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On-Demand Logistics Market Size - By Service (Same-Day Delivery, Courier Services, Warehouse and Storage Services, Instant Delivery, Trucking Services), By Platform (Mobile Apps, Web-Based Platforms), By End User, By Application & Forecast, 2024 - 2032

  • Report ID: GMI9085
  • Published Date: Apr 2024
  • Report Format: PDF

On-Demand Logistics Market Size

On-Demand Logistics Market size was valued at USD 16.3 billion in 2023 and is estimated to register a CAGR of over 19.5% between 2024 and 2032 owing to the commendable growth of the e-commerce sector worldwide. According to the European E-commerce 2023 report, over 99% of consumers have altered their online shopping habits in the past year. Many shoppers are now more focused on finding the best deals, with around 54% stating that they seek products at the lowest price available. Nearly 47% of consumers also noted that they conduct thorough research before making a purchase.

On-Demand Logistics Market

The rapid expansion of online shopping has significantly increased the demand for quick and efficient delivery services. On-demand logistics providers help e-commerce businesses meet customers' expectations for fast and convenient delivery.

Modern consumers expect same-day or even instant delivery services for goods they order online. On-demand logistics services cater to these heightened expectations, allowing retailers and businesses to maintain a competitive edge by providing fast and efficient delivery options.

Against this backdrop, in May 2023, Shadowfax, a top on-demand crowdsourced third-party logistics platform, partnered with ONDC to provide last-mile delivery services. After successful operations in 50 cities, the company plans to expand its services to over 1,200 cities. This expansion will enable more businesses and customers to benefit from their dependable and efficient delivery services. The move demonstrates the dedication of Shadowfax and ONDC to promoting digital commerce in India and making logistics widely accessible.

The However, limitations in existing transportation infrastructure, such as road congestion, inadequate delivery routes, and lack of parking or unloading zones, can hinder efficient last-mile delivery services. These challenges can lead to delays and increased operational costs, thus impacting market growth.

On-Demand Logistics Market Trends

The Technological breakthroughs will help carve a healthy growth projectile for the on-demand logistics industry through 2032. Innovations such as mobile apps, real-time tracking, and data analytics have revolutionized the logistics industry, making it easier for businesses to manage and optimize deliveries. These technologies allow for more efficient route planning, improved tracking of shipments, and better communication between customers and delivery personnel.

Quoting an instance, in December 2023, E-commerce service provider Shadowfax unveiled Flash, an on-demand delivery app that offers quick delivery services within cities. This new app directly competes with Dunzo by providing 30-minute deliveries and offering fast, reliable, and cost-effective last-mile delivery solutions. With operations in more than 50 cities, Flash by Shadowfax offers on-demand convenience, letting users request pickups and drop-offs as necessary. The platform has also implemented the concept of milk-run deliveries, helping businesses optimize efficiency and minimize delivery costs by grouping multiple shipments on a single route.

On-Demand Logistics Market Analysis

On-Demand Logistics Market Size, By End User, 2022 – 2032, (USD Billion)

Based on end user, the market is divided into B2B, B2C & C2C. In 2023, the B2C segment accounted for a market share of over 63% and is expected to reach over USD 49 billion by 2032. The adoption of on-demand logistics in B2C is favored by several factors. The rise of e-commerce has created a demand for fast and flexible delivery options, meeting customers' expectations for quick service. Besides, technological upgrades, such as real-time tracking and route optimization, have streamlined the logistics process and improved delivery efficiency.

On-demand logistics also offers cost-effective solutions for businesses by allowing them to scale their delivery capabilities based on demand, reducing overhead costs. Moreover, the convenience and personalization of on-demand delivery services enhance customer satisfaction and loyalty.

On-Demand Logistics Market Share, By Application, 2023

Based on application, the on-demand logistics market is categorized into e-commerce platforms, food & beverages, healthcare & pharmaceuticals, automotive, manufacturing and others. The retail & e-commerce segment accounted for around 44% of the market share in 2023. On-demand logistics is gaining popularity in e-commerce due to its ability to meet the growing consumer demand for fast, flexible, and convenient delivery options. Customers expect same-day or even instant delivery, and on-demand logistics providers can offer these speedy services, enhancing the overall shopping experience.

Additionally, real-time tracking and efficient route planning improve delivery accuracy and transparency. For retailers and e-commerce businesses, on-demand logistics allows them to better manage inventory and respond quickly to changing customer preferences, resulting in increased customer satisfaction and repeat business.

Asia Pacific On-Demand Logistics Market Size, 2022 -2032, (USD Billion)

Asia Pacific held a major share of around 38% in the global on-demand logistics market in 2023, due to the rapid growth of e-commerce in countries such as China and India, which has significantly increased demand for fast and efficient delivery services. Additionally, a young and tech-savvy population in the region drives the adoption of mobile apps and digital platforms for logistics services. Infrastructure improvements and investments in transportation networks also contribute to the growth of the industry. Furthermore, a rise in disposable income and changing consumer preferences towards convenient shopping experiences further fuel the demand for on-demand logistics in APAC.

