Dynamic Pricing for Last-Mile Delivery

May 2, 2022


The ability to optimize routes utilizing algorithms, artificial intelligence and other technology tools has been around for a while, replacing manual tools such as spreadsheets and, in some cases, nothing at all. Dynamic pricing can soon become a reality for last mile deliveries. By adding dynamic pricing to dynamic routing, a carrier can reduce costs and save time and provide more accurate pricing based on demand.

As consumers, we already experience dynamic pricing when taking an Uber or Lyft, and it’s also in use by other transportation modes such as ocean freight and trucking. While still limited, it will likely become the norm across all modes of transportation, including last-mile deliveries. Shippers will need to prepare by investing in technology such as a TMS with good business analytics to manage and forecast rates.

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TI Circle

John Haber


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