E-commerce continues to explode: worldwide online retail sales are set to hit approximately $6.42 trillion in 2025, marking nearly 7% growth from 2024. With trillions of dollars in goods moving online, the true test lies in ensuring these items can make the final stretch to customers’ doorsteps.
This stage, known as last mile delivery, carries the most risk, cost, and complexity, and comes as demand for fast, efficient and reliable delivery services is growing across the US, UK, and EU.
But, at the same time, last mile delivery operators navigating urban congestion, emissions regulations, and growing operating costs which is tightening margins.
To meet rising consumer expectations and urban restrictions, operators are shifting to electric vehicles (EVs) for cleaner, more efficient delivery.
What is last mile delivery?
Last mile delivery refers to the final transport leg from a fulfilment centre or distribution hub to a customer’s address or workplace. This stage includes scheduling, tracking and real-time communication to ensure on-time arrival.
It’s the most visible and often costly stage of the entire distribution chain and determines whether a supply operation is a success or failure.
Electric vehicles (EVs) can help with this by providing quiet, low-emission transport that meets urban regulations and rising demand for sustainable, reliable services.
Why this matters
The performance of last mile delivery directly affects customer satisfaction and long-term brand loyalty. If a delivery is late or missed, the retailer, not the courier, is often blamed.
It’s also a major cost center. The last mile can account for more than 50% of total delivery costs due to fuel, labor, traffic delays, and failed attempts.
Cities like London and New York report increasing delivery congestion, which adds time and expense.
While from an environmental standpoint, last mile logistics generate a significant portion of a fleet’s carbon footprint.
Conventional delivery vans contribute to air pollution, especially in dense urban areas. This has pushed many cities to introduce emission-restricted zones, making fossil-fuel fleets less viable.
Common challenges in last mile logistics
Traffic and congestion
Delivering in busy cities is difficult. Urban logistics must contend with limited parking, slow traffic, and narrow streets. Delivery drivers often struggle to meet schedules because of these daily disruptions.
Cost pressures
Rising fuel prices, driver shortages, and vehicle maintenance all increase last mile costs. Each failed delivery, due to missed time windows or inaccessible addresses, only adds to the pressure.
Failed deliveries and customer complaints
Missed deliveries frustrate customers and burden logistics teams. Every failed attempt triggers follow-ups, rescheduling, and return logistics, all of which strain resources and damage reputation.
Environmental impact
Diesel vans used in last mile operations emit high levels of CO₂ and NOx. Many regions now enforce Low Emission Zones (LEZs) and Ultra Low Emission Zones (ULEZs). Fleets that don’t comply face fines, delivery delays, or outright restrictions.
How EVs improve last mile efficiency
EVs offer a practical solution to many of these challenges. Their benefits go beyond emissions – delivering value in cost, access, and operational ease.
Lower costs
EVs are cheaper to run than internal combustion engine (ICE) vehicles. In the long-term, electricity can cost less than diesel, and EVs have fewer moving parts, reducing the need for maintenance and repairs. Over time, the total cost of ownership drops significantly.
Paired with a robust EV fleet management system, businesses can track performance, optimize routes, and maximize the uptime of their vehicles.
Access to emission-restricted zones
Electric delivery vehicles are allowed unrestricted access to LEZs and ULEZs across major cities. They avoid congestion charges and ensure on-time delivery where petrol and diesel fleets are increasingly unwelcome.
Ideal for urban deliveries
EVs are built for city driving. Their compact size and quiet operation make them well-suited to stop-and-go traffic, tight parking, and nighttime delivery windows in residential areas. These features reduce disruption and improve delivery efficiency.
Tech’s role in EV-enabled fleets
Electrifying your fleet opens the door to smarter, more connected logistics.
Route optimization
Last mile software integrated with EV telematics plans energy efficient routes. These systems consider traffic, weather and range so drivers avoid unnecessary detours and delays. Fleet operators can also benefit from better insight into the vehicle’s state-of-charge, optimizing charging based on its next-day route while keeping costs down.
Real-time tracking and communication
EV fleets integrate seamlessly with tools for driver tracking, SMS alerts, and live proof of delivery. Customers receive accurate updates, reducing missed deliveries and improving satisfaction.
Analytics and reporting
EVs generate rich performance data. Operators can get unparalleled insight into the health and performance of their vehicles, supporting more effective and efficient fleet management. Insight into energy use, delivery success rates and charge supports maintenance, route planning and depot management.
Sustainability benefits of EVs in the last mile
Switching to EVs delivers immediate environmental and business value. As sustainability expectations grow among regulators and customers alike, companies that electrify their last mile operations position themselves for long-term success.
Key benefits include:
- Zero tailpipe emissions, helping reduce CO₂ and improve urban air quality.
- Support for corporate sustainability targets and environmental reporting requirements.
- Stronger consumer trust and brand reputation through visible climate-conscious action.
- Lower emissions from smart routing, fewer delivery trips, and more efficient load consolidation.
- Reduced packaging waste through optimised delivery bundling and fleet coordination.
- Access to smart EV charging infrastructure through software solutions like ZeroCarbon Charge, built for last mile logistics.
Future trends in EV-driven last mile delivery
The last mile is evolving rapidly. EV adoption is just the beginning.
Delivery automation
Companies are piloting autonomous delivery vehicles and sidewalk robots. These reduce the need for drivers, lower costs, and increase reliability.
Drones and aerial delivery
Drones enable fast, same-day delivery in rural or suburban regions. They bypass traffic and reach locations conventional vehicles can’t access efficiently.
Micro-fulfilment centers
Retailers are building micro-fulfilment centers closer to customers. These hubs reduce the distance and time needed to complete final deliveries—especially when combined with EV fleets.
Smart logistics
The integration of AI, telematics and machine learning is transforming logistics. These technologies enable proactive decision making and end-to-end visibility for fleet operators.
EVs work best when connected to intelligent systems that manage charging, dispatch and maintenance all within a centralised EV fleet management platform.
Electric vehicles solve many of last mile delivery’s biggest problems. They reduce emissions, lower costs and unlock access to urban areas with strict environmental rules.
By combining EVs with smart tech and solutions, like ZeroCarbon Charge, fleet operators can future proof their delivery model and meet growing demand for clean logistics.
Now is the time to electrify the last mile. Those that do today will win in the long term on performance, compliance and customer satisfaction.