India Last Mile Delivery Market Overview, 2030

India’s last mile delivery market has experienced significant growth in recent years, driven by the rapid expansion of e-commerce, increasing demand for quicker and more convenient deliveries, and advancements in logistics technology. The e-commerce boom, especially with platforms like Flipkart, Amazon India, and numerous regional players, has significantly fueled the need for efficient delivery solutions across the country. The market is characterized by its vast geography, a mix of urban and rural populations, and complex infrastructure challenges that make last mile delivery particularly challenging. In urban areas, the growing trend of online shopping has led to an increase in demand for same-day and next-day deliveries, pushing companies to optimize their delivery operations. However, last mile logistics in India is often hampered by congested roadways, unpredictable traffic conditions, and the lack of sufficient infrastructure in smaller towns and villages. E-commerce giants and logistics companies in India have started relying heavily on technology to overcome these challenges, with the use of advanced route optimization software, real-time tracking, and mobile applications for consumers to track their deliveries. Additionally, the rise of cloud-based systems has enabled better coordination and communication between sellers, logistics providers, and consumers, helping to streamline the delivery process. In major cities, the focus is also shifting toward improving customer experience by offering flexible delivery options, such as time slots and delivery scheduling, which has become a key differentiator in the competitive market. India’s last mile delivery market also sees the increasing use of third-party logistics (3PL) providers, who specialize in managing deliveries for multiple businesses, ensuring that companies can scale their operations without investing heavily in their own fleet management.

According to the research report, "India Last Mile Delivery Market Overview, 2030," published by Bonafide Research, the India Last Mile Delivery market was valued at more than USD 6.32 Billion in 2024. In rural areas, last mile delivery solutions face even greater challenges, with limited access to roadways, a lack of proper infrastructure, and the prevalence of unpaved roads. Despite these challenges, there is a significant push towards expanding delivery networks in Tier 2 and Tier 3 cities, as well as remote villages. To cater to these areas, companies are exploring creative solutions such as utilizing small vehicles like motorcycles, tuk-tuks, and even drones for deliveries in areas that are difficult to reach with conventional trucks. With a growing number of consumers in rural India embracing e-commerce, last mile delivery services must adapt to ensure that goods are delivered efficiently to these remote locations. Delivery hubs and warehouses are increasingly being set up in smaller cities to shorten delivery times and improve service levels. Additionally, the rise of hyperlocal delivery services, where goods are sourced and delivered from nearby stores or warehouses within a few hours of the order, is gaining traction, particularly in large metro cities. This has created a demand for agile and quick delivery options, with players focusing on speed and customer satisfaction. The growing emphasis on sustainability is also pushing companies to explore green last mile delivery solutions, such as the use of electric vehicles and cycle couriers, to reduce the environmental impact of logistics operations. With the increasing penetration of smartphones and internet access in rural India, mobile-based applications have made it easier for consumers to place orders and track deliveries in real-time, bringing transparency to the process.

The last mile delivery market in India is experiencing rapid growth, fueled by the expanding e-commerce sector, evolving consumer preferences, and technological advancements. In the B2C (Business-to-Consumer) segment, e-commerce giants such as Amazon, Flipkart, and Snapdeal play a significant role in driving demand for efficient and cost-effective delivery solutions. The Indian market is characterized by its vast geographical diversity, urban-rural divide, and growing internet penetration, all of which pose challenges and opportunities for last mile delivery service providers. Urban areas, especially metropolitan cities like Delhi, Mumbai, Bengaluru, and Chennai, are major hubs for e-commerce, with a large customer base that demands faster and more reliable delivery options. As a result, businesses are continuously refining their logistics networks to meet consumer expectations for same-day or next-day deliveries. To address these challenges, companies are investing in innovative solutions like local delivery hubs, community-based delivery models, and even partnerships with regional logistics providers. The rise of online shopping for a wide range of goods, including clothing, electronics, groceries, and household items, has led to a surge in demand for last mile delivery services. Furthermore, the increasing popularity of the C2C (Customer-to-Customer) segment, driven by platforms like OLX, Quikr, and even Facebook Marketplace, is also contributing to the growth of last mile delivery services. In this model, consumers exchange goods directly with one another, often facilitated by courier companies that ensure safe and efficient transportation.

