Last-Mile Delivery Trends in Canada for 2025

As e-commerce continues to grow, the logistics industry is evolving at a rapid pace, and last-mile delivery—the final step in the delivery process from a transportation hub to the customer’s doorstep—has become a key focus area.

In Canada, where vast geography and regional differences pose unique challenges, innovation in last-mile delivery is essential for companies aiming to meet customer demands and remain competitive. This blog explores the future of last-mile delivery in Canada, highlighting the latest innovations and trends that are transforming the logistics landscape.

Why Last-Mile Delivery is Crucial for Canadian Logistics

Last-mile delivery is often the most expensive and complex part of the supply chain, typically accounting for over 50% of total shipping costs. In a country as large and diverse as Canada, the challenge of delivering goods quickly and efficiently to both urban and rural areas is magnified.

Customers expect faster deliveries, real-time tracking, and flexible options—all while companies strive to minimize costs and environmental impact. As a result, logistics providers in Canada are leveraging new technologies and adapting their strategies to address the unique demands of last-mile delivery.

Key Trends Shaping the Future of Last-Mile Delivery in Canada

1. The Rise of Same-Day and On-Demand Delivery

Consumer expectations for faster delivery are driving significant changes in the logistics industry, with same-day and on-demand delivery becoming more prevalent. Major e-commerce companies and retailers are offering these services in urban centers to cater to customers who expect their orders within hours.

Challenges and Opportunities in Canada
While same-day delivery is becoming more common in densely populated cities like Toronto and Vancouver, it remains a logistical challenge in remote and rural areas. To bridge this gap, logistics companies are adopting flexible fulfillment models, such as micro-fulfillment centers (MFCs), which are smaller warehouses located closer to the customer. These MFCs can store high-demand products for faster dispatch, reducing delivery times and costs.

Delivery-as-a-Service Platforms
Another trend shaping on-demand delivery is the rise of third-party “delivery-as-a-service” platforms. These platforms connect businesses with gig-economy drivers to fulfill local deliveries, offering flexibility and scalability for companies that need to respond quickly to surges in demand.

2. The Growth of Autonomous Delivery Solutions

Autonomous delivery technologies, including drones, delivery robots, and autonomous vehicles, are gaining traction as companies look for ways to cut costs and improve efficiency in last-mile logistics.

Drone Deliveries in Remote Areas
In a country with vast rural and remote regions, drones offer a promising solution to reach areas where traditional delivery methods may be slow or cost-prohibitive. Drone deliveries can bypass infrastructure limitations, such as poor road access or harsh weather conditions, to deliver essential goods like medical supplies or e-commerce orders.

Robotics for Urban Deliveries
In urban areas, delivery robots are being tested as a way to streamline last-mile logistics. These robots, which travel on sidewalks or bike lanes, can make short-range deliveries within neighbourhoods. For example, autonomous robots can be deployed from local fulfillment centers to deliver groceries or small parcels within a few kilometres of the distribution point.

Challenges for Widespread Adoption
While these technologies hold promise, regulatory hurdles, safety concerns, and public acceptance are still barriers to widespread adoption in Canada. Logistics companies and policymakers will need to collaborate to develop clear frameworks for the safe and efficient use of autonomous delivery solutions.

3. Sustainable Last-Mile Solutions

With growing consumer demand for environmentally responsible practices, logistics companies are under pressure to make last-mile delivery more sustainable. Reducing the carbon footprint of deliveries is a top priority for many businesses.

Electric Vehicles (EVs) in the Delivery Fleet
Many Canadian logistics companies are investing in electric vehicles (EVs) to reduce greenhouse gas emissions and comply with government mandates for cleaner transportation. EVs are particularly well-suited for urban deliveries, where short routes and frequent stops are common. In addition, cities like Montreal and Vancouver are developing charging infrastructure to support the adoption of electric delivery fleets.

Green Delivery Options
Logistics providers are also offering customers eco-friendly delivery options, such as consolidated deliveries, where multiple packages are delivered in a single trip to reduce emissions. Some companies are even experimenting with carbon-neutral or carbon-offset shipping, allowing customers to choose a greener delivery option at checkout.

4. Smart Logistics and Data-Driven Optimization

AI and machine learning are playing an increasingly important role in optimizing last-mile delivery processes. By analyzing real-time data, logistics companies can make smarter decisions about route planning, inventory management, and demand forecasting.

Dynamic Route Optimization
AI-powered route optimization tools help logistics providers determine the most efficient delivery routes based on factors such as traffic, weather, and delivery density. In Canada’s urban centers, this technology can help reduce fuel consumption, lower delivery costs, and improve delivery times.

Predictive Analytics for Inventory Management
With AI-driven predictive analytics, companies can forecast demand more accurately and position inventory closer to customers. By anticipating which products are likely to be in demand in specific regions, logistics providers can reduce delivery times and improve customer satisfaction. Predictive analytics also help prevent stockouts and overstocking, reducing storage costs and waste.

Customer-Centric Innovations
Data-driven solutions allow logistics companies to offer more personalized delivery experiences, such as providing customers with narrow delivery windows or allowing them to reroute packages in real-time. This level of flexibility and convenience is becoming a key differentiator for companies looking to stand out in the crowded e-commerce market.

5. Collaborative Delivery Models

As the complexity of last-mile delivery increases, collaboration between logistics providers, retailers, and even competitors is becoming more common. Shared delivery networks, where companies pool their resources to optimize deliveries in specific regions, are an emerging trend in Canada.

Hub-and-Spoke Model Expansion
One of the collaborative models gaining traction is the hub-and-spoke distribution network. In this model, goods are transported to a central hub before being dispatched to local spokes (distribution points) for final delivery. By consolidating deliveries, companies can reduce costs, minimize environmental impact, and improve delivery times.

Crowdsourced Delivery Models
Crowdsourced delivery models, where local drivers or gig-economy workers handle the last mile, offer a flexible and scalable solution for companies looking to expand their delivery reach without investing in their own fleet. Platforms like Uber Eats or Instacart have demonstrated the viability of this model for retail and food deliveries, and logistics providers are adopting similar approaches for parcel delivery.

Conclusion

The future of last-mile delivery in Canada is being shaped by innovation, sustainability, and the need for greater efficiency. From the rise of same-day delivery and the use of autonomous vehicles to the adoption of green logistics solutions, the landscape is rapidly evolving. Companies that embrace these trends and invest in new technologies will be better positioned to meet customer demands, improve operational efficiency, and remain competitive in a fast-paced market.

Ready to transform your last-mile logistics in Canada? Contact PiVAL today to learn more about our innovative delivery solutions and how we can help you stay competitive in this evolving market.