Updated October 2025
The "last mile". This term, once confined to logistician circles, is now at the heart of our digital economy and customer experience. It's the shortest, most expensive and most complex stage of the entire supply chain. It's the moment of truth when a digital promise is transformed into a physical experience.
But it's also - and this is less often said - the zone of all danger: 60% of claims (loss, theft, breakage) occur during this final stage, even though it represents only 10% of the total distance covered by a parcel. Every day, thousands of companies lose money not because of a bad product or bad marketing, but because of a parcel lost, stolen or broken just a few meters from its final recipient.
Mastering the last mile is no longer an option, it's a condition of survival and profitability. This guide is not just a theoretical overview. It's an operational dive into the last mile ecosystem, giving you the keys to understanding, optimizing and, above all, securing this critical stage.
At the end of your reading, you'll know not only what the last mile is and how to optimize it, but above all how to financially protect your deliveries against the concentrated risks of this final stage.
What is the Last Mile? Definition and issues
The "last mile" refers to the final stage in the delivery process: the moment when a parcel leaves a local distribution center (hub, urban warehouse, cross-docking point) to arrive at its final destination, be it a private individual's home, a company's premises, or a collection point.
In the diagram above, the last mile corresponds to the yellow stage: from the urban warehouse to the end customer.
Why is the Last Mile so strategic?
If it is the shortest in distance (generally a few kilometers, or even a few hundred meters), the last mile has become the center of gravity of modern logistics for four major reasons:
1. It is the only physical point of contact with the end customer
All your marketing work, all the quality of your product, all the digital experience converge on this moment: the receipt of the parcel. A rude deliveryman, a damaged parcel, a failed delivery... and the whole customer experience falls apart. According to a FEVAD study, 84% of consumers no longer recommend a brand after a bad delivery experience.
2. This is the least efficient and most costly step.
On average, the last mile accounts for more than 50% of the total cost of delivery, even though it accounts for only 10% of the distance. Why is this? Because it's the least mutualized: a truck traveling 500 km with 5,000 parcels is ultra-efficient. A delivery driver who travels 50 km to deliver 120 parcels to 120 different addresses is much less so.
3. This is where all modern expectations crystallize
Speed (delivery within 24 hours, or even the same day), flexibility (choice of delivery slot, real-time change of address), personalization (direct communication with the delivery driver), and ecological responsibility (clean vehicles, recyclable packaging). The last mile has become the battleground of competitive differentiation.
4. This is the area of maximum loss concentration.
And it's this point, often overlooked, that can tip a profitable business into the red. The figures speak for themselves: 60% of logistics losses occur during the last mile. Theft, loss, breakage, address errors... This last stage accumulates all the risks. We'll come back to this in detail.
The Last Mile in Figures: A booming market
The figures illustrate the colossal importance of this segment and its structural challenges:
Global market size:
Estimated at over $200 billion in 2025, the last mile market is expected to reach nearly $325 billion by 2029, according to Mordor Intelligence. This explosive growth (+62% in 4 years) is driven by the rise of e-commerce, urban densification and the collective appetite for fast delivery.
The weight of costs:
The last kilometer represents on average 50 to 53% of the total cost of delivery. It's the most expensive link in the whole chain. For a delivery costing €10 in total, €5 to €5.30 is spent on the last mile alone.
Breakdown of last mile costs :
- Driver's salary: 40% of marginal cost
- Fuel/energy: 25
- Vehicle (depreciation/rental): 15
- Delivery failures (absent customer): 10-15%.
- Insurance and miscellaneous: 5-10
Customer demands:
According to industry data, 66% of retailers are now obliged to offer next-day delivery, and 44% of consumers expect their parcels in less than 2 days. This time pressure generates additional costs and mechanically increases the rate of errors and claims.
The impact of failed deliveries:
15-20% of deliveries require a second attempt (customer absent, incorrect address, no access). Each failed attempt doubles the cost of delivery and multiplies the risk of loss or theft during temporary storage.
These figures pose a difficult equation: how to keep costs under control, service quality high and financial risks contained in the face of exploding demand?
Actors and Models of the Last Mile
The last mile is not uniform. There are many different delivery models, each with its own advantages, costs and risks.
1. Traditional Home Delivery
How it works:
A professional delivery driver (ChronopostDHL, Colissimo, UPS...) delivers the parcel directly to the customer's home, with or without a signature.
Advantages :
- ✅ Maximum comfort for the customer
- ✅ Suitable for bulky or heavy products
- ✅ Premium image
Disadvantages :
- ❌ Highest cost (€6 to €12 depending on distance and time)
- ❌ High failure rate if customer absent (15-20%)
- ❌ Risk of theft on doorstep (if delivered without signature)
Estimated loss ratio: 2-3% (theft, breakage, loss)
2. Point Relais
How it works:
The parcel is delivered to a local shop (Mondial RelayRelais Colis, Pickup...). The customer collects it at their convenience.
