The last mile market - Italy

1.2 The global market

The last-mile delivery market

The global last-mile delivery market is expected to grow by *.** percent per year in the coming years, reaching a value of $***.* billion in ****. In ****, the market is worth $***.* billion .

The Asia-Pacific region is expected to see the greatest growth in the coming years, driven by demand from China but also from Southeast Asian countries (***). Indeed, many Asian metropolises suffer from congestion and are looking for innovative ways to solve this problem. However, North America is expected to remain the main market for last-mile solutions. In the United States, many companies are working to develop technologies in this area, and the world's major innovations may therefore come from this country.

[***] Chiffre d'affaires de la livraison du dernier kilomètre Monde, ****-*****, en milliards de dollars Source: ****

The advent of autonomous last-mile delivery

The autonomous last-mile delivery market is estimated at $**.** billion in **** and is expected to grow at an impressive **.* percent annual CAGR through ****to reach a value of $**.** billion.

Growth in this segment is expected to be driven by the arrival of delivery drones, which are capable of transporting packages very quickly without saturating road traffic. However, drones are unlikely to be the only element that ...

1.3 Italian Market

in ****, the turnover generated by last-mile delivery activities in Italy was more than *.* billion euros: in particular, we note a strong growth of almost * billion euros compared to the turnover in ****, when the value was *.** billion euros. In the same year, BRT was the leading parcel carrier by volume, accounting for ** percent of all parcels delivered in Italy.

Turnover of the last-mile logistics sector Italy, ****-****, in billion euros Source: ****

1.4 Covid Impact

The covid has had a positive impact in the industry: last-mile deliveries have increased and optimism has grown for e-commerce companies: * out of ** companies (***) noted an increase in deliveries during the pandemic, with growth levels reaching ** percent.this is the finding of Geotab, a global player in IoT and connected vehicles, which presents the results of a survey of Italian e-commerce and logistics companies. The survey highlighted the increasing importance of the last mile, showing that telematics can be key to improving fleet performance and responding to new consumer needs.

Nearly all respondents (***) even attest to it being between ** percent and ** percent.

Increase in last-mile deliveries due to pandemic Italy, ****, in % Source: ****

The spread of the pandemic has led to the development of consumption habits under the banner of digitization and new technologies, including the increasing use of e-commerce. However, while buying online is just a click away, the chain enabling the home delivery process is much more complex. And, with end users increasingly demanding quality and customization of service, companies face significant logistical challenges in responding to increasing delivery volumes on the one hand and, on the other, to the demand for widespread, territorially dispersed distribution. Despite the complexities, this ...

Demand analysis: the Italian eShopper

DHL provides us with data on Italian eShoppers' preferences regarding delivery mode:

**% of people want clear information about delivery methods, **% rate online tracking positively **% clear that they want to receive a text message when the package is being delivered **% of Millennials choose a retailer solely on the basis of its delivery options

How influential is the delivery method of goods for eShoppers Italy, ****, in % Source: ****

An increasingly appreciated plus is the possibility of having a delivery based on one's personal needs, an option for which people are also willing to pay an extra price:** percent of people would like to choose the day and ** percent even the time of arrival of the goods .

Customers' expectations, at this stage of the Customer Journey, relate specifically to: choice of time and place of delivery, tracking of goods, advance notice, and management of delivery in case of absence.

On the other hand,the Politecnico di Milano Multichannelality Observatory provides us with data on the percentage of consumers who buy online by product type. For"Beauty" products, only * percent of consumers buy exclusively online, with ** percent alternating online and offline transactions. In pharmaceuticals, purchases also take place predominantly in stores, with just * percent of ...

2.2 Demand analysis: distributors

The majority of distributors do not do last-mile delivery directly. They outsource this link in the value chain to general logistics companies or companies that specialize in the last mile. Thus, distributors are the direct customers of these logistics companies and try to align their needs with those of the end consumer.

PonyU Express, a delivery service offered to micro and small businesses, with now more than *** companies and professionals shipping regularly, asked its customers whether on-demand delivery has contributed to increased sales.

Seventy-eight percent of those who rely on the service say they have increased sales compared to the pre-pandemic period thanks to home deliveries, while ** percent say they are back to selling as much in ****, after a declining ****, thanks to deliveries made through PonyU Express. Only * percent failed to improve the trend.

Benefits of outsourcing last-mile logistics services in companies Italy, ****, in % Source: ****

Those who already offered a do-it-yourself delivery service and then outsourced , were able to gain new time to spend on customer research and product creation.

** percent of merchants, according to the data collected, use the shipment tracking feature that allows them to keep an eye on the processing stage at all times and thus give ...

2.3 e-Commerce as a growth driver

Also based on Geotab 's research, overall, * in * companies (***).

Most profitable e-Commerce sectors Italy, ****, in percent Source: ****

In ****,online purchases in Italy are worth €**.* billion (***) in services.

Turnover of the e-Commerce sector in Italy Italy, ****-****, in billions of euros Source: ****

2.4 The seasonality of demand

Demand for last-mile services peaks during two periods when demand for online shopping is particularly strong; Black Friday/Cyber Monday and the Christmas season.

