By 2025, there will be approximately 11.7 million e-commerce users in South Africa (and nearly double that number by 2029). To keep pace with this surge in demand—and customer expectations—the last-mile delivery industry has undergone a remarkable transformation over the last decade.

Some of the key challenges and advancements the industry has encountered include:

The impact of urbanisation on last-mile delivery

Urbanisation and the resulting congestion in cities have become significant obstacles for last-mile delivery services. In 2023, over 68.8% of South Africa's population resided in urban areas, intensifying traffic and making it increasingly difficult to maintain quick delivery times.

Meeting increasing customer demands

The rapid growth of e-commerce is pushing last-mile delivery companies to scale their operations in terms of both volume and speed.

A decade ago, typical delivery times ranged from 1-2 days in the Gauteng province. Next-day delivery services were emerging, but they were costly and not widely accessible. Fast forward to 2024, and delivery times in the Gauteng region take an average of just one day.

Considering the increase in urbanisation as well as the increase in e-commerce delivery volumes, last-mile delivery companies have had to adapt and innovate in order to meet the increasing demand.

Expanding fleets to enhance last-mile delivery efficiency

To cater to the expectations of modern consumers, last-mile delivery companies have increased their delivery fleets to allow for more frequent and timely deliveries. Advanced fleet management systems also help companies optimise routes, improve fuel efficiency, and maintain vehicle health.

Fastway Couriers, for example, has significantly expanded its delivery fleet, with a 132% increase in Gauteng alone over the past 10 years. The implementation of their Onroute application has enabled them to leverage technology for route optimisation and increased efficiencies as order volumes continue to rise.

The role of technology in last-mile delivery

One of the most significant advancements in last-mile delivery has been the implementation of Internet of Things (IoT) technology, which has enabled real-time tracking of packages, vehicles, and delivery personnel, providing greater accuracy and improving customer satisfaction.

IoT devices also facilitate predictive maintenance of last-mile delivery vehicles, minimising downtime and ensuring smoother, more reliable operations.

As e-commerce booms in South Africa, local last-mile delivery companies need to invest in technology, infrastructure, and their workforces to meet ever-increasing customer demands and keep the wheels turning—or risk getting left behind.

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