FarEye Implements Four Strategies to Combat Rising Delivery Costs in EMEA by 2026

FarEye's Four Strategies to Control Rising Delivery Costs in EMEA by 2026

In a recent announcement, FarEye, a leading logistics technology provider, unveiled four strategic measures designed to tackle the alarming rise in last-mile delivery costs across the EMEA region. As per their latest report, titled 'Eye on the Last Mile EMEA 2026,' delivery costs have surged by an average of 9% over the past year, a trend that has seen 96% of companies facing increased expenses per delivery.

Kushal Nahata, the CEO and co-founder of FarEye, attributed this cost surge to what he referred to as the 'fragmentation tax.' This term describes the additional, often hidden costs incurred due to disjointed transporters, systems, and data that are not seamlessly connected. To illustrate the situation, Nahata compared the current state of last-mile logistics to the market conditions before the advent of containerization in freight transport. He emphasized that just like the shift to standardized containers drastically reduced shipping costs, the last-mile sector is still awaiting a similar breakthrough.

Based on insights from over 4,000 data points gathered from more than 500 respondents, the report revealed alarming trends. For instance, 51% of companies that fully outsource their last-mile operations cite unreliable information from transporters as their chief challenge, while only 22% pointed to cost concerns. Nahata emphasized, “Companies can outsource execution, but they cannot delegate responsibility for customer experience and costs.” This statement underscores the critical importance of control and oversight in the last-mile delivery process.

The Four Key Strategies

1. Maintain Control

FarEye's first proposed measure is to ensure that companies can track their shipments in real time without needing to make multiple calls. This not only enhances efficiency but also allows businesses to manage shipping costs and improve customer communication effectively.

2. Measure Total Service Costs

The second strategy revolves around meticulously tracking all costs associated with delivery. This includes monitoring failed delivery attempts and customer interactions. By measuring the complete service costs, companies can identify and understand the underlying issues contributing to heightened expenses.

3. Promote Delivery Solutions

The third strategy encourages businesses to standardize their shipping offerings. By providing free standard shipping options alongside faster, premium options, companies can meet diverse customer needs. Reliability ranked as the top concern among 63% of businesses, overshadowing speed, which only 11% prioritized.

4. Develop AI Solutions Based on Reliable Data

Lastly, FarEye advocates for the implementation of data-driven AI solutions. This involves establishing uniform milestones, defining exceptions, and maintaining operational oversight. By leveraging reliable data, businesses can standardize their processes, ultimately reducing inconsistencies and costs.

FarEye's platform allows real-time visibility across various transporters, marketplaces, and systems, which is crucial for dealing with the nuanced challenges of the last-mile delivery landscape.

Event Highlights

FarEye introduced these strategies during an event held from October 13 to 15, 2026, at the Mercure Amsterdam City hotel. The gathering brought together over 100 leaders from varying sectors, including postal services, logistics, retail, e-commerce, and automotive industries. Feedback from attendees highlighted the value of practical discussions and shared perspectives from different markets. Notable participants included Slavko Ovčina, CTO of Slovenia Post, and Sebastian Bleser, Senior VP of Supply Chain at Autodoc, both of whom emphasized the significance of dialogue across various sectors.

Furthermore, Nahata introduced the 'Last Mile Circle,' an ongoing community initiative aimed at addressing operational challenges in the last-mile delivery space. This community, comprising sector leaders from EMEA, APAC, and the Americas, will foster collaboration and innovation toward reducing delivery costs and enhancing service effectiveness.

As the last mile continues to evolve, these strategic measures from FarEye could play a pivotal role in helping businesses navigate the complexities and rising costs of last-mile delivery logistics. The hope is that with proper implementation, the industry can finally achieve efficiency akin to what was accomplished with freight containerization.