How to Start a Delivery Service Business & Grow It With a Route Planner App in 2020?

how-to-start-a-delivery-service

Whether it is eCommerce, package/courier, food, or any sort of delivery services, the demand has increased exponentially in very little time.  For instance, the Grab food delivery app has said that they have noticed an increase in orders by 20% in Singapore alone.  Amid the COVID-19 pandemic, delivery services are among the few businesses that continue to stand strong.  This is why in this blog, we will guide you on how to start a delivery service.  We shall also give precautionary measures for your business to function during the Coronavirus outbreak and tips to grow using a route planner app.

Introduction

Home delivery is not a new concept.  Online deliveries aren’t news to us either. We have been pampered with on-demand delivery services for a long time and we continue to get spoiled.

However, things have changed.  Instead of spoiling us, home deliveries have become a necessity for everyone around the world.  All this can be attributed to the current pandemic we’re all dealing with.  According to WHO envoy, Coronavirus will stalk the human race for a long time to come.

We are required to maintain social distancing and various nations across the globe have also gone under lockdown.  It is best that we accustom our lifestyle to it and make the best of it.  Delivery businesses have the potential to rise even under such circumstances as demand for home-delivery has risen considerably.

Let’s take a look at how to start a delivery service, step by step.

How to Start a Delivery Service Business? [6 Steps]

  1. Business plan

  2. The first step is deciding your niche.  You need to decide what kind of services (eCommerce, food, package, fuel, medicines, grocery, courier business or anything) you want to provide and how do you plan to carry out the business.  This means you need to come up with a business plan. You, as business owners, can also come up with the business name during this step.

    You need to learn about your niche and target audience as much as you can.  For instance, if you want to start a food delivery business, you need to know the different Uber for food-delivery business models.

  3. Budget planning

  4. Unless you can afford or have collected a good seed funding, it is preferable to start with a small budget.  You need to plan your budget very carefully.  Make sure you allocate enough money for important stuff while cutting back on stuff that can wait.

    A well-planned budget can make or break a business.  For instance, if your courier services have a great delivery-app but you haven’t spent enough on marketing the app, your business will grow at a slower pace.  This means you should invest in marketing while business cards can wait for a while.

  5. Get the resources

  6. Now that you have a business plan and a budget planned, it is time to allocate an appropriate budget to various resources that you need.  For example, a courier business cannot run without a transport medium.  You will have to invest in a pickup truck if you are running a courier service business.

    You will also need a place to run the business.  Not only that, but you will also need to hire employees like delivery personnel and others.  The third step is to purchase commodities and hire employees for your business.

  7. Develop an app

  8. This is a crucial step in the process of starting a delivery service business. Mobile apps are the latest way of boosting any business.  According to a report by Statista, there were about 204 billion app downloads in the year 2019 and the worldwide mobile app revenue was USD 462Bn.  In order to be a part of this, all you need to do is hire a mobile app development company that has experience in developing on-demand delivery app solutions.

    We have a vast portfolio of work.  We have developed a range of delivery-apps for our clients worldwide.  You may check out the features of our developed Jabrool package delivery-app to understand our work.  If you own a courier business or a courier service owner, an app like Jabrool makes your courier business activities streamlined.

  9. Partner with other businesses

  10. This step is interesting.  You can partner with other businesses and make a symbiotic (mutually beneficial) relationship with them.  Suppose, you own a food delivery service, you may partner with restaurants who do not have the resources for home-delivery.

    Amazon delivery service partners come from a similar place.  They have partnered with Amazon to provide their delivery to Amazon’s customers.  In exchange, each Amazon delivery service partner gets a share in the delivery fee.

  11. Advertise your business

  12. Once you have set up your business, it is time to put in marketing efforts and let the people know.  Whether you have a courier service company or a medicine delivery-startup, you must promote your business and app on various social media platforms, newspapers, blogs, and wherever your target audience spends their time.

    The most important aspect of a delivery business is delivering the goods or services to the customers on time.  When you start a new business, it becomes even more necessary to create a strong reputation in front of the customers.  You can easily make on-time deliveries if you have optimized your route perfectly. Here’s how a route planner app can help grow delivery service businesses.

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    How to Grow a Delivery Business with a Route Planner App?

    rout-planner-app-benefits

     

    1. Optimize The Best Route

      A route planner app lets you optimize a route that is the most efficient for your deliveries.  It takes into various factors like traffic, road blockage, weather, etc. into account to give an ETA.  If you choose an optimal route to make deliveries, it saves a lot of time and labor.

    2. Make Multiple Deliveries

      As a food-delivery or courier business owner, you might need to deliver to multiple customers at a time.  This is when routing apps make a huge difference. you need to put the addresses and the algorithm will come up with a route that is optimal for making multiple-deliveries without wasting time and fuel.  We developed the Multi-Stop Route Planner app with a similar aim in mind.

    3. Reduce Logistics Costs

      About 30% of all the expenses of a delivery company are due to transport.  Your large or small business needs to keep the budget in check.  When the routes are optimized, the fuel and delivery vehicles required are also optimized.  This way you are able to cut costs on logistics.

