LAST-MILE DELIVERY CHALLENGES IN URBAN LOGISTICS

Abstract

This article examines the structural challenges of last-mile delivery within urban logistics systems, where the final segment of distribution disproportionately concentrates cost, operational complexity, and environmental impact. Despite representing only a small portion of total transport distance, last-mile delivery accounts for over half of overall shipping costs, driven by labor intensity, failed deliveries, congestion, and infrastructure constraints. Rapid urbanization and the growth of e-commerce are intensifying these pressures, with global delivery volumes projected to increase significantly by 2030.

Drawing on recent industry reports and empirical studies, the paper analyzes key problem areas including traffic congestion, regulatory fragmentation, last-meter access barriers, and workforce shortages. It further explores the environmental implications of urban delivery systems, highlighting the urgent need for decarbonization in response to regulatory and consumer-driven sustainability demands.

The study evaluates emerging solutions such as AI-powered route optimization, electric and micro-mobility vehicles, parcel lockers, microhubs, and autonomous delivery technologies. Evidence suggests that these innovations can significantly reduce costs, emissions, and inefficiencies when implemented within coordinated urban logistics ecosystems. The article concludes that addressing last-mile challenges requires integrated collaboration between logistics providers, policymakers, and urban planners to balance efficiency, sustainability, and service expectations in rapidly evolving city environments.