How to add a local delivery service

The key to adding a local delivery service is deciding whether to partner with a third-party app like Deliveroo or Uber Eats, or to manage the process yourself. Using an app offers immediate access to a large customer base but comes with high commission fees, while running your own service gives you full control and higher profit margins but requires more investment and effort.

Option 1: Using a Third-Party Delivery App

Platforms like Deliveroo, Uber Eats, and Just Eat act as a marketplace. They list your business on their app, process the orders, and use their network of riders to collect and deliver the items to the customer.

Pros:

• Instant Customer Base: You get immediate exposure to thousands of local users already using the app.
• No Logistics Hassle: The platform handles the delivery drivers, payment processing, and order tracking.
• Marketing Boost: Being on a popular app is a form of marketing in itself, helping new customers discover you.

Cons:

• High Commission Fees: These platforms can charge anywhere from 15% to 35% of each order, which significantly eats into your profit margins.
• Lack of Control: You have little control over the delivery experience. A late or rude driver can reflect badly on your business.
• No Customer Data: The platform owns the customer relationship. You don't get their contact details for your own marketing.

Option 2: Running Your Own In-House Delivery Service

This is the traditional model where you take orders directly (via phone or your own website) and use your own staff and vehicle to deliver to the customer.

Pros:

• Keep 100% of the Revenue: With no commission fees, you keep all the profit from the sale (minus your own costs, of course).
• Full Brand Control: You control the entire customer experience, from the ordering process to the friendly face at the door.
• Build Customer Relationships: You get to know your regulars and can collect contact details for future marketing.

Cons:

• Higher Upfront Costs: You'll need a reliable vehicle, appropriate business insurance (including for deliveries), and potentially extra staff.
• Logistical Challenges: You are responsible for planning efficient routes, managing delivery times, and handling any issues that arise.
• Marketing is on You: You need to actively promote your delivery service to let customers know it exists.

How to Decide

Before you commit, ask yourself these key questions:

1. What are the true costs? Calculate the potential commission fees you'd pay to an app for an average week and compare that to the cost of hiring a part-time driver, plus fuel and insurance.
2. Can my business handle it? Do you have the physical space for delivery orders to be packed? Do your staff have the capacity to manage an extra stream of orders during busy periods?
3. What's my delivery radius? Start small. A 1-2 mile radius is manageable for an in-house service. If you want to reach further, an app might be more practical.
4. Could I try a hybrid approach? Some businesses start with an app to build demand and then launch their own service later, encouraging customers to order direct for a better price.