De-Risking the Depot: Workhorse and Gateway Scale Fleet-as-a-Service

DETROIT, MI – September 30, 2026 — In the bruising arena of commercial vehicle electrification, the gap between regulatory ambition and operational reality is often measured in dollars and depot space. For independent last-mile delivery contractors, the mandate to abandon internal combustion engines has collided violently with the prohibitive upfront costs of electric step vans and the logistical nightmare of charging infrastructure. Today, a new 200-truck purchase order signals a potential roadmap out of this gridlock, even as it highlights the fragile financial tightrope walked by the manufacturers supplying the vehicles.

Workhorse Group Inc., the embattled but resilient American industrial technology company, announced a follow-on order from Gateway Fleets for 200 of its W56 fully-electric step vans. Brokered through Kingsburg Truck Center, a prominent California commercial dealer, the transaction builds upon an earlier 100-vehicle commitment made earlier this year. With deployments scheduled to begin in the second half of 2027 and stretch through 2028, the deal is designed to arm package delivery operators with zero-emission fleets just ahead of peak holiday shipping spikes.

But beneath the surface of the press release lies a complex intersection of innovative financing, aggressive state mandates, and a high-stakes corporate turnaround.

The "Fleet-as-a-Service" Antidote

The transition to electric fleets has historically been paralyzed by twin barriers: the sheer capital expenditure required to purchase the vehicles and the complex, capital-intensive process of installing depot charging infrastructure. Gateway’s business model attacks these hurdles directly through a turnkey "Fleet-as-a-Service" approach.

Rather than asking independent logistics contractors—many of whom operate on razor-thin margins delivering packages for major e-commerce and shipping giants—to front the cash for a six-figure electric van and its associated chargers, the California-based provider bundles the entire ecosystem. Operators lease a package that includes the purpose-built truck, fast flat-rate charging, depot access, and real-time fleet support.

“In today’s era of high and volatile fuel prices, customers are seeking the stability and lower operating costs associated with electric trucks, without sacrificing safety or performance,” noted Scott Griffith, Chief Executive Officer at Workhorse, in today's announcement. He emphasized that the bundled pricing eliminates the two biggest barriers to widespread adoption: vehicle cost and infrastructure investment.

This leasing model is not operating in a vacuum; it is heavily subsidized and aggressively accelerated by California's policy environment. The California Air Resources Board has implemented the Advanced Clean Fleets rule, effectively forcing last-mile operators to transition to zero-emission platforms or face severe operational penalties as the 2027 deadlines approach. To soften the blow, the state offers the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project. Dealerships like Kingsburg specialize in navigating this bureaucratic maze, leveraging deep expertise in grant writing and voucher processing to artificially lower the barrier to entry. For the leasing provider, scale follows operator confidence, and that confidence is currently underwritten by a blend of state subsidies and turnkey infrastructure.

A High-Stakes Turnaround for an EV Pioneer

While the 200-van order validates the bundled leasing model, it also serves as a critical lifeline for the manufacturer. Workhorse has weathered a turbulent few years, marked by supply chain disruptions, shifting strategic priorities, and severe liquidity constraints.

A deep dive into the company's recent financial filings paints a picture of an enterprise fighting for its life while simultaneously attempting to scale. In late 2025, the organization finalized a pivotal merger with Motiv Electric Trucks, a strategic play designed to consolidate manufacturing capabilities and expand its medium-duty portfolio. Despite this, the financial headwinds have been fierce. In its second-quarter 2026 earnings report, the manufacturer posted a net loss of $20.2 million against revenues of just $3.56 million. Cash reserves dwindled to a precarious $9.6 million, prompting management to issue "going concern" warnings earlier in the year.

The survival of the enterprise currently hinges on a delicate web of related-party financing, including a $40 million customer order credit facility and a $10 million cash-flow line. Furthermore, the company has been battling to maintain its public market listing, having faced a non-compliance notice regarding minimum bid price requirements.

Yet, the industrial capacity remains robust. The Union City, Indiana assembly plant boasts an annual nameplate capacity exceeding 5,000 vehicles on a single shift. The challenge is no longer whether the factory can build the vans, but whether the corporate entity can maintain the liquidity required to procure parts and keep the assembly lines moving until these 2027 deliveries generate meaningful cash flow. In a bid to diversify, the company even announced a surprising pivot into the mobile AI data center market earlier this summer, hoping to leverage its high-voltage integration expertise to open new, potentially lucrative revenue streams.

Benchmarking the W56 in a Crowded Field

If the manufacturer can navigate its financial gauntlet, the product it is delivering appears highly competitive for the specific demands of heavy parcel delivery.

The W56 step van is a 178-inch wheelbase behemoth equipped with a 210 kWh battery. It offers 1,000 cubic feet of cargo space and a massive 10,000-pound payload capacity, yielding a nominal range of 150 miles per charge. When benchmarked against the broader commercial zero-emission landscape, these specifications carve out a distinct, heavy-duty niche.

Consider the Rivian EDV, primarily utilized by major e-commerce platforms. While the most common 700 model offers excellent integration and a comparable 150-to-200-mile range, its payload capacity hovers around the 8,000-pound mark, and its cargo volume is smaller. Similarly, General Motors’ BrightDrop Zevo 600 boasts an impressive 250-mile range but sacrifices significant payload capacity to achieve it, making it less ideal for contractors "cubing out" their trucks with dense, heavy freight.

The W56’s closest true rival in form factor and capability is likely the Freightliner Custom Chassis MT50e, which also caters to the heavy-duty step van market. However, the Detroit-area manufacturer's claim of 97 percent uptime across the 21 million real-world miles accumulated by its 1,100 deployed vehicles gives it a tangible track record that fleet operators covet.

"Getting the truck on the road is only the beginning," stated Jamie Miller, Chief Revenue Officer of Gateway Fleets. "Keeping operators moving takes the right combination of infrastructure, service, and support." This sentiment underscores why the partnership with a specialized dealership is critical. A 10,000-pound payload is useless if the vehicle is stranded in a service bay awaiting parts or technicians.

Looking Toward the 2027 Peak Season

As the logistics industry looks toward the second half of 2027, the deployment of these 300 total electric vans will serve as a bellwether for the broader commercial transport market.

For independent contractors, the success of a bundled leasing model could finally break the logjam of electrification, proving that zero-emission deliveries can be achieved without bankrupting the small businesses that actually drive the final mile. If the model holds, expect to see it rapidly replicated outside of California's heavily subsidized borders.

For the manufacturer, the stakes are existential. This multi-year production pipeline provides exactly the kind of forward-looking revenue visibility that institutional investors and creditors demand. The central question is whether the pioneer can bridge the financial gap between today's cash burn and tomorrow's deliveries. In the early innings of the commercial zero-emission transition, having the right truck and the right financing model is only half the battle; surviving long enough to build them is the ultimate test.