How to start a dispatch riders business

How To Start A Dispatch Riders Business In Nigeria

Wondering how to start a dispatch riders business in Nigeria? Wondering what a riders business even means or how much your dispatch rider friend earns in a month and you are interested in the business too?

Worry no more, this article will answer all your questions concerning how to start a bike logistics business in Nigeria in a very simple way, taking you from the very basics into the most complexed and rough part of the trending business.

Dispatch riders business in Nigeria has been a trend of recent and with a huge population of the country gaining access to the internet, with some people making their orders online and getting their goods or services delivered right at the comfort of their home. Seems great right?

It seems the bike logistics business in Nigeria is here to stay and with more people having access to the internet, it also seems logistics business in Nigeria will be the new oil well.

In order to help you unravel every bit of this article, we will help you out by dividing the article into sections or unit, with each section providing different answers to your pestering questions concerning how to start a dispatch riders business in Nigeria.

It is important to note that there are other businesses inside the logistics world in Nigeria, although we will discuss about them later; our main target is on how to start a bike logistics business in Nigeria.

Although this may apply to residents outside of Nigeria if and only if they have similar laws with the west African country, Nigeria.

What Is A Dispatch Riders Business?

Before we dig deep on how to start a dispatch riders business in Nigeria, let’s first of all understand what a dispatch riders business is all about.

Dispatch riders business can also be regarded as a bike logistic business. It is also one of the numerous business that has been given different names by different people in different cultures. Some people choose to call it ” bike delivery business” and others call it “transportation business”.

However it deals with the transportation of goods, services and even people from one location to another. This simple process is very vast and complex when it is done in real life.

A logistic company has the main task of helping organisations or other companies (although they may be logistic companies too) to strategize, implement and carry out all the transportation and storage of products, services and materials until it reaches the end users, which happen to be the consumers.

This process includes transportation or shipping the goods, storing the goods until they are needed (warehousing), packaging, disposing and securing the goods until it reaches the end users, also known as the consumers. Logistics business is very vital during the times of wars and crisis especially during the blockades. Example; during the civil war when Biafra was blockaded by Nigeria.

This means that product, materials or services made available in Lagos could not find it way to Abia State, Enugu state and other state that were involved.

Dispatch riders business is the one of the numerous types of business that is very popular in the country and there is always that high chance of about 70% that when you stand on the road for 10 minutes, you are likely to see someone from the logistic industry just pass you by. According to report, by 2023 or 2024, the logistic business will greatly contribute in boosting the Nigerian economy.

Logistics Companies In Nigeria

There are many logistics companies in Nigeria which can give you inspiration on how to start a dispatch riders business in Nigeria.

Over the years, companies have emerged and grown to become the giants and pillars of the industry. Below are a few popular ones in the country; DHL Supply, FedEx, courier services limited and a host of others. However some of those companies are international too. If you can take these logistics companies as your role models, and study how they run their business; then you can easily get the clue on how to start a dispatch riders business and succeed in it.

Now we know what is logistic business . In the next section we will answer the question, “is logistic business lucrative?”

Is Dispatch Riders Business Lucrative?

Before I show you how to start a dispatch riders business, let me first of all clear your doubt on whether bike delivery business is lucrative or not.

You are interested on how to start a dispatch riders business in Nigeria yet you are curious on the question; “is dispatch riders business really lucrative?”

Of course you are not looking for an oil well or a get rich quick scheme. You just don’t want to invest in the wrong project. A project with low yield or returns.

However, the lucrativeness of a bike logistics business in Nigeria is subject to how you can get new customers and as well as keep the old ones. Of course, every business has that general rule. But it all boils down to the strategy you use. You can keep your clients via giving discount for returning customers.

Example, let’s say you charge two thousand naira (2000) to deliver goods or services to any person or clients within the city of Lagos. And this fee is only available for new customers only. You can convince them by letting them know that you’ll be giving a 10% discount to all your returning customers. You get paid 1800 when they return which is still not bad if and only if you still gain a whole lot or your expenses are lesser than the price they paid.

However, this illustration will give you a quick summary on how lucrative the logistic business is in Nigeria. Let us say Company A charges the sum of two thousand naira (2000) in delivering goods or services across all parts of Lagos. Over the transport or delivery, company A spends the sum of two hundred naira (200) on getting the goods or services to the receiver. It is evident that the company has made a profit of one thousand eight hundred naira (1800) on that very transport.

Imagine they make sales over ten times a day. That is eighteen thousand naira (18,000) just for that day and five hundred and forty thousand naira (540,000) just for that month (30 days).

Huge right?
Now you know how lucrative dispatch riders business is, how about starting it in Nigeria?

How To Start A Dispatch Riders Business In Nigeria

Now you want to start a logistic business in Nigeria, here are few things you will need to understand on how to start a dispatch riders business and be successful in the business.

