53 Cents of Every Shipping Dollar Now Goes to Last-Mile Delivery
Here is a number every delivery driver should know: 53% of total shipping costs now go to the last mile. That is up from 41% in 2018, and it is still climbing. The last-mile delivery market hit $177.94 billion in 2025 and analysts project it will exceed $453 billion by 2035. Behind those figures are millions of drivers scanning packages, loading vans, and racing against the clock to complete their routes.
For drivers, this cost pressure translates directly into tighter delivery windows, heavier package loads, and less tolerance for inefficiency. With 2.3 billion packages projected during the 2026 peak season alone, the question is no longer whether technology matters — it is whether you can afford to work without it.
Why Last-Mile Costs Keep Rising
Several forces are pushing last-mile expenses higher every year:
- E-commerce volume growth — Online shopping continues to accelerate, with same-day and next-day delivery becoming the baseline expectation.
- Urban density challenges — More packages going to apartments, condos, and high-rises means more time per stop for access codes, elevators, and lobby navigation.
- Labor costs — Driver wages, fuel, insurance, and vehicle maintenance all trend upward.
- Failed deliveries — Every missed delivery attempt costs carriers an estimated $12-15 in reattempt expenses.
- Gig platform expansion — DoorDash, Uber, and other gig platforms are expanding from food into parcel delivery, adding competitive pressure and fragmenting the driver workforce across more carriers.
The result: carriers and drivers both need to do more with less time. And the biggest time sink for most drivers is not driving — it is the manual processes before they even leave the warehouse.
The Hidden Cost of Manual Waybill Entry
Ask any experienced delivery driver where they lose the most time, and the answer is rarely navigation. It is the scanning and sorting process at the start of each shift.
What Manual Entry Actually Looks Like
Without smart scanning technology, drivers typically:
- Pick up each package individually and read the waybill label
- Manually type addresses or tracking numbers into their route planner
- Cross-reference package details with delivery manifests
- Organize packages by hand based on a mental map of their route
For a typical load of 80-120 packages, this process takes 30-45 minutes — sometimes longer when labels are damaged, handwritten, or printed in small fonts. That is 30-45 minutes of unpaid time for many gig drivers, and 30-45 minutes of delayed departures for DSP fleets.
The Compounding Effect
Manual processes do not just waste time at the warehouse. They create downstream problems throughout the entire shift:
- Misread addresses lead to wrong turns and failed deliveries
- Missed packages get discovered too late, requiring backtracking
- Poor vehicle loading means digging through the van at every stop
- Mental fatigue from data entry reduces focus during driving
When you multiply these inefficiencies across a 2.3-billion-package peak season, the industry-wide cost is staggering.
What Is Smart Scanning and Why Does It Matter Now?
Smart scanning uses artificial intelligence to automate the package intake process. Instead of reading and typing, drivers simply point their phone camera at package labels and let AI do the rest. But not all scanning is created equal.
Basic Scanning vs. Smart Scanning
Basic barcode scanning apps read one barcode at a time, requiring drivers to tap a button for each package. This is better than manual entry, but still slow for high-volume loads.
Smart scanning — the kind built into FlexMesh — goes significantly further with features specifically designed for the pace of real-world delivery work.
How FlexMesh Smart Scanning Works
FlexMesh was built by drivers, for drivers. The scanning system addresses every pain point in the package intake process:
AI OCR (Optical Character Recognition)
FlexMesh uses advanced AI OCR to read waybill labels, not just barcodes. This means the app can extract:
- Delivery addresses from printed or handwritten labels
- Tracking numbers and carrier codes
- Special delivery instructions
- Recipient names and contact details
Unlike basic barcode readers, AI OCR works even when labels are partially damaged, wrinkled, or printed at odd angles. The AI model is trained on thousands of real-world waybill formats across multiple carriers.
Continuous Scan Mode
This is where FlexMesh truly separates itself from tools like Circuit, Route4Me, or Zeo. With continuous scan mode, you do not need to tap a button for each package. Simply hold your phone steady and move packages through the camera view. FlexMesh detects and processes each label automatically, one after another, without interruption.
For a load of 100 packages, continuous scan reduces intake time from 30-45 minutes to under 10 minutes.
Bounding Box Detection
FlexMesh displays a real-time bounding box on your screen that highlights exactly what the AI is reading. This visual feedback means:
- You know instantly whether the label was captured correctly
- No guessing about whether a scan succeeded or failed
- Faster repositioning when a label is hard to read
- Confidence that every package has been accurately processed
Competitors like Circuit and Route4Me lack this real-time visual confirmation, leaving drivers unsure whether they need to rescan.
