The six-year deal is for 130 long-bodied Sprinter 311CDI Mercedes-Benz chassis cabs, which have begun entering service at 19 Tesco stores located between the M1/A1 corridor in the south and Midlands.
Tesco.com operates a fleet of 2,000 vans, some 1,700 of them Mercedes Sprinters. Northgate becomes its third contract hire partner.
The vans are being supplied direct by Mercedes-Benz UK. They have GAH refrigeration units and Solomon insulated bodies, with separate compartments for ambient, chilled and frozen products.
While the bodies will be used for the entire six-year duration of the contract, the innovative deal put together by Northgate will see them removed and fitted to new Sprinter chassis every two years.
Tesco.com fleet manager Dino Papas says: "We're very optimistic about this new arrangement, which means participating stores will get new vehicles every two years rather than every five, as has previously been the case.
Nick Skillman, business development director for Northgate plc, said: "Our innovative way of sourcing vehicles and managing them through a more aggressive lifecycle means that Tesco can benefit through greater fleet uptime, improved fuel efficiency and reduced emissions.