Advantages :
- ✅ Reduced cost (€3 to €6)
- ✅ Flexibility for the customer (extended working hours)
- ✅ Near-zero failure rate (parcel awaits customer)
- ✅ Very low claims ratio: 0.5 to 1%.
Disadvantages :
- ❌ Customer constraint (travel required)
- ❌ Limited in size/weight (often max 30 kg)
- ❌ Not suitable for very fragile or high-value products
3. Automatic setpoints
How it works:
Secure lockers installed in open-accesslocations (Pickup, Amazon Hub, InPost...). Customers receive a code to open their locker and retrieve their parcel 24 hours a day.
Advantages :
- ✅ 24/7 availability
- ✅ Secure (locked locker/code)
- ✅ Lowest loss ratio: 0.3 to 0.8%.
- ✅ Intermediate cost (€4 to €8)
Disadvantages :
- ❌ Territorial coverage still incomplete
- ❌ Limited in size (standard crates)
- ❌ Requires heavy infrastructure
4. Click & Collect / Drive
How it works:
Customers order online and pick up in-store or at a dedicated drive-through point.
Advantages :
- ✅ Minimum cost for the e-merchant (€0 to €2)
- ✅ Near-zero claims ratio: 0.1
- ✅ In-store upselling opportunity
Disadvantages :
- ❌ Requires a network of physical stores
- ❌ Strong constraint for the customer
5. Collaborative delivery / Crowdshipping
How it works:
Platforms(Stuart, Uber, Deliveroo...) mobilize independent delivery drivers for ultra-fast deliveries (1 to 4 hours).
Advantages :
- ✅ Express delivery (perfect for food and fresh produce)
- ✅ Geographical flexibility
Disadvantages :
- ❌ High cost (€8 to €20 depending on urgency)
- ❌ Variable accident rate (depends on the quality of the driver)
- ❌ Less suitable for high-value products
Last Mile Model Comparison Chart
The Specific Risks of the Last Mile: The Danger Zone
Here's a subject that few articles tackle head-on, but which has a direct impact on your profitability: the last mile accounts for 60% of all logistics claims. Why this concentration of risk?
1. Multiple handling generates breakage
The journey of a last mile parcel:
- Long-haul truck unloading at the urban hub
- Manual sorting by delivery round
- Loading into delivery vehicle (van, cargo bike, etc.)
- Repeated handling during the tour (packages stacked, moved, reorganized)
- Final disposal (sometimes thrown over a gate, left in the rain...)
Every handling is a risk of breakage, especially for fragile products (electronics, glass, ceramics). Time pressure (120 to 180 parcels to be delivered per day) exacerbates the problem: delivery drivers don't have the time to handle each parcel delicately.
2. Parcel theft on the rise
Parcel theft has exploded in recent years. According to industry data, incidents will increase by almost 40% between 2022 and 2024.
The three types of theft :
Theft in transit (during the delivery round):
Rare but possible, especially if the delivery driver leaves his vehicle open and unattended. Usually involves several parcels at once.
Doorstep theft:
The most common. The deliveryman leaves the parcel "on the doorstep" without signing for it (sometimes despite your instructions), and a passer-by or malicious neighbor steals it within minutes. Dense urban areas and unsecured building lobbies are the hardest hit.
Organized theft by complicity:
Less frequent but on the rise: a customer orders, receives the package, then claims never to have received it, even though the tracking system indicates "delivered". Fraud difficult to prove.
Typical case that ruins margins:
You ship an iPhone for €1,200. It is delivered "to the door" at 2pm (signature not obtained even though you had subscribed to it). At 2.15pm, a passer-by steals it. Tracking shows "successfully delivered". The customer contacts you: "I haven't received anything". Who pays?
3. Time Pressure Multiplies Errors
Last mile delivery drivers work under intense pressure. A Chronopost Chronopost or Colissimo delivery driver has to deliver 120 to 180 parcels a day, i.e. 1 parcel every 4 to 6 minutes (including breaks and travel).
Direct consequences:
- Roughly discarded packaging (breakage of fragile objects)
- Address errors (wrong building, wrong floor, wrong name)
- Non-compliant filing (no signature obtained when required)
- Non-compliance with instructions (delivering to a neighbor when prohibited)
A revealing statistic: 15-20% of deliveries require a second attempt. Each failure doubles the cost AND doubles the risk (new handling, new transport, often insecure temporary storage).
