Cost Trumps Carbon in Shift Toward AI

At the Last Mile Leaders Europe event last week FarEye revealed its latest industry report, containing some very interesting findings, including that 98% of respondents cited rising delivery costs as their top operational challenge, and that AI and automation have become the most prioritised area for investment (43%), overtaking sustainability (20%).

Eye on the Last Mile 4.0, the fourth edition of FarEye’s industry report, was unveiled live at the recent Last Mile Leaders Europe 2025 event in Amsterdam, where Europe’s last-mile logistics leaders gathered for a pivotal moment in the evolution of delivery. The sharp shift in investment priorities was at the heart of the conversation. According to the Eye on the Last Mile 4.0 report, logistics executives across Europe are now investing more in AI than in sustainability, a sign of the intense cost and operational pressure reshaping the sector.

Hosted by FarEye, Last Mile Leaders Europe 2025 convened over 80 global voices from logistics, retail, and supply chain, including leaders from DHL, Dyson, DPD, IKEA, Beko, JB Hi-Fi, Electrolux, Heineken, Philips, PostNord, Slovenia Post, Wayfair, and more. Together, they examined the forces shaping the future of delivery, from AI adoption and rising expectations to infrastructure and sustainability gaps. The leaders closed with a call for collaboration across the ecosystem, from building shared locker networks to co-developing AI use cases and designing joint sustainability roadmaps.

“From AI-led orchestration to predictive fleet planning, innovation is moving from the sidelines to the centre,” said Kushal Nahata, CEO & Co-founder, FarEye. “What used to be aspirational – like sustainable delivery or hyper-personalised logistics – is now being balanced against hard costs, shrinking margins, and rising customer demands. Europe’s last mile is entering a decisive phase.”

Last Mile at a Crossroads

The event’s opening keynote, delivered by Nahata, framed Europe’s logistics landscape as being at a critical inflection point – caught between cost efficiency, customer delight, and sustainability. Drawing from the Eye on the Last Mile 4.0 report and FarEye’s operational data, the keynote highlighted:

• Cost is king: 98% of leaders ranked delivery cost as the top concern shaping 2025 decisions
• AI is no longer experimental: Almost 1 in 2 businesses are now prioritising AI, not just for orchestration and routing, but also for customer support and exception management, achieving up to 30% cost savings in dense delivery zones.
• Consumers want more than speed: 54% of shoppers are willing to pay for faster deliveries, but also demand specific and reliable delivery promises, not just faster ones.
• Support costs are dropping with AI: AI-driven customer service agents can resolve up to 80% of delivery-related queries, cutting support costs by 40%.
• Sustainability lags adoption: Although 83% of respondents believe in offering green delivery, only 16.7% do, thus revealing a wide execution gap.
• Regional cost spikes: Switzerland and the UK reported the highest cost increases (up to 38%), while countries like the Netherlands and Greece showed more cost stability.

Spotlight on Logistics Startups

Europe is now home to more than 200 last-mile logistics startups tackling everything from urban congestion to carbon emissions using AI, automation, and electrified delivery infrastructure. The European startup ecosystem has become a key innovation driver, attracting over $4.5 billion in funding in just the first half of 2024. At the Last Mile Nexus, three high-impact startups were shortlisted and took the stage to pitch live to a judging panel of industry experts.

 

Ultimately, ClearQuote was named the winner (see picture, above) for its AI-powered platform that transforms fleet damage assessment and maintenance, helping enterprises cut downtime and cost. Its co-founder, Venkat Sreeram, collected a cheque to go towards the growth and rollout of its AI-powered vehicle damage reporting tool.

