These days, home delivery of almost every product and even some services is possible. While the trend of delivering things at one’s doorstep has been around since a long time, in today’s world, people are also demanding faster delivery services. With the emergence of platforms including Amazon, Flipkart, and several other applications for delivering a variety of products, such as food items, clothes, books, groceries, furniture, and home décor, people are able to choose whatever products they like and get the desired item, at most, within a week. In order to provide better customer service, online shopping platforms have started offering one-day delivery, where the product reaches buyers within a span of 24 hours.

One-day delivery and/or same-day delivery can realistically be offered to local customers, with people living in urban areas being the major beneficiaries of such services. In the retail industry, the term, on-demand logistics, is used for referring to the ability of providing same-day or faster-than-usual delivery to local customers. Valued at $9.1 billion in 2019, the global on-demand logistics market is predicted to generate revenue of over $75.0 billion by 2030, advancing at a 21.1% CAGR during the forecast period (2020–2030).

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The rapidly growing e-commerce industry is, without a doubt, one of the primary factors leading to the rising requirement for on-demand logistics. In 2018, the global e-commerce industry accounted for approximately 14% of global retail sales, which was a rise of about 15% from the previous year. It is further expected that online sales will reach make up for 17% of retail sales around the world by 2021. Since more and more people are opting for e-commerce platforms, e-commerce companies are adopting on-demand logistics, so that they can cater to the changing preference of customers and and manage inconsistent shipping needs and sudden need for bulk supply.

On-demand logistics is accomplished by medium/heavy commercial vehicle and light commercial vehicles. Since the majority of the e-commerce companies need on-demand logistics for last-mile delivery, whereby the transportation of heavy goods is not included most of the time, light commercial vehicles were more in demand in 2019. This being said, this model is also being increasingly adopted by large businesses for shipping heavier goods in larger volumes and for reducing their operational costs, which is why the requirement for medium/heavy commercial vehicles is projected to increase considerably in the coming years.

While the demand for on-demand logistics services might have reached a slight saturation point in developed countries, the requirement is growing swiftly in developing nations. The surging adoption of smartphones and access to internet are leading to a rise in online activities, including the booking of on-demand logistics services. Moreover, people in emerging economies are spending more on luxurious products because of the increase in their disposable income. This is why the on-demand logistics market growth in Asia-Pacific (APAC) would be a lot faster than in North America and Europe.

Hence, the concept of on-demand logistics is primarily gaining popularity due to the growth of the e-commerce industry.