The transportation industry puts a high value on finishing strong. The challenge for businesses today is to get capacity to satisfy the consumer demand for home delivered goods. With many consumers working remotely, e-commerce sales ratios grew 14.2% in 2021. And those consumers are looking to get their deliveries faster. Looking forward, same-day deliveries are expected to reach 15% penetration in the US by 2025 putting even more of an emphasis on final mile deliveries.
Faced with increasingly complex supply chain challenges, businesses rely on the commercial rental vehicle market to get the equipment they need. For demand on vehicles that can stock distribution centers and get consumers the goods delivered at-home, a couple vehicle models are rented more than others. This includes dry van trailers to get the goods to the distribution centers and sprinter vans to get them to the end consumer.
If your business owns these kinds of vehicles, you have a great opportunity. You can leverage this final mile demand, increase commercial vehicle’s utilization, and make an impact on your business's bottom line by renting out sprinter vans and dry van trailers on the COOP platform.
Many companies model themselves off industry leaders like Amazon, which prioritizes proximity to point-of-sale via distribution centers that have opened across the country. Commercial trailers are a valuable asset since they are the key to connecting suppliers to distributors.
For example, businesses may have vehicles idle for weeks while they wait for goods to arrive at a port from abroad, at the same time other businesses have goods waiting for weeks while they wait to get vehicle capacity. Once the goods are ready to get picked-up from the port authority, manufacturing and production delays have made businesses turn to rental to deal with the increased capacity needed to satisfy the bulk of ecommerce goods inbound. Owners with those trailers can set their return date before their next shipment so that they can earn from hauling both loads. These goods travel cross country for long-term rentals that generate great revenue for Owners as they go from that original port of entry to a distribution center.
Meanwhile, Fleet Owners want high utilization because trailers out over the road are more valuable for the bottom line than those sitting in the lot. It can be lucrative to rent out commercial trailers during this time of high demand, especially when the routes are over-the-road. Dry van trailers are rented for longer periods of time so they can stay on the road earning for your business one rental reservation after another.
To take advantage of the current market conditions, businesses can leverage the rental demand from Retail, Business & Personal Services to increase the utilization on your trailer fleet. On the COOP platform, an Owner of a 2019 Utility 53’ dry van trailer sees their unit go out on average 27 days per month and successfully offsets its lease payment.
The popularization of remote work has increased the need for consumer packaged products to be delivered at-home. Consumers expect fast, secure e-commerce transactions and have become essential to businesses’ success in this market. Once goods are in the region they need to be, businesses often rent out sprinter vans for the final mile. With COOP, sprinter vans are rented out consistently because they can easily maneuver local and city-streets to satisfy a variety of routes. Our platform can generate revenue for Owners with both large and small fleets. Some Renters on the COOP platform may only need a couple vans for weeks while others may need a substantial fleet of sprinter vans to rent for months.
On COOP, sprinter vans can go out for 10 days per rental, earning up to $1,700 per month. It is especially easy to list sprinter vans on COOP because, for vehicles under 26,000 GVW like sprinter vans, you only need the minimum liability coverage required in the state your vehicle is registered in. Sprinter vans have been such a high earning vehicle that some of our Owners on the platform are purchasing more of them to add to their fleet just to rent them out on COOP!
Meeting the final mile supply chain challenges can be a lucrative opportunity for your business. High earnings from trailer and sprinter van rentals can offset costs and promote business growth. Trailers meet a growing need to deliver imports over-the-road to distribution centers. From there, Renters may need vehicles that are easily navigable through city streets and often look for that same sprinter van capacity via COOP.
Our experts can help your business capitalize on the commercial rental vehicle demand that has come from ecommerce’s popularity. Every business is unique, and we are here to help. Talk to our team to learn more about how COOP can help your business start generating revenue. And, if you're looking to invest in the commercial vehicles shown here, consult with one of our investment experts to gain insights on how best to do so in this market.
Another year, another holiday season. The commercial trailer and vehicle rental market is undergoing significant changes this fourth quarter and into the new year. The big question on everyone's mind is whether the historically busy Q4 season will pick up like before. Factors such as technology adoption, rental utilization drops, vehicle availability, and more are top of mind for businesses everywhere. In this blog, we'll briefly explore what to expect and what's been driving the ups and downs of transporting goods and materials throughout 2023. The peak season is critical for businesses grappling with supply chain disruptions and a rapidly shifting competitive landscape. Read our complete guide to learn expert tips and best practices for optimizing fleet needs and discovering valuable rental solutions to meet these challenges head-on.
Discover the top KPIs that every business should be tracking for optimal fleet use. From on-time delivery rates to transportation cost per unit, this blog post covers it all. Read on for insights and a handy checklist to improve your logistics operations.
At COOP, we're committed to enhancing your experience to make renting and listing vehicles more efficient and user-friendly. That's why we are excited to introduce two new features that will take your vehicle rental experience to the next level. Request to Upload Multiple Vehicles and Smart Rate Search Filter.
Did you know that, on average, U.S. consumers say they have 47% finished placing orders for their holiday shopping by Black Friday and Cyber Monday? That means almost half of the people making purchases in the fourth quarter search online and offline from the crack of dawn for doorbuster deals before we reach December. As two of the biggest shopping days of the year for most retailers, it's important to explore the significant impact these days have on commercial vehicle demand.