What the last mile delivery segment will look like in 2021

What the last mile delivery segment will look like in 2021

The early parts of 2020, fueled by the COVID-19 pandemic, wreaked havoc on the economy, including many aspects of the trucking industry. One segment that escaped this economic fate was last mile delivery, which, fueled by people staying home and the resulting growth in e-commerce, continued to become a more prevalent segment of the industry in 2020.

To learn more about this ongoing trend, FE spoke with Khaled Naim, CEO and co-founder of Onfleet, which is a provider of last mile delivery fleet management software; here is what he had to say.

Do you see the last-mile delivery trends of 2020 continuing in 2021—namely, increased delivery traffic from online shopping, grocery stores, etc.?

KN: Yes! Reflecting on our own data trends in this category in 2020, we saw that grocery delivery increased early, and continued to grow through the year. Retailers, such as the purveyors of flowers and gifts, decreased initially but then escalated as the pandemic went on past the summer. In other areas, unsurprisingly B2B food delivery took a big drop in March and hasn’t recovered. 

Onfleet_1_generic

What does this mean for the trucking industry—will more vehicles be required, and if so what kinds?

KN: We foresee an increase in vehicles needed, across the board, though with technology, the increase in demand should not be matched by an increase in cost. The introduction of vaccines will highlight the importance of cold chain storage and the importance of complex supply chain operations. As delivery becomes a critical and larger channel for almost all consumers, retailers will benefit by augmenting their fleets with new vehicles as well as outsourced ones to meet demand during peak times. As customers seek a reduced carbon footprint from retailers, fleet operators would be advised to explore electric vehicles, better route management strategies, and adding technology to their delivery operations to save money. Customers will also look to learn their retailers are focusing on these initiatives. 

Will this mean increased maintenance and service as well?

KN: With smart route optimization and better analytics and customer/driver communications, fleet managers should see a decrease in maintenance and service fees. As drivers and customers are more informed, and dispatchers can ensure optimal plans, efficiencies are there to be gained by investing better technology and oversight. 

You May Also Like

Phillips introduces Rear-Vu universal backup camera for commercial trucks

Phillips says the Rear-Vu Backup Camera offers low latency, a 170-degree wide angle and over 50 feet visibility.

Phillips-REAR-VU

Phillips Industries launched its Rear-Vu Backup Camera for the commercial trucking industry. Phillips says Rear-Vu is designed to be equipped to any trailer, and features a proprietary WiFi connection that extends more than 70 ft.

Phillips tells us Rear-Vu integrates with any ELD navigation system, with automatic over-the-air firmware updates. Additionally, the company says the camera has a 170-degree wide viewing angle, more than 50 ft. of visibility behind the trailer and ultra-low latency of less than 0.25 seconds for real-time viewing. It can also be used continuously while driving, allowing drivers to monitor traffic behind them.

Hexagon Agility, Brudeli announce CNG/RNG system integration with PowerHybrid technology

The setup enables the powertrain to switch between hybrid modes, providing flexibility for fleets to operate with different energy options.

Ford to provide charging infrastructure for city of Dallas

As part of the agreement, Dallas will install Ford Pro chargers at city worksites and use Ford Pro smart charging software.

Accelera showcases new technology at ACT Expo

“We now have over 1.5 billion miles in the field on our e-mobility products,” Amy Davis, president of Accelera, said.

ACT Expo 2024 kicks off

Day one keynote speeches came from executives at Volvo, Tesla, and more.

Other Posts

‘We’re in a market correction,’ but there’s good news

At a press event held at its Customer Center in Dublin, Va. Volvo Trucks North America provided a trucking market update.

Volvo-event-VNL-Magnus-Koeck
Dealing with deposits to boost engine life

Valvoline didn’t think an engine oil that removed deposits was possible … until they did it.

Valvoline-Restore-protect-oil-medium-duty-testing
The next steps for autonomous trucks

What’s next for autonomous trucks, and where do we stand?

on-the-road-autonomous
Focus on EPA GHG Phase 3 emissions regulations

This isn’t just another round of stricter diesel engine emissions.

EPA-GHG-diesel-Engine-Emissions-1400