Crowdsourced Last Mile Delivery Service Market Size and Share Analysis - Growth Trends and Forecasts (2025-2032)

Market Size and Trends

The Crowdsourced Last Mile Delivery Service is estimated to be valued at USD 7.63 billion in 2024 and is expected to reach USD 22.5 billion by 2032, growing at a compound annual growth rate (CAGR) of 14.3% from 2024 to 2032. This significant growth trajectory highlights the increasing reliance on crowdsourced logistics solutions to enhance delivery efficiency and meet rising consumer demand for faster, more flexible last-mile delivery options across diverse industries globally.

A key market trend driving this growth is the integration of advanced technologies such as AI and real-time tracking, which optimize route planning and improve delivery accuracy. Additionally, the surge in e-commerce and changing consumer expectations for rapid, on-demand delivery have fueled adoption of crowdsourced delivery models. Urbanization and sustainability concerns also push companies to leverage local delivery crowdsourcing, reducing costs and environmental impact while enhancing scalability and operational agility.

Segmental Analysis:

By Service Type: Dominance of On-Demand Delivery Driven by Consumer Expectations and Technological Advancements

In terms of By Service Type, On-demand delivery contributes the highest share of the Crowdsourced Last Mile Delivery Service market owing to the increasing consumer demand for speedy and flexible delivery options. The rapid proliferation of smartphones, coupled with advanced mobile applications, allows customers to place orders with real-time tracking and receive deliveries in a matter of hours or even minutes. This immediacy appeals particularly to urban consumers and millennials who prioritize convenience and promptness. Additionally, on-demand delivery aligns seamlessly with the gig economy model, enabling a dynamic pool of delivery personnel to respond instantly to fluctuating order volumes. The scalability and flexibility inherent in this model reduce operational inefficiencies and enable service providers to optimize routes and resources effectively. Service providers are also leveraging artificial intelligence and predictive analytics to anticipate demand surges, ensuring that on-demand delivery remains reliable and cost-effective. These technological integrations further solidify the market share of on-demand delivery by enhancing customer experience and operational agility. Moreover, the surge in food delivery, pharmacy, and urgent e-commerce needs during recent times has further accelerated the adoption of on-demand services, cementing its place as the preferred choice within the service type segment.

By Application: E-Commerce Leads as the Primary Driver Through Increasing Online Shopping and Consumer Penetration

In terms of By Application, E-commerce contributes the highest share of the Crowdsourced Last Mile Delivery Service market due to the exponential growth in online retail activity worldwide. The increased penetration of digital payment methods and expanding internet connectivity have significantly boosted e-commerce adoption across various demographics. Online retailers require efficient last-mile solutions to meet the expectations of same-day or next-day deliveries, driving demand for crowdsourced delivery models that offer flexibility and cost advantages over traditional logistics providers. The diverse product range sold online, from electronics to apparel, necessitates a delivery system capable of handling high volumes with accuracy and speed. Crowdsourced delivery services effectively address these needs by utilizing local, flexible workforce options, which can rapidly scale to accommodate holiday seasons, flash sales, and sudden spikes in demand. Furthermore, consumers' preference for contactless, doorstep deliveries post-pandemic has heightened reliance on efficient last-mile networks. This trend reinforces e-commerce as the most lucrative application segment. Retailers increasingly partner with crowdsourced platforms to enhance service levels, reduce delivery time, and improve customer satisfaction, solidifying e-commerce's dominant position in the last mile delivery ecosystem.

By Delivery Model: Independent Contractors Prevail Due to Flexibility and Cost Efficiency for Service Providers

In terms of By Delivery Model, Independent contractors hold the highest share within the Crowdsourced Last Mile Delivery Service market, primarily driven by the need for operational flexibility and cost optimization. Independent contractors, often gig workers, provide a decentralized labor force capable of meeting variable demand without the burden of permanent employment costs such as benefits or fixed salaries. This model allows service providers to scale their delivery capacity quickly and efficiently, reacting to market fluctuations and peak periods with minimal overhead. The widespread availability of app-based platforms facilitates seamless onboarding, task allocation, and payment processing for these individuals, making them a preferred choice for last-mile delivery companies. Additionally, many independent contractors prefer the autonomy and flexibility this work model offers, which helps maintain a motivated and extensive delivery network. For businesses, leveraging independent contractors reduces capital expenditure on delivery infrastructure and fleet management, while expanding geographic coverage effortlessly. The agility and broad reach achieved through independent contractors are crucial in densely populated urban centers and suburban areas alike, where the speed and precision of deliveries directly impact customer satisfaction. Thus, this delivery model's adaptability and economic benefits continue to drive its preeminence within the crowdsourced last mile delivery landscape.

