Top 5 Last Mile Software in 2025

Last mile delivery software is an automation tool that helps businesses automate the final stage of the delivery process: moving orders from a distribution hub to the customer’s doorstep. 

Since last mile delivery makes up a large share of shipping costs (up to 53%, according to Insider Intelligence), businesses look for ways to lower their expenses and still keep their service quality intact. 

Last mile software helps with that by planning better routes, tracking their orders in real time, and automating manual tasks like proof of delivery collection. It also sends out instant notifications and live status updates to keep customers informed about their orders and decrease the occurrence of missed deliveries.

 

20 Key Features of a Last Mile Delivery Software

A customer places an order and gets a delivery window for the next day. They plan their schedule around it, but the package doesn’t arrive on time. No updates, no way to track the driver, and no clear answer from customer support. Frustration builds, and they decide to shop elsewhere next time.

Businesses lose customers this way, and it all comes down to last mile delivery. The final stretch of the shipping process is often the most expensive and unpredictable. Delays, delivery reattempts, and poor communication all lead to higher costs and lower customer satisfaction.

Last mile delivery software helps businesses stay on top of their operations, but not all systems are built the same. A few key features make a real impact on efficiency, speed, and customer experience. 

Here’s what you should look for in a last mile delivery solution.

#1: Real-Time Tracking

Real-time visibility into the delivery process is one of the most important features of last mile delivery software. You should be able to monitor driver locations, track package status, and respond to unexpected delays immediately. Customers must also receive automatic updates, so that they do not keep calling you asking about their order’s delivery status.

#2: Dynamic Route Optimization

A strong route optimization feature allows businesses to create the best possible delivery routes based on factors like traffic conditions, weather, delivery time windows, and package priorities. This minimizes fuel costs, achieves at least 25% faster delivery times, and helps complete more deliveries in a shorter period. Advanced algorithms further analyze real-time data to adjust routes as and when necessary. 

#3: Electronic Proof of Delivery

Proof of delivery (POD) confirms that orders have reached the right recipients. This feature allows drivers to collect digital signatures, take photos of delivered packages, or scan barcodes as proof. In cases of disputes or lost deliveries, having documented proof helps resolve issues quickly and reduces business liability.

#4: Auto-Dispatching

Auto-dispatching assigns deliveries to drivers based on pre-set rules that take into account location, availability, and workload. This removes the hassle of manual assignment, speeds up order processing, and improves operational efficiency. 

#5: Mobile-Friendly Driver App

Drivers rely on mobile applications to manage deliveries efficiently. A user-friendly driver app should have the following features:

• Navigation assistance with real-time traffic updates
• Delivery checklists to confirm order details
• Quick POD capture through digital signatures or photos
• Offline functionality for areas with poor network coverage 

#6: Driver Management and Communication

A well-designed driver management system also facilitates smooth communication between dispatchers and drivers through real-time features like chat support or instant notifications to keep drivers informed without disrupting their workflow.

#7: Customer Notifications and Updates

Customer communication features improve transparency and prevent missed deliveries. Automated notifications inform customers about estimated delivery times, delays, and successful deliveries. Businesses can send updates via SMS, email, or mobile apps and generate tracking links for customers to track their orders in real-time. This makes sure customers stay happy and trust that their orders will arrive as per schedule. 

#8: Geofencing and Location-Based Alerts

Geofencing technology creates virtual boundaries for specific locations and triggers automated actions when drivers enter or leave designated areas. Businesses can use this feature to send real-time alerts to customers when a driver is nearby or provide security notifications for restricted zones. 

#9: Non-Delivery Report (NDR) Management

Failed deliveries can be costly and time-consuming. A strong NDR management system helps businesses handle missed or failed deliveries efficiently. It allows drivers to record the reason for non-delivery, for example, incorrect addresses or customer unavailability, and provides options for rescheduling. Businesses can analyze NDR reports to identify common delivery issues and take preventive measures.

#10: Delivery Time Window Selection

Allowing customers to choose delivery time windows increases satisfaction and improves delivery success rates. Businesses can use this feature to offer flexible time slots based on driver availability. It also minimizes the chances of failed deliveries and delivery reattempts due to customer unavailability the first time. 

