FarEye claims that end-delivery costs have generally increased by 9% in a year for EMEA, proposing four measures to control costs
PR Newswire
1h ago
Ai Focus
In its report "2026," FarEye stated that over the past year, end-delivery costs in Europe, the Middle East, and Africa have generally increased by 9%, with 96% of companies experiencing an increase in per-order delivery expenses. FarEye CEO Kushal Nahata attributed the rise in costs to the "fragmented taxes" caused by the disconnection between carriers, data, and systems, and proposed four priority measures, including enhancing visibility, measuring the full cost of services, optimizing delivery commitments, and building on credible data.
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Amsterdam, October 27, 2026 /PRNewswire/ -- A report titled " Eye on the Last Mile EMEA 2026" released by FarEye shows that in the past year, end-delivery costs in Europe, the Middle East, and Africa have generally increased by 9%, with 96% of companies experiencing an increase in expenditure per delivery.

FarEye, the Chief Executive Officer and Co-Founder, Kushal Nahata, stated during the introduction of this report that a large portion of the cost increase came from 'fragmented taxes', which refers to the hidden costs resulting from the disconnection between carriers, data, and systems.

The report is based on over 500 respondents and more than 4,000 data points. It finds that in companies that have fully outsourced their operations, 51% regard "unreliable carrier information" as the biggest challenge, whereas only 22% consider "costs" to be the biggest challenge.

Nahata indicates: "Companies may be able to outsource execution, but they cannot outsource the responsibility for costs and customer experience. Last-mile delivery is still waiting for its 'container moment'."

He proposed four priority measures:

  • Passed the control test:Under the circumstance of not communicating via phone, to understand the location of each delivery, the basis for carrier allocation, and the associated costs.
  • Measuring the total cost of service:In addition to the transportation cost for each delivery, it is also necessary to track exceptional situations, the number of delivery failures, and customer contact details.
  • Sales Delivery Commitment:Free standard delivery is provided, along with predictable delivery times, and there is also a paid express option available. For 63% of businesses, reliability is the most important factor for customers, while only 11% of businesses prioritize speed.
  • Build AI on the basis of credible data:Unify milestones, exception definitions, and cost measurement standards, while maintaining manual supervision.

FarEye indicates that its platform can provide visualization capabilities among carriers, markets, and systems, including real-time distribution cost information.

This event was held from October 13th to 15th at the Mercure Amsterdam City Hotel, bringing together more than 100 representatives from industries such as postal services, logistics, retail, e-commerce, manufacturing, automotive, telecommunications, and catering services.

Slovenian Post's Chief Information Officer Slavko Ov ina emphasized the value of pragmatic and open operational discussions. Autodoc, the Senior Vice President of Supply Chain Sebastian Bleser, stressed the importance of continuing cross-market exchanges of insights beyond the event.

Nahata also introduced Last Mile Circle, which is a community that has been in operation throughout the year by Last Mile Leaders. The purpose of this community is to share and address operational challenges. Industry leaders from Europe, the Middle East, and Africa have joined this community to participate alongside the founding members from the Asia-Pacific and American regions.

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