Last-mile delivery optimization has emerged as a critical component in modern urban logistics, representing up to 53% of total shipping costs while directly impacting customer satisfaction and environmental sustainability. This research examines technology-driven solutions that enhance urban logistics efficiency through artificial intelligence, Internet of Things (IoT), autonomous vehicles, and predictive analytics. Using real-world datasets from major logistics providers and academic studies from 2020-2022, this paper analyzes market trends, technological performance, and implementation strategies. The global last-mile delivery market, valued at 145. 59 billion in 2023, is projected to reach 318. 83 billion by 2032, driven by technological innovations and e-commerce growth. Key findings demonstrate that AI-powered route optimization can reduce delivery costs by 20%, while dynamic routing systems improve on-time delivery performance by up to 20% and reduce fuel consumption by 15%. The research contributes to understanding how emerging technologies address urban logistics challenges including traffic congestion, environmental impact, and operational efficiency while providing actionable insights for industry practitioners and policymakers.
Nikhar et al. (Sat,) studied this question.