On-Demand, Average Courier Charge Per Mile: How to Increase Visibility Via Technology

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On-Demand, Average Courier Charge Per Mile: How to Increase Visibility Via Technology

On-Demand, Average Courier Charge Per Mile: How to Increase Visibility Via Technology


In today’s crowded, cut-throat crowdsourced logistics market, shippers need to take advantage of every opportunity to decrease their delivery times. A 2017 study by Deloitte discovered that “more than half of shoppers said “fast shipping” was two days or less.” In today’s logistics ecosystem, lightning-fast deliveries are not so much a selling point as an expectation. 

So, how can shippers cut valuable hours off their shipping times and decrease delivery charges per mile? The key is flexibility with erratic manufacturing schedules and an increasingly sluggish supply chain. Shippers need to be able to move quickly and adapt to get their products to the customers’ doors as efficiently as possible. 

Traditional last mile deliveries have been inflexible and, worse, inefficient: picture large, gas-guzzling vehicles trundling along crowded streets, meandering through back-streets and cul-de-sacs along nonsensical routes. These traditional last mile service providers operate on fixed routes. Due to their inability to respond quickly to real-world logistics crises (picture traffic jams or a closed-off boulevard), they operate at a higher delivery charge per mile. Traditional last-mile shipping represents a cost that, according to Insider Intelligence, can account for 53% of the total cost of shipping. 

That’s no good for customers—or the bottom line. 

But there’s a solution that takes advantage of all the logistics technology the 21st century has to offer: a tech-integrated courier service. A courier, seamlessly integrated into a vast virtual fleet, can provide the on-demand, specialized service that logistics businesses need to stand out in an industry that’s more competitive than ever, all while lowering a business’s average delivery charge per mile

The Growth of Courier Networks

Although courier services have been readily available for nearly 20 years, the development of groundbreaking logistics technologies makes this the segment of crowdsourced logistics to watch.  Last year, as reported in Eastern Progress, it was predicted that “The Courier and Local Delivery Services Market Value in the U.S. is set to grow by USD 23.18 million, progressing at a CAGR of 4% from 2020 to 2025.” Enabled by new technologies and customer interfaces, quick, reliable, and easy-to-use courier services are set to reach unprecedented demand levels. 

With exponential growth continuing in the not-too-distant future, shipping companies need to understand and accurately calculate their courier service cost per mile.

What Is the Average Courier Charge Per Mile?

As explained In a previous blog, the average courier charge per mile is dependent on several factors, including distance, speed, size, and delivery time. The average cost for a furniture mover using a box truck will be higher than that of an apparel company delivering a mock-up of the latest style in a sedan. Excluding these and local differences, the typical cost for courier charges ranges from roughly $1.50 per mile to $2.00 per mile or more. 

However, IBIS World predicts those rates will likely grow more competitive to align with the expanding courier market, expected to grow by 6% in 2022. The trick is using data and technology to keep costs in check and cast a wider net to see what’s happening. 

Why Technology Lowers Courier Costs

Though courier service costs per mile can fluctuate based on various factors, shippers can take some sure-fire cost-saving measures. By using a courier service with a cutting-edge API and customer interface, shippers can cut their average courier charge per mile while ensuring that their customers receive what they need when they need it. 

Crowdsourced courier services work on-demand, ensuring shippers have a tech-integrated fleet of reliable, experienced drivers when they need one without the cost or hassle when they don’t. This approach, combined with flexible routing, means that drivers spend less time sitting in traffic and making U-turns and more time en-route to their customers. 

GoShare can also save shippers time (and money) at dispatch by integrating all logistics functions into a single, easy-to-use platform. The days of complicated spreadsheets and lengthy phone calls are over; GoShare puts everything a shipper needs to arrange fast, cost-efficient courier service in the palm of their hand. 

Reap the Benefits of Local, Cost-Effective Courier Delivery With GoShare 

With logistics costs rising, shippers can no longer rely upon traditional delivery services and their ever-rising delivery charge per mile. With GoShare and its industry-leading logistics technology, shippers can gain instant access to a virtual fleet of experienced couriers. Contact GoShare to schedule a demo today and learn how courier services can work for you.