Financing a Courier Business

Financing a Courier Business

As our lives become increasingly global, increasingly digital, we can order everything from groceries to books from the comfort of our homes. Online shopping is often cheaper than shopping in person, especially when many companies are giving away special offers on websites like Raise. Online shopping also has the benefit of being very convenient for the consumer, they merely have to wait for the delivery to arrive and as some stores are guaranteeing a one-hour delivery slot, that may not be a long time. Naturally, because of these factors, the amount of orders to be delivered across multiple platforms is quite high. Therefore a sound business option is to enter the courier industry.

The industry continues to thrive, with big names being rivaled by independent companies. With companies such as Yodel and Deliveroo, the face of delivery across all strands is changing, as cyclists and everyday drivers are drafted in to help get packages out there. Even the mighty Amazon announced Flex this year, which pays people in specific cities to deliver parcels.

Such a thriving industry that seems set to continue growing is something that investors can do well on, as we head toward even more online shopping. There are logistical things, such as having hire and reward courier insurance in place, but generally people are aware of those. But here are some considerations for investing in or financing a delivery business that may be forgotten/ignored:

Delivering on Time

The most important thing is for a delivery company to ensure that deliveries arrive on time. Check how the company you are considering financing intend to do this, what their history looks like concerning this and what compensation procedures they have in place. Delivery is largely based on word of mouth, particularly in the beginning, and that relies on timely arrival.

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Delivering a Happy

One of the most important parts of being a delivery person is friendliness, since it is a customer facing role. This is how reputation is built, and as such, you should be sure that the people being used for delivery fit the criteria! A successful delivery business delivers on time and goes the extra mile. Find out how the delivery service you’re looking at investing in intends to vet their drivers.

Delivering Tech

There is nothing more frustrating than awaiting a delivery which gets missed and then having to wait two days before you can even access it. Opting for good communication with drivers, and good tech to allow tracking reduces the likelihood of this. You will need to provide finance for this key area.

Delivering Locally or Globally

Deciding where to deliver to will involve some market research. Companies such as InXpress are aggregators, which help consumers decide which delivery option is best, and as such have a wealth of information about shipping and delivery in the UK and beyond. Use resources and experts’ knowledge to help you gain a better understanding of the shipping and delivery industry.

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