A primary consideration when starting or growing a delivery company is whether or not to use a contracted delivery driver. There are many benefits to using an outside delivery service. They are the ones assisting you in meeting your delivery deadlines. You can save money in the short term by employing a third-party delivery service, but in the long run, hiring your own drivers is more cost-effective.
A survey of restaurant owners and managers in an in-depth study on the development of the restaurant industry and market found that 43% of their online orders came in via direct communication. Of half of those who participated in the survey 43 percent said they preferred to place their orders via WhatsApp or the restaurant’s mobile number. Without having to pay commissions to middlemen, operating your own fleet of delivery drivers can be a huge cost saver.
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Your delivery business will benefit from having in-house drivers so that they may be trained to meet your specific requirements. However, independent couriers care only about getting your products to clients, regardless of quality. In the event that a third-party driver makes a mistake or is late, you may be unable to reach him or her directly for assistance. Conversely, having your own drivers on staff makes it much easier to keep customers apprised of any delays, as there is no middleman between you and the drivers.
When drivers have a good rapport with their manager and serve a handful of regular customers instead of dozens, they take their jobs much more seriously. When you employ a driver on your own, you get to work with your own team to fulfill orders. You may build stronger ties with your drivers and get to know them better. Now more than ever, it is possible to hold them liable for the quality of service and the final product they deliver to clients.
It is possible to save enough money by using in-house delivery drivers instead of contracting with an outside delivery service. If your company generates $1.5 million annually, and delivery accounted for 20% of your restaurant’s business before the epidemic, it probably accounts for closer to 40% now. If this is accurate, then restaurants typically earn $600,000 per year from delivery orders. An additional $180,000 may be lost if the delivery provider retained 30% of the total fee. The average income of a restaurant delivery driver is $42,500 per year. If you do the arithmetic, your restaurant can save about $100,000 per year by employing its own delivery drivers, even if you employ two people full-time.
If you used an outside company to handle the delivery, it would add another $80,000 to your total, for a total of $240,000. For their services, drivers in the restaurant industry can expect to earn $42,500 annually. Having your own delivery fleet can save you a ton of money, as you can see when you do the math. When compared to using outside delivery services, investing in your own fleet of delivery vehicles typically results in cost savings.
Any person making a delivery of food, groceries, furniture, or laundry is at risk of making a mistake. To give just one example, food delivery could be late or cold. On the other hand, you will be held liable if it was delivered by an outside party. In addition, a flood of negative feedback is to be anticipated. But when you have your own delivery team, you can eliminate the possibility of mistakes and take responsibility for them if they occur. If your food was delivered cold or late, you can question the driver or check the dashboard for bottlenecks. Customers will feel more comfortable voicing any issues they may have, and you’ll have the opportunity to directly address those issues, such as enhancing your packaging to prevent such incidents in the future.
Let’s pretend a client has contacted us to find out the status of their shipment. You and your clients either don’t know the solution or have very little insight into the problem at hand, because only third-party delivery drivers know it. However, this will not occur with the internal driver. Customers will appreciate not having to call you as much if you have your own delivery driver and can provide them with real-time tracking. As an alternative, even if the phone rings, you won’t be surprised by the question they’ve been trying to ask.
You will be able to provide superior service to your clients once you have this information. Customers can be notified that a new driver is on their way to pick up their goods or have the option of paying extra for express shipping. If you get in touch with the personnel, they’ll help you through it all. Where is the risk in that?
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In conclusion, hiring a fleet vehicle allows you to keep a close eye on key metrics, like how long each driver spends waiting in the store before being dispatched. A dedicated in-house delivery service will necessitate significant upfront investment and ongoing support. Before establishing the distribution system, think about all the possible touchpoints and take into consideration the opinions of your customers.