Beep Confirmation Sound
Every successful scan triggers an audible beep. In a noisy warehouse environment, this matters more than you might think. The beep lets drivers:
- Keep their eyes on packages instead of the screen
- Maintain a fast, rhythmic scanning pace
- Immediately identify when a scan fails (no beep = rescan)
- Work hands-free with the phone mounted on a stand or cart
This audio-visual feedback loop — bounding box plus beep — creates a scanning experience that feels effortless even at high speed.
Multi-Carrier Support
Most delivery drivers in 2026 work for more than one carrier. You might handle Amazon packages in the morning, FedEx in the afternoon, and Purolator on weekends. FlexMesh recognizes waybill formats from all major carriers automatically. No switching modes, no separate apps, no manual carrier selection.
Time Savings: The Numbers That Matter
Here is what smart scanning means in practical terms for a driver handling 100 packages per shift:
Package Intake
| Task | Manual Process | FlexMesh Smart Scan | Time Saved |
|---|---|---|---|
| Reading and entering addresses | 30-45 min | 8-10 min | 20-35 min |
| Verifying package details | 10-15 min | Built into scan | 10-15 min |
| Organizing route sequence | 10-20 min | Auto-generated | 10-20 min |
| Total pre-departure | 50-80 min | 8-10 min | 40-70 min |
That is up to 70 minutes saved before you even start driving. Over a five-day work week, that adds up to nearly six hours — almost an entire extra shift worth of delivery time.
During Delivery
The benefits continue on the road. Because FlexMesh automatically organizes packages into an optimized route sequence after scanning, drivers spend less time:
- Searching for the next package in the van
- Double-checking addresses at each stop
- Backtracking due to misread labels
Drivers using FlexMesh report saving an additional 15-30 minutes per shift during active delivery, bringing total daily time savings to 1-2 hours.
The Gig Economy Factor: Why Speed Matters More Than Ever
The delivery landscape is shifting fast. DoorDash, Uber, and other gig platforms are aggressively expanding into parcel delivery. This means:
- More drivers competing for the same delivery blocks
- Tighter time windows as platforms optimize for speed
- Multi-platform work becoming the norm, not the exception
- Per-package pay models that directly reward faster completion
In this environment, a driver who processes 100 packages in 10 minutes has a massive advantage over one who takes 45 minutes. Smart scanning is not a luxury — it is a competitive necessity.
How FlexMesh Compares to Other Route Planning Tools
Several apps serve the delivery driver market, but their scanning capabilities vary widely:
Circuit Route Planner
Circuit offers basic barcode scanning but lacks AI OCR for reading waybill text. No continuous scan mode means drivers must tap for each package. No bounding box or audio feedback.
Route4Me
Route4Me focuses on fleet management and route optimization but has limited package scanning features. Better suited for dispatchers than individual drivers.
Zeo Route Planner
Zeo provides route planning with basic scanning. However, it lacks multi-carrier waybill recognition and the continuous scanning workflow that high-volume drivers need.
FlexMesh
FlexMesh combines AI OCR, continuous scan, bounding box detection, beep confirmation, and multi-carrier support into a single workflow designed for speed. It is the only tool built specifically for drivers who handle 50-200+ packages per shift across multiple carriers.
Preparing for the 2026 Peak Season
With 2.3 billion packages projected for the 2026 peak season, preparation is everything. Drivers who adopt smart scanning now will be ready to:
- Handle higher package volumes without burning out
- Complete more deliveries per shift, increasing earnings
- Reduce errors during the most stressful time of year
- Take on multi-carrier loads with confidence
Waiting until peak season to learn new tools is a recipe for frustration. The drivers who thrive during the holiday rush are the ones who have already built smart scanning into their daily routine.
The Bottom Line: Every Minute Counts When Last-Mile Costs 53%
The last-mile delivery industry is under enormous cost pressure. At 53% of total shipping costs and climbing, every inefficiency gets scrutinized. For drivers, this pressure creates both a challenge and an opportunity. Those who adopt tools that eliminate wasted time will earn more, stress less, and outlast the competition.
FlexMesh smart scanning — with AI OCR, continuous scan mode, bounding box detection, and beep confirmation — is the fastest way to turn package intake from a bottleneck into a competitive advantage.
Ready to stop wasting time on manual scanning?
Download FlexMesh today on App Store or Google Play and see how smart scanning transforms your shift.
FlexMesh — Scan Smarter. Deliver Faster. Earn More.