The on-demand logistics market in the US is flourishing due to a combination of market trends and technological advancements. The boom in e-commerce has driven the need for fast and efficient last-mile delivery services as consumers demand quicker and more flexible delivery options. Additionally, innovations such as real-time tracking, route optimization, and data analytics have streamlined logistics operations, enhancing efficiency and customer satisfaction. The rise of gig economy platforms and crowdsourced delivery networks has also provided a flexible and scalable workforce, enabling on-demand logistics providers to expand rapidly. Furthermore, strategic partnerships and investments in technology have fueled the industry's growth and success.

Major cities in France, such as Paris, Marseille, and Lyon, have high population densities and complex urban environments. On-demand logistics providers play a crucial role in addressing the challenges of last-mile delivery in densely populated areas, where traffic congestion and limited parking spaces are common.

The UAE, particularly cities like Dubai and Abu Dhabi, has experienced rapid urbanization and economic growth in recent decades. This growth has led to increased consumer spending, rising demand for goods and services, and a thriving e-commerce market, driving the need for efficient on-demand logistics solutions. The UAE has one of the highest internet and smartphone penetration rates globally, with a tech-savvy population accustomed to digital services and mobile apps. On-demand logistics providers leverage digital platforms and mobile technology to offer seamless ordering, tracking, and delivery experiences to customers across the UAE.

On-Demand Logistics Market Share

DoorDash, Inc. and Uber Technologies Inc. hold a significant market share of over 15% on the on-demand logistics industry. Uber Technologies Inc. focuses on diversifying its services beyond ride-hailing and food delivery to capture new revenue streams and address emerging market opportunities. This includes expanding into areas such as grocery delivery, package delivery, courier services, and last-mile logistics for businesses.

DoorDash focuses on strengthening its relationships with restaurant partners and offers incentives such as exclusive promotions, discounts, and loyalty programs to drive customer acquisition and retention. Building a loyal customer base and expanding the selection of restaurants on its platform helps the company in enhancing its competitive position and revenue potential.

On-Demand Logistics Market Companies

Major companies operating in the on-demand logistics industry are:

  • Bringg Delivery Technologies Ltd.
  • Delivery Hero
  • DoorDash, Inc.
  • Grubhub
  • Instacart
  • Lalamove
  • Postmates
  • Shadowfax Technologies Pvt. Ltd.
  • Stuart Delivery Ltd.
  • Uber Technologies Inc.

On-Demand Logistics Industry News

  • In October 2023, delivery company Dunzo requested board approval to secure up to $35 million via a rights issue. However, a report from The Economic Times (ET) indicates that certain investors recommend lowering the struggling startup's valuation to around $200 million for this critical funding round.
  • In March 2023, quick commerce company Dunzo and logistics start-up Loadshare began discussions with the Open Network for Digital Commerce (ONDC), a government-supported initiative, to grow their two-wheeler fleets for offering bike taxi services. Sources close to the situation indicate that this move seeks to enhance the companies' delivery capacity and leverage the increasing demand for cost-effective, on-demand transportation in urban regions.

The on-demand logistics market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:

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Market, By Service

  • Same-day delivery
  • Courier services
  • Warehouse and storage services
  • Instant delivery
  • Trucking services

Market, By Platform

  • Mobile apps
  • Web-based platforms

Market, By End-user

  • B2B
  • B2C
  • C2C

Market, By Application

  • Retail & e-commerce
  • Food & beverages
  • Healthcare & pharmaceuticals
  • Automotive
  • Manufacturing
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Nordics
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Southeast Asia
    • Rest of Asia Pacific 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America 
  • MEA
    • South Africa
    • UAE
    • Saudi Arabia
    • Rest of MEA


Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

The market size of on-demand logistics reached USD 16.3 billion in 2023 and is set to witness 19.5% CAGR between 2024 and 2032, owing to the commendable growth of the e-commerce sector worldwide.

The retail & e-commerce segment accounted for 44% of the market share in 2023, due to its ability to meet the growing consumer demand for fast, flexible, and convenient delivery options.

Asia Pacific market accounted for 38% revenue share in 2023, attributed to the rapid growth of e-commerce in countries, such as China and India, which has significantly increased the demand for fast and efficient delivery services.

Bringg Delivery Technologies Ltd., Delivery Hero, DoorDash, Inc., Grubhub, Instacart, Lalamove, Postmates, Shadowfax Technologies Pvt. Ltd., Stuart Delivery Ltd. and Uber Technologies Inc.

On-Demand Logistics Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 18
  • Tables & Figures: 300
  • Countries covered: 25
  • Pages: 250
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