Deep Dives and Real Conversations

Breakout panels explored the shift from AI hype to execution, strategies to scale locker networks across Europe, and post-purchase innovations that drive loyalty. New this year was The Last Mile Suite, a curated connection space where attendees met over selected drinks and shared conversations designed to spark collaboration. Europe is clearly investing in the future. But the tension between efficiency, customer delight, and sustainability remains unresolved. As infrastructure lags and AI accelerates, forums like Last Mile Leaders offer not just insight but direction. What began in Asia and Africa has now landed in Europe with scale. Last Mile Leaders is no longer a series of events, it has become a growing platform where research, startups, and strategy converge to define the next era of logistics.

Logistics Business was proud to be the exclusive media partner for Last Mile Leaders Europe 2025, with editor Peter MacLeod moderating a panel alongside experts from Accenture, Microsoft and FarEye on the part AI plays – and will play – in the last mile.

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Rewriting Rules of Delivery at Last Mile Leaders

 

Rewriting Rules of Delivery at Last Mile Leaders

Last Mile Leaders Europe, hosted by FarEye, returns to centre stage on May 14th in Amsterdam, uniting more than 80 influential voices from across the continent’s logistics, retail, and supply chain sectors. This high-impact gathering is more than just an event — it’s a bold industry moment where technology, innovation, and collaboration converge to reshape the final leg of delivery. Logistics Business Editor Peter MacLeod will be attending and appearing as a panellist.

Signaling the industry’s global momentum, the Amsterdam edition will convene CIOs, Chief Supply Chain Officers, Heads of Sustainability, Logistics and Last-Mile Leaders, D2C Business Leaders, Heads of Customer Experience, Fleet & Fulfillment Managers, and Digital Transformation Executives from some of the world’s top logistics and retail brands — reflecting a shared urgency to transform last-mile delivery for a faster, greener, and more resilient future. Their presence underscores the increasing cross-functional commitment to building smarter, more agile, and sustainable last-mile ecosystems.

Kushal Nahata, Co-founder and CEO of FarEye, and the man behind the Last Mile Leaders (LML) platform, said: “Europe’s last-mile priorities are shifting fast — cost, speed, and sustainability are no longer trade-offs but simultaneous imperatives. From smarter routing and AI-driven automation to greener fleets and reverse logistics, innovation is rewriting the rules. The last mile isn’t just a delivery — it’s the moment where customer promise meets operational excellence.” He continued: “Amsterdam will be where ambition meets action — where startups, enterprises, and experts come together to shape a faster, cleaner, and more intelligent future for delivery.”

Setting the tone for industry transformation, the launch of Eye on the Last Mile 4.0 will offer an essential roadmap for what’s next — delivering strategic insights from senior logistics leaders across Europe and beyond. This year’s edition uncovers the key forces reshaping last-mile delivery, from cost and infrastructure challenges in urban environments to the accelerating role of AI and automation in defining operational models for 2025. It also highlights the growing business case for sustainable and circular logistics networks. The report is expected to serve as both a mirror and a map for decision-makers navigating an increasingly complex, competitive, and customer-driven landscape.

Europe’s own last-mile startup ecosystem is surging forward with intensity. As of 2024, the region is home to more than 200 last-mile delivery startups, addressing challenges like congestion, emissions, and last-yard complexity through breakthrough innovations in autonomous vehicles, robotics, AI-based routing, and sustainable urban logistics. In just the first half of 2024, these startups attracted a record $4.5 billion across 312 deals, cementing Europe’s position as a global hub for logistics innovation and investment.

Key Highlights

Startup Landscape & Investment Momentum: With over 200 startups addressing last-mile challenges — from congestion to emissions — Europe’s logistics innovation ecosystem secured a record €4.5B across 312 deals in H1 2024, reflecting strong investor confidence.
Last-Mile Nexus: Championing the future of delivery in Europe, the Nexus promotes breakthrough solutions in electric vehicles, drone logistics, and AI-powered operations—offering selected startups a live platform to unlock enterprise access, visibility, and funding opportunities.
Industry Participation: Global leaders from DHL, Dyson, DPD IKEA, Beko, JB HI FI, Electrolux, Heineken, Philips, Postnord, Slovenia Post, Wayfair and many more will join to shape the future of smarter, greener delivery.
Eye on the Last Mile 4.0: The Last Mile Industry Report unveils key 2025 trends shaping Europe’s logistics landscape — spotlighting investment priorities, evolving customer expectations, and technology innovations across ultra-fast delivery, urban logistics, and AI-powered operations.

