A well-planned business strategy is paramount to starting online delivery services. However, your business needs a platform to create an online presence. For that, you need a website and a mobile application. Let’s understand how you can articulate and work on a unique niche to start a delivery service successfully.
Table of Contents
Introduction
The global delivery service market is estimated to reach $327.5 billion by 2025. As a result, a 50% increase in last-mile delivery services has emerged over the past year. Moreover, modern-day on-demand delivery services allow customers to track their packages in real-time while in transit.
Other key insights have largely been specializing in a specific type of delivery, such as delivering food or groceries or all-in-one delivery services. But before you choose which sub-service or multi-service you want to create your business around, let’s understand the fundamentals of starting an online delivery service.
Starting an Online Delivery Service: The Fundamentals
A courier or delivery service aims to deliver a product to the customer. Compared to traditional services, there is a significant difference in the speed of communication, which is usually faster, the order processing method, and the price of everything. You must manage a fleet of delivery partners to run an on-demand delivery service.
Like Uber Connect, when your customer orders through the app, the parcel is delivered on the same day via a robust logistics channel. Here, you aim to design and develop two apps, one for your customers and the other for delivery partners. Why develop an app? Since apps are known to create the best user engagement over websites, they are very flexible to use.
Therefore, designing and building an app should be the topmost priority of your delivery business. But before you start the research and development, you must follow the steps for your peace of mind before things get cluttered.
Build a Business Plan
Every successful delivery business has developed a comprehensive business plan, or roadmap, to define its purpose, target audience, pricing, and more. When you have your plan in writing, you can track progress and make adjustments instead of guessing to find the right strategy.
Choose between an LLC, a Corporation, and a Proprietor
The LLC business structure is a cross between a traditional corporation and a partnership, which is easier to start, manage, and file for taxes than a corporation.
However, many modern entrepreneurs file their companies as sole proprietors if they have a unique idea that must be patented immediately. Therefore, you must do your homework and understand the local laws and permits for a company for maximum tax benefits.
Choose a Unique Delivery Business Name
You have to set your business apart. Therefore, it is critical to find a name that defines your vision. Something easy to pronounce and remember, and most importantly, it’s not already being used to prevent any confusion. The last thing you need for your online delivery service is to be named in someone else’s lawsuit. Therefore, scour the internet and business sites, especially patents and trademark offices, for business names until you find the best one. Once done, you can also check for social media and domain availability.
Get License
All businesses must register in the country where they operate. Depending on your region, you may have to register for local, county, and state taxation. Therefore, the first thing that you need is to get a personal identification number and the respective documents after registering your business. You’ll also need to apply for the proper business licenses and permits.
Start Your App Development for Your Delivery Service
You can hire a team of developers based on their merit and portfolio or contact an app development agency. If you are from a non-technical background, it is best to outsource the app development task to prevent going over budget. Many countries in Southeast Asia and India have top-rated app developers, which you can contact to estimate the cost of the overall app development project. Meanwhile, you can start working on the blueprint for your delivery app business.
Start a Delivery Business Today
If you are planning to start an online delivery business, start with the needs of the customers. Understand what they want from your business and what you are willing to provide via your app-based platform. As mentioned earlier, your customer app and driver app will both be developed simultaneously or one after the other, depending on your preference. However, the result should contain every little to big feature that can be used for marketing purposes after the launch of your app.
Therefore, it is best to contact a white-label firm with at least a decade of experience in the delivery app development niche. Consult with their professionals and buy the whole package after testing the demo for yourself. They will offer app maintenance and upgrades, along with re-branding, design, and development. For your convenience, you can focus more on marketing the business than developing an app for it.
Conclusion
Starting online delivery services has a lot of advantages for entrepreneurs today, as most regions lack proper delivery services. You can easily fill the gap by offering a robust, scalable, and user-friendly app that is very convenient to use and make money from. But before you start, you must have a great knowledge of how local and traditional delivery services work so that you can digitally transform your way to the top.
