The Different Types of Last-Mile Delivery and How They Work

Whether you’re delivering food, beverages, furniture, or other products, last-mile delivery is the final step in getting the products into the customer’s hands. Last-mile delivery accounts for up to 53% of total shipping costs, making it the most crucial and expensive part of the supply chain. How you handle last-mile delivery can significantly impact customer satisfaction and the bottom line.

Last-mile delivery is the final step in getting a product into a customer’s hands. It’s also the most critical and expensive part of the shipping process, accounting for more than half of total delivery costs. Whether you’re delivering furniture, groceries, or electronics, how you handle last-mile delivery can significantly impact customer satisfaction and your bottom line.

There’s no one-size-fits-all solution for last-mile delivery. Businesses need to choose the right method based on their products, customer expectations, and operational capacity. Last-mile delivery can be categorized into several types, and you will find details about each one below and how to choose the best type for your business.

Scheduled Delivery

Definition

Scheduled delivery allows customers to choose a specific date and time for their orders to arrive. It’s ideal for non-urgent or large items where timing and convenience matter more than speed. With this approach, you give your customers more control and help the business manage delivery operations in a more structured way.

How it works

Depending on the business type and operational rules, customers select a preferred delivery window during checkout, which can range from the next day to several days later. The operational team then plans routes to ensure drivers arrive during the selected window. Coordinating these deliveries takes careful planning to meet time slots while keeping routes efficient.

Benefits

Customer convenience: People appreciate knowing when their items will arrive. It helps them plan their day and reduces the chance of missed deliveries.
Operational efficiency: For businesses, scheduled deliveries mean better control over routes and driver workloads. Teams can plan ahead and avoid last-minute changes.
Reduced failed deliveries: Confirming a delivery time with the customer means they’re more likely to be at the selected address. Thus, you reduce the chance of failed attempts and the costs that come with them.

Use cases

Furniture and appliance delivery: These items are large, often need setup, and require someone to be present at the address to receive them. Scheduled delivery makes that easier.
Non-urgent e-Commerce orders: Products like books, clothing, or tech gear that don’t need to arrive the same day can be shipped more efficiently with scheduled times.
Healthcare supplies: Items like medical equipment or regular prescriptions benefit from reliable but not rushed delivery, ensuring patients get what they need without stress.

Challenges

To make scheduled delivery work well, businesses need an advanced planning tool. Routes must be built around set time windows, sometimes even weight limits, which adds complexity. It also means there’s less room to make last-minute changes; once a time is locked in, flexibility is limited.

On-Demand Delivery

Definition

On-demand delivery is all about speed. It gets orders to customers fast, often within a few hours. This type of delivery is perfect for urgent needs where waiting isn’t an option. Customers need and expect a quick service, and businesses that meet those expectations build trust and loyalty over time.

How it works

As soon as the order is placed, the business must assign it to the nearest available driver. The driver then must pick up the order and deliver it right away. Technology plays a big role here. Most on-demand systems rely on a set of apps to track orders, assign drivers, and update customers in real time.

Benefits

Customer satisfaction: Fast delivery is great for urgent deliveries, giving people what they want in the minimum time. That keeps the customers coming back.
Competitive edge: Offering quick delivery helps the business stand out in crowded markets, with lower delivery times when customers really need it.
Increased sales: Many customers choose businesses that can deliver fast when in need, even if they charge a bit more.

Use cases

Food and beverage delivery: People often need meals, snacks, or groceries right away. These items cannot spend a large amount of time in transit, in a warehouse being sorted. Most often, restaurants and grocery stores use on-demand delivery to fill that gap.
Same-day retail delivery: Items like phones, clothes, or cosmetics are delivered within hours for added convenience.
Urgent shipments: Sometimes, documents, gifts, or other supplies have to be delivered quickly. On-demand delivery handles these time-sensitive orders.

Challenges

Fast service comes with higher costs. Quick deliveries mean more drivers, more vehicles, and tighter schedules. It also requires strong investments in systems to handle demand spikes. Without the right tools and planning, it’s hard to keep up and maintain quality.

White Glove Delivery

Definition

White glove delivery is a premium service that offers more services and customer care than just dropping off a package. It includes careful handling, in-home setup, and sometimes assembly. This type of delivery is meant for large, delicate, or high-value items where extra attention is needed to ensure everything arrives safely and is ready for use.

How it works

After the order is placed, a trained team handles the item from start to finish. They deliver it to the customer’s home, bring it inside, unpack it, and set it up where needed. Some services also include the removal of old items or packaging. The goal is to offer a smooth, stress-free experience for the customer.

Benefits

Better customer experience: Customers feel taken care of when deliveries include more than just the delivery, like setup and careful handling.
Premium branding: By offering white glove service, your business stands out from the crowd and can attract customers who value experience and quality.
Higher revenue potential: Businesses can charge more for this level of service, increasing profits.

Use cases

Furniture and appliance delivery: Heavy or delicate items that need placement and setup, like sofas or washing machines.
Medical equipment: Items like hospital beds or oxygen machines need correct installation and explanation for the staff to know the best practices.
Luxury items: Expensive items, like electronics or artwork, require extra care during transport and setup.

Challenges

This service requires trained staff who know how to handle, install, and explain the items. It also needs special tools or equipment for safe transport and setup. Because of the time and effort involved, costs are higher than standard delivery. Businesses need to have a business plan to offer this service without losing money.

