Analysis of Key Factors Affecting Increase in Last-Mile Cost

The increase in last-mile delivery costs is a common issue in the logistics industry, directly impacting operational efficiency and consumer experience. So, what exactly causes the rise in last-mile costs? This requires analysis from multiple perspectives.

Firstly, transportation distance is an undeniable factor. With rapid urbanization, the expansion of cities has increased the distance between distribution points and consumers. For instance, when an e-commerce platform expands its service area, it may locate distribution centers far from downtown areas to reduce warehousing costs. However, while this strategy reduces initial warehousing expenses, it increases the cost of last-mile delivery. According to relevant reports, some courier companies' delivery costs in remote areas are nearly 30% higher than in city centers. This is because long-distance transport consumes more fuel and can lead to increased vehicle wear and tear, resulting in higher repair and replacement part costs.

Secondly, traffic conditions are also a crucial factor affecting last-mile costs. In major cities, traffic congestion is a common problem. Statistics show that average speeds during peak hours may drop below 20 kilometers per hour, which undoubtedly extends delivery time and increases fuel consumption. Frequent stops for traffic lights, searching for parking spaces, and other behaviors further increase costs. Especially during large events or holidays, traffic controls become stricter, posing greater challenges for couriers. For example, during the Spring Festival, due to the return of a large number of people, some courier stations face staff shortages. Meanwhile, changes in traffic flow significantly decrease delivery efficiency, leading to a noticeable rise in last-mile costs.

Thirdly, changes in labor costs also have a significant impact on last-mile expenses. In recent years, with growing societal attention to labor rights, minimum wage standards have been raised across various regions. For enterprises reliant on a large base of employees, this means rising manpower costs. During peak seasons, companies often need to hire temporary workers to handle the surge in orders, and these new hires usually require training before they can start work, adding to company expenditures. For instance, during the Singles' Day promotion, a courier company had to hire over a thousand short-term workers to ensure service quality, providing temporary relief but also creating substantial financial burdens.

Additionally, changes in policy regulations may also contribute to rising last-mile costs. With increasingly stringent environmental requirements, many regions are promoting the use of new energy vehicles. Although this is beneficial in the long term for reducing carbon emissions, it entails higher purchasing and maintenance costs in the short term. Particularly, battery replacements and the construction of charging facilities require significant investment. Some areas have also implemented restrictions on diesel vehicles, forcing logistics companies to adjust their delivery plans and opt for more expensive methods to complete the final kilometer of delivery.

Finally, rising customer expectations cannot be overlooked. Modern consumers are placing greater emphasis on shopping experiences, hoping for prompt and accurate deliveries, and are willing to pay a premium for this. This demands logistics companies to continually enhance their service levels, such as offering 24/7 delivery and real-time package tracking. However, these value-added services require robust technical support and efficient management systems, inevitably increasing operational costs.

In summary, the increase in last-mile costs results from multiple factors working together. Faced with this situation, logistics companies should actively seek solutions, such as optimizing delivery routes, strengthening information technology development, and reasonably planning warehouse layouts, aiming to control costs while better meeting market demands. At the same time, society as a whole should give sufficient attention and support to promote the healthy development of the entire industry.