Canada Last Mile Delivery Market Research Report, 2030

The Canadian last mile delivery market is experiencing significant growth, fueled by the expansion of e-commerce and the changing demands of consumers who increasingly expect faster and more flexible delivery options. Retailers are under pressure to deliver products quickly, resulting in the adoption of innovative delivery models that focus on reducing delivery times and improving customer satisfaction. In response, businesses are investing in advanced logistics solutions, including micro-fulfillment centers, automated warehouses, and urban distribution hubs, to streamline their supply chains and shorten delivery windows. This is particularly important as consumer preferences shift toward same-day and next-day delivery, with high expectations for real-time tracking and transparency. Traditional delivery services, such as those offered by Canada Post, are being complemented by newer players like Instacart, DoorDash, and Uber Eats, which have tapped into the growing demand for on-demand delivery. These platforms, often relying on independent contractors, are particularly successful in urban areas where quick turnaround times and flexibility are highly valued. Additionally, the rise of autonomous delivery methods, such as self-driving vehicles, drones, and robotic delivery systems, is being explored in Canada, with pilot programs already in place in cities like Toronto and Vancouver. These technologies are designed to reduce delivery costs and increase efficiency while reducing reliance on human labor. The introduction of electric vehicles for deliveries also plays a significant role in promoting sustainability, as Canadian companies look to minimize their carbon footprints while meeting the demand for faster deliveries. According to the research report, "Canada Last Mile Delivery Market Research Report, 2030," published by Actual Market Research, the Canada Last Mile Delivery market is expected to reach a market size of more than USD 6.51 Billion by 2030. With e-commerce continuing to rise across Canada, the demand for faster, more efficient last mile delivery is reshaping the logistics landscape, with businesses working hard to meet consumer expectations. A major trend in the Canadian market is the integration of innovative delivery methods, including same-day delivery and curbside pickup, offering flexibility and convenience to consumers. Companies are increasingly incorporating green logistics solutions, such as electric vans and bicycles, into their fleets to promote eco-friendly practices, while also addressing government regulations aimed at reducing carbon emissions. Delivery companies are focusing on optimizing their networks by building urban fulfillment centers and improving inventory management to ensure quicker and more efficient order fulfillment. The need for faster delivery times has also led to the growth of subscription-based delivery services, providing customers with benefits like free shipping and expedited delivery, which in turn fosters customer loyalty. The use of data analytics, real-time tracking, and AI-driven demand forecasting systems helps businesses anticipate order volumes and improve delivery precision. Additionally, last mile logistics in Canada is seeing a shift toward contactless delivery, which was accelerated by the COVID-19 pandemic and has become a standard expectation for many consumers. The ability to track deliveries in real time, as well as the option for consumers to choose delivery windows and receive updates, has led to higher customer satisfaction levels. The increase in specialized deliveries, such as perishable items, pharmaceuticals, and high-value goods, is driving the need for more secure and reliable delivery services, pushing companies to adopt more sophisticated systems for ensuring the safe handling and timely delivery of such products. With rising competition, the Canadian last mile delivery market is moving toward a more technology-driven, customer-centric model, focused on optimizing costs, improving speed, and enhancing overall service quality.

