Cutting edge innovations in supply chain logistics and demand for quick delivery has made it impossible to keep our eyes away from the same-day delivery startups. Among many other businesses, the one industry that got the maximum benefit from the on-demand model is the same day delivery. Gone are the days where companies compete on price. Since people nowadays value time more than anything else, it has become imperative for delivery firms to shift focus to speed.
With zero inventory and cost-effective models in the same day delivery, many small businesses are keen on entering this market.
Retail stores and businesses are also one of the main consumers of same day delivery.
For many users who are making online purchases and retailers who rely on goods say that the time of delivery matters to them. Even if the option of same day delivery is a bit costly, 88% of the users are willing to pay for same day delivery.
30% of the users cited quick delivery as the reason for using online shopping. For retailers, same day delivery can give a competitive edge over 85% of the businesses.
The demand for same day delivery is also present for courier service. On-demand courier delivery is also one area that can go leaps and bounds when same day delivery is applied.
Not everything can be delivered the same day because of logistics limitation which cannot be eliminated. Logistics limitation is mostly because of the size of the item to be delivered.
Also, it is claimed by many experts in the supply chain domain that same day delivery is inefficient and cannot be made sustainable. The issue is the cost of transportation which is increasing day by day because of the fuel price increase.
Drone delivery and driverless vehicle based delivery seems to be good to hear but there are practical difficulties in implementing.
The margin diminishes when more and more intermediaries are added in the supply chain of same day delivery.
At present, 50% last mile delivery startups offer same day delivery. It is estimated that this will increase to 65% by the end of 2019. About 40% of the consumers are willing to get orders via drones.
Since more millennials are willing to pay extra for quick delivery, the demand for last mile delivery is not going to reduce. Millennials are also accustomed to getting things delivered easily. So, small businesses and entrepreneurs can use this chance to launch a niche on-demand same-day delivery startups.
They can also combine with e-commerce firms to provide service to retailers apart from individual users.
E-commerce giant Amazon just started to offer same-day delivery via its prime membership. They have used some innovative techniques to achieve efficiency in same day delivery. This can be replicated by small on-demand delivery startups to their advantage.
Smartphone and internet penetration is something that cannot be disputed. In the US alone the smartphone penetration is 80%. So, locating places and navigation will be easy. This also can be taken into their advantage.
It is obvious that massive infrastructure is required for a delivery startup and since you have just entered into this market with less capital, it is pragmatic to partner with big firms. Third party delivery firms are working with e-commerce and individual users for delivery. These third party companies have huge infra and small startups can join with them.
Since most of these third party firms follow the traditional model, you can provide innovative supply chain techniques so as to give same day delivery. Joining with third party firms also has the advantage of reduced overall cost and improved focus on the core operations.
Another way to compete in this market is to attach to ecommerce firms and retailers. This way you can deliver the goods directly from the store to the customer.
These are the two ways of starting by completely taking advantage of partnering.
I hope by now you would have a brief idea about the demand and ways to start a small delivery startup using the on-demand same day delivery model. If you have decided or made your mind to step into this domain, then the first thing you have to do is to get a readymade app solution. The app solution will be used by the customer to place an order for pickup, delivery person to navigate, and the admin to oversee all the functions.
We already have a pre built version of the on-demand same day delivery app and with some minor customizations, it will be ready to launch. Our delivery app named SpotnEats is being used by many businesses and new startups.
The delivery sector combined with the on-demand model is poised to reach sky high value in the days to come and we are waiting to be a part of it by offering our SpotnEats app to enthusiastic entrepreneurs.
Features like in-app chat, package tracking, navigation, anti-theft module, etc are present in our solution. To know more about SpotnEats, don’t hesitate to tap a mail to [email protected]. Our team can answer all your doubts immediately.