Last-mile logistics is growing rapidly in the US. This surge has fueled growth for giants like UPS and FedEx, as well as last-mile logistics specialists like USPack and LaserShip, and technology leaders like Bringg. And it has been fueling acquisitions, such as the Target acquisition of Deliv.
But what about Latin America? $11 billion has been invested globally in last-mile logistics this decade, but Latin America only saw $1 billion.
As TechCrunch points out, one reason is because of the market structure.
“60% of the last-mile delivery market is dominated by small, informal companies or independent drivers using their own trucks. This results in inefficiencies due to a lack of technologies such as route optimization as well as a lack of operating scale. These issues are quickly becoming more pronounced as e-commerce in LatAm has taken off at a compound annual industry growth rate of 16% over the past five years.”
Will 2021 be the year when other major logistics, software, and retail giants discover the opportunity in Latin American last-mile logistics?