Online delivery is a natural evolution of ride-hailing services such as Lyft and Uber that rely on crowdsourced labour as the delivery provider’s own system. The Covid-19 has stirred a huge demand due to shelter-in-place and health concerns – encouraging entrepreneurs to consider starting a local delivery business. As you may know, startup costs can be low when licensing an appropriate app and using an independent contractor.
Demand is definitely peaking. If done properly, an operator can even synchronize with distribution centres and grocery chains to sync systems. Or a small business can easily join a large business IT infrastructure. One way to speed up profits is to charge a mark-up for purchased products in addition to shipping fees. Or even certify orders as prepared using rigorous health practices to win new customers. But what can go adrift? Here are some of the things you should be on alert for.
#1 Customers need near-perfect execution
Most business owners consider that a 95% success rate for delivery is good enough. But that probably isn’t. Look at Amazon’s tremendous disruption of the industry through Amazon Prime and Amazon Flex. For instance, according to their website, Prime comes up with one-day shipping for over ten million products. How did they get so far? Thanks to Amazon’s CEO Jeff Bezos and his constant appetite for flawless logistics, buyers too, have augmented their expectations for gig drivers.
What you should know is that delivery services ask for more than just dropping off packages. A decisive factor is an overall experience for the buyer—every step matters – from browsing products, placing the order, and finally receiving it. People expect a delivery – regardless of its content to be reliable, convenient, safe, and on-demand.
#2 A small business must optimize for last-mile logistics
Discipline and experience matter the most when you decide to optimize operations as it could be quote tough competing in this business. Even an experienced operator can do everything properly and still face problems near the finish line. There can be payment issues. An erroneous app can lead your driver to an adjacent but wrong address. A customer isn’t notified of delivery.
A delivery service must work hard and optimize for last-mile logistics and even ensure the wholesale packing supply is stored accordingly and ready for delivery. After a customer buys the ordered products, last-mile logistics involve transporting the items from distribution to a personal residence or office as fast as possible.
#3 Being careless with pandemic safety protocols
Shoppers around the world must now have the discipline to comply with new health protocols like wearing personal protective equipment and keeping social distance. Some of the most common safety practices among delivery services include contactless payment and delivery confirmation, and barcode scanning.
Whether you plan a standard parcel delivery business, a food delivery service or anything between, planning ahead while learning what to avoid is the key to your success. These tips can be a great place to start, but be sure you consider the needs of your niches and the unique challenges so you can hold your own amongst the competition.