diff --git a/delivery_multi_destination/__manifest__.py b/delivery_multi_destination/__manifest__.py
index 2a3f7517a0..febf0dda5d 100644
--- a/delivery_multi_destination/__manifest__.py
+++ b/delivery_multi_destination/__manifest__.py
@@ -4,7 +4,7 @@
 
 {
     "name": "Multiple destinations for the same delivery method",
-    "version": "12.0.1.1.0",
+    "version": "12.0.2.0.0",
     "category": "Delivery",
     "website": "https://github.com/OCA/delivery-carrier",
     "author": "Tecnativa, "
diff --git a/delivery_multi_destination/demo/delivery_carrier_demo.xml b/delivery_multi_destination/demo/delivery_carrier_demo.xml
index c266ae0485..dbe41eaea1 100644
--- a/delivery_multi_destination/demo/delivery_carrier_demo.xml
+++ b/delivery_multi_destination/demo/delivery_carrier_demo.xml
@@ -10,6 +10,7 @@
         <field name="name">International Carrier Inc.</field>
         <field name="sequence">4</field>
         <field name="destination_type">multi</field>
+        <field name="delivery_type">base_on_destination</field>
         <field name="product_id" ref="product_product_delivery_carrier_multi"/>
     </record>
 
diff --git a/delivery_multi_destination/migrations/12.0.2.0.0/pre-migration.py b/delivery_multi_destination/migrations/12.0.2.0.0/pre-migration.py
new file mode 100644
index 0000000000..b1375e4e31
--- /dev/null
+++ b/delivery_multi_destination/migrations/12.0.2.0.0/pre-migration.py
@@ -0,0 +1,15 @@
+# Copyright 2022 Coop IT Easy SC
+# License AGPL-3.0 or later (http://www.gnu.org/licenses/agpl)
+from openupgradelib import openupgrade
+
+
+@openupgrade.migrate()
+def migrate(env, version):
+    openupgrade.logged_query(
+        env.cr,
+        """
+        UPDATE delivery_carrier
+        SET delivery_type = 'base_on_destination'
+        WHERE destination_type = 'multi'
+        """
+    )
diff --git a/delivery_multi_destination/models/delivery_carrier.py b/delivery_multi_destination/models/delivery_carrier.py
index e497c3ed86..638ebe59d2 100644
--- a/delivery_multi_destination/models/delivery_carrier.py
+++ b/delivery_multi_destination/models/delivery_carrier.py
@@ -21,8 +21,35 @@ class DeliveryCarrier(models.Model):
             ('one', 'One destination'),
             ('multi', 'Multiple destinations'),
         ],
-        default="one", required=True,
+        compute="_compute_destination_type",
+        inverse="_inverse_destination_type",
+        store=True,
     )
+    delivery_type = fields.Selection(
+        selection_add=[("base_on_destination", "Based on Destination")]
+    )
+
+    @api.depends("delivery_type")
+    def _compute_destination_type(self):
+        for carrier in self:
+            if carrier.delivery_type == "base_on_destination":
+                carrier.destination_type = "multi"
+            else:
+                carrier.destination_type = "one"
+
+    def _inverse_destination_type(self):
+        for carrier in self:
+            # Switch to multi
+            if carrier.destination_type == "multi":
+                carrier.delivery_type = "base_on_destination"
+            # Switch away from multi -> we know that destination_type is
+            # non-multi. However, in a hypothetical scenario where we switch
+            # from one non-multi destination_type to another, we don't want to
+            # forcibly reset delivery_type to 'fixed' each time, so we check
+            # whether delivery_type is invalid for a non-multi destination_type
+            # before we forcibly reset to 'fixed'.
+            elif carrier.delivery_type == "base_on_destination":
+                carrier.delivery_type = "fixed"
 
     def search(self, args, offset=0, limit=None, order=None, count=False):
         """Don't show by default children carriers."""
diff --git a/delivery_multi_destination/readme/newsfragments/540.feature.rst b/delivery_multi_destination/readme/newsfragments/540.feature.rst
new file mode 100644
index 0000000000..efc3b8dc70
--- /dev/null
+++ b/delivery_multi_destination/readme/newsfragments/540.feature.rst
@@ -0,0 +1,4 @@
+Introduced 'based on destination' delivery type. This is the delivery type used
+by all multi-destination carriers instead of 'fixed'. Consequently, destination
+type has been turned into a computed field that checks if the delivery type is
+'based on destination' or not.
diff --git a/delivery_multi_destination/tests/test_delivery_multi_destination.py b/delivery_multi_destination/tests/test_delivery_multi_destination.py
index ed67973dc1..29c36c0570 100644
--- a/delivery_multi_destination/tests/test_delivery_multi_destination.py
+++ b/delivery_multi_destination/tests/test_delivery_multi_destination.py
@@ -52,7 +52,7 @@ def setUpClass(cls):
             'name': 'Test carrier multi',
             'product_id': cls.product.id,
             'destination_type': 'multi',
-            'delivery_type': 'fixed',
+            'delivery_type': 'base_on_destination',
             'fixed_price': 100,
             'child_ids': [
                 (0, 0, {
@@ -123,6 +123,20 @@ def test_delivery_multi_destination(self):
         order.get_delivery_price()
         self.assertAlmostEqual(order.delivery_price, 150, 2)
 
+    def test_compute(self):
+        self.carrier_multi.delivery_type = "fixed"
+        self.assertEqual(self.carrier_multi.destination_type, "one")
+        self.carrier_multi.delivery_type = "base_on_destination"
+        self.assertEqual(self.carrier_multi.destination_type, "multi")
+
+    def test_inverse(self):
+        self.carrier_multi.destination_type = "one"
+        self.assertEqual(self.carrier_multi.destination_type, "one")
+        self.assertEqual(self.carrier_multi.delivery_type, "fixed")
+        self.carrier_multi.destination_type = "multi"
+        self.assertEqual(self.carrier_multi.destination_type, "multi")
+        self.assertEqual(self.carrier_multi.delivery_type, "base_on_destination")
+
     def test_search(self):
         carriers = self.env['delivery.carrier'].search([])
         children_carrier = self.carrier_multi.with_context(