Final Mile Delivery Network

Final mile delivery networks provide the last leg of shipping from distribution centers to consumers' homes, serving e-commerce retailers and logistics companies needing local delivery capacity.

With last-mile delivery representing 53% of total shipping costs and e-commerce continuing to grow, delivery networks generate revenue of $180,000-$600,000 annually with profit margins of 15-25% through per-package fees or route contracts.

The business can operate with independent contractor drivers, company drivers, or a hybrid model.

Services include package sorting, route optimization, delivery execution, proof of delivery, and customer communication.

Technology for route planning, driver apps, and package tracking is essential.

The business typically starts by contracting with Amazon Flex, regional delivery companies, or directly with retailers needing delivery capacity.

Success factors include efficient routing, driver retention, on-time delivery performance, and ability to scale during peak seasons.

Investment includes vehicles (cargo vans), technology platform, sorting facility (if needed), and working capital.

Most networks operate in specific metro areas where delivery density makes routes profitable.

Marketing focuses on building relationships with logistics companies and retailers needing delivery partners, demonstrating reliable performance and capacity.

With same-day and next-day delivery expectations increasing in 2025 and major carriers needing expanded delivery networks, final mile delivery offers opportunities for entrepreneurs who can build efficient delivery operations and manage driver networks effectively.