According to an estimate by the eCommerce B*c Observatory by Netcomm and Politecnico di Milano, between Black Friday (***), Italians spent about *.* billion euros online in ****, or ** percent over ****. Not only that. According to Codacons forecasts in fact ** million Italians ready to shop on Black Friday, with a growth of shoppers of +*% compared to ****.

Research conducted by Oracle Retail found that many consumers are anticipating Christmas gift purchases. Credit to the discounts (***).

Source: ****

3.1 The main market players

E-Commerce Sites

Amazon.it leads the Italian ecommerce market, with net sales of $*,*** million in **** generated in Italy, followed by shein.com with $*,*** million. Third place is occupied by zalando.it with $*** million in sales. Apple.com is the fourth largest online store in Italy with net sales of $*** million in ****.

For extensive rankings and rankings of specific product categories, visit ecommerceDB.com , which provides detailed information on more than **,*** online stores in more than ** countries.

Top e-Commerce stores in Italy in ****, by online sales Source: ****

The Italian Post Office

Le Poste Italiane is a key player in this segment and provides a good portion of ecommerce delivery. Poste Italiane S.p.A. is an Italian company that provides postal, banking and telecommunications services. It also manages postal savings on behalf of Cassa Depositi e Prestiti. With *** years of history, a network of more than **,*** Post Offices, ***,*** employees, *** billion euros in total financial assets, and ** million customers, Poste Italiane is an integral part of the economic, social, and productive fabric of the country and represents a unique reality in Italy in terms of size, recognizability, capillarity, and customer trust.

In ****, Poste delivered a total of *** million parcels (***), with growth in parcel ...

3.2 Real estate investment in the last-mile logistics sector

Many investors, including foreign ones, are in fact increasing their exposure in logistics by buying properties in strategic locations characterized by a high level of connectivity, as in the case of Last- Mile logistics hubs. As stated by Marco Pellò, Italian head of one of the largest real estate investment companies (***), in the future there will be a big development of infrastructure for the replenishment of physical stores and for the management of goods ordered through e-commerce. The future of real estate logistics is in the last mile

World Capital conducted a survey in cooperation with Nomisma of more than *** logistics operators .

The survey also looked at the type and location of logistics warehouses, and here we see a trend that is destined to last. Eighty percent of the logistics operators surveyed say that demand for last mile warehouses is growing. In fact, the pandemic has forced distribution companies to open small distribution centers near cities. The goal is to speed up delivery times and improve last-mile performance. According to the survey, ** percent of respondents believe that last mile is the most popular type of logistics real estate in the market.

The growth of e-commerce also has an impact on logistics, ...

3.3 Digital transformation of the industry: Telematics and the last mile

Evolving end-user demands call for a renewal in the approach to last-mile management, to be achieved under the banner of Digital Transformation. Increasingly stringent standards, in fact, can only be met through state-of-the-art delivery systems that leverage modern technologies to achieve maximum efficiency. It is, however, a path based on progressive awareness on the part of companies: in fact, while digitizing processes and accelerating timelines have now become priorities for ** percent and ** percent of respondents respectively, the degree to which specific solutions, including telematics, are implemented can still improve.

Eighty-two percent of the sample acknowledged that fleet management software is useful in increasing the efficiency of last mile delivery, leveraging data analytics and machine learning technologies especially in the areas of time optimization (***) .

In particular, with a view to the last mile, having tracking systems in place proves crucial on several fronts: from real-time vehicle tracking to the ability to interact directly with the driver (***) .

Benefits of tracking systems in last-mile logistics Italy, ****, in % Source: ****

* out of * companies (***)

have a fleet management telematics solution

concrete advantages were found in terms of locating vehicles on the territory for anti-theft (***) purposes

How many companies in italy have a telematics solution for fleet ...

3.4 The food delivery platforms

There are several food delivery operators in Italy: Just Eat, Glovo, Deliveroo, UberEats, etc. Summarily, the type of business proposition for those who join the platform is similar for all competitors. Of variable there is the cost of signing up to the platform (***); in addition, promotional marketing includes free delivery campaigns; relevance in listing position in the app also has a cost. However, the fixed service cost per delivery that the platform asks of the restaurateur, in addition to the previous ones, can range from ** to ** percent.

A food delivery turnover that has reached a record value of *.* billion in Italy in ****. According to this study, as many as **.* percent of the ***,*** people who offer their labor services through digital platforms are employed in meal delivery.

Compared to ****, the growth of food delivery in Italy was ** percent. A trend driven on the one hand by technological evolution and on the other by acceleration due to the pandemic emergency. However, the boom in food delivery to Italians' homes has brought fierce cost competition among different platforms with free shipping offers, promotions and markdowns. Aspect that sometimes risks affecting the entire supply chain, from the staff to the accounts of restaurateurs to their ...

4.1 Analysis of service types

In the field of logistics and transportation, the concept of last mile or last mile refers to the actual delivery of the item to the customer, which can take place at the customer's home, store, or by click & collect. Click & collect is the ability to order a product online and pick it up in store. Among Italian eCommerce, ** percent use Click & collect, and in some sectors (***) the percentage exceeds ** percent.

