Carriers and retailers are under pressure to meet consumer demands for faster delivery times, with 65 percent of U.S. consumers expecting two-to-three-day delivery as the standard. During the holiday season, shoppers expected even faster shipping, with on-time delivery scores improving across the board.

USPS, FedEx, and UPS all saw improvements in on-time delivery during December, with total volumes delivered increasing by 5 percent. The USPS had the biggest improvement, meeting on-time delivery standards 94.1 percent of the time. As more capacity enters the market, retailers are enhancing their last-mile capabilities.

Walmart is scaling drone delivery to 150 more stores by 2027, aiming to deliver to 40 million shoppers across the U.S. in 30 minutes or less. Retailers are increasingly partnering with third-party technology providers to enhance the last-mile delivery experience for customers, cutting costs and improving efficiency.

Kroger is teaming up with Uber to provide on-demand delivery from nearly 2,700 stores, part of a broader effort to improve e-commerce profitability. Uber has also partnered with Shopify Plus to offer on-demand delivery for merchants like Gymshark and Fashion Nova. Doordash has expanded beyond food delivery to partner with apparel retailers.

The Home Depot has added nearly 200 facilities to its distribution network to enhance two-day parcel delivery nationwide. Utilizing a “ship from best location” algorithm, the company has significantly increased delivered sales, which now represent approximately 30 percent of overall sales.

Read more at Yahoo Finance: Holiday Delivery Gains Reset the Last-Mile Bar