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In Canada, the last mile delivery market is shaped by a variety of service types, with each segment catering to different customer needs. The B2C (Business-to-Consumer) segment plays a pivotal role in driving growth, as businesses directly deliver goods or services to individual consumers. This is especially relevant in the e-commerce sector, where online shopping continues to grow rapidly. Retailers and e-commerce platforms like Amazon and Shopify offer a broad range of products to consumers, from clothing and electronics to home appliances and groceries. The demand for efficient, timely, and flexible delivery solutions is a key driver in this segment, with consumers expecting fast delivery times and the option to track their orders in real-time. The B2C segment's importance is amplified by the increasing demand for online shopping, driven by consumer convenience and access to a wide range of products. The B2B (Business-to-Business) segment also contributes to the last mile delivery market in Canada, with one business delivering goods or services to another business for operational use. Lastly, the C2C (Customer-to-Customer) segment is becoming increasingly popular in Canada, where goods are exchanged between consumers through platforms like Kijiji, Craigslist, or specialized online resale apps. C2C transactions enable individuals to sell or trade goods without the involvement of traditional retail channels. This segment's growth is fueled by the increasing number of individuals engaging in reselling, secondhand purchases, and local exchanges, as well as the growing acceptance of peer-to-peer delivery services. This growing trend reflects Canada's embrace of the sharing economy, where consumers interact directly with one another through online platforms, driving a shift in how goods are exchanged and delivered. In Canada, the technology driving the last mile delivery market is evolving rapidly, with the shift from traditional methods to more advanced and autonomous solutions. Non-autonomous delivery, which involves human drivers or couriers, continues to dominate the market due to its flexibility and scalability. This type of delivery remains the most widely used method for last mile logistics in urban and rural areas. Couriers and delivery drivers use vehicles, bikes, or on foot to transport goods to their destinations, ensuring that products are delivered efficiently and within the promised timeframe. The convenience and cost-effectiveness of non-autonomous methods have made them the preferred choice for a wide variety of goods, from small parcels to large packages. Despite the popularity of non-autonomous solutions, the development of autonomous delivery technologies is beginning to gain traction in Canada. Autonomous delivery vehicles, such as drones and self-driving cars, are being explored by companies like Amazon and local logistics startups, seeking to revolutionize the last mile delivery process. These technologies promise to reduce the reliance on human labor, minimize transportation costs, and improve delivery efficiency. Autonomous drones, for example, can bypass traffic congestion, delivering packages faster than traditional methods. However, the adoption of autonomous solutions in Canada faces challenges such as regulatory hurdles, technological limitations, and consumer acceptance. Furthermore, these technologies are seen as potential solutions for delivering packages in remote or hard-to-reach locations, where traditional delivery methods may be less practical. As the regulatory landscape evolves and technology improves, it is expected that autonomous solutions will play a more prominent role in Canada’s last mile delivery market. In Canada, e-commerce remains the dominant application for last mile delivery services, accounting for a significant portion of the market. E-commerce platforms like Amazon, eBay, and local online retailers have grown in popularity, providing a broad range of products such as electronics, clothing, furniture, and food. The rise of same-day and next-day delivery options has become a critical factor for e-commerce success in Canada, with retailers aiming to meet consumer expectations for speed and convenience. Companies are investing heavily in improving their logistics networks and integrating advanced technology, such as route optimization and predictive analytics, to meet the demand for faster deliveries. The ability to offer flexible delivery options, such as time windows or weekend delivery, has become essential for enhancing customer satisfaction and competing in the fast-paced e-commerce environment. Additionally, the growing trend of e-commerce grocery shopping has led to the rise of specialized delivery services catering to food and beverage purchases. The FMCG (Fast-Moving Consumer Goods) sector is also a major contributor to the last mile delivery market in Canada, with services that focus on high-demand, everyday products like groceries, beverages, and personal care items. The increasing popularity of online grocery shopping and the demand for faster, more convenient delivery options have led to the rapid growth of grocery delivery services, especially in urban centers. This trend is supported by the rise of grocery-specific delivery platforms like Instacart and Loblaw’s PC Express, which provide consumers with on-demand delivery of their grocery orders.

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Nikita Jabrela

Business Development Manager

In Canada, the delivery time is a key factor in shaping consumer expectations and influencing the growth of last mile delivery services. Regular delivery services, which typically take several days to a week to complete, remain the most common form of last mile delivery. This service type is primarily used for non-urgent goods, such as large items or products that are not time-sensitive. Regular delivery is cost-effective and suitable for a wide range of products, including books, home furnishings, and other items that do not require immediate delivery. Despite the popularity of regular delivery, the demand for same-day delivery has grown substantially in recent years. With the rise of e-commerce, consumers are increasingly expecting fast delivery times and are willing to pay a premium for same-day or expedited shipping options. Same-day delivery services have become particularly popular in urban centers, where high population density and efficient logistics networks enable quick turnaround times. Consumers seeking urgent deliveries of products such as electronics, groceries, or medical supplies rely on same-day delivery options for convenience and speed. Retailers and logistics providers are investing in expanding their same-day delivery networks, with a focus on improving routing algorithms, integrating advanced tracking systems, and optimizing their delivery fleets to ensure prompt delivery. However, same-day delivery services come at a higher cost compared to regular delivery options, which can affect pricing strategies for retailers. The rise in consumer demand for faster, more flexible delivery options has pushed logistics companies to explore new technologies and delivery models, with the ultimate goal of meeting the growing expectations for fast and reliable service across various industries. Considered in this report • Historic Year: 2019 • Base year: 2024 • Estimated year: 2025 • Forecast year: 2030 Aspects covered in this report • Last Mile Delivery Market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation

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By Service Type • B2C (Business-to-Consumer) • B2B (Business-to-Business) • C2C (Customer-to-Customer) By Technology • Non-autonomous • Autonomous By Application • E-commerce • FMCG (Fast-Moving Consumer Goods) • Others (electronics, luxury goods, and pharmaceuticals) By Delivery Time • Regular Delivery • Same-Day Delivery The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.