Starting a delivery business is not as difficult as it seems but the real catch is in defining what type of delivery(or pick-up) business model you would like to explore. There are numerous articles discussing these models, but none have been able to clearly put down the most authentic forms of delivery models as of now.
Don’t worry – we’re here to break the cliche! In this piece, we’ll be presenting the four actual delivery models that are a must-know before starting a delivery business. Each of these has their own functionalities, advantages, and challenges, which will redefine the way you look at delivery businesses.
1. On-Demand Delivery
On-demand has been the buzz in the services industry for quite some time now. On-Demand delivery includes delivering a product or a service to the customer almost immediately once the order is placed. Service Models mostly in the food sector have incorporated on-demand to fulfill the growing customer need for quick service. Businesses like UberEats and Swiggy are some examples of the On-demand delivery model.
2. Scheduled On-Demand Delivery
Scheduled On-Demand Delivery have evolved from the age-old scheduled deliveries. It is much suited for the convenience of the customers, where you can select the time for the delivery. Scheduled On-Demand Delivery works on a specific time basis where either the customers pre-plan the order delivery time (Uber for Laundry Pickup, Uber for Home Services) or the delivery service provides slots for delivery or pick-up (Uber for Garbage)
3. The Ice-Cream Truck Model:
This Hybrid model is a combination of the above models. The Ice-Cream Truck model incorporates Dynamic Order Insertion. Dynamic Ordering Insertion is when you have an ice-cream truck which carries its regular inventory from stockists to retailers (or end users) for a scheduled delivery and carries extra inventory (Say 5%). So while the truck is out for delivery, if it gets more orders in real-time it can use the 5% inventory for order fulfillment. Dynamic Route Optimization will help the delivery truck select the best route for the deliveries.
4. Self Pick-up:
Some businesses are also offering the customers the option for self-pickup. Businesses create differentiated pricing based on whether the customer opts for delivery or self-pickup. This is employed by businesses who do not have a separate work-force for delivery. Uber for Flowers is one such model, where the business would charge extra for delivery. In case of self-pickup, the pick-up address is sent to the customer. This helps the customer locate the store easily and then confirm via proof of receipt. Dynamic route optimization can assist the customer through traffic in real-time and provide the quickest possible route.
Subscribe to our newsletter
'Jungleworks Entrepreneur's Den' to get access to the latest industry & product insights.