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

ABSTRACT Last-mile delivery (LMD) is a crucial component of modern food supply chains, significantly impacting customer satisfaction, operational efficiency, and cost management. As LMD constitutes nearly 75% of total logistics expenses, optimizing this phase is vital for food vendors and delivery platforms like Uber Eats, Zomato, Swiggy, and Amazon Fresh. This study examines the trade-offs between speed, cost, and consumer satisfaction, classifying influencing factors into Operational (OF), Technological (TF), Environmental and Logistical (ELF), and Socio-Economic and Regulatory (SRF) factors. Technological advancements such as AI-driven route optimization, IoT-enabled tracking, and 5G connectivity enhance efficiency, while challenges like cold-chain logistics, urban congestion, and high labor costs impact profitability. The COVID-19 pandemic accelerated trends like contactless deliveries, digital payments, and AI-powered analytics, shaping evolving consumer preferences. Expanding LEO satellite networks and rural upskilling initiatives are improving delivery accessibility in remote areas. Environmental concerns such as carbon emissions and sustainable packaging drive the need for green logistics. Additionally, gig economy labor rights and regulatory policies necessitate a balance between innovation and worker welfare. This study provides a holistic analysis of LMD, offering insights for policymakers and logistics providers to enhance service efficiency while ensuring economic and environmental sustainability.