APAC delivery costs jump 19% YoY as fuel, wages and failed drops squeeze margins

FarEye's survey of 500+ firms finds APAC last-mile costs up 18.9% YoY, with India battling 20-30% first-attempt failure rates. Notably, 41% of shoppers prize predictable delivery over speed (22%), and 70% of businesses say customers will pay a premium — hinting quick-commerce capex on speed may be misallocated.

— Source publishedSun, 24 May, 2026, 16:20 IST·First seen Sun, 24 May, 2026, 16:32 IST·Source The Hindu BusinessLine

What happened

FarEye report finds APAC delivery costs rose 19% YoY, with India hit by fuel, wages, and 20-30% first-attempt failure rates. Customers prefer predictable over

Key facts

  • 19% YoY delivery cost rise
  • 18.9% APAC average
  • 20-30% first-attempt failure rate
  • 41% prefer predictable delivery
  • 22% prefer fastest
  • 60% pay for convenience
  • 70% businesses confirm premium willingness
  • 500+ firms surveyed
  • 14% India

Why this matters

Scout bolt-on acquisitions in address-intelligence, dynamic routing and proof-of-delivery tooling across India and SEA, where 19% YoY cost inflation is forcing carriers and retailers to consolidate around predictability platforms.

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