Who are the key players in UK Last Mile Delivery industry?

Key players in the UK Last Mile Delivery industry include Royal Mail, DPD Group, Hermes (Evri), UPS, and Amazon Logistics. These companies leverage advanced logistics technologies, extensive fleets, and strong delivery networks to efficiently fulfill the growing demand for fast and reliable last mile delivery across the UK.

What is the UK Last Mile Delivery growth?

The UK Last Mile Delivery sector has experienced robust growth, with the market expanding significantly due to surges in e-commerce volume. For example, DPD Group reported a double-digit percentage increase in parcel deliveries annually, driven by heightened online shopping during and following the COVID-19 pandemic.

Which segment accounted for the largest UK Last Mile Delivery share?

E-commerce retail is the largest application segment for UK last mile delivery, accounting for the majority share. Online retailers such as Amazon and major UK supermarkets rely extensively on last mile services to rapidly deliver goods directly to consumers’ doorsteps, reflecting growth in online shopping preferences.

What are the factors driving the UK Last Mile Delivery?

Key drivers include rising online shopping, increasing consumer expectations for same-day or next-day delivery, and the expansion of grocery and meal deliveries. Companies like Amazon have invested in logistics infrastructure and technology to meet these demands, pushing faster and more flexible delivery options.

Which type accounted for the largest UK Last Mile Delivery share?

Parcel delivery type holds the largest share in the UK last mile delivery market. The surge in small- to mid-sized parcel volumes, especially for e-commerce and retail shipments, has led companies like Hermes (Evri) and Royal Mail to continuously expand their parcel delivery capacity and network.

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UK Last Mile Delivery Size & Share Analysis - Growth Trends and Forecast (2026 - 2035)

Name: UK Last Mile Delivery
Brand: Bussiness Insights

UK Last Mile Delivery Market: by Type (Parcel, Document, Dry Goods, Fresh Goods, Temperature Controlled, Others), Application (E-commerce, Retail, Pharmaceuticals, Food & Beverages, Consumer Electronics, Others), Distribution Channels (Online, Offline, Direct to Consumer, Third-Party Logistics, Hyperlocal, Others), Technology (Drones, Autonomous Vehicles, Electric Vehicles, GPS Tracking, IoT, Others), Organization Size (Small, Medium, Large) and By UK Historical & Forecast Period (2020-2035) Comprehensive Study 2025

Last Updated: 31-07-2025 | Format: PDF | Report ID:20552 | Author: Ankit

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UK Last Mile Delivery Market 2025-2035: Growth, Trends, and Future Outlook

The UK last mile delivery market is projected to expand robustly through 2035, driven by e-commerce growth, demand for express delivery, and adoption of advanced delivery technologies such as drones, electric vehicles, and IoT. The market supports diverse segments including e-commerce, retail, pharmaceuticals, and F&B, while prominent players focus on sustainable practices and customer-centric models. Companies are rapidly evolving their distribution networks to offer faster, flexible, and cost-efficient delivery, positioning the UK as a hub for innovation in last mile logistics.

Latest Market Dynamics

Key Drivers

Rapid growth in e-commerce and rising consumer expectations for same-day or next-day delivery, exemplified by Amazon Logistics expanding its delivery network with micro-fulfilment centres in the UK in 2024.

Adoption of electric and autonomous delivery vehicles, with Royal Mail piloting electric vans and Yodel trialling autonomous robots in major UK cities in early 2025.
Integration of smart tracking and IoT, as DHL Express UK rolled out real-time parcel tracking and predictive route optimization technologies to improve delivery transparency in 2024.

Growth potential in temperature-controlled and fresh goods delivery, as Deliveroo partners with large supermarket chains to accelerate on-demand grocery delivery infrastructure.
Expansion of direct-to-consumer delivery models, with Clipper Logistics enabling brands to bypass intermediaries and enhance customer relationships via proprietary platforms.

High operational costs related to fleet electrification and tech upgrades, as observed in Hermes’ 2024 annual report noting capital pressure from green initiatives.
Complex regulatory landscape for drone deliveries, with Gophr encountering delays in scaling autonomous aerial solutions due to stringent UK Civil Aviation Authority requirements.

In 2025, parcels constitute the largest segment of the UK last mile delivery market, accounting for a dominant share owing to e-commerce and increased B2C deliveries. Dry goods and fresh goods follow, fueled by online grocery and F&B orders, while temperature-controlled logistics is experiencing significant growth due to rising demand from the pharmaceutical and food sectors. Document and other specialized deliveries remain steady but represent a smaller proportion of the market.