The management of the last mile changes depending on the business model, which in turn will directly affect the supply chain. The mode of delivery, as well as all activities preceding or following delivery, must be adapted to B*B and B*C logics, which we outline below:

Production chain (***): the last mile assumes a crucial role as the supply of raw materials that are used to advance the production processes of factories is carried out. Distribution chain (***): in this case the last mile delivers the products needed to stock the shelves of the stores. Retail distribution chain (***): this is perhaps the case with the most complexity as we are talking about delivery directly to the customer as a result of a purchase made online.

It should be noted that often ...

4.2 Price analysis

Amazon provides us with comprehensive data on the delivery costs of various products. Prices are divided based on different types of service (***) and different types of products shipped. There is also a distinction according to whether delivery is made to the home or by click and collect (delivery to the pickup point.

Instead, below we offer a review of shipping costs for some of the leading companies operating in the logistics industry:

DHL

Italian Post:

TNT:

4.3 Supply trends: the issue of sustainability

Several initiatives have been put in place by last-mile logistics companies, all of which are directed toward maximum environmental sustainability, either by strategic choice or by imposition from above. In fact, the restrictions increasingly present in city centers on the circulation of endothermic engines affect commercial transport as much as private cars.

Another aspect to work on is logistics real estate, strategically located within or close to large cities, key reservoirs for deliveries of orders placed online. Last element in the cost items, which is certainly not negligible, is that of personnel, which is incompressible except with "innovative" types of collaboration with those who physically deliver the goods to the home

it is interesting, thus, to discover the strategies of two international logistics giants, which also deal with the last mile.

Dhl Express Italy last year put *** electric vehicles in its fleet, including the e-Ducato, the electric version of Fiat's best-selling van, which has, however, a purchase cost double that of the diesel model. it is, therefore, important to work then on the Tco (***) to amortize the expense, because from the point of view of environmental footprint the accounts already add up. Each electric vehicle travels an average of ** kilometers per ...

4.4 Other emerging supply trends

The last mile is an area where new solutions are being experimented with all the time from a service optimization perspective.

On the one hand, merchants are working to offer greater speed and flexibility to their customers, and on the other logistics players are focusing on innovative distribution strategies to support eCommerce to improve the shopping experience while protecting the environment.

We talk for example about:

fast Shipping, referring to deliveries in less than an hour; Customization of delivery, based on the needs of the end recipient; automatic Last Mile Tracking, real-time tracking based on geolocation of vehicles; Same-day Delivery, same-day delivery; use of intelligent vehicles, drones and robots for Last Mile Delivery, some of which are still in the testing phase.

Given the many rapidly evolving scenarios over the next few years, it is safe to expect further innovations related to digitization and, more generally, technologies applied to the industry.

5.1 Rules and Regulations

Regulatory chaos over last-mile logistics

Online sales and, consequently, home deliveries of small packages are also on the rise in Italy. This is certainly positive news for the entire logistics industry, but it is creating an explosive situation from a regulatory point of view, which may cause a legal battle between postal companies and haulers. Indeed, such a battle may have already begun with the decision of the Communications Guarantee Authority to consider parcel delivery as a postal service, thus making the companies that carry it out as contract haulers registered in the relevant Register pay the annual contribution to the same Authority.

A decision harshly contested by the haulers' associations, which challenged the payment obligation (***).

According to the Tar judge, the notion of postal service should not include the activities of road haulers, freight forwarders, and express couriers, so it seems to agree with the road hauliers, thus exempting them from paying the contribution to Agcom. Instead, the European judges say that road haulage, forwarding or express courier companies that provide collection, sorting, transport and distribution services for postal items constitute, unless their activity is limited to the transport of postal items, postal service providers within the meaning of Article ...

5.2 The Urban Sustainable Mobility Plan

A PUMS (***) is a strategic plan that builds on existing planning tools and gives due consideration to the principles of integration, participation and evaluation to meet the mobility needs of people and goods today and tomorrow with the aim of improving the quality of life in and around cities.

The policies and measures defined in a PUMS must cover all modes and forms of transport found throughout the urban agglomeration, public and private, passenger and freight, motorized and non-motorized, circulation and parking.

European framework

European guidelines define as the main purpose of a PUMS to create an urban transport system that pursues at least the following objectives:

- improve accessibility for all, regardless of income or social status;- enhance the quality of life and attractiveness of the urban environment;- improve road safety and public health;- reduce air and noise pollution, greenhouse gas emissions and energy consumption;- economic viability, social equity and environmental quality.

National Framework

On August *, ****, the Decree of the Ministry of Infrastructure and Transportation dated August *, **** was published in the Official Gazette No. *** on "Identification of the guidelines for urban sustainable mobility plans, pursuant to Article *, paragraph *, of Legislative Decree No. *** of December **, ****," later updated ...

6.1 Segmentation

• Shein Italie
• JUST-EAT ITALY S.R.L.
• DELIVEROO ITALY S.R.L.
• DHL Italie
• BRT Italia
• Poste Italiane