4. The "Last Meter" Problem
The parcel arrives at the address indicated... but where do you actually leave it?
Common scenarios :
- Mailbox too small → parcel left on the floor in the hall
- Digicode not supplied or wrong → parcel left in front of building
- Absent customer → handover to neighbor (risk of non-recovery)
- Business address closed (Saturday/Sunday) → return to depot
Each of these situations creates a liability blind spot: who's responsible if the parcel disappears in the building lobby? If the neighbor claims never to have received it? If the parcel sits in a garbage can for 3 days?
Legal liability: Who pays in the event of a Last Mile claim?
The legal issue is complex, but here are the basic principles.
The Fundamental Principle
Under French law, the sender (you, the e-tailer or the company) is liable until the package is actually delivered to the recipient. This means that if the package is lost, stolen or damaged before it reaches the customer, you are financially liable to the customer.
You can then turn to the Carrier for compensation, but it' s up to you to reimburse your customer first.
Table of responsibilities by situation
The recurring trap: Even when Carrier is legally responsible, its compensation is strictly limited by its general conditions:
- Colissimo: €23/kg, rarely more than a few hundred euros
- Chronopost : Limit €7,600(details)
- DHL, UPS: variable according to contract, often €100-500 by default
Case in point:
You ship a MacBook Pro for €2,500 via Colissimo. It is lost in the final delivery stage. Colissimo compensates... 23 (weight ~2 kg). You lose €2,477 + the cost of managing the customer dispute.
Solution: Last Mile Specialized Insurance
Faced with these concentrated risks and limitations on compensation, companies that are in control of their profitability are adopting a strategy of decoupling from insurance.
The Decoupling Principle
Rather than relying solely on Carrier 's basic insuranceLimits lowLimits , numerous exclusions, long delays), you take out independent parcel insurance that covers the real value of your goods, whatever last mile delivery method you choose.
Why carrier insurance is unsuitable for the Last Mile
Problem 1: Insufficient Limits
Colissimo limits to €5,000(details), Chronopost to €7,600. If you regularly ship smartphones, computers, watches or business equipment, you're systematically underinsured.
Problem 2: Critical exclusions
Jewelry, precious metals, works of art and luxury watches are often excluded or severely restricted in standard carrier contracts(see details on watches and luxury leather goods).
Problem 3: Crippling claims delays
Standard carrier insurance policies take an average of 60 to 90 days to pay out. Inpeak season, this can take up to 120 days. In the meantime, your cash flow is at a standstill: you've reimbursed the customer, restocked your inventory, but you haven't yet recovered the indemnity.
Problem 4: Structural conflict of interest
When a Carrier loses your parcel, his financial interest is to minimize or refuse compensation. He is judge and jury. Files drag on, proofs of claim pile up, and in the end, reimbursement is often only partial.
Decoupled Insurance changes the game
Specialized parcel insurance(find out more) offers four decisive advantages for the last mile:
✅ RealisticLimits : up to €100,000 per parcel, even covering very high-value products(high-value details)
✅ Express compensation: 48 to 72 hours to preserve your cash flow and customer relations
✅ Total independence: the insurer rules independently of the Carrier, with no conflict of interest. Whether the Carrier accepts or refuses liability, you are indemnified on the basis of your insurance contract.
✅ Wide coverage: high-tech, watches, jewelry, luxury leather goods, legal CBD... Products often excluded elsewhere are accepted
✅ Automation possible: native integration with your CMS(Shopify, WooCommerce, PrestaShop) or via API with your TMS/OMS to automatically ensure each last mile shipment
How does it work?
Step 1: Integration
You connect your webshop or logistics system (TMS, OMS, WMS) to your insurance solution via a native connector or API.
Step 2: Automation rules
You define your criteria: "Automatically insure all parcels >100 €" or "Automatically insure High-tech, Watches, Jewelry categories".
Step 3: Automatic protection
Each parcel that meets your criteria is automatically insured for its real value, regardless of the last mile delivery method (home, relay point, consignment).
Step 4: Simplified claims management
In the event of loss/theft/breakage, you declare the claim online in just 5 minutes. The insurer processes the claim independently and pays out within 48-72 hours.
ROI: Last Mile Insurance Pays for Itself
Concrete simulation :
You ship 2,000 last-mile parcels per month, with an average value of €200 per parcel.
Without decoupled insurance :
- Last mile loss ratio: 2.5%.
- Monthly claims: 50 parcels
- Financial loss: 50 × €200 = €10,000/month
- Average Carrier compensation (if accepted): 50 × €50 = €2,500
- Net loss: €7,500/month = €90,000/year
With decoupled insurance (rate ~0.75% of value) :
- Insurance cost: €2,000 × €200 × 0.75% = €3,000/month
- Total compensation for 50 claims: €10,000
- Net gain: €7,000/month = €84,000/year
The ROI is mathematical: as soon as your last mile loss ratio exceeds 0.75%, the insurance pays for itself.