Last Mile Leaders
Fireside Chat

 

Tapping directly into this momentum, the event will host the Last-Mile Nexus — a pitch platform spotlighting some of Europe’s most disruptive early- and growth-stage startups. After a highly competitive selection process, three standout ventures have been shortlisted to present their innovations live before a distinguished jury of industry leaders:

ClearQuote – an AI-powered platform helping last-mile fleets automate damage detection, speed up inspections, and boost operational efficiency.
Jedsy – a pioneering drone logistics company redefining last-mile delivery in healthcare with emission-free drones that land directly at windows for unmatched accessibility.
Datakrew Private Limited – a deep tech company using IoT and edge AI to enable safer, smarter, and more sustainable electric mobility through predictive EV analytics.

Commenting on the role of startups in driving this evolution, Bernhard Bukovc, Founder at connect2posts and a jury member for the Nexus, shared: “Startups are the driving force behind the future of supply chain and logistics. Supporting their founders accelerates innovation, introducing much-needed agility and advanced technology into a highly competitive market. Europe’s logistics startup ecosystem is entering a period of significant growth, fueled by sustainability objectives, automation, and the increasing need for resilient, AI-enabled, and circular supply chains. Platforms like Last Mile Nexus, which spotlight these ventures, play a critical role in fostering collaboration and advancing the industry. I look forward to joining the jury at the upcoming Nexus Europe chapter in Amsterdam.”

This event marks a pivotal moment in redefining the future of last-mile delivery in Europe. What began as a focused initiative to spotlight the challenges and opportunities of the final leg of logistics, LML has grown into a cross-continental movement — uniting executives, entrepreneurs, technologists, and investors across Asia, Africa and now Europe. With every edition, the platform advances its mission: to unlock profitable, sustainable, and customer-centric last-mile ecosystems through bold ideas, deep collaboration, and visionary leadership.

Last Mile Leaders is a global platform powered by FarEye, dedicated to reimagining the future of delivery. It brings together supply chain leaders, retail innovators, logistics experts, and emerging startups to solve the most pressing challenges in last-mile logistics. With editions across Asia, Africa, and now Europe, LML blends research, real-world solutions, and executive insights to drive conversations that matter. From high-impact panels and roundtables to live startup showcases and industry reports, LML is where the next era of logistics is being shaped — collaboratively, boldly, and sustainably. Where research, solutions, and last mile leaders drive the next era of logistics.

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Industry View: Focus on the First Mile, Not the Last

 

Harness AI for Bottom Line Impact in Last-Mile Delivery

FarEye, a global last-mile technology platform, hosted the Last-Mile Leaders Event on April 19th at the Jaypee Hotel in Greater Noida, India, in collaboration with Microsoft. The event brought together an exceptional gathering of supply chain leaders and industry experts from all over the world under one roof. The event centered around the theme of profit, people, and the planet. Over 40 supply chain experts from more than 20 countries, representing diverse industries including retail, logistics, postal, consumer packaged goods (CPG), and pharmaceuticals, came together to explore the transformative potential of technology in driving cost reduction in the logistics sector.

Kushal Nahata, Co-founder and CEO of FarEye kicked off the event with a bold keynote, envisioning a future where autonomous drones revolutionize urban deliveries, reducing times and costs significantly. He claims, “Within the next five years, autonomous drones will handle 30% of urban deliveries, reducing delivery times and costs dramatically.”

