A brief overview of what’s fueling the autonomous last-mile Posted on : Nov 08 - 2019

As the rise of e-commerce continues, companies around the globe have become increasingly sensitive to evolving consumer preferences. In a world where instant gratification has come to represent a generation, autonomous technologies are set to make a significant impact.

When it comes to consumer shipping, McKinsey reports that 25 percent of all consumers would pay a premium for same-day or instant delivery made possible by autonomous tech. However, this figure is likely to grow, given that 30 percent of younger consumers are willing to pay more for the same shipping options.

As industry use cases continue to expand, many have come to define the ecosystem as the autonomous “last-mile.” But what exactly does this mean? In the context of consumer parcels, the last-mile refers to the final step in a physical item’s journey from supplier to end consumer.

For instance, it can apply to a FedEx order traveling from a local distribution center to your front door using an aerial drone. The term can also represent the short trip your pizza takes from restaurant to kitchen table using an autonomous ground vehicle (AGV).

However, the trend towards autonomous technologies is not limited to consumer parcel deliveries. Taking a broader perspective, the term “last-mile” can also apply to the movement of people and industrial goods between their point of origin and final destination.

For example, a passenger that commutes to and from work using a self-driving vehicle, or a trucking company that ships goods across the country without the need for human operators. Regardless of the specific application, companies continue to explore autonomous technology in hopes of lowering costs and delivering on shifting consumer preferences.

As these motives and the robust growth of e-commerce continues to drive industry expansion, large companies and various startups have begun to highlight last-mile offerings as a critical differentiator. This trend is likely to continue as organizations compete for potentially lucrative market share. However, determining how and where this is happening requires a more in-depth look.

Here’s an overview of the field to give you a better understanding of the different applications of autonomous technology and the investment environment shaping this emerging movement.

The autonomous last-mile ecosystem

The last-mile ecosystem is diverse, encompassing several use cases across many industries. As a result of this broad reach, the economic, ecological, and financial upsides of autonomization are astonishing on a local scale and unimaginable on a global scale.

However, to reach their full potential, autonomous technologies require an extensive, interconnected network of digital infrastructure. Although the path towards this reality remains unclear, individual market segments have already begun to generate impressive results. View More