Regional Insights:

Dominating Region: North America

In North America, the dominance in the Crowdsourced Last Mile Delivery Service market is driven by a mature e-commerce ecosystem, advanced technological infrastructure, and high consumer demand for fast and flexible delivery solutions. The presence of well-established logistics and retail players such as Amazon, UPS, and Postmates (acquired by Uber) creates a robust market environment where crowdsourced delivery models thrive by complementing traditional delivery networks. Government policies supportive of gig economy platforms, alongside regulatory frameworks addressing labor rights and data security, have shaped a dynamic yet controlled market landscape. Additionally, the region's well-developed urban infrastructure and high smartphone penetration facilitate seamless integration of crowdsourced delivery platforms with real-time tracking and route optimization technologies, making North America the most favorable environment for these services.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific exhibits the fastest growth in the Crowdsourced Last Mile Delivery Service market due to rapid urbanization, expanding e-commerce penetration, and rising consumer expectations for same-day and instant deliveries. Countries such as China, India, and Southeast Asian nations have seen a surge in digital payments and smartphone usage, which fuels the scalability of crowdsourced delivery platforms. Furthermore, government initiatives aimed at boosting digital economies and supporting startup ecosystems contribute significantly to market expansion. The region benefits from a diverse workforce willing to engage in flexible gig jobs, which helps address logistical challenges posed by dense urban populations and varied geographic terrains. Key players like DoorDash (expanding partnerships), Lalamove, and Gojek have localized their offerings to cater to regional preferences, enabling rapid service adoption and network growth.

Crowdsourced Last Mile Delivery Service Market Outlook for Key Countries

United States

The United States' market is characterized by the integration of crowdsourced delivery with established logistics frameworks, where major companies like Uber Eats, DoorDash, and Instacart dominate by continuously innovating their last mile solutions. Consumer demand for convenience has driven extensive adoption of gig-based delivery, supported by technological advancements such as AI-driven route optimization and dynamic delivery scheduling. The presence of large urban centers and a diversified retail sector provides fertile ground for rapid service scalability, while regulatory scrutiny ensures sustainable growth.

China

China continues to lead in scaling crowdsourced last mile delivery, propelled by its vast e-commerce landscape dominated by Alibaba's Cainiao and JD Logistics. The country's strong digital payment infrastructure and government support for smart logistics initiatives facilitate efficient crowdsourced delivery operations. Companies like Meituan and Didi leverage large gig workforces and advanced AI logistics platforms, enhancing delivery speed and reliability. Urban density and consumer expectations for instant delivery further incentivize investment and innovation.

India

India's market is burgeoning, driven by surging e-commerce adoption in tier 2 and tier 3 cities and growing smartphone penetration. The informal workforce readily supports crowdsourced delivery models, with firms like Dunzo and Swiggy expanding their services beyond food to include general merchandise. Government policies encouraging digital payments and startup growth underpin the market's expansion. However, infrastructural challenges in rural areas push companies to innovate hybrid delivery models blending crowdsourcing with traditional logistics.

United Kingdom

The United Kingdom's market exhibits a strong presence of crowdsourced delivery driven by urban centers such as London and Manchester, where delivery speed and flexibility are critical. Players like Stuart and Deliveroo harness crowdsourcing to meet growing consumer demands for quick delivery across food, groceries, and retail goods. Robust regulatory frameworks balance gig worker protections with operational flexibility, fostering sustainable market growth. The UK's dense urban layout facilitates efficient route planning and delivery consolidation.

Brazil

Brazil's market is evolving rapidly with increasing e-commerce activity in metropolitan areas and expanding middle-class demand for convenience. The presence of key players such as Rappi and Loggi underscores the strategic use of crowdsourced delivery to penetrate underserved urban and suburban areas. Government efforts to improve digital infrastructure and financial inclusion further support market growth. Challenges such as traffic congestion and variable urban infrastructure encourage platform innovation in delivery logistics and workforce management.

Market Report Scope

Market Segmentation

Service Type Insights (Revenue, USD, 2020 - 2032)

• On-demand delivery
• Scheduled delivery
• Subscription-based delivery
• Instant delivery
• Others

Application Insights (Revenue, USD, 2020 - 2032)

• E-commerce
• Food & beverages
• Healthcare products
• Retail
• Others

Delivery Model Insights (Revenue, USD, 2020 - 2032)

• Independent contractors
• Partner networks
• Hybrid models
• Others

Regional Insights (Revenue, USD, 2020 - 2032)

• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa

Key Players Insights

• DelivTech Solutions
• SwiftRoute Delivery
• ParcelPro Crowd
• LastMile Connect
• UrbanDash Logistics
• GoDeliver Network
• RapidFleet Services
• CrowdCourier Hub
• EcoLast Delivery
• FleetXpress
• ParcelPulse
• FastPath Logistics
• ZipLine Last Mile
• HubRunner
• FlexiDrop Logistics
• MoveQuick Delivery
• OnRoute Technologies
• StreetSwift
• TrackNGo
• ZoomDash