A delivery van bearing a retailer’s logo used to be uncommon. Today, it’s quite similar to how we used to think about business websites: optional at first, but eventually necessary. Large shops are now required to drive their own vans, not only because they can.
Traditional logistics flaws have become painfully evident over the past few years, particularly during the pandemic. Many retailers are on the defense due to delivery delays, misplaced products, and poor customer care. But rather than putting up with the constraints of outside couriers, brands started driving themselves.
An idea that began as a workaround has evolved into a movement. Retailers are creating their own delivery fleets to safeguard their brand in addition to moving products more quickly. Customers are not lenient if the package arrives late when they want same-day or next-day delivery. Additionally, expectations are raised when that box bears a well-known brand name.
Businesses benefit more than just speed when they handle distribution internally. They acquire command. They provide updates that are consistent with their marketing tone, design packaging that embodies their brand values, and address delivery problems without having to pursue outside suppliers thanks to branded fleets. Not only is it more cohesive, but it also works incredibly well to foster trust.
Businesses like Target greatly relied on their acquisition of Shipt during the peak of shipping difficulties in 2020 and 2021. Others, such as Walmart, increased the size of their own delivery systems. These choices turned out to be rather obvious in retrospect. Stores that had their own cars were able to fill up service gaps, lower consumer complaints, and fulfill their commitments when others were unable to.
This change is also being driven by cost. Third-party logistics companies frequently charge higher prices, particularly on holidays or during times of strong demand. For big organizations that ship thousands of parcels every day, the costs mount up rapidly. Retailers are creating systems that are not only incredibly dependable but also unexpectedly inexpensive at scale by utilizing route optimization technologies and predictive delivery models.
| Key Driver | Explanation |
|---|---|
| Customer Expectations | Rising demand for faster, branded, and trackable delivery services |
| Cost Control | Avoiding third-party fees and seasonal rate hikes |
| Brand Ownership | Ensuring a consistent experience from purchase to doorstep |
| Operational Agility | Rapid adaptation to changing volumes, peaks, and disruptions |
| Data Retention | Full access to consumer delivery behavior and insight for future strategy |
| Sustainability Goals | Shifting toward electric fleets, hybrid logistics, and green investments |
I remember a mid-size retailer’s logistics lead telling me how their team wasted thousands of reimbursements because of uncontrollably delayed deliveries. She stated, “The customer held us accountable even though we did everything correctly.” Many in the industry share this perspective, which is why they are so keen to take back control of the last mile.
Delivery is increasingly being included into retail strategy through internal innovation and strategic alliances. Businesses are also repurposing businesses as micro-distribution centers by putting things that move quickly closer to exits, incorporating areas for drivers to pick up their vehicles, and converting the rear of stores into little warehouses. These adjustments are not just practical; they are progressive.
Furthermore, sustainability isn’t falling behind. Brands can select electric vans, create cleaner route plans, and investigate alternatives like bike couriers or solar-charged depots when they have their own fleets. In addition to being beneficial for the environment, these measures also improve consumer impression. Eco-friendly actions are becoming more and more expected by consumers, and branded cars increase awareness of those decisions.
Naturally, developing a fleet has additional obligations. Internal resources may be strained by scheduling, insurance, driver training, and vehicle upkeep. However, it feels like a particularly good trade-off when contrasted with the uncertainty of outsourcing, especially during peak times. With owned fleets for key urban areas and regional leasing or partnerships for rural areas, many brands are combining strategies.
Retailers are not attempting to completely displace delivery behemoths. Rather, they are establishing sufficient control to guarantee that a buyer is aware of exactly what is coming—and when—when they click “buy.” The van that pulls into your driveway is more than simply a car now. It serves as a brand ambassador, a moving billboard, and a direct route to the consumer’s door.
This change is obviously long-term. Delivery is increasingly becoming an element of a company’s identity as more businesses invest in it as a competitive advantage. Owners of their distribution channel will also be in a better position to adjust, satisfy, and maintain an advantage as expectations rise. The store itself appears to have set the way for customer loyalty.