E-commerce is predicted to dominate the last mile delivery applications in the UK by 2025, reflecting the country's high online shopping penetration and consumer demand for fast delivery. Retail and food & beverages segments are also significant contributors, each leveraging innovative logistics to reach customers quickly. Pharmaceutical and consumer electronics deliveries represent niche but rapidly growing shares, while other sectors collectively round out the remaining market proportion.

The UK last mile delivery market revenue displays a consistent upward trajectory from USD 6,430 million in 2020, reaching approximately USD 9,355 million in 2025, and is projected to surpass USD 21,870 million by 2035. Growth is propelled by technological innovations, urbanization, and evolving customer expectations. The steady revenue increase highlights both sector resilience and a shift towards digitized, sustainable delivery ecosystems across the nation.

Year-over-year growth in the UK last mile delivery market is expected to average between 6.1% to 7.8% from 2020 through 2035, peaking in the mid-2020s with the acceleration of e-grocery adoption, mass fleet electrification, and direct-to-consumer expansion. YOY growth slightly tapers after 2030, indicative of sector maturation yet sustained by ongoing tech innovation and value-added services.

The London region remains the largest market for last mile delivery in the UK, capturing nearly half the total share due to its dense urban population and e-commerce activity. The South East and North West follow, both benefiting from strong retail infrastructure and logistics hubs. Other UK regions contribute smaller shares, but show promising growth potential as e-commerce adoption spreads geographically.

Royal Mail leads the last mile delivery market in the UK for 2025, leveraging nationwide reach and trusted brand presence, closely followed by DPD Group and Hermes. DHL Express, Yodel, and Amazon Logistics are also strong contenders, each capturing significant market shares as they invest in technology, network expansion, and sustainability. Other market players collectively account for a smaller but vital portion of the competitive landscape.

E-commerce platforms emerge as the leading buyers in the UK's last mile delivery segment in 2025, driven by online retail giants and marketplaces. Retail chains rank next, followed by direct-to-consumer brands that are increasingly managing logistics internally or using third-party providers for superior customer experience. The remaining buyers include SMEs, food delivery companies, and pharmaceutical firms, each contributing meaningfully to market demand.

Metrics	Details
Years	2020-2035
Base Year	2025
Market Size	9355
Regions	London, South East, North West, West Midlands, Scotland, Others
Segments	Parcel, Document, Dry Goods, Fresh Goods, Temperature Controlled, Others; E-commerce, Retail, Pharmaceuticals, Food & Beverages, Consumer Electronics, Others; Online, Offline, Direct to Consumer, Third-Party Logistics, Hyperlocal, Others; Drones, Autonomous Vehicles, Electric Vehicles, GPS Tracking, IoT, Others; Small, Medium, Large
Players	Royal Mail, DPD Group, Hermes, DHL Express, Yodel, UPS, FedEx, Amazon Logistics, CitySprint, Gophr, Parcelforce Worldwide, Deliveroo, Stuart, Addison Lee, Clipper Logistics

June 2024: DPD Group expands its all-electric vehicle fleet in London, aiming for 100% green deliveries in the capital by Q4 2025.
July 2024: Royal Mail partners with the UK government for a national pilot of drone-based parcel delivery to rural and remote communities.
August 2024: Amazon Logistics opens a state-of-the-art micro-fulfilment centre in Manchester to enhance same-day e-commerce delivery coverage.
September 2024: DHL Express launches AI-driven delivery route optimization in the UK to further reduce CO2 emissions and improve on-time rates.
October 2024: Hermes (now Evri) integrates real-time IoT sensors across its refrigerated fleet to improve delivery quality for temperature-sensitive goods.

About the Author

Ankit

Senior Research Consultant

Ankit is a Senior Research Consultant specializing in market research, industry analysis, and business consulting across Logistics. Ankit brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Ankit has helped organizations translate data into actionable growth strategies.

LogisticsMarket ResearchIndustry AnalysisStrategic Consulting

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»What are the key companies operating in the market?
»Which company accounted for the highest market share?

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UK Last Mile Delivery Size & Share Analysis - Growth Trends and Forecast (2026 - 2035)

UK Last Mile Delivery Market 2025-2035: Growth, Trends, and Future Outlook

Latest Market Dynamics

Key Drivers

Key Trends

Key Opportunities

Key Challenges

Key Restraints

UK Last Mile Delivery Market Share by Type, 2025

UK Last Mile Delivery Market Share by Applications, 2025

UK Last Mile Delivery Market Revenue (USD Million), 2020-2035

UK Last Mile Delivery Market YOY (%), 2020-2035

UK Last Mile Delivery Market Share by Regions, 2025

UK Last Mile Delivery Market Players Share (%), 2025

UK Last Mile Delivery Market Buyers Share (%), 2025

Study Coverage

Key Recent Developments

Frequently Asked Questions

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