Optimizing Last-Mile Delivery in the Food Industry: Challenges, Technological Innovations, and Future Trends.

ABSTRACT Last-mile food delivery (LMFD) has become a critical part of modern supply chains, where efficiency of operations, customer engagement, and sustainability intersect. Since logistics accounts for close to 75% of the total operational expense in delivery-based services, the last mile cannot be optimized anymore - it is a necessity. This research takes a systems-oriented analytical perspective by combining Total Interpretive Structural Modeling (TISM) and MICMAC analysis in order to determine and analyze the interdependencies between eight key performance factors: Cost Optimization, Service Quality, Sustainable Packaging, Automation, Subscription Services, Courier Availability, Customer Expectations, and Government Regulations. The analysis picks Subscription services and Government Regulations as the most powerful and independent drivers in the LMFD environment. These enablers have a substantial impact on other dependent variables like delivery timeliness, cost effectiveness, customized service, environmentally friendly operations. The research highlights the use of digital transformation as a core strategy to comprehensively optimize performance in last-mile logistics. While providing insightful information, the study has limitations. It is mainly based on urban delivery dynamics, does not integrate consumer behavior analytics deeply, and does not take regional differences in technology infrastructure and maturity of gig workforce into complete consideration. Future research streams involve incorporating AI-enabled delivery systems, behavioral reactions toward green logistics innovations, and scalability of technology-based delivery models in tier-2 markets and rural areas with infrastructural limitations. Further, it is imperative to study policy frameworks that enable inclusive, sustainable, and technology-benign development in the last-mile food delivery space. This thesis advances academic thinking as well as practical application by presenting a systematic, systems-thinking approach—a business strategy guide for enterprises, policymakers, and tech vendors looking to redesign the food delivery system smartly, inclusively, and sustainably.