Delivery Service Provider

Introduction

The delivery service provider demand has steadily grown over the time and it is predicted to grow at healthy growth rate in coming years around the world (Statistica). The COVID-19 has created an exponential growth rate for this industry in the UK and around the world. It is one of the best times to invest into this industry.

We have created a turnkey comprehensive business solution, built with state of art technology to cater the needs and wants of this industry.

GMS Technology (UK) Ltd is an IT company and has been established in 2006. We specialize in web & Mobile app development and bespoke software solutions.

What is a Delivery Service Provider?

We provide complete solution for a person/organization who wants to provide service as a delivery service provider.  We named it as a delivery service provider.  The delivery service provider (DSP) is a fully automated system which enables you to provide delivery services to your local grocery shops, pharmacies, restaurants and takeaways.

The system allows you to register and enlist vendors & drivers where as the customers are provided with mobile apps through which they can place an order. The whole system synchronizes with each other to provide smooth functionality.

  • Vendor Mobile App. Each vendor has its own account. The vendor will have to list all his products/menu with price under his/her profile.  Vendor app will notify vendor whenever there is an order placed by customer and vendor will have option to send a notification to all delivery boys. Once the job is accepted by the delivery boy, vendor will be notified and once delivery boy picks up the order to deliver, the vendor will be able to track him/her until it is delivered as it is fully integrated with Google maps.

 

  • Customer Mobile App: The customer application allows customer to search and select vendors him /her in their locality. Using the customer post code, system will automatically suggest nearby potential vendors for their respective food/items.  The customer will be able to select a vendor, and place order. The customer will be able to track the delivery as it is fully integrated with Google Maps.

 

  • The Delivery boy Mobile App: Once there is any order to be delivered, the vendor is going to send the notification, the driver will receive a notification on his app and if he accepts the job, it will be assigned to him automatically. The app will provide complete directions from where to pick and deliver the order as it comes with fully integrated Google Maps.

Comes with Google Maps integrated so vendor and end users can track the deliveries live.

Vendors can add value to their business by offering delivery service.

Apps for both Andriod and iOS

As a DSP you can start your own business for your local town or city for as low as £6,000

Comes with complete delivery solutions

You can be running your own fully branded business within 4-6 week

Who is the target market?

The demand for the delivery service is globally increasing. There has been unprecedented increase in demand for the delivery services during COVID-19.  It has a rapidly growing market in UK and around the world.   Partnering with local grocery shops, pharmacies, restaurants, takeaways and Pizza shops an effective way to enter the market.

Only UK food delivery industry is about £8.5 Billions   with 11 Million active users (Source MCA Statistica)

What includes in the total DSP package?

This is a total turnkey business solution. Everything required to run a successful DSP business is included.

Admin Panel

There is an admin portal on the website where DSP can login, have all the reports, profiles for vendors, drivers, and information about the customers.

Front End Website

The DSP will be provided with a fully designed Front End Website. It will be a platform where the delivery boys and vendors can register along with links for the customers to download customer App.

Apart from that, the homepage will have the listed vendors as recommendations for customers based on their post codes.

This way, the DSP administrator markets his vendors and generates leads for them

Three Mobile Applications

As described above, it comes with three mobile apps. An app for vendor, an app for customer and an app for delivery boy. These apps are provided in android and iOS stores.

AAll applications are branded as per the DSP’s brand and uploaded in their app store. We will create app store for Apple and Android for the DSP.

What are the cost elements of running a DSP?

One-Time Investment

Firstly, one time setup fee for each city/town is £6000. This includes complete turnkey business solution with the ownership rights of three fully branded mobile apps, front end website and back end admin panel with respective mobile app stores (Google and Apple). It includes 12 months post sales maintenance and support

Maintenance & Support Agreement

The maintenance & support agreement can be renewed for second year. It is optional and it would £1800 per year.

As the technology is consistently evolving, all the mobile applications need constant update to ensure smooth & secure functionality. For this reason,post-sales support is critical to ensure smooth operation.

How much can a DSP charge a customer?

The standard delivery charge is £3 minimum delivery within 1 miles of radius. The delivery charges increases with the distance. (techcrunch.com)

Also as a DSP, you can sign contracts with special deals with major vendors in your area. This way, you can secure a big volume of business.

How much revenue can a DSP make per month?

The major DSP revenue comes from its direct customers when they place an order to the vendor and the delivery boys deliver the order to the customer.

Let’s assume, a DSP has 50 registered drivers and various vendors in his covered area and each day each driver delivers 20 deliveries means 1000 deliveries per day assuming each delivery charges are £3 (minimum charges) so the total daily revenue will be minimum £3000 (£3X1000) and monthly revenue of £90,000 (£3000X30 days)

This is assuming each driver works on part-time basis, so based on 20 deliveries; each driver will earn £60 a day.

How much Profit a DSP can make per month?

The earning for DSP will be based on commission charged on each driver’s earning. Assuming it is 20% (which is industry standard) the DSP will earn £12 from one driver (£60@20%= £12).
So the total earning for DSP per day will be £600 per day (50X£12=£600). Assuming this, the potential monthly income will be £18,000.

SMS Cost Involved

Assuming 1 SMS per user, for 1,000 deliveries means 1,000 at cost of 4p each. So the daily system cost will be £40 and monthly will £1200.

Managed web hosting £100 a month (*first 6 months will be free of charge)

One Person to work as Administrator with monthly salary of £1500 (system is fully automated, just need to manage day to day operation or owner can do him/herself)
So the net profit £15,300 per month.

How can a driver earn?

Driver Income (Expenses)

Assuming each deliver work part-time and does minimum 20 deliveries with minimum £3 charge per delivery, he will earn £60 a day, so the total income per month will be £1800 (60X30)

Expense

20% Commission of the DSP which is £360 per month
Fuel cost, assuming he does 40 miles a day; he would use 5litre of fuel so daily fuel expense £1.25 per litre, so daily cost is £5 and monthly expense of £150 per month. )

Net Profit per driver is £1290 per month. Weekly income of Approx £300.

What will you name your business?

Choosing the right name is very important. If you don’t have a name in mind already, think of names that can be associated with speed and trust in your locality or you could think of famous character etc.

Whatever the name you select, when registering a business name we recommend checking if the business name is available by doing a trademark search, searching the web, and making sure the name you choose is available as a web domain to secure it early so no one else can take it.

Do you require a Domain or Hosting