How green deliveries are revolutionizing last mile sustainability

Last update: 06.08.2025

In this blog:

1. Why the last mile is a sustainability hotspot
2. Emerging green solutions transforming last-mile logistics
3. Key benefits of green delivery strategies
4. How businesses can implement green delivery
5. Best practices & real-world success stories
6. Future innovations in green last-mile delivery
7. Challenges & key considerations
8. Conclusion: A win-win investment
9. Further reading: Last mile sustainability FAQs

Why the last mile is a sustainability hotspot

The final mile stretch of the delivery route from the retailer's warehouse to the consumer's front door is referred to as "last mile delivery" It is typically the phase of the delivery process that results in the highest total cost, takes the longest amount of time, and has the most significant negative influence on the environment.

The final mile of delivery—from the retailer’s distribution center to the customer’s doorstep—is often the costliest and most environmentally impactful stage in ecommerce logistics.

Last-mile delivery typically accounts for the highest share of emissions in the delivery chain due to factors like stop-and-go urban traffic, low vehicle utilization, and fragmented delivery points. As ecommerce continues to grow, emissions from this final leg could increase by as much as 32% by 2030. [1]

Emerging green solutions transforming last-mile logistics

In recent years, organizations have increasingly focused on environmentally friendly delivery choices to lessen their operations' environmental impact. The following is a list of some of the latest trends in the field of last-mile delivery alternatives for e-commerce, with a particular emphasis on environmentally friendly delivery and last mile sustainability:

Micro‑fulfillment centers

Micro-fulfillment centers are small warehouses located closer to urban areas. Smaller warehouses located near urban areas reduce travel distances and consolidate deliveries, lowering both costs and emissions.  This allows businesses to reduce delivery times and costs by eliminating the need to ship products long distances. Micro-fulfillment centers can also be used to consolidate orders from multiple retailers, which can further reduce emissions.

Crowdsourced delivery

Crowdsourced delivery is a new method of delivery that uses a network of independent contractors to deliver packages. Using networks of local, independent couriers allows for flexible scaling and reduces energy use by cutting down on empty miles and central depot trips. This can be a more cost-effective and environmentally friendly option than traditional delivery methods, as it allows businesses to avoid the high costs of hiring full-time drivers. Crowdsourced delivery can also be more flexible, as companies can quickly scale up or down their delivery capacity depending on demand.

Green (electric) delivery fleets

Businesses increasingly use electric vehicles and other green delivery vehicles to reduce environmental impact. Electric vehicles produce zero emissions, which can help companies meet their sustainability goals and reduce their carbon footprint. Green delivery vehicles can also be more efficient than traditional vehicles, saving businesses money on fuel costs.

The adoption of electric vehicles—from cargo bikes to vans—is growing. For example, DHL in Germany now uses over 6,100 e-bikes, 13,500 e-trikes, and 23,000 electric vans, cutting CO₂ emissions by nearly one million metric tons in 2022. [1]

Sustainable packaging

Using recycled or biodegradable packaging helps reduce waste and aligns with wider sustainability goals. Businesses also use more sustainable packaging materials like recycled paper and plastic. Sustainable packaging can help companies to reduce their environmental impact by reducing the amount of waste generated. It can also help businesses to improve their brand image and appeal to environmentally conscious consumers.

These are just some of the trends in last-mile ecommerce delivery options with a particular focus on green delivery. As the industry continues to evolve, businesses must be flexible and adaptable to meet the changing needs of their customers and the environment.

Key benefits of green delivery strategies

Lower environmental impact

Electric vehicles, cargo bikes, and urban fulfillment centers significantly reduce greenhouse gas emissions and address inefficiencies caused by idle time and poor routing. 

Businesses that offer green delivery options can gain a competitive advantage and raise brand awareness. Studies have shown that consumers are more likely to do business with companies they perceive as environmentally friendly through branded tracking pages.

Enhanced customer loyalty

Shoppers are increasingly loyal to brands that reflect their values. Offering green delivery options can positively impact brand perception and long-term customer relationships.

Customers are increasingly concerned about the environmental impact of their purchases. By offering green delivery options, businesses can show their customers that they are committed to sustainability and care about the environment.

