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FarEye Study: Control Beats Speed in U.S. Last-Mile Delivery

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FarEye Study: Control Beats Speed in U.S. Last-Mile Delivery

Chicago – September 11, 2026 -- High-control last-mile delivery operators in the U.S. hit 95% on-time performance, while speed-first competitors report a 24% median cost inflation, according to new research from FarEye.

Speed-first operators pay a steep cost penalty despite equal investment levels

The 'Eye on the Last Mile America 2026' report, based on over 500 U.S. delivery operators and more than 3,000 data points, found that companies prioritizing the fastest possible delivery achieve only 76% on-time performance. Low-control operators lag further behind at 65.5% on-time performance, even though they invest at the same median level as high-control peers.

Delivery costs are outpacing revenue growth for most operators

Median year-over-year cost per delivery rose 12% in 2026, and 88% of respondents say delivery costs are growing at the same pace as revenue or faster. The data indicates that raw speed as a strategic priority is becoming financially unsustainable for a large share of operators.

Majority of operators now prioritize predictability over raw speed

55.7% of operators surveyed prioritize predictable delivery or first-attempt success, compared with just 11.4% who prioritize the fastest possible delivery. The shift reflects growing recognition that network orchestration, not delivery velocity, determines customer experience as supply chains fragment across carriers, couriers and gig providers.

Nick Costides, C-Level Advisory and former Global President of IT at UPS, said the ability to connect and respond quickly across a distributed network ultimately determines customer experience more than any single technology or carrier choice.

Kushal Nahata, CEO and Co-Founder of FarEye, said the last mile is becoming a test of orchestration rather than investment, with companies that master it able to grow without a proportional rise in cost base.

The report was unveiled at Last Mile Leaders America 2026, held August 26–28 at The Gwen in Chicago.

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