The UK on-demand logistics market registered robust growth from 2020, with revenues increasing from $8,500 million in 2020 to $13,600 million in 2025. Growth is propelled by digitalization, surging e-commerce, and higher enterprise adoption of smart technology. Forecasts project the market to touch $26,800 million by 2035 as logistics networks scale up to meet the demands of quick commerce, cross-border shipments, and specialized healthcare logistics. Continuous investment in infrastructure, automation, and sustainability initiatives is expected to further accelerate revenue momentum in the coming decade.
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Retail and e-commerce remain the dominant application area for on-demand logistics, driven by accelerated consumer online spending and omnichannel retail strategies. In 2025, healthcare & pharmaceuticals have achieved notable share gains due to regulatory approvals for direct-to-patient deliveries and temperature-sensitive logistics. Food & beverages are a major growth sector, with instant delivery platforms expanding rapidly. Manufacturing, along with documents and package deliveries, continues to provide consistent logistics volume. This diversified demand base ensures continued evolution of tailored logistics services across the UK.
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Who are the key players in UK On demand logistics industry?
Top UK on-demand logistics players include Deliveroo, Just Eat, Stuart, CitySprint, and Hermes. Deliveroo and Just Eat dominate food delivery, while Stuart and CitySprint focus on same-day parcel and courier services. Hermes specializes in flexible last-mile delivery, serving major retailers and ecommerce brands with scalable, technology-driven solutions.
What is the UK On demand logistics growth?
The UK on-demand logistics market has seen strong growth, driven by rising e-commerce and instant delivery expectations. For example, Deliveroo reported a 20% year-on-year revenue increase in 2023. Increased digitalization and consumer demand for fast, flexible deliveries are fuelling sector expansion.
Which segment accounted for the largest UK On demand logistics share?
Food delivery accounts for the largest share of the UK on-demand logistics market due to the dominance of platforms like Deliveroo, Just Eat, and Uber Eats. The segment’s high transaction volume and urban demand have significantly propelled the market, especially post-pandemic, outpacing other segments like parcel and document delivery.
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