In terms of technological advancements, India is witnessing the growing adoption of autonomous and non-autonomous delivery methods to streamline last mile logistics. While non-autonomous services continue to dominate the market, with delivery agents using motorcycles, vans, and bicycles, the potential for autonomous delivery solutions is becoming more pronounced. Companies like Zomato and Swiggy, which focus on food delivery, are already experimenting with drone-based deliveries in select cities. The use of drones for last mile deliveries, particularly for small, lightweight items, has the potential to revolutionize the logistics landscape in India by reducing delivery times, enhancing efficiency, and cutting costs. However, challenges such as regulatory hurdles, lack of infrastructure, and limited awareness of autonomous solutions remain significant barriers to widespread adoption. Non-autonomous delivery, relying on traditional human drivers, is still the most commonly used method due to its ability to navigate the complexities of India’s urban streets, heavy traffic, and narrow lanes. Motorcycles and electric scooters are the most popular delivery vehicles, enabling faster deliveries in congested areas. While autonomous vehicles and drones show promise for the future, it is expected that they will complement existing human-driven services rather than entirely replace them, particularly in regions with infrastructure limitations. Technological advancements in route optimization and tracking software are also helping to improve delivery efficiency by minimizing delays, reducing fuel consumption, and enhancing the customer experience.

The application of last mile delivery services in India spans various sectors, including e-commerce, FMCG (Fast-Moving Consumer Goods), and healthcare, all of which are contributing to the market's growth. In the e-commerce sector, consumers are increasingly seeking convenience, speed, and reliability when making online purchases. As internet access and smartphone usage continue to rise, the demand for fast and reliable last mile delivery solutions is expected to increase significantly. The Indian e-commerce market is growing rapidly, driven by the increasing penetration of online shopping platforms, improved logistics infrastructure, and growing consumer trust in digital payments. E-commerce platforms in India are investing heavily in last mile delivery solutions, including partnerships with third-party logistics providers, to ensure that orders are delivered in the shortest possible time. Similarly, in the FMCG sector, last mile delivery plays a crucial role in ensuring that essential goods, such as groceries, personal care products, and household items, reach consumers in a timely manner. The convenience of online grocery shopping and home delivery services is increasingly attracting Indian consumers, particularly in urban areas where busy lifestyles make it difficult to visit stores regularly. Online pharmacies like PharmEasy, 1mg, and Medlife are transforming the way healthcare products are delivered in India. These platforms offer delivery of medicines, medical devices, and health supplements directly to consumers’ doorsteps, ensuring quick access to essential products. The demand for specialized delivery services for temperature-sensitive products is also on the rise, as consumers seek fast and reliable delivery of perishable goods and pharmaceuticals. The integration of technology, such as temperature-controlled packaging and real-time tracking, is helping to ensure the safe and efficient transportation of these products.



India’s last mile delivery market is increasingly defined by the demand for faster and more efficient delivery solutions. Regular delivery services, which typically take a few days to deliver, continue to serve a large portion of the market, particularly for non-urgent shipments such as electronics, fashion items, and books. However, as consumers become more accustomed to the convenience of online shopping, the demand for same-day delivery services is growing rapidly. Urban areas, with their dense population and high purchasing power, are the main drivers of this trend, and businesses are investing in their logistics networks to meet this demand. Major e-commerce players are now offering same-day delivery options for specific product categories, such as groceries, electronics, and clothing, to cater to consumers who expect quick turnaround times. Logistics companies are employing advanced technologies, such as route optimization and predictive analytics, to ensure that deliveries are made efficiently and on time. The introduction of same-day delivery services is also pushing companies to rethink their operational strategies, with many opting to establish micro-warehouses or fulfillment centers closer to key customer locations. While same-day delivery is gaining popularity in metropolitan areas, the challenge of offering fast delivery in smaller cities and rural areas remains. To address this, some companies are offering tiered delivery options, allowing consumers to choose between regular and expedited delivery services based on their preferences. The increased competition in the last mile delivery sector is driving further innovation and investment, particularly in technologies like drones and autonomous vehicles, which have the potential to revolutionize the industry in the years to come.

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

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.