The "last mile" segment corresponds to the final stage of distribution, in which orders are taken from the closest point in the logistics chain directly to the consumer. This type of operation has no specific applicable regulation, which generates market opportunities, but also a series of legal uncertainties.
In this brief article, we explore the regulatory context of this logistics transport segment, the latest initiatives by regulatory authorities to systematize the subject, and point out some of the main challenges faced by players in this market.
The last mile
Since 2016, the increase in e-commerce transactions has also expanded the demand for fast and personalized deliveries. In 2023, e-commerce accounted for 9.2% of total retail in Brazil, more than double its share in 2016 (4.2%).[1] The growth of this market reflects changes in consumer habits, with a greater preference for online shopping and agile deliveries.
The delivery of goods sold by marketplaces, in general, involves three logistical steps: first mile, middle mile, and last mile. While the first of them encompasses the transportation of the goods from the supplier or producer to the regional distribution center or warehouse, the second encompasses the transportation from the place where the product is stored to the distribution center closest to the final destination. The last mile is the last stage of the transport logistics chain. It consists of delivery to the final consumer, from the nearest distribution center, located in urban centers or as close as possible to them.
Driven by e-commerce, the municipal or intrastate transport market for small loads registered growth, concentrated in large Brazilian urban centers. The last mile stage is carried out by several service providers, from large carriers to self-employed workers who use light vehicles – such as cars and motorcycles – and human traction – such as bicycles – to travel short distances.
However, there are several challenges inherent to the last mile segment, such as heavy traffic, unexpected costs arising from specific local legislation and/or regulation, violence in urban centers and the absence of uniform regulation between cities.
In relation to this last factor, it can be seen that market practices have been adopted precisely to fill gaps in the legislation and regulations in force.
ANTT and the actions to discuss a regulation for standardizing practices for the last mile
In April 2024, the National Land Transportation Agency (ANTT) held the a public meeting (Reunião Participativa No. 9/24), to collect contributions and discuss with interested parties what could be central aspects for a regulation of the road transport market for small e-commerce loads in the last mile stage.
The agency reported the regulator's difficulty in accessing the major e-commerce players to carry out technical visits, and discuss the regulation of the last mile stage. At the same time, the agency stressed that there is a concern from the regulated public about the regulatory model to be adopted and the extension of the regulatory agenda, that is, how much the agency would intervene in the segment – which currently has little regulatory intervention.
In this sense, the initiative sought to collect subsidies and discuss the regulatory model to be adopted by ANTT. At the meeting, several market agents spoke out, including representatives of major e-commerce players, unions, carriers and government agencies.
The contributions reflected a wide variety of perspectives, but a common point can be highlighted: the consensus among some agents on the need to adapt the existing regulation to the specificities of the road transport market for small loads in the last mile stage.
This adaptation is seen as essential, both to ensure market efficiency and to ensure alignment with applicable regulatory standards, without generating relevant socioeconomic disruptions.
As a result of the discussions, ANTT defined, through a simplified report, the next steps related to the topic, which include:
- analyze the contributions received during the Participatory Meeting 9/24;
- promote a new round of meetings with the sector and government agencies to deepen the debates; and
- assess the need to propose regulatory measures within the agency.
Although the next steps are well outlined by the agency, so far no concrete results have been identified. In addition, there was no inclusion of the topic related to new road freight transport markets in ANTT's 2025 Annual Management Plan.
It is important that discussions are resumed and deepened to ensure that regulation keeps up with the specificities of this evolving market.
Existing regulations on cargo transport
Road cargo transportation in Brazil is governed by several legal and regulatory rules. Law 11,442/07, which deals with the paid transportation of cargo , and Law 13,703/18, which establishes the National Policy of Minimum Freight Amounts, are the two main rules applicable to the matter.
In addition, ANTT Resolution 5,982/22 defines the procedures for registration and maintenance in the National Registry of Road Cargo Carriers (RNTRC), essential for the regulation of the activity carried out by ANTT.
Despite the scope of these rules, none of them directly addresses fundamental aspects of urban cargo transport in the stage known as the last mile. This legal gap generates discussions about the applicability of existing rules to this delivery modality, which is increasingly present in the context of the operations of e-commerce and urban logistics players.
ANTT reported that it has been receiving complaints of unfair competition between private drivers who use small vehicles to make deliveries – as transport service providers governed by the Civil Code (article 730 et seq.) – and autonomous cargo carriers (TAC), which are regulated by ANTT Resolution 5,982/22.
An example of the regulatory gap is the situation of private drivers who use small vehicles to make last-mile deliveries. These carriers, which are not regulated and use their own vehicles to make deliveries, compete directly with TACs. Defined as individuals or legal entities (MEI) that carry out remunerated road cargo transport activities with up to three own vehicles, TACs must comply with a series of regulatory requirements, including registration with the RNTRC.
Aware of the complaints, ANTT, however, did not point to a solution to the issue.
Challenges of operating in the last mile segment
In a competitive market that progressively requires a reduction in delivery time and improvement in operations through technological innovations, it is crucial to establish a regulatory environment with legal and operational conditions that stimulate market efficiency, generate incentives for the operation of companies, foster innovation, and generate employment and income.
The absence of specific regulation poses major challenges. Regulatory authorities often inspect and carry out case-by-case analyses of practices adopted by operators to apply administrative sanctions, which generates legal uncertainty for businesses.
For e-commerce companies, the lack of regulatory clarity – that is, a clear definition of the institutional position of regulators on various relevant aspects of their operations – represents an obstacle for a proper dialogue with the authorities and to the development of economic activities. This situation creates an environment that, although dynamic, lacks greater legal and operational certainty.
Machado Meyer has advised several players to address the complex regulatory challenges related to the logistics of delivering goods. We are available to help in the dialogue with public authorities in discussions on the subject and in the construction of efficient and innovative solutions.
[1] Technical Note SEI 3660/2024/CRTRC/GERET/SUROC/DIR/ANTT. Process 50500.136500/2024-00.
