3 In-House Delivery Problems Every Business Needs To Solve FAST To Survive & Thrive
By: Delivery Drivers, Inc.
Delivery Drivers, Inc. was a recipient of The Startup Weekly’s 2021 Business Products and Services Companies to Watch award.
As the brick-and-mortar economy of years past continues to fizzle out–now at an accelerated rate due to a global pandemic–the race to transform traditional storefronts and warehouses into distribution centers for same-day and next-day delivery has intensified. Over the past year, some businesses were positioned to do far better than others. While other businesses need to keep up with the demand for an e-commerce delivery program. The gig economy is necessary for this but not without risks.
In order to do that, businesses need to factor in 3 major risks for an in-house delivery program.
1. Need For a Quick Solution
With the high demand to have everything delivered to your door, many businesses needed a quick solution with minimal effort. They turned to third party administrators to assist with an online shopping platform and independent contractors for deliveries (i.e., Instacart, Postmates, or DoorDash). But at what cost? In addition to the high fees these partners demand, businesses found themselves in a situation where they don’t own the customer experience or data. This leaves them in a vulnerable position economically.
2. Where to Begin?
Businesses want to keep as much as possible in-house to control their brand and revenue. But where do they start to build an in-house delivery program? They need to think about the infrastructure of the program and who will handle the operations. Additionally, they must consider how to recruit and onboard 1099 workers and who will manage the human resources aspect. Who will manage the workflow of the drivers and handle the payroll and taxes? How will accidents and risk management for drivers be solved and what kind of technology can be put in place to hold all of these pieces together? Companies can waste time, money, and resources by trying to build a program from scratch. In today’s era of wanting quick solutions, time is not on their side.
3. Regulatory Considerations
In-house delivery app-based platforms appear to be a popular strategy in 2021. Businesses creating and operating their own delivery app-based platform will be assessed on a completely new set of regulatory requirements, primarily related to worker classification. The gig economy is dependent on self-employed/1099 entrepreneurs, who use gig apps to source customers for their businesses. While many States and jurisdictions welcome the gig economy, others are more antagonistic, and the Federal Government is beginning to address this brave new frontier as well. Companies who fail to properly classify delivery drivers as independent contractors and who fail to operate in a way that is consistent with the State-by-State guidelines of doing so may face legal challenges, which could inhibit their ability to reinvent themselves.
The Solution: Partner with an Expert
Accept that your company is not a subject matter expert in this field and partner with a company that specializes in a delivery program, like Delivery Drivers, Inc. Your partner should have the experience, expertise, and customized solutions to have your brands best interest. Whether your delivery program has done deliveries before or is being set up for the first time, your partner should be able to build and scale your delivery program for your business with a unique backend delivery strategy solution, tailored specifically to your business model.
