Mexico Last Mile Delivery Market Market Size (2024 - 2029)

Mexico Last Mile Delivery Market Analysis

The Mexican Last mile Delivery Market is valued at about 15.5 USD Billion and is expected to grow at a CAGR of more than 6.5% during the forecast period.

• Like in other marketplaces around the world, the COVID-19 pandemic altered consumer behaviour in Mexico. Consumers were prompted to test and adopt digital channels by limited access and mobility constraints during 2021 and into 2022, which also served to emphasise the significance of grocery retail as the principal supplier of essential food, drinks, and supplies for personal and home care for households across the nation. Mexican grocery stores are vying to develop robust e-commerce capabilities and solutions. The predicted gross merchandise value of modern trade in 2021 (hypermarkets, supermarkets, and convenience stores) was more than USD 20 billion, with an increasing portion going to Internet sales. Customers' expectations of delivery timeframes for essential groceries and convenience goods are changing as pure-play digital grocery startups have emerged, incumbents are stepping up their attempts to become genuine omnichannel players, and last-mile solutions are reshaping those expectations.
• Even established businesses like mom-and-pop shops are undergoing change. The distinction between who does what in the sector is becoming more hazy as these smaller, unorganised retail players use their essential consumer product-supplier capabilities to develop or implement e-commerce solutions. Retail players who are digital natives and have previously upended other marketplaces around the world can now enter the industry thanks to this change. Even established businesses like mom-and-pop shops are undergoing change. The distinction between who does what in the sector is becoming more hazy as these smaller, unorganised retail players use their essential consumer product-supplier capabilities to develop or implement e-commerce solutions. Retail players who are digital natives and have previously upended other marketplaces around the world can now enter the industry thanks to this change.
• Although large parcel companies cover specific solutions, in recent years several startups focused on last-mile logistics have emerged in Mexico. In Mexico, deliveries are generally not fulfilled within 24 hours. A few of the challenges that these logistics companies face include the cost of transporting the product, which accounts for 53% of the total cost of the supply chain. Additionally, customers are apprehensive to purchase online in part due to the high cost of fast delivery. Another challenge is the cost of fuel, which accounts for 5% of operating expenses. Moreover, it is a dollarized cost that lies outside the control of the retailer or the logistics company.

Mexico Last Mile Delivery Industry Segmentation

Last mile is a term utilized in supply chain management and transportation wanting to depict the last leg of a journey including the movement of people and goods from a transportation center to a final destination. A complete background analysis of the Mexican Last-Mile Delivery market, which includes an assessment of the economy, market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles are covered in the report. The report offers market size and forecasts in values (USD billion) for all the above segments.