Full Report: Eye on the Last Mile 4.0 - Europe Edition
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Europe Edition
Europe’s Last Mile: Balancing Cost, Speed, and Sustainability
The last mile in Europe is at a defining moment - choices made today will shape the region’s delivery ecosystem for the future. With international competition intensifying, shifting global dynamics, and rising sustainability demands, Europe stands at a tipping point.Cost, sustainability, and customer experience now sit at the crossroads, defining the strategies that will determine success in Europe’s evolving last-mile landscape.
Eye on the Last Mile – Europe is our first in-depth report capturing this pivotal stage. Drawing insights from 500+ senior professionals across transportation, operations, technology, procurement, and compliance, it highlights the challenges, priorities, and strategies shaping logistics across Europe.
Here are some glimpses into the findings set to redefine European logistics and supply chains.
Inflation is the dominant concern for all respondents, making cost management the top driver of last-mile decisions. Nearly half also emphasized climate change, highlighting sustainability as a critical factor, while about a quarter pointed to emerging technologies like GenAI as key differentiators. Unlike many global markets, South Africa faces fewer challenges from labor shortages and geopolitical tensions, giving it a relative advantage.
Rising costs dominate Europe’s last-mile challenges, with over 90% of respondents citing fuel, maintenance, and wage pressures. Customer expectations rank second, driving demand for faster, more transparent deliveries, while labor shortages remain a critical concern. Regulatory pressures, particularly environmental and urban restrictions, are growing but secondary, and global conflicts have limited direct impact. Success will hinge on cost control, customer-centric technologies, workforce development, and proactive compliance strategies.
Standard delivery (3–7 days) remains the most popular choice at ~52%, driven by cost savings and sustainability benefits from consolidated shipments. Next-day delivery follows at ~34%, now a default expectation in markets like the UK, Netherlands, and Germany, particularly for fashion and tech. Same-day delivery, at ~7%, is niche but valuable in urban centers, with over half of customers willing to pay extra when offered - signaling untapped potential.
In 2025, 54% of European consumers are willing to pay extra for faster delivery, while 46% remain price-sensitive. This split highlights both opportunity and challenge: tiered delivery models can unlock premium revenue, but they add cost, operational strain, and workforce pressure. Success will hinge on segmentation, automation, and route optimization - balancing profitability with convenience, while meeting the expectations of both speed-driven and cost-conscious customers.
Despite rising sustainability pressures, green delivery adoption in Europe remains low - only 16.7% of businesses offer eco-friendly slots, while 83.3% do not. Barriers include carrier limitations, lack of advanced routing platforms, low delivery density, and high upfront costs. Many firms fear weak customer uptake and unclear ROI. To close this gap, businesses must add eco-slots, partner with sustainable carriers, and educate consumers on the benefits of greener delivery choices.