He encouraged industry leaders to challenge conventional practices and work together to build a sustainable, affordable, and customer-centric future. The event featured a variety of sessions, including fireside chats, and roundtable discussions, alongside numerous networking opportunities. The event encompassed the entire spectrum of the supply chain and logistics industry, addressing topics including leveraging AI in the last-mile, unlocking last-mile excellence through data-driven insights, revolutionizing the last-mile for the ultimate consumer experience, and more. Making sustainability a focus in the last-mile, was another pivotal theme.

Nahata emphasizes: “With urban delivery traffic projected to increase carbon emissions by 32% by 2030, prioritizing sustainability is non-negotiable. The surge in electric vehicle adoption and government initiatives like the FAME scheme, reflects a visible shift towards greener logistics in India. As industry leaders, we must place sustainability at the front and center, meeting environmental and stakeholder expectations. FarEye’s collaborations have already slashed up to 550 K Metric Tonnes of GHG emissions annually and saved over 600 million miles. It’s clear: sustainable logistics isn’t just a choice; it’s our collective responsibility and competitive advantage.”

Dr. Ajai Chowdhry, Co-founder of HCL and Chairman of the Mission Governing Board of the National Quantum Mission of India, joined the event as the Guest of Honour. He remarked “In today’s era, where AI stands as the foremost game-changer across all sectors and industries, it is truly exciting to see supply chain leaders from around the world coming together for discussions on leveraging AI in last-mile logistics. FarEye has been leading the charge in utilizing cutting-edge technologies, including AI, to empower businesses in the logistics sector and has established itself as a leader in the last-mile industry.”

Bart De Muynck, Industry Expert, Advisor & Founder of Better Supply Chain said “This event presented a great opportunity to discuss what’s really needed for the logistics industry to change significantly in the next few years. Unification of systems, improving transparency, data standardization, and collaboration, were amongst the topics we discussed with leaders. Participants agreed that technology can help significantly in improving logistics and FarEye is perfectly positioned to help companies achieve this new era of logistics efficiency.”

The groundbreaking initiative at the event was the last-mile Innovation Nexus, which served as the epicenter of logistics innovation, providing a direct platform for promising logistics startups to engage with industry leaders, fostering connections and catalyzing progress. Guiding this journey were esteemed industry experts like Deepak Gaur from Elevation Capital, Sushil Sharma from Marwari Catalysts, Arpit Agarwal from Blume Ventures, and Gautam Kumar from FarEye.

Commenting on the initiative, Nahata said “The last-mile Innovation Nexus wasn’t just a showcase; it was a launchpad for startups to secure transformative partnerships. It was also exciting to see the surge in the adoption of AI, robotics, and embedded data analytics, all geared toward enhancing the efficiency and effectiveness of logistics operations. These technologies are not just trends; they are driving forces behind the evolution of our industry. We are proud to support the vision of young founders and their dedication to building robust organizations. The passion for driving change and creating impact is palpable.”

Strengthening the company’s efforts towards reducing logistics costs, the event saw the launch of the Last-Mile Trends Report 2024 which unveiled pioneering perspectives into the future of last-mile delivery. Drawing from insights gathered from over 300 leaders across five continents, representing companies with a combined revenue exceeding $100 billion. The report highlights crucial factors influencing the sector’s strategic decisions and market dynamics including:

● The Perfect Delivery: the needle has shifted from cost and satisfaction to cost and speed with 54 percent claiming to deliver the same day/next day compared to less than 35 percent last year.
● Cost is top of mind: 80 percent of supply chain leaders believe measuring the cost of delivery is a top priority as compared to only 50 percent last year.
● Top drivers of cost: For organizations with outsourced fleets, 56% said carrier performance is the biggest challenge, while 43 percent cited routing as the primary obstacle in matching the
promise of delivery speed.

Overall FarEye’s Last-Mile Leaders Event stands as a testament to the collaborative efforts required to drive innovation and transformation in the logistics sector. By setting the stage for cost reductions and transformative innovations, it lays the foundation for a more efficient and sustainable future in logistics.

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