In today’s digital age, consumers have more options than ever before. They can go to the local grocery store and buy the same food they had at home. They can order takeout from popular restaurants. Or they can get their favorite fast food delivered right to their door. This shift towards convenience has led to a major change in how people order takeout: it’s no longer coming home with you. Instead, these “last mile delivery” services let customers order dinner straight from a restaurant or other merchant instead of going all the way back to the store. The rise of e-commerce shipping has also led many companies offering delivery services to pop up. From restaurants to grocers and more, new merchants are entering this space every day. While there are still many challenges for this nascent industry, last mile delivery seems poised for growth in the future as well. Below we’ll explore how this trend is impacting businesses across industries, some tips for starting your own last mile delivery business and where you should focus your efforts first.
What is Last Mile Delivery?
Last mile delivery services allow customers to order meals and other items straight from a merchant, bypassing the need to travel home to pick up their food. This trend has been growing in popularity for the last few years, with big retailers like Chipotle offering their own delivery service. The rise of last mile delivery has been driven by several factors. On one hand, this shift towards convenience is helping consumers avoid spending time and money on trips that may not be necessary. However, the convenience of last mile delivery also has some drawbacks. For example, it takes more time for these deliveries as well as for customers to get through the checkout process at restaurants. While there are still many challenges for this nascent industry, last mile delivery seems poised for growth in the future as well. Below we’ll explore how this trend is impacting businesses across industries and some tips for starting your own last mile delivery business:
The Rise of e-Commerce
As consumers do more and more of their shopping online, the need for last mile delivery services has increased exponentially. In fact, 75 percent of consumers have accessed their favorite local businesses outside of the store since they started using e-commerce. Many customers are realizing that ordering online is easy and convenient. As a result, many merchants are offering delivery options to help meet this growing demand. Additionally, many companies offer options for last mile delivery across different modes of transportation like bike couriers, car services or even drones. With these alternate options for delivery, it’s easier than ever to get your food delivered right to your doorstep.
How Does Last Mile Delivery Work?
Many companies offer a last mile delivery service. A customer can place an order online, and they’ll typically be contacted by a driver to pick up the order or deliver it to the customer’s door. These services tend to be more expensive than traditional delivery because the entrant is doing something that was previously done by other businesses. However, many customers are willing to pay for convenience and speed especially in comparison to having to go back to the store. This trend has led to a number of different business models for those offering last-mile delivery services including food truck delivery (from restaurants) as well as bike riders delivering groceries or takeout orders. Tips For Starting Your Own Last Mile Delivery Business If you’re thinking about starting your own last mile delivery business, there are several things you should consider before diving into this niche market:
1) What’s your target audience? Who will use your service? There are many different types of deliveries including groceries, food, home goods and more.
2) Where do you plan on delivering? If you’re going to be delivering in residential neighborhoods like apartments or condos, it might be better for you if you only send one driver at a time instead of multiple drivers per shift. It also might make sense for your company if you want to make deliveries during certain hours of day or night when there is less traffic than during peak hours.
3) Do you have any experience with a similar type of business already? If so, which one.
Who Takes On The Last Mile Delivery?
Consumers often have too many options when it comes to getting food delivered. This can make it hard for them to decide what place they should order from, especially if they don’t know anything about the restaurant or food delivery service. Many businesses take on the last mile delivery of their customers’ orders, but the reality is that this type of business isn’t a new one. Take-out restaurants have been providing this service for decades. Grocers and retailers like Walmart and Target also provide last mile delivery services today.
Benefits of Last Mile Delivery
Last mile delivery has several advantages for consumers. The services offer convenience, a level of personalization and flexibility, and increased access to product availability. Consumers are not limited to only the products that are available in their local store or restaurant anymore. They have more options when it comes to food, including vegan or gluten-free options. Additionally, last mile delivery provides a way for smaller businesses/restaurants to increase their revenue as well as reach out to people who otherwise would have missed out on their business. This also helps restaurants achieve new customer acquisition goals. Lastly, last mile delivery is proving profitable for these businesses as well. Many companies that specialize in last mile delivery have experienced rapid growth in recent years. In fact, some of the top companies in the world like DoorDash and Grubhub saw revenues grow by over 300% between 2012-2016!
Drawbacks of Last Mile Delivery
Last mile delivery has a lot of potential for businesses, but there are some drawbacks. First, the price is fixed and does not vary by distance or time of day. This means that the cost is always the same even when you’re ordering from a new location or during peak hours. Secondly, no matter what kind of food you’re ordering, customers will have to wait for their order as it’s being prepared. In many cases this is up to an hour! So if someone wants to get a pizza delivered for dinner at 8pm, they’ll have to wait until 9pm before it actually arrives at their door. And if you’ve ordered more than one item, it’s possible that your order won’t arrive together–meaning you’ll have to wait longer. Additionally, companies offering last mile delivery often don’t take reservations and make deliveries on demand only. This means that they can’t guarantee how long your meal will be in transit or how much time you’ll need to spend waiting for your food once it arrives at your door. But remember: these are all just minor setbacks in comparison with other factors such as increased convenience and cost-savings over traditional delivery methods.
How to Start a Last Mile Delivery Business?
First and foremost, deliveries must be seamless. If customers have to wait for their order, or if it does not arrive on time, they will be more likely to go back to the store for their food. Next, discover your niche. Some businesses focus solely on last mile delivery services, while others offer a mix of local deliveries and grocery stores. Finally, find the right location for your business.
Last mile delivery is an excellent way to make a profit while also helping your customer. With last mile delivery, you can help increase your customer’s convenience and satisfaction by providing them with the products they need when they need it.