The Last Mile's 'Fragmentation Tax': FarEye Sets Out Four Moves to Control Rising Delivery Costs at Last Mile Leaders EMEA 2026
- Last-mile delivery costs rose by a typical 9% across EMEA, with 96% of firms paying more per delivery
- FarEye CEO Kushal Nahata sets out four moves to cut the 'fragmentation tax' that disconnected carriers and systems add to every delivery
- Last Mile Circle, LML's year-round operator community, now spans APAC, the Americas and EMEA
AMSTERDAM, Oct. 27, 2026 /PRNewswire/ -- Last-mile delivery costs across EMEA rose by a typical 9% over the past year, with 96% of firms paying more per delivery, according to FarEye's Eye on the Last Mile EMEA 2026 report.
Presenting the findings, Kushal Nahata, CEO and Co-founder, FarEye, attributed much of the increase to the 'fragmentation tax': hidden costs from disconnected carriers, data and systems.
Drawing on 4,000+ data points across 500+ respondents, the report found that 51% of fully outsourced firms cited unreliable carrier information as their biggest challenge, compared with 22% citing cost.
Nahata compared last-mile fragmentation with shipping before containerisation, when a shared standard helped reduce cargo-loading costs from $5.83 to $0.16 per ton.
"Businesses may outsource execution, but they cannot outsource accountability for cost and customer experience," said Nahata. "The last mile is still waiting for its container moment."
He outlined four priorities:
- Pass the control test: Know every delivery's location, carrier allocation rationale and cost without making calls.
- Measure full cost to serve: Track exceptions, failed attempts and customer contacts alongside transport costs per delivery.
- Sell the promise: Offer free standard delivery, predictable slots and paid express options. Reliability matters most to customers for 63% of firms, versus 11% for speed.
- Build AI on trusted data: Standardise milestones, exception definitions and costs, retaining human oversight.
FarEye's platform provides visibility across carriers, markets and systems, including delivery costs in real time.
Held from 13-15 October at Mercure Amsterdam City Hotel, the event brought together 100+ leaders across postal, logistics, retail, e-commerce, manufacturing, automotive, telecoms and food service sectors.
Slavko Ovcina, CIO, Slovenia Post, highlighted practical, open operational discussions. Sebastian Bleser, SVP Supply Chain, Autodoc, emphasised exchanging insights across markets beyond the event.
Nahata introduced Last Mile Circle, LML's year-round community for sharing and solving operational challenges. EMEA leaders joined founding members from APAC and the Americas.
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