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1) When they are faster/more mobile than the unit they transport, essentially the loan that mobility to that unit. You can move infantry forces faster and more organized, and in some cases even over obstucles and water.
2) Units inside a transport are protected from damage, and get healed. One downside is that if the transport gets destroyed, the units inside get lost too
3) The transport itself can provide fire support to the infantry it transfers when deployed. It is still a fighting vehicle on its own.
Most other nations have few or zero use cases for their transports, though. So your initial question is not wrong. For example, the Razorback is completely superflous. It is not more durable than a squad (let alone the super tanky heroes), not really fast and does not have particularly useful weaponry.
In general, I would consider the Chimera to be a top tier unit overall, the Valkyrie very solid, the Chaos Rhino decent (although only mediocre as an actual transport), and most of the rest is "you can build two or three and they will ocassionally be useful to heal infantry up while still advancing".
And even the grenades are very questionable. The Krak is nice on heroes since they seem to get some kind of attack multiplier with it, but otherwise there are few units where it would make a difference wether you just rapid fired them or threw a crak or frag.
Razorback for one, is tankier than a similarly priced squad. Tactical Marines have 8 armor and 15 hp, Razorback has 7 armor but 24 hp, a significant increase (+60%). Of course Razorback cannot use ranged damage reduction from cover but still, it is overall tankier. Offensively, unless Tactical Marines use rapid fire or haven't moved that turn, the Razorback deals significantly more damage. Plus since it is one model, it doesn't lose damage as it loses hp. Last but not least, it has 4 movement, while Tactical Marines have 3, and while it has a penalty in forests and ruins, with dozer blade tech it becomes much better.
Both cost the same.
So why call Razorback "bad"? On its own, it can fight in many ways better than a squad of Tactical Marines, plus it can be used as a transport with any benefits that applies.
Most faction transports have really useful, if not niche abilities.
FWIW, I found playing the Eldar very challenging until I started employing Wave Serpents as a central feature of their order of battle. Much of the Eldar infantry is delicate, and the Wave Serpent can take hits and do substantial damage while it carries them around.
Generally, i don't like building Tactical Squads. I don't play Space Marines much these days and haven't played them much after they got their new trait to give them rapid fire at range 2 if they haven't moved, to see if they are more attractive for me, but generally i was used to simply make Assault Marines instead of additional Tacticals prior to that patch.
But either way, after Razorback got introduced, i always make at least a couple early in the game. I found that they enhance my tactical options a lot with early infantry. If i have the option of either 3 Tacticals, or 2 Tacticals + a Razorback, i would take the Razorback, everytime.
Later in the game as i gain access to Land Raiders and Stormraven Gunships, i keep my Razorbacks around to transport Apothecaries. Since i tend to keep Apothecaries in the backline i don't need to expose Razorbacks to the frontline so i don't delete them like i usually do with obsolete units.