Coresight Research has launched the “Innovator Matrix” report series. Its initial report “Innovator Matrix: Last-Mile Delivery” looks at the current U.S. last-mile delivery landscape, evaluates obstacles that retailers are facing in the last mile, and identifies the top last-mile delivery technology providers based on level of innovation and market potential.
In 2022, the global last-minute delivery market totaled an estimated $128.5 billion and is expected to reach $200.4 billion by 2027, according to Statista.
In a 2021 survey, half of all retail executive respondents said that last-mile delivery accounts for at least 40% of total supply chain costs. Last-mile delivery is expensive due to high labor and fuel costs and failed deliveries and return logistics. It’s also complicated due to increasing consumer standards, variability in the types of delivery desired by consumers, and long travel distances in rural areas.
To help overcome last-minute delivery obstacles, retailers can use retail technologies, including delivery management software, robotics and autonomous vehicles, and crowdsourcing strategies.
Using proprietary methodology to identify and score the leading top 10 private last-mile delivery players in the U.S, Coresight analysts screened 150-plus pre-IPO companies. The report analyzed, evaluated, and scored the top 10 companies based on their relative performance on a two-factor evaluation scale: level of innovation and market potential. Level of innovation refers to how the company positions itself to be a problem solver for retailers using innovative technologies and retail strategies. Market potential refers to the extent of each company’s ability in terms of growth, funding, and whether its offering provides a competitive edge in the market.
The report categorized the companies into three areas of innovation: robotics and autonomous vehicles; delivery management platforms; and warehousing, micro-fulfillment centers (MFCs), and courier delivery.
The top 10 companies identified are: Bringg (offers a logistics operations platform), Darkstore (offers an on-demand delivery fulfillment platform), Dropoff (offers logistics servicers for same-day delivery), Fareye (offers AI-powered solution for end-to-end deliveries), Locus Robotics (offers warehouse robots), Nuro (manufactures and operates a fleet of fully autonomous electric vehicles), Onfleet (offers last-minute delivery management platform), Point Pickup (offers same-day delivery through its crowdsourced driver network and app), Starship Technologies (manufactures self-driving delivery robots), and Veho (offers end-to-end e-commerce delivery services).
“Being able to efficiently manage the infamously complicated and costly last mile will enable retailers to gain a competitive advantage in the market and drive business growth,” said the report. “Retailers should work with delivery solution providers to help them excel in the last mile through the use of advanced, innovative technologies and strategies.”
For its report, Coresight evaluated private, startup, and growth-stage technology companies to provide insights into industry players that are best positioned to solve challenges and drive the future of retail.
Originally posted on Automotive Fleet