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Sunsetting the Dispatch Fleet, Part 3
Kelsie McMahon
Published on:
May 20, 2021
Updated on:
October 28, 2024
Published on:
May 20, 2021
Updated on:
October 28, 2024
It was a long road to sunset the Dispatch fleet, but it positively impacted our business in more ways than one. Exiting the fleet allowed us to continue to invest in the business and our software platform for customers and independent drivers. Read Sunsetting the Dispatch Fleet, Part 1, and Sunsetting the Dispatch Fleet, Part 2.
Having an in-house fleet that supplemented our independent contractor driver network provided credibility to our organization as we demonstrated that we were able to meet our customers’ delivery needs. However, our finances told a different story.
“I don’t know if we would be talking here today if we still had our fleet and part-time drivers. That has nothing to do with the drivers, but rather the expense of owning a fleet itself. I don’t know if the business could have sustained itself with it,” said Natalie Johnson, VP of Human Resources.
“During 2019, we grew revenue aggressively. But with the investment in the fleet, we were operating at close to break even from a gross profit standpoint. Following the exit of the fleet, we are now generating a gross profit of more than 35 percent on our deliveries,” said Matt Ouska, Dispatch CFO.
With the fleet exit and growth of Dispatch, we were not only able to provide more jobs to our independent drivers, but we were also able to expand the Dispatch platform, adding new service offerings and expansions for customers. One of which is Dispatch Connect.
Dispatch Connect is our solution to delivery management. It’s a holistic software that helps you connect the dots between your business, your drivers, your customers — and your bottom line.
“Dispatch Connect is strategic to our customers in that it now gives them the same level of visibility into their internal fleet and the ability to move overflow orders onto the Dispatch marketplace,” said Ouska.
Looking back at our journey, was it the right decision for our business?
“It absolutely was the right decision. The business is clicking on all cylinders now and operating in a much more efficient manner than it was while we were operating our own fleet,” shared Ouska.
“It feels like a weight has been lifted that we’re able to enter a market without assets and build a network of independent contractor drivers and share our value proposition with customers in order for drivers to build their business. What we did for the business was huge, but we feel how painful it was,” shared Johnson.
Exiting the fleet was a long journey. At the end of the road, the move let us focus on our core business as a technology company and ultimately provide great service for our customers and provide jobs for our independent contractor drivers.
Now, we understand that exiting a fleet is no easy task. In sharing our story, we hope to help our customers do the same. If an owned fleet was inefficient for a technology-based delivery company like Dispatch, then it might not be the best road for your business either. Download our case study for a summarized version of our story to share with your company and customers.
If a fleet exit is not in your business’s near future, let Dispatch Connect help manage your delivery ecosystem. Or, if you don’t have an in-house fleet and are looking to fulfill your business delivery needs, use the Dispatch Marketplace to complete deliveries. To learn more, connect with a Dispatch team member today!
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