Guide to succeed in the on-demand courier delivery business

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It is quite probable that today, there is an app for every on-demand service that is available in the market. Some apps are independent in their existence, and they offer a single service. However, some apps have multiple services integrated into a single app. We have seen the likes of UrbanClap and GoJek, bringing in the era of super apps.

 

The credit for transforming on-demand businesses into mobile apps has to be given to Uber. It organized the taxi industry, and it has also given a model that can be replicated across multiple industries. There have been instances when Uber themselves have tried to clone their success stories into the businesses of transportation and courier.

 

On-demand courier services

 

Although a lot of business processes and everyday requirements have been digitized, there are still areas where transportation of a physical property is mandatory. It is probably why courier and parcel services are still in existence and are quite relevant. It makes quite some sense for aspiring entrepreneurs to create an on-demand courier delivery app. However, there are a few pointers to be taken into consideration when creating the app. Some of them have been learned from success stories, and some of them have been learned from stories of failure.

 

The failure of the Uber rush

 

Let us start looking at the story of failure from the company that pioneered on-demand location-based services. Uber introduced an app that offers on-demand courier services in April 2014. It was planned as a worthy rival to logistics giants like Amazon and FedEx. It was an idea that had the potential to grow, considering the fact that Uber had already mastered the art of providing location-based services on demand. If they can pick you up, they can also pick a courier. If they can deliver you to some location, it is quite possible that they can also deliver a parcel to a specified location.

 

The idea did look great on paper, and the interests of Uber in the delivery business played a major role in swelling the valuation of the company to about $70 billion. However, Uber failed to understand that people might not be willing to pay an extra amount to get the courier delivered faster. The key difference between the taxi industry and the courier industry is in the sense of urgency when it comes to the requested service. Uber rush turned out to be a failed business model, and it was announced four years later that Uber would be shutting down its delivery business.

 

While Uber has shown how not to do a courier and parcel business, there are a few pointers that should be handled with care to ensure the success of your courier delivery business.

 

Acquiring new users

 

The first indicator of success for any business is the number of new users that they managed to gain over an extended period of time. However, it is easier said than done. There are a few strategies that can help in acquiring new customers.

 

Go local

 

It cannot be denied that people have an emotional connection with local brands even if it offers global services. The same goes for the courier industry as well. We can learn from the example of Uber. Before it became a worldwide phenomenon, the company started its operations in New York with just three cars. Starting local is one of the greatest strategies that you can evolve in acquiring new users. It is always better to shoot with a sniper than with a shotgun.

 

Teasers and trailers

 

Even when it comes to movies, pre-launch marketing is extremely important. This helps you to start with a good bunch of users when you launch your app. You can include promotions on social media, television, and even off-line media for better outreach and penetration among your target audience.

 

Referral program

 

Beyond question, referral marketing remains to be one of the surest shot methods of promoting any product or service. The introduction of online platforms has only made referral marketing more refined and trackable. It can help you get a lot of new customers, and by incentivizing your existing customers, you are encouraging them to work more towards bringing new customers to you.

 

Retaining your existing users

 

There has been so much hard work that has gone into acquiring your new users. As much as acquiring them is important, retaining them is equally important. There are a few tried and tested strategies that can help you in retaining your customers.

 

Creating a robust support ecosystem

 

One of the best ways to retain existing customers is to provide them with ongoing support. If customers have their queries resolved in the shortest possible time, it is quite likely that their frustration will turn into magnified brand loyalty. For your courier delivery app, given the magnitude of uncertainties, it is important to have a customer support team that will always be ready to help customers and resolve their queries. In addition, it would also be a good idea to form a community support system where users can help each other.

 

Creating a feedback system

 

It has to be understood that support queries raised only when there is an issue, but feedback would always be available. Therefore, it is important for you to capitalize on a feedback system that will give you ongoing information about the sentiments of the customers about your brand. We have seen cab companies crack the code with a simple star rating. In the same way, you can also use a star rating and a subjective feedback form to ensure that you get feedback about every delivery executed. This can also help you gauge your delivery executives and their workmanship.

 

Offers and discounts

 

This has been one of the greatest ways to retain customers. The behavioral attributes and analytics only make it better for the business to target users who are likely to slip out of your customer portfolio and retain them with a timely and targeted offer.

 

Retaining delivery agents

 

Delivery agents are the backbone of your courier business. Not having enough delivery executives at your disposal might result in a major blow to your customer satisfaction scores. Therefore, it is extremely important to ensure that your executives are not only retained but also kept happy. There are a few strategies that you can adopt to ensure that your delivery agents stick to your plan.

 

Offer them flexible work hours

 

The greatest sense of pampering that you can give your delivery executive is that they are in control of their time. It is one of the most attractive prospects that is bound to retain delivery executives.

 

Offer them better cost benefits

 

There is no question that all people work for money. We are presented with crossroads here. If you were to increase the cost of your delivery, you might lose out on customers. However, if you were to reduce the cost of your delivery, you might lose out on executives, as they might not find your service as a well-paying vocation. Therefore, it is important to arrive at a fine balance between both.

 

You can adopt strategies like delivering to selected areas, and availing cheap transportation options. Synchronization of routes also ensures that your transportation costs remain as low as possible.

 

Conclusion

 

It should never be forgotten that an offshoot of every physical transaction sporting an online avatar means that there is so much demand for delivery. This can be said about every industry, including but not limited to e-commerce and food delivery. Therefore, a courier service through an app is only bound to succeed. It could be a good idea to use clones of pre-existing courier apps like GoJek or Dunzo to create a business. These GoJek clones are not only cost-effective, but they also help in saving quite a lot of time to go to the market. Lots of reputed companies specialize in creating clones of GoJek. You can get in touch with them to ensure that your courier delivery app is completed and customized according to your requirements.

 

 

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