Cost savings and operational efficiency

Electric fleets and route optimization reduce fuel costs. Micro-fulfillment and crowdsourced delivery models lower operational expenses. Green delivery options can help businesses reduce their costs in several ways.

For example, electric vehicles are more fuel-efficient than traditional ones, saving companies money on fuel costs. Green packaging can also help businesses to reduce the amount of waste that is generated, which can save money on disposal costs.

How businesses can implement green delivery

Partner with green-certified carriers

Choose carriers offering carbon‑neutral delivery, electric fleets, or eco-friendly packaging programs.

Use delivery management software with eco features

Platforms like nShift can help track emissions, offer eco-routing, and automate low-carbon transport selection.

Educate and engage customers

Be transparent about green options at checkout and communicate why these choices matter. Many customers are willing to opt for sustainability if they understand the impact.

Best practices & real-world success stories

DHL’s electrification strategy

DHL’s broad use of electric bikes and vans has helped reduce CO₂ emissions and improve delivery efficiency in urban areas. [1]

IKEA’s solar-powered cargo bikes

IKEA has piloted solar-powered cargo bike deliveries in the Netherlands, offering a scalable solution for clean last-mile logistics. [1]

AI route optimization

Companies like UPS and DHL use AI-driven routing to save fuel and time. UPS's left-turn-avoiding algorithm alone has saved millions of gallons of fuel. [1]

Future innovations in green last-mile delivery

Autonomous vehicles & drones

Drone and autonomous delivery vehicles could provide zero-emission delivery at scale. Studies show drones can use up to 96% less energy than traditional delivery vans for small parcels. [2]

Integrated mobility models

Combining drones, AI, and electric vehicles into smart logistics ecosystems enables efficient and environmentally-friendly last-mile delivery. [3]

Challenges & key considerations

• Regulatory hurdles: Varying urban regulations may restrict drone usage, electrified transport, and courier operations.
• Scalability: Expanding green infrastructure, such as micro-fulfillment and EV charging, requires investment and planning.
• Behavioral change: Some customers resist eco-options if they appear slower or more expensive. Communication and incentives are critical.

Conclusion: A win-win investment

Green last-mile delivery is not just a sustainability initiative—it’s a strategic advantage. By embracing electric vehicles, crowdsourced models, urban hubs, and smart technology, businesses can improve operational efficiency, reduce emissions, and earn the loyalty of eco-conscious customers. Tools like nShift are making this transformation easier and more impactful than ever.

Overall, last mile sustainability is a win-win for e-commerce businesses and the environment. Companies can improve customer satisfaction, increase brand awareness, and reduce costs by offering green delivery options.

Learn more about emissions tracking...

Further reading: Last mile sustainability FAQs

What makes the "last mile" delivery eco-critical?

The final leg of delivery is both the most costly and environmentally damaging. It’s the phase where emissions are highest and inefficiencies most visible—making it a prime focus for sustainability improvements.

How do electric vehicles and green fleets impact emissions?

Electric trucks produce 60–80% less CO₂ than diesel ones. With 70% of last‑mile carriers investing in EVs and digital delivery tracking reducing emissions by 15–25%, green fleets are rapidly reshaping logistics.

How do parcel lockers and pick-up points reduce emissions?

Out-of-home delivery reduces carbon significantly: InPost’s parcel locker usage in Poland cut CO₂ emissions by up to 75%. Consolidating multiple deliveries in one stop is more efficient and sustainable.

What about eco-friendly micro-mobility options?

Micro-fulfillment centers and e‑bike courier networks can slash delivery emissions—studies in London and Milan showed reductions of 55% to 73% per parcel compared to diesel vans.

Do consumers prefer green delivery options?

Yes—77% of shoppers are more likely to choose eco-friendly delivery, and over 50% favor pickup points over direct home delivery for sustainability and convenience.

How do green deliveries contribute to brand value?

Sustainable practices lower carbon, reduce costs, and foster loyalty. Consumers increasingly favor brands with credible green initiatives, improving both reputation and competitive differentiation.

References:

[1] - https://time.com/6836113/electric-bikes-decarbonize-last-mile-delivery/

[2] - https://arxiv.org/abs/2111.11463

[3] - https://arxiv.org/abs/2205.15606