With the growing popularity of ride-hailing, it was only a matter of time before the industry evolved to include deliveries. After all, if your company is already using crowd-sourced workers as your own infrastructure, why not utilise that same group of workers to provide a different kind of service.

The demand for such delivery services has only risen since the COVID-19 outbreak began. The pandemic has caused a spike in demand due to health concerns and shelter-in-place. One might expect the resulting economic crash to devastate all businesses and industries, but online retail, e-commerce, and delivery services has been booming.

As such, it is no surprise that many aspiring entrepreneurs have been eyeing the delivery business. Startup costs can be low by using independent contractors and by licensing an appropriate app. The demand certainly is there, and if the cards are played right, success is virtually guaranteed.

However, keep in mind that things can always go wrong. As such, here are a few things to consider before starting a delivery service business.

Customers expect the absolute best

Many business owners might think a 95 percent success rate for deliveries is good enough. Unfortunately, it likely isn’t. Many delivery services have already perfected the art of flawless logistics. Amazon for example has one-day shipping for millions of Amazon Prime items. The company’s dedication for perfection has also been proven over the years and an Amazon customer that receives less than satisfactory service is exceedingly rare. In order for a new delivery service to compete, they need to be just as dedicated to the provision of flawless delivery.

Small businesses must optimise the last-mile logistics

If you’re not experienced or disciplined to optimise operations, it could be tough competing in this business. An operator can do almost everything right and still see problems near the finish line. A delivery provider must optimise for last-mile logistics. After a customer buys the ordered items, last-mile logistics involves bringing the goods from distribution to an office or personal residence as fast as possible. No excuses during the final lap, especially with perishable food.

Never disregard pandemic safety protocols

Finally, shoppers must have the discipline to follow new health protocols like social distancing and wearing personal protective equipment. Safety practices can include barcode scanning and contactless delivery confirmations and payments.


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