The importance of last-mile delivery, or the movement of goods from a shipping hub to their final destination, came into sharp focus during the pandemic. Statista projects that ecommerce will drive the global last-mile delivery market to double to more than $200 billion by 2027. But as last-mile deliveries of essentials continue to increase, so, too, do customers' expectations. According to an Anyline survey, more than three-quarters (76%) of shoppers said that an "unacceptable" delivery experience -- e.g., a very late one -- would affect their decision to order from a company again.

It comes as no surprise that the market for last-mile delivery technologies is an active one, then. Companies like Zippedi and Carmagos are using robots and mini distribution centers to streamline inventory for last-mile delivery, while others, such as Berlin's GetHenry, are supplying e-bike fleets to delivery business customers like Gorillas and JustEatTakeaway.com.

A growing segment of the last-mile market is squarely focused on logistics, including Onfleet, which claims its software facilitates millions of deliveries per week for thousands of businesses (including Sweetgreen). Offering evidence that the demand for last-mile solutions might overcome broader economic headwinds, at least in the short term, Onfleet today announced that it raised $23 million in Series B funding led by Kayne Partners with participation from Savant Growth.

Co-founder and CEO Khaled Naim said that the new capital will be put toward product development, expanding Onfleet's product and engineering capabilities, and enhancing the company's enterprise offering. It brings Onfleet's total raised to just over $40 million to date.

Tracking deliveries with Onfleet.

"The pandemic dramatically accelerated growth in the market (and Onfleet’s growth) and created a need for these types of services that did not exist previously," Naim told TechCrunch in an email interview. "There was a time when fear and uncertainty surrounded grocery store visits, so delivery was simply a safer option for consumers, especially for demographics like the elderly or those with pre-existing conditions. Delivery, driven by consumer demand and the pandemic, is increasingly becoming the key channel for businesses especially in grocery, cannabis, prepared meals and restaurant, alcohol, pharmacy, and retail categories."