#11: Multi-Stop Delivery Scheduling

If your business handles multiple deliveries per trip, this feature is a must-have! The software’s multi-stop route planner automatically arranges pickups and drop offs based on proximity and priority and decreases travel time while maximizing efficiency. This is particularly useful for quick commerce startups in courier services, food delivery, and retail. 

#12: Seamless Integrations

Most companies use multiple platforms to manage their supply chain, inventory, and customer data. Last mile delivery software should integrate smoothly with existing e-commerce platforms, warehouse management systems, customer relationship management (CRM) software, and payment gateways. No more manual data entry, costly human errors, and fragmented workflows!

#13: Analytics and Reporting Tools

Data-driven insights help businesses refine their last mile delivery strategy. Reporting tools provide information on key performance indicators, including but not limited to: 

• On-time delivery rates
• Delivery success and failure reasons
• Driver productivity
• Route efficiency
• Customer feedback analysis 

#14: Contactless Delivery Options

Most businesses now offer contactless delivery options to reduce physical contact, accelerate drop-offs, and provide a safer experience for both customers and delivery personnel. 

Last mile delivery software allows customers to request contactless delivery, where drivers leave the package at a designated spot and capture a photo as proof. This feature became popular during the pandemic and continues to be useful in various industries.

#15: Fleet Performance Monitoring

Monitoring fleet performance helps businesses track vehicle usage, fuel consumption, and driver behavior. Many last mile delivery applications come with built-in GPS tracking so businesses can monitor vehicle speed, idle time, and route efficiency. This helps cut fuel costs, extend vehicle lifespan, keep drivers productive, and spot problem areas in delivery operations before they cause bigger issues.

#16: Reverse Logistics Management

Returns and reverse logistics are a part and parcel of eCommerce and retail delivery operations. A good last mile solution simplifies return management by enabling easy pickup requests, tracking returned items, and updating inventory systems. This ensures a smoother return experience for customers and businesses alike.

#17: Security and Compliance Features

For industries handling sensitive goods such as pharmaceuticals or high-value shipments, security features like tamper-proof packaging verification, digital locks, and compliance tracking are absolutely necessary. Some last mile solutions provide secure access controls, real-time alerts, and audit trails to maintain regulatory compliance.

#18: White-Label Branding

Some businesses prefer to offer a branded experience to their customers. White-label last mile delivery software allows companies to customize the platform with their logos, color schemes, and customer-facing notifications. This helps build brand recognition and creates a consistent customer experience across all channels. 

#19: Multiple Payment Options

Many last mile delivery solutions facilitate cash on delivery (COD), digital payments, and card transactions. Enabling multiple payment options makes the process more convenient for customers and improves order completion rates.

#20: Sustainability Features

As the world becomes increasingly cognizant of its environmental impact, a good last mile solution must also incorporate these eco-friendly features:

• Sustainable route optimization
• Support for electric vehicle fleets
• Carbon footprint tracking
• Incentives for customers to choose green delivery options

 

Top 5 Last Mile Delivery Management Solutions

Below, we’ve rounded up some of the best solutions for top-notch last mile delivery management. 

1. Mile

Mile has gained considerable traction in the market, particularly after the COVID-19 pandemic increased the demand for last mile delivery automation. 

Businesses in eCommerce, retail, transportation, quick-service restaurants, and courier services use Mile’s last mile software to effortlessly overcome logistics challenges in the final leg of their product’s journey. By streamlining end-to-end, last mile delivery workflows through AI-powered delivery route optimization, accurate vehicle load distribution plans, and live order tracking, Mile helps companies shorten delivery times and create a smoother experience for their customers. 

White-labelled, driver-friendly mobile apps display delivery details, provide real-time status updates, and generate electronic proof of delivery. The system also assigns deliveries based on driver availability, and uses both automated and manual methods to keep operations running smoothly.  

Moreover, the platform determines the fastest possible routes to shorten delivery times and meet service-level agreements. It also connects with various order management systems through API integrations and pulls in real-time orders within seconds. 