    4. Boost Employee Morale

      When you build a new business, you will struggle with money as well as employees. Optimized routes indirectly boost employee morale.  They are able to complete more delivery jobs in less time.  They won’t have to rush deliveries at the last moment as well.

    Let’s check out some of the best route planning apps for delivery-services.

    Best Route Planner Apps

    Name Of The AppFeaturesPlay Store LinkApp Store Link
    Google Maps
    • Accurate ETAs
    • Monitors real-time traffic
    • Gives turn by turn direction
    Play storeApp store
    Mapquest
    • Copy/paste or spreadsheet upload addresses
    • Re-order stops in the optimal sequence
    • Set it a round trip for delivery purposes
    Play storeApp store
    RouteXL
    • Offers mass upload of addresses using copy-paste
    • Advanced route optimization options
    • Split up your stops across multiple routes
    N/AN/A
    Onfleet
    • Route planning and delivery-management
    • Specify time-window, service duration, and quantity
    • Real-time Tracking
    Play storeApp store
    1. Google Maps

      Google Maps is the most popular navigation app there.  However, it is not known to optimize multiple routes.  It just shows the route to go from one place to another according to the sequence you put in.

      ProsCons
      • Free to use
      • Gives turn by turn navigation
      • Doesn’t optimize routes for more than 10 stops
      • Manually type each address
    2. Mapquest

      The most amazing feature of this app is that you can get turn by turn voice directions while using it as a navigation app for walking.  The app is for people based in the United States and Canada.  It shows the fastest way to reach a destination.

      ProsCons
      • Free to use
      • Works well with multiple stops
      • You can use it for a single driver up to 26 locations
      • Has frequent pop-ups
    3. RouteXL

      RoutXL is only available as a web app that is only on their website.  You just need to add the addresses and click on enter.  The app will give the output of the best way that you need to take to deliver your goods to the customers.

      ProsCons
      • Free to use up to 20 addresses
      • The paid version can be used for up to 100 addresses
      • Does not support uploading spreadsheets
      • You cannot set up individual drivers with different shift times or starting locations
    4. Onfleet

      Onfleet is good for any big or small business that needs to deliver to its customers on time.  It has a lot of new features to plan the route as well as delivery-management.

      ProsCons
      • Different settings for each delivery
      • Efficient route optimization
      • The Basic package with route optimization costs $349/mo
      • The Android app keeps crashing

    FAQs

    How to grow a delivery-business during Coronavirus pandemic?

    Here are a few tips for your small business to boost sales in this crisis.

    • Contactless-deliveries: The delivery-drivers and customers must not come in contact with each other. The drivers must drop off the package at the door so there is no chance of hand to hand transmission of the virus.
    • Sanitation and protection: A great way to boost sales is by making sure that your packages are protected. The delivery-personnel and customers, both need to ensure this by wearing masks gloves while dropping the parcel and making payment for it.
    • Online Payment: In order to make the business safer, you need to add an option for online or digital payments in your delivery-app. This further reduces any contact between the personnel and customer.

    How much does it cost to develop a delivery-app for my startup in 2020?

    The amount depends on the platform you want to build the app for- AndroidOS, iOS, or both, the features you want in your app and developer’s hourly rate. Here is a simple formula for you to calculate it:

    Estimated Development Hours * Developer’s Hourly Cost = Total Mobile App Development Cost

    It usually takes around 150 hours to build a delivery-app. If the developer charges $40 per hours then the cost for developing becomes $6000. Which is just about how much it would cost in 2020 to make such an app.

    How do I hire app developers for my project?

    Well, you need to hire a developer that knows the working of a delivery-app as well as a route-optimization app. Whether you want to combine the two or just need one app, is up to you. We have developed over 40 on-demand delivery apps and over 20 apps that use GPS technology for various purposes, including the Walanomics, Trackster, and Multi-Stop Route Planner app.

    If you need to hire on-demand developers for your project, we will help you with the process. All you need to do is contact us and we’ll do the best to serve you.

    Conclusion

    These may seem like difficult times but for delivery-businesses, this might be a golden period.  Before taking any step, it crucial to go through everything you need to know about the business you’re planning to get in.

    You may also like to know about the important features of an on-demand delivery-app that you could include in your app.  This will give a clear idea about what you want in your app.

    Having an experience of developing 40+ delivery apps like Ninja Delivery which is a package-delivery app and Lacy which is an alcohol ordering app, we assure you that such delivery-apps are here to stay even in this crisis.

    We are a Web, iPhone, and Android app development company that has developed over 3500 apps for over 1000 clients worldwide.  If you need any information about the app development process, cost, or timeline, we will be happy to answer them.

    Feel free to contact us and one of our representatives will get in touch with you within 48 hours.

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    This page was last edited on October 23rd, 2020, at 10:22.

Author Bio

Jyoti Bharwani

Jyoti Bharwani

Designation: Content Manager

Jyoti Bharwani is a Content Manager at Space-O Technologies and has 8+ years of experience in the writing field. She has special expertise in writing about mobile apps and mobile app development. To write blogs, she meets business analysts, designers, and developers on a regular basis, who are involved in the mobile app development process. In her free time, she prefers answering Quora questions.

 
 

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