Introduction
Small courier businesses are being squeezed from both sides. On one side, operating costs are rising. Fuel, insurance, labour, vehicles, maintenance, congestion, waiting time and admin all affect the real cost of each job. On the other side, customers still expect fast, clear and affordable delivery. For many courier businesses, the pressure shows up most clearly in the last mile: the final stage of delivery from a depot, warehouse, shop, office or courier base to the customer.
Industry data suggests that last-mile delivery can account for more than half of total shipping costs, while Capgemini describes it as one of the fastest-growing, most expensive and most complex parts of the supply chain. [1] [2]
The problem is not just fuel. It is the combination of distance, driver time, waiting, failed deliveries, customer communication, admin and inconsistent quoting. If those costs are not built into the price properly, margin can disappear quietly.









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