile is no longer seen simply as a logistical challenge, but also as the final step in the customer experience. Mastering it is therefore essential and, in France, many new companies are struggling with traditional players to take a dominant position in this market by integrating new technologies into the service offered. The aim is therefore to minimise costs while improving the customer experience without losing efficiency.

The main players in this market are e-commerce distributors, primarily Amazon, Alibaba and Rakuten, and logistics providers such as DHL, FedEx or Chronopost. However, the market is not limited to these players alone and today all companies active in B2C (directly or indirectly) are concerned.