Updated on: September 21, 2025
On-demand delivery went from a luxury to a basic expectation fast. You simply need to click “order,” and an app behind the scenes figures out drivers, routes, and drop-offs.
And fundamentally, this is exactly what Delivery as a Service means. The Delivery as a Service (DaaS) acts as a model that businesses can use to outsource their delivery logistics to experts.
The DaaS provider handles everything from fleet, tracking, routing, and driver assignment. What you take care of is the delivery fees, which are usually done on a per-delivery basis to get the much-needed flexibility.
The DaaS market clocked in at around US$500 billion in 2023. Analysts expect it to grow at a CAGR north of 5% through 2032.
Many businesses are already turning to DaaS since it saves the logistics hassles and acts as a growth tool. You get more innovative tech, real-time tracking, and scalability without owning anything.
There are different models of DaaS as well, which we’ll unfold below.
Types of DaaS Models
Delivery as a Service spans multiple models, each designed for different needs. Below are some of the highly followed DaaS models.
Crowdsourced Delivery
Crowdsourced delivery adopts a flexible network of gig workers and everyday people to complete last-mile drop-offs. Businesses tap into this model when they need speed, scalability, and access to customers without the cost of managing a fleet. Usually, this is the sort of model that thrives in urban and high-volume markets where demand is unpredictable.
Crowdsourced Delivery
The common features of crowdsourced delivery models are as follows.
- There’s a growing reliance on gig workers and everyday people for last-mile deliveries.
- Some of the popular local delivery platforms like DoorDash, Uber Eats, and Instacart dominate this space.
- Plenty of crowd storage models can turn spare rooms, shops, or garages into parcel points for pickup and drop-off.
- Peer-to-peer or crowd freight forwarding leverages travelers to move packages across cities or borders.
Dedicated Fleet Delivery
Another major DaaS model is the dedicated fleet delivery model. There are professional logistics providers who operate this, and they are ones who own vehicles, drivers, and routing systems.It is pretty much unlike crowdsourced models because the dedicated fleet approach focuses on reliability, service consistency, and brand control.
Those operating in businesses such as retail, healthcare, and the food sector often go for this model. It’s because they have little to no margin for errors in delivery failures, and they need stricter compliance.
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The key aspects of this model are:
- There are trained drivers and fully owned fleets at work
- Specialist last-mile carriers such as Dropoff, Deliv, and Stuart handle time-sensitive or high-value goods.
- On-demand courier fleets serve industries like retail, healthcare, and food, where guaranteed service levels and visibility are critical.
Full-Service Fulfillment
The scope of full-service fulfilment is not limited to delivery. In fact, these services often extend to warehousing, inventory management, order picking, packing, and shipping.Businesses often choose this model when they need scale without building their own infrastructure.
Source – Full-Service Fulfillment
Some of the established providers in this space are FedEx, DHL, and UPS. These are the logistics businesses that offer full-service DaaS bundles, while tech-driven startups like ShipBob and Flexe specialize in flexible, digital-first fulfillment.
When you need to be super efficient at this scale, you need smart route planning. And, it’s here that platforms like Zeo Route Planner add value.Adopting Zeo can help 3PL providers reduce delivery times, lower costs, and improve tracking.
These are the common characteristics of this DaaS model
- 3PL often covers the entire chain from warehousing to delivery
- There are 3PL providers who offer bundled services (FedEx, DHL, UPS)
- A plenty of rech-driven startups deliver flexible fulfillment (ShipBob, Flexe)
- There are tools like Zeo Route Planner that help boost the efficiency of the last-mile delivery.
Conclusion
We’ve moved beyond considering the Delivery as a Service as just a fringe option. In fact, it’s key to how businesses meet rising customer expectations. While implementing may seem easy, there’s a huge challenge involved in keeping costs down while also improving speed and visibility.
That’s where tools like Zeo Route Planner make a difference.
So, no matter if you’re running a small business or looking to partner with a large logistics provider, Zeo Route Planner can help plan smarter routes. Also, you get to track deliveries in real time and stay competitive in a fast-moving market.
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