That said, Mile’s offline mode is the key feature that sets it apart from the other options listed here. Built with global accessibility in mind, Mile’s native merchant and driver apps work seamlessly even in areas with poor or no internet connectivity. 

Pricing

Custom quotes are available upon request.

 

2. Onfleet

Onfleet simplifies last mile delivery by streamlining route planning and improving operational visibility for all the stakeholders involved in a delivery cycle. 

Small businesses use it to create efficient delivery routes and communicate with drivers through an integrated chat feature. Large enterprises benefit from its unlimited dispatcher and driver seats, which make it easier to scale delivery operations with no additional costs.

Although Onfleet has a complete suite for managing last mile deliveries, its complex interface and higher cost may not suit businesses searching for a simple and budget-friendly solution. Importing Excel files also takes longer than expected, which can slow down operations if you’re in a time crunch. Limited customization options for stop details may also create challenges for businesses that require more flexibility. 

Pricing

• Launch (starting at $599/month)
• Scale (starting at $1299/month)
• Enterprise (starting at $2999/month)

 

3. Track-POD

Track-POD’s last mile software features proof of delivery templates, real-time courier tracking, customizable notifications, and in-depth analytics. 

Its multi-stop route planning improves delivery success rates by optimizing routes and reducing unnecessary costs on fuel and time. The system also schedules deliveries, records proof of completion, and tracks shipments in real time. 

Compared to other softwares on this list, Track-POD is relatively cheaper and easier to use. However, users have reported issues with offline mode and location inaccuracies, especially in areas with weak network signals. Some businesses have also experienced delays due to network latency and uptime inconsistencies.

Pricing: 

• Standard  ($29)
• Advanced ($49)
• Advanced Plus ($69)
• Enterprise (Custom quote)

 

4. Tookan 

Tookan is another last mile delivery management system that helps companies plan, dispatch, and organize both scheduled and on-demand deliveries. Designed to handle both B2B and B2C logistics, the software automates various routine tasks to accelerate delivery cycles. 

The software reduces time and costs by optimizing assignments through an intelligent dispatch system. Tookan also integrates with multiple payment systems and business functions, so that companies can integrate deliveries into their existing workflows. The platform includes an agent app with barcode scanning, automated alerts, and geo-analytics-based reports, helping businesses analyze operations and make informed decisions. 

But despite its benefits, Tookan has some drawbacks. Users have reported that the mobile app drains battery life quickly. The desktop version looks visually appealing but often experiences glitches that affect usability. For this reason, many reviews on capterra.com describe Tookan as a better fit for small businesses with limited needs. 

Pricing: 

• Startup ($99)
• Growth ($249)
• Standard ($399)
• Enterprise (Custom quote)

 

5. Shipsy

Last but not least, Shipsy’s last mile software plans routes, assigns drivers based on geofencing, and tracks deliveries through a centralized dashboard. Its salient features are:  driver management module for businesses to be able to allocate resources equitably,  contactless delivery option, and customizable proof-of-delivery screens. 

Real-time alerts flag potential inefficiencies, whereas a dedicated customer portal allows recipients to reschedule deliveries without needing external assistance.

The delivery management system also automates key processes, from order allocation to route adjustments, and tracks them in real time for better decision-making. 

Much like Mile, Shipsy’s integrated tools also connect with ERP systems and automatically transfer order details using simple APIs. The platform even categorizes drivers by delivery zones to facilitate faster fulfillment based on local conditions. 

Unfortunately, in spite of these capabilities, users on review sites like Gartner.com and G2.com have voiced dissatisfaction with Shipsy’s interface, with many calling it outdated and difficult to use. Some customers also mentioned that the platform takes time to master, so adoption is slower for new users. Others have raised concerns about inconsistent support and occasional system glitches that disrupt last mile tracking. 

Pricing

Custom quotes are available upon request. 

 

Final Thoughts

If your business is growing, you need software that keeps up with rising delivery volumes. A scalable solution adjusts to your needs without forcing you into a full system overhaul. Whether you’re running a small fleet or handling thousands of deliveries every day, you deserve a platform that stays reliable, no matter what. 

See how Mile’s last mile automation software can support your growth. Schedule a demo today!