Blog | Lalamove Singapore

The Real Cost of Running Your Own Delivery Fleet in Singapore

Written by Lalamove Singapore | Jul 31, 2026, 8:51:43 AM

For many businesses in Singapore, delivery is no longer a back-end function. It has become part of how customers experience a brand, whether they are ordering food, receiving furniture, buying from an online store or waiting for supplies to arrive at an event venue.

 

Singapore's e-commerce market reached SGD 34.4 billion in 2025 and is forecast to reach SGD 40.5 billion by end of 2026, reflecting just how central delivery has become to how businesses operate and how customers expect to be served.

 

As delivery demand grows, some businesses may start asking the same question of whether to run their own delivery fleet. In Singapore, vehicle ownership comes with a unique set of costs that are worth understanding before committing. Starting with the Certificate of Entitlement, or COE. Category C premiums for commercial goods vehicles have remained elevated in recent bidding exercises, adding significantly to the upfront cost of putting a business vehicle on the road. Combined with fuel, insurance, maintenance and manpower, the true cost of running an in-house delivery operation can be higher than many businesses initially anticipate.

 

Vehicle Ownership Is a Fixed Cost, Even When Demand Changes 

Once a business commits to a vehicle, the cost does not pause when order volume slows down. The vehicle still needs to be maintained, insured, parked and managed. If a driver is hired, that cost also continues regardless of how many deliveries are made.

 

This is a key consideration for SMEs, because delivery demand is rarely the same every day. Some businesses see higher volumes during festive periods, sales campaigns or product launches. Others have quieter stretches where the vehicle is underused.

 

In Singapore, these costs include COE premiums, road tax, insurance, fuel, maintenance and parking expenses that continue regardless of delivery volume.

 

Why Flexible Delivery Is Becoming More Practical for SMEs 

As business costs rise, more SMEs are looking for ways to stay responsive without taking on additional fixed costs. Flexible delivery allows businesses to arrange deliveries based on actual demand, booking on-demand and same-day deliveries when urgent orders come in, scheduling planned runs in advance, using multi-stop bookings for multiple locations and choosing different vehicle types depending on the shipment.

This gives businesses access to delivery capacity without the commitment of owning, maintaining or fully utilising a fleet year-round.



How Lalamove Supports Flexible Delivery in Singapore  

For businesses that want delivery support without committing to their own fleet, Lalamove provides flexible on-demand delivery across Singapore.

 

Businesses can book on-demand, same-day or scheduled deliveries, choose from motorcycles, cars, vans and lorries, and use multi-stop bookings when sending to multiple locations. Real-time tracking keeps businesses and customers informed throughout.

 

For a full breakdown of vehicle types and indicative pricing, visit our pricing page.