Work out last mile delivery cost instantly with clear inputs, formula shown and shareable results.
Last mile cost per drop is the route cost divided by drops, and the driver cost usually dominates. Kilometres per drop is the key efficiency indicator: dense urban routes achieve under two kilometres per drop, while rural routes can exceed ten.
Total route cost
Route cost = Distance x Vehicle cost per km + Driver cost per route
Cost per drop
Per drop = Total route cost / Drops per route
Because most of the working day is spent stopping, parking, walking to the door and handing over, not driving. Time, not distance, drives last mile cost.
Increasing drop density: more deliveries in the same area. Delivery windows and failed first-time deliveries work directly against it.