Have A Business Plan

The first step to take on how to start a dispatch riders business is to develop your business plan. This is a drafted document that provides information about the plans, objectives of the company. It even goes as far as providing information concerning the mission, vision and focus of your logistic business.

It even gives a detailed information concerning when you will need a computer system and when you need to start hiring. It will also help you access funding opportunities. It serves as a guide for your logistic company.

Define Your Means Of Operation

Although this might still be subject to the business plan, this will help you realize if you want a truck, a van or a bike for your logistics.

Register Your Business

Another important step on how to start a dispatch riders business, is getting your business registered.

Apart from the other advantages of registering your business, your business will be deemed illegal in the country or state if it is not registered and certified.

Register your logistic business brand with CAC (Corporate affairs commission) as this will also help boost the credibility of your brand. It is also important to get a certificate because you’ll be needing it to open a business account in the bank.

Get An Office Space

Another important step on how to start a dispatch riders business, is getting an office for your business.

Getting an office space for your logistic business is very vital because the logistics business is also an offline one. It also helps to guarantee your customers that your business is very credible and honest. It can also serve as a form of advertisements for your business.

Mobile Phone

This will aid the truck, van drivers or even the van riders( depending on your mode of operation) maintain communication with you or any other staff so as to verify who the recipient of the goods is. It can also help in tracking them.

Get A Website For Your Company

Having your logistics business online is very important as most others will be made online. Besides that, some customers tend to feel secured when brands have a good website for their business. You can create your website using Woocommerce or even WordPress.

If you a very responsive website for your logistics business or for any type of business, you can reach us on WhatsApp: 08063582017, or info@naijaventure.com to get that done perfectly for you.

Get A Dispatch Box

A dispatch box is very important especially to your bike riders. It is usually kept at the back of the bike and tied to the passengers sit, the dispatch box contains the goods that is to be delivered.

How to start a dispatch riders business
naijaventure.com

Get A Bike

You need to get a bike for your business. Here, your mode of operation is motorcycle. Most people recommend a Yamaha motorcycle due to it durability and ability to last long. You need to find out the cost (we will also address this in the next two sections). You need to also come up with a bike logistic plan. It is key to note that the procedures involved in how to start your logistic business in Nigeria applies here as well just that our mode of operation is specified now. It is also key to brand your bike before you get into the business since it will serve as a form of advertisements.

How Much Is A Dispatch Bike In Nigeria?

Depending on the quality of the dispatch bike you are looking for, the price of a dispatch bike is not high. Especially, considering the fact that it is not mostly seen in most cities including Uyo, Akwa Ibom State. You can get a brand new at four hundred thousand naira (N400,000) or less. However, you can also go for a second rate also known as Tokumbo bike for a much lesser price depending on the quality.

Hire Dispatch Riders

Dispatch riders are now the key to your business. They are the reason why your business is functioning. However, since your dispatch rider will be the main person at your dispatch business, we will list a few things you should spot in them before you hire them.

Qualities You Should Look For While Hiring Dispatch Riders

Trust

They must be trustworthy both to you and to the customers. They should not be people who can tarnish the companies image.

Hospitality

They should be hospitable to the customers. Most of the times, they are who the customers get to meet and it speaks a lot of volume concerning your dispatch business.

Nook and crannies

They should know or at least be familiar with nook and crannies they should be driving.

For example, a Lagos dispatch rider should be familiar with the streets of Lagos. Most times this extends to the culture of the people too. It also shares other factors with how to start your logistic business in Nigeria.

Hire Other Necessary Workers


As your company grows, you might need to hire people. This people might be the engineers to repay the vehicle or a manager or even an accountant to take charge of all financial transactions going on in the company. However, this is all included in the company business plan.

How Much Does It Cost To Start A Dispatch Riders Business In Nigeria?

Now that you have known how to start a dispatch riders business in Nigeria, you may also want to know how much it costs to start a dispatch riders business in Nigeria.

Starting a logistic business in Nigeria is not really hard. The toughest part is that you must be patient in order to see your returns. Anyways, i will also address the financial aspect under this section.

Cost of getting at least a truck or a bike for your logistic business might take a large chunk of your capital. And so does the mobile phone, getting a website and also getting an office space. In 2021, you should be estimating at least one million naira (N1,000,000) to set up a dispatch riders business in Nigeria.

Risks Involved In Dispatch Riders Business In Nigeria

Now that you have known everything about how to start a dispatch riders business in Nigeria, let’s now talk about the risks involved so that you may know how to minimize the risks.

Like every other business, there’s a lot of risk involved in starting a bike business in Nigeria and below are a few. Not meeting your target for the day; some customers have the habit of time wasting. For every time wasted, you decrease your order limit for the day.

Robbery; most times goods or services get attacked by thieves. Even though this goods are all protected by insurance, it decreases the trust the client or customers had for your company.

I believe the post was very helpful, you can share your thoughts with us on the comment section!

SHARE

Leave a Comment