What is third-party logistics?

Third-party logistics (3PL) refers to outsourced delivery and fulfillment services that handle e-commerce operations for retailers. Instead of building their own warehouses and delivery networks, companies like Kroger partner with established platforms like DoorDash and Uber to manage customer orders and last-mile delivery.

Why did Kroger write off £2.6 billion?

Kroger wrote off £2.6 billion after shuttering three automated fulfillment centres that proved too complex and expensive to operate. The grocer discovered that building in-house delivery infrastructure required enormous ongoing investment in maintenance, software updates, and specialised operational expertise they lacked.

What are automated fulfillment centres?

Automated fulfillment centres are high-tech warehouses that use robotics and software systems to process online orders. Whilst promising in theory, Kroger's experience shows they require massive capital investment and specialised knowledge that most retailers don't possess, making third-party partnerships more practical.

Best third-party logistics stocks 2025?

Top third-party logistics opportunities include DoorDash with its extensive driver network, Uber Technologies through Uber Eats division, and Instacart specialising in grocery delivery. These companies have existing infrastructure to immediately absorb business from retailers abandoning in-house fulfillment operations.

How to invest in delivery stocks?

Investors can access third-party logistics stocks through platforms like Nemo, which offers commission-free investing and fractional shares starting from £1. The Third-Party Logistics basket includes companies positioned to benefit from retailers' shift towards outsourced delivery models.

Are logistics stocks risky?

Logistics stocks face risks including competitive pressure on margins, potential regulatory changes affecting gig economy workers, and technology disruption. Economic downturns can also reduce e-commerce volumes. However, the shift away from in-house fulfillment creates substantial growth opportunities for established platforms.

Why invest in third-party logistics now?

The timing is attractive as retailers simultaneously face increased e-commerce demand and realisation that in-house fulfillment is more challenging than anticipated. Kroger's £2.6 billion write-off demonstrates the true costs, encouraging more partnerships with established third-party providers who offer proven infrastructure.

Will retailers keep outsourcing delivery?

The trend towards outsourcing appears to be accelerating rather than slowing. Kroger's experience serves as a cautionary tale for other retailers, whilst consumer expectations for fast, reliable delivery remain high. Third-party providers offer economies of scale that individual retailers cannot match.

What drives third-party logistics growth?

Growth is driven by retailers abandoning expensive in-house fulfillment projects, increased e-commerce demand, and competitive advantages from partnering with efficient providers. Every major retailer shifting to outsourced delivery represents millions of potential orders for established platforms with existing infrastructure.

Can I buy fractional logistics shares on Nemo?

Yes, Nemo offers fractional shares of third-party logistics companies starting from just £1. The ADGM-regulated platform provides commission-free investing with AI-driven insights, making it accessible for beginners to invest in the delivery transformation theme with small amounts.

Third-Party Logistics Stocks Could Gain From Retail 2025

• 6 min read

• Published on 19 November 2025

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Third-Party Logistics Stocks Could Gain From Retail 2025

• 6 min read

• Published on 19 November 2025

Summary

Major retailers are abandoning costly in-house fulfillment for outsourced logistics.
Third-party logistics stocks could gain as retailers pivot delivery strategies.
Established platforms with existing networks are poised to capture new business.
Outsourcing offers retailers significant cost savings and operational efficiencies.

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16 Handpicked stocks

The Retail Delivery Debacle: An Opportunity in Disguise?

There is a certain, quiet satisfaction in watching a corporate giant admit they have got something spectacularly wrong. When America’s second-largest grocer, Kroger, writes off a cool $2.6 billion on a fleet of automated warehouses, it is more than just a bad day at the office. To me, it feels like a watershed moment, a public admission that the dream of every retailer becoming a slick, automated logistics powerhouse was, well, a bit of a fantasy.

And let’s be honest, why should we be surprised? Running a supermarket is one thing. Building and operating a network of robot-filled fulfilment centres is quite another. It is a fiendishly complex and eye-wateringly expensive business. Kroger’s costly experiment has served as a cautionary tale for the entire sector, and I think it signals a great pivot back towards common sense.

View the full Basket:Third-Party Logistics Stocks Could Gain From Retail 2025

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The Folly of Playing Pretend

For years, the narrative was that retailers had to own the entire customer journey, from the digital shopping basket right to the front door. This led to a mad dash to build in-house delivery networks and invest billions in automation that promised the earth. The reality, as Kroger discovered, was a quagmire of technical glitches, soaring maintenance costs, and operational headaches.

It turns out that being a brilliant grocer does not automatically make you a logistics wizard. The core competency of these businesses is sourcing and selling goods, not managing fleets of drivers or optimising delivery algorithms. Now, having been humbled by the experience, they are turning to the professionals. This strategic retreat from doing it all themselves is, I believe, creating a rather significant opening for savvy investors. Every retailer that throws in the towel on its own delivery ambitions becomes a potential new client for the specialists.

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Enter the Professionals

The beneficiaries of this retail reality check are the companies that have been quietly mastering the dark arts of delivery all along. Think of firms like DoorDash and Uber. They have already spent years and fortunes building the very infrastructure that retailers have struggled so much to replicate. Their vast networks of drivers and sophisticated software are ready to absorb the demand immediately, without the colossal capital outlay that sank Kroger’s ambitions.

View the full Basket:Third-Party Logistics Stocks Could Gain From Retail 2025

16 Handpicked stocks

View the full Basket:Third-Party Logistics Stocks Could Gain From Retail 2025

16 Handpicked stocks

View the full Basket:Third-Party Logistics Stocks Could Gain From Retail 2025

16 Handpicked stocks

View the full Basket:Third-Party Logistics Stocks Could Gain From Retail 2025

16 Handpicked stocks

View the full Basket:Third-Party Logistics Stocks Could Gain From Retail 2025

16 Handpicked stocks

View the full Basket:Third-Party Logistics Stocks Could Gain From Retail 2025

16 Handpicked stocks

Hey! We are Nemo.

Download the App

Scan the QR code to download the Nemo app and start investing on Nemo today

Invest Today on Nemo

Third-Party Logistics Stocks Could Gain From Retail 2025

Third-Party Logistics Stocks Could Gain From Retail 2025

Summary

The Retail Delivery Debacle: An Opportunity in Disguise?

The Folly of Playing Pretend

Enter the Professionals

Summary

The Retail Delivery Debacle: An Opportunity in Disguise?

The Folly of Playing Pretend

Enter the Professionals

A Dose of Healthy Scepticism

Deep Dive

Market & Opportunity

Key Companies

Primary Risk Factors

Growth Catalysts

How to invest in this opportunity

Frequently Asked Questions

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