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CostsFor distributors and carriers

How to cut last-mile delivery costs: 8 ways

The last mile is expensive: vehicles, drivers, fuel and repeat deliveries. The good news is that most of the losses can be fixed. We look at eight ways that get results.

Kostiantyn Zinevych · Co-founder and CEO

Published 23.10.2026 · 5 min read

Why the last mile is so expensive

Money is rarely lost in one place. It leaks through small gaps:

  • routes built by hand;
  • vehicles that run half-empty;
  • statuses that get lost in chats;
  • failed deliveries that have to be made a second time.

Each of these is small on its own; together they decide whether a run is profitable.

8 ways to cut delivery costs

  1. Optimize routes automatically. Dense routes without extra trips cut mileage and fuel on every run.
  2. Load vehicles more fully. A half-empty vehicle costs almost as much as a full one. Planning around capacity cuts the cost per delivery right away.
  3. Reduce failed deliveries. Take delivery windows into account when planning and watch for delays on the day’s schedule so you can warn the customer in advance.
  4. Switch to digital proof of delivery. A photo, signature and geolocation on the driver’s phone settle disputes on the spot, without paper delivery notes.
  5. Remove manual coordination. An order is entered once and everyone sees the same thing, without retyping and “where’s the vehicle?” calls.
  6. Keep your GPS trackers. Wialon, Teltonika, Sinotrack and GT06 connect without buying new hardware.
  7. Measure the right unit. Look at the cost per delivery and the cost per route, not at total spend.
  8. Choose software whose price doesn’t work against you. Paying per driver or per delivery eats up the savings as you grow. Pricing by fleet size is more predictable.

Which numbers to track

MetricHow to calculateWhat affects it
Cost per deliveryDaily costs / number of deliveriesRoutes, vehicle loading, failed deliveries
Cost per routeFuel, driver and vehicle per runMileage and time on the route
Vehicle loadCargo volume / capacityPlanning around capacity
Failed delivery rateFailed / all deliveriesDelivery windows, status control

Try it on your own addresses

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How the methods reinforce each other

Dense routes, full vehicles, proof of delivery and one system instead of spreadsheets and chats work together: each next step makes the previous one pay off more.

Fleetika dispatcher portal: the day’s routes and plan vs. actual by vehicle

In Fleetika it’s one platform: the route optimizer, the dispatcher portal, F-⁠Driver with proof of delivery, and integrations, priced by fleet size.

Questions

Questions on this topic

Didn’t find your answer? Write to us and we’ll reply within one business day.

Driver labor and fuel, which grow because of poor routes and repeat deliveries. Fixing routes and failed deliveries usually pays off the most.

Try it on your own deliveries

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