How to start a delivery business from scratch

0
37962

Technology and food is a combination that today brings profit to many large companies and start-ups. The food technology niche is young and hot, so finding a place in the sun is easy. We will tell you how to organize a business in this area.

The relevance of the business idea

The sphere of delivery in the Ukrainian market has been developing very actively in recent years. The volume of food technology in general in our country is about 1.4 billion dollars, but in percentage terms it is only 1% compared to 3% and 6% in the US and UK, respectively.

The segment of food delivery from restaurants is already densely occupied by major market players – Uber.Eats and Delivery Club.

But the delivery of products to restaurants is not yet developed and a free niche is a trend of the future. If you approach business organization seriously, purposefully and with an emphasis on longevity and development, you can create a highly profitable project.

Costs and profits

To launch a food delivery service to restaurants, an initial investment of UAH 700,000 is required, taking into account the purchase of cars and working capital for the first six months. With an average monthly income of UAH 60,000, the opening costs will pay off in 12 months.

Room selection

Products will not be stocked in your area because freshness is important here, not the amount of stock left to sell. Mobility, timeliness, freshness – these are the three pillars of this business. You can open your own office, where managers, telephone administrators and other employees will work, organizing the operational activities of the enterprise.

However, the basis of your work is courier drivers who will deliver the ordered products in small trucks.

At first, you will be able to manage them remotely, as the work will take place in a mobile application. But as your business grows, you should open up an office to relocate all remote employees or hire new ones to handle extended tasks.

Choose a room taking into account the budget and the convenience of the transport location. Estimated area – 30-40 square meters, but depends on the number of office workers.

Equipment

Of the equipment, you will definitely need a mobile application and cars. If there is no budget for a large purchase, then it is possible to rent a second one, although this is not very economical in the long run. You can find a car in good condition, but with mileage, and rent it out.

But you definitely need to develop a mobile application yourself from scratch – using the services of a freelancer or agency. Through it, restaurants will order the necessary goods, and your couriers will receive and transport them.

How to choose a supplier

As we have already said, restaurants need fresh products, and not always in large quantities: first of all, the expiration date, not the delivery volume. In addition, you will need exotic fruits, vegetables, rare foods, spices, nuts, and more.

Find several reliable wholesalers and factories in your city that can provide you with all this at competitive prices.

Staff

Mandatory staff – couriers with a category B driver’s license and a driving experience of one year. The rest of the employees are optional. This can be an office manager, accountant, customer service and sales manager, developers and technical support. For the first time, an accountant can be hired remotely, and if necessary, transferred to the office.

Approximate staff for the first period of the project start and salaries at work.ua in UAH:

  • Drivers by courier, 4 people – 80 000 UAH.
  • Accountant (remotely) – 10,000 UAH.
  • Account manager – 13 000 UAH.
  • Total – 103 thousand hryvnia.

How to advertise a business

The advertising business in the b2b segment is a complex and delicate matter. The first contracts must be concluded personally: that is, with an offer and a competent presentation directly to the owners or managers of restaurants.

Subsequently, for well-structured advertising, it is better to contact an agency specializing in b2b campaigns. An important role will be played by branding, for example, cars, and the promotion of mobile applications in online stores. It is also important to participate in various ratings, exhibitions, conferences related to catering, where you could present your product and introduce your services to the target audience.