Escalating costs are squeezing U.S. delivery operators, with many saying costs are rising faster than revenues in 2026, according to research from delivery management platform FarEye, released this week.
More than 45% of U.S. operators surveyed said delivery costs are rising faster than revenues, while another 42% said the two are growing at roughly the same pace. Seven in 10 operators ranked fuel among their biggest cost pressures and more than half pointed to driver cost and availability as key pressure points. Rounding out the top three cost concerns was vehicle operation costs, cited by 40% of respondents.
The information comes from Eye on the Last Mile America 2026, FarEye’s study of delivery economics, customer promise, network control, technology adoption, and operating models across U.S. enterprises.
The report also found what researchers termed a “striking divide” in how operators are absorbing all the pressure. Delivery organizations with greater control over their networks reported 95% on-time performance, compared with just 65.5% among low-control organizations. Those with greater control also reported lower median cost inflation—8.3% versus 14.5%—despite similar median investment levels, according to the research.
“Delivery operators are being squeezed from both sides—core operating costs remain high while networks themselves are becoming more complex,” Kushal Nahata, CEO and co-founder of FarEye, said in a statement announcing the findings. “What is particularly significant is that higher-control organizations are reporting 95% on-time performance and lower cost inflation without materially higher investment. That tells us the next advantage will not come simply from spending more or promising faster delivery. It will come from having the control to make better decisions across every carrier, fleet, and customer promise.”
The report also found that delivery networks are becoming more fragmented, that predictability is being prioritized over speed, and that AI is on the rise:
- 57% of respondents said they operate hybrid delivery networks—meaning they combine owned and outsourced delivery capacity; 47% of hybrid operators said they plan to increase outsourcing.
- 55.7% said they prioritize predictability or first-attempt success compared with 11.4% prioritizing maximum speed.
- 66.3% said they are implementing or operating AI, up from 46.2% in 2025.
“Overall, the findings point to a U.S. last-mile market where cost pressure is becoming structural, networks are becoming more fragmented, and certainty is becoming more valuable than raw speed,” according to FarEye. “The emerging advantage is not simply promising more. It is keeping the promises that matter, while keeping the economics of those promises under control—the central thesis of Eye on the Last Mile America 2026.”