Last Mile trends and outlook (2025-2030)
Tomorrow's last mile will be hyper-personalized, sustainable and technological.
1. Hyper-customized delivery
What's emerging :
- Choice of half-hourly delivery times (already offered by Amazon and DHL)
- Real-time destination modification via mobile app
- Direct delivery-customer communication (chat, call, geolocation)
- Memorized preferences (always deliver to the neighbor above, never leave outside...)
Case in point: Stuart and Uber already offer real-time GPS tracking and direct communication.
2. Low Emission Zones (LEZ) and Green Deliveries
Regulation in motion:
- Paris: EPZ extended to the entire inner ring road (already active)
- Lyon: progressive EPZ until 2026
- Marseille, Toulouse, Bordeaux: rollout 2025-2027
Consequences: Diesel/petrol vehicles will gradually be banned from city centers. Transport companies will have to invest massively in electric fleets, cargo bikes and hydrogen-powered vehicles.
Impact on costs: According to initial studies, the green transition could increase last mile costs by 10-15% in the short term, before stabilizing thanks to fuel savings and public subsidies.
3. Shared Delivery Hubs
The concept: Urban consolidation centers where several carriers drop off their parcels, which are then delivered in the final stage by a single local service provider (economies of scale, reduced traffic).
Examples from France:
- Paris: micro-hubs experiment in the 18th arrondissement
- Lyon: Confluence shared logistics hub project
- Bordeaux: partnership between city council and transport companies on the Euratlantique hub
4. Emerging Technologies
Delivery drones:
Delivery drones:Still experimental in France (strict regulations), but Amazon Prime Air and Alphabet Wing are actively testing in the USA and UK. Potential for rural areas or islands, but urban adoption limited by safety constraints.
Robots de livraison autonomes :
Starship Technologies et Nuro testent des robots roulants pour livraisons de proximité (< 5 km). Adapté aux campus universitaires, zones résidentielles fermées, parcs industriels.
Artificial Intelligence for route optimization:
AI algorithms optimize routes in real time according to traffic, customer slots and priorities. Estimated cost reduction: 15 to 20%.
New-generation intelligent crates:
Connected crates, refrigerated for food products, with facial or biometric recognition for opening. InPost and Pickup are deploying these solutions in France.
Secure Your Last Mile Today
The last mile is the moment of truth for your entire supply chain. It's where customer satisfaction, reputation and profitability are at stake. But it's also where financial risks are most concentrated.
The three pillars of a controlled last mile:
✅ Choose the right delivery method for your products and customers (home, relay point, consignment)
✅ Optimize your processes to reduce costs and delivery failures (address verification, proactive communication, carrier selection)
✅ Secure your flows financially with insurance tailored to the reality of last mile risksLimits highLimits , rapid indemnification, broad coverage).
Ignore any one of these three pillars, and you run the risk of seeing your margins evaporate in claims, or losing customers to a poor delivery experience.
Conclusion: The Last Mile, a double-edged strategic lever
The last mile has ceased to be a simple operational problem. It has become a major strategic lever that can make or break a company.
On the one hand, a controlled last mile offers you :
- Exceptional customer experience (loyalty, word-of-mouth)
- Optimized costs (intelligent choice of delivery methods)
- Competitive differentiation (speed, flexibility, eco-responsibility)
On the other hand, a poorly secured last mile can ruin you bit by bit:
- Uninsured claims that eat into your margins
- Dissatisfied customers who never return
- Cash flow blocked while waiting for compensation payments that are not forthcoming
The companies that will succeed in the decade 2025-2030 will not necessarily be those that deliver the fastest or the cheapest. They will be those who understand that the last mile is a complex system where operational excellence must be accompanied by appropriate financial protection.
Investing in optimizing AND securing your last mile means investing directly in the growth and sustainability of your business.
The last mile is the shortest... but it's also the most decisive. Don't let it become your Achilles heel.
Additional Resources
To deepen your understanding of logistics and e-commerce insurance, consult our specialized guides:
📦 Guides by situation
- Package insurance: the complete 2025 guide
- Insurance for high-value products (>€5000)
- Peak Season Guide: securing your deliveries during busy periods
💎 Guides by product type
🔍 Comparison and analysis
- Colissimo / La Poste insurance: full analysis
- Chronopost insurance: detailed guide
- Sendcloud insurance: comparison and alternatives
- Packlink Pro insurance: limits and solutions
- Parcel insurance solutions comparator
🏢 For logistics professionals