Parcel Delivery

Definition

Parcel delivery is one of the types of last mile delivery services built for small packages, usually under 20 kilograms (around 50 pounds). It relies on networks of parcel carriers that handle large volumes of shipments every day. This type of delivery is common for fast-moving, lower-weight items and is ideal for both large e-commerce brands and small businesses.

How it works

Businesses prepare packages and hand them off to a parcel carrier, such as USPS, UPS, or FedEx. These carriers need to sort and move packages through their network of hubs and trucks to reach the local facility near the customer. A final driver then delivers the parcel to the recipient. The entire process is often tracked through barcodes and digital updates, though tracking quality can vary by carrier.

Use cases

Parcel delivery is often used for e-commerce orders like clothing, electronics, books, and household items. It’s also popular with small businesses that ship customer orders or samples. The service is designed to combine many factors, such as speed, cost savings, and wide coverage.

Benefits

Parcel delivery is cost-effective, especially for businesses shipping large volumes. It can handle many orders without requiring a huge logistics team. It’s also scalable, meaning businesses can grow without needing to change delivery methods. Large carrier networks make it easy to reach customers around the world.

Challenges

Not all parcel carriers offer full tracking. Sometimes, businesses and customers get limited updates on the delivery status. During busy seasons, like holidays or big sales events, the system can slow down, causing delays and missed delivery windows. Businesses must plan ahead to avoid these issues.

Micro-Hubs

Definition

Micro-hubs are small distribution centers placed in busy city areas. They help businesses store and get the goods sorted closer to customers, making deliveries faster and more efficient. These hubs are designed to support quick, same-day, or even hourly deliveries, especially in crowded urban spaces.

How it works

Goods are delivered in bulk to small storage centers located within city limits. From there, last-mile deliveries are made using eco-friendly vehicles, such as e-bikes or small electric vans. Micro-hubs help drivers avoid long trips from warehouses outside the city. Instead, items are staged closer to customers, allowing for faster, more efficient urban deliveries, often within hours of an order.

Use cases

Micro-hubs are often used for grocery and parcel deliveries in cities to make deliveries convenient and fast. They’re also popular with businesses that want to reduce their carbon footprint by using eco-friendly vehicles like electric vans or cargo bikes for the final stretch of delivery.

Benefits

By placing goods closer to where people live, micro-hubs help cut down last-mile delivery time. This means faster service, fewer delays, and better customer satisfaction. They also support green delivery options, helping businesses meet their sustainability goals and improve their public image.

Challenges

Setting up micro-hubs in cities can be expensive, as urban real estate is often limited and costly. There are also local rules and zoning laws that may restrict where these hubs can operate. Businesses need to plan carefully and work with city officials to make this model work.

Crowdsourced Delivery

Definition

Crowdsourced delivery relies on independent contractors or gig workers to complete deliveries. Instead of using a full-time delivery team, businesses tap into a flexible pool of drivers who accept jobs through an app or platform. This model works well for companies needing on-demand delivery without long-term staffing costs.

How it works

When an order is placed, it’s sent to a pool of available independent drivers through a delivery app or platform. Drivers choose which jobs to accept based on location, pay, and time. Once accepted, the driver picks up the item and completes the delivery, often using their own vehicle. The system handles order tracking, driver communication, and payment, giving businesses a ready-made delivery workforce without managing employees directly.

Use cases

This method is widely used for restaurant and grocery delivery, especially through popular food apps. It’s also common for retail stores that offer same-day delivery, using crowdsourced drivers to fulfill orders quickly and affordably.

Benefits

Crowdsourced delivery makes it easy for businesses to scale up, especially during busy times, without hiring extra staff. It’s also cost-effective, especially for businesses with delivery demand that changes daily or seasonally. The flexible setup means companies can stay agile and easily meet customer expectations.

Challenges

Because businesses rely on third-party drivers, there’s less control over the delivery experience. Some customers may get great service, while others may not. Service quality can vary depending on who’s available, which may affect customer satisfaction if not managed carefully.

How to choose the right last-mile delivery model

Choosing the best delivery method depends on what you sell and how much you ship. If you’re a retailer with high order volumes, parcel delivery or micro-hubs can help you move products quickly and affordably. These models are built for speed, scale, and efficiency. On the other hand, if you handle large or high-value items, a white glove service adds value through careful handling and in-home setup; something customers will happily pay more for.

You need to think carefully about what your customers want. People ordering food or urgent items will expect on-demand delivery. They need speed and real-time updates. Others may prefer a scheduled delivery, especially for items that aren’t urgent. Giving customers control over delivery times improves their experience and reduces missed deliveries.

It’s also important to look at your current team, tools, and systems. Ask yourself if you can handle real-time orders. Do you have trained staff for premium setups? Choose delivery models that fit your operations, not just what looks good on paper. Tools like Logistia Route Planner make planning routes, assigning orders easier, and optimizing deliveries across different types of last mile delivery models. Whether doing same-day drops or pre-scheduled routes, the right software helps you do it faster and with fewer mistakes.

Conclusion

Choosing the right types of last-mile delivery for your business mix is key to meeting (even exceeding!) customer expectations and running smooth operations. Whether your business requires speed, precision, or premium care, the right approach can make a big difference in cost, customer satisfaction, and delivery success.

By using tools like Logistia Route Planner, businesses can improve efficiency, accuracy, and scalability, no matter the delivery type. From on-demand to scheduled or white-glove service, smart planning helps you stay in control and ahead of the competition.

Now is the time to review your delivery setup, streamline your routes, and enhance your customer experience. Try Logistia Route Planner and take the first step toward better, faster, and smarter delivery operations.