Why Outsourcing Delivery Beats Managing Your Own Fleet

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With rising fuel costs and increasing operational pressure, many MSMEs are questioning whether managing their own delivery fleet still makes sense.

We made a quick computation to compare two businesses that both have 20 Truck Deliveries per month. One invests in their own fleet, while the other makes the smart choice of outsourcing their delivery requirements to Lalamove.

 

Monthly Expenses

Old Way, Own Fleet

Smart Way with Lalamove

Vehicle Monthly Amortization (One L300 FB-type Van)

₱21,495

None

Salary of 1 Driver and 1 Helper

(inc. government contributions and insurance)

₱25,500 (Driver)
₱18,700 (Helper)

Driver salary is built-in the delivery cost

₱80 (up to 25kg for each stop)

Fuel Cost

₱45,000

Built-in the delivery cost

Vehicle Maintenance and Repairs

₱5,000 - ₱8,000

None

Vehicle Insurance

₱3,750

None

Goods In Transit Insurance

₱5,000 - ₱10,000

FREE (Up to ₱ 75K for corporate clients)

GPS Tracker

₱500 - ₱700

FREE

Total Monthly Cost

₱ 133,145

₱ Delivery cost +

₱ 80 (Add-on fees for extra helper)

With Lalamove, you at least save ₱ 100,000 in monthly costs! 

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 Here’s why else choosing Lalamove is a smarter move: 

Old Way, Own Fleet: High Overhead

Smart Way with Lalamove: High Margin

High & Unpredictable Costs

  • Rising fuel & logistics costs
  • Vehicle purchase & maintenance
  • Fixed driver salaries, insurance, amortization

Cost Efficiency & Control

  • Pay-as-you-deliver model
  • Zero vehicle maintenance
  • No upfront capital required

Limited Scalability

  • Hard to handle peak demand
  • Fixed fleet size limits growth
  • Restricted delivery areas

Scalability on Demand

  • On-demand drivers anytime
  • Easily scale during peak seasons
  • Expand reach from Manila to Bulacan, Cavite, Pampanga,

Operational Complexity

  • Managing drivers & schedules
  • Route planning & delays
  • Handling breakdowns & issues

Operational Simplicity

  • No fleet or driver management needed
  • Platform handles dispatch & routing
  • Focus more on sales and growth

Limited Tools & Visibility

  • Manual tracking
  • Separate customer service
  • No centralized system

Access to Built-In Features

  • Real-time tracking for full visibility
  • Built-in customer support
  • Multi-stop deliveries (up to 20 stops)
  • Multi-user accounts + centralized wallet
  • Delivery insurance up to ₱75,000

 

Why More MSMEs Are Choosing Outsourced Delivery

The use of logistics outsourcing services through Lalamove Philippines helps companies remain flexible and not be weighed down by issues surrounding vehicle management, labor issues, and variable costs.

As compared to making significant investments in the logistics aspect, companies have the freedom to increase deliveries depending on need, whether in Metro Manila or to neighboring provinces such as Bulacan, Cavite, and Pampanga.

Making the Smarter Choice

All boils down to efficiency and adaptability. Although it is advantageous if the business owns its own fleet, this also has some disadvantages, especially in terms of costs and logistics management. By using outsourced delivery, businesses will have a simpler solution to meeting their needs.

By outsourcing your logistics to platforms like Lalamove Philippines, MSMEs can keep pace with other MSMEs without spending too much.

 

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