How To Start Bike Logistics Business In Nigeria (2024)

Last updated on August 3rd, 2023 at 12:26 am

We’ll look at how to start a delivery rider business in Nigeria in this article. First, bike logistics is a type of business that deals with the acquisition, distribution, and storage of persons, goods, and information in order to meet a company’s objectives. It entails getting goods and services from a manufacturer or supplier to a customer.

To start a bike logistics business in Lagos for example has just one disadvantage which is the task force. There are some people set aside by the government to take money from these bike riders and this is something that most bike logistics companies in Nigeria as a whole try to avoid.

HOW TO START A BIKE LOGISTICS BUSINESS IN NIGERIA (2024)

The motorcycle logistics industry is a low-competitive, renewable industry. People seek the expertise of a delivery company as much as ever, so if you’re thinking of starting one, don’t put it off any longer.

Here are the steps to follow on how to start a bike delivery business in Nigeria straight away.

STEP 1: OBTAIN A BUSINESS LICENSE

The very first move in starting a business is to submit the name of your company with the Corporate Affairs Commission (CAC), which is in responsibility of registering and regulating new and existing firms. You can also register your business yourself online or in any cyber café or CAC licensed office. After completing the preceding stage, the other measures should be considered

STEP 2: MAKE A BUSINESS PLAN

It’s one matter to get a company plan; it’s but another to sketch it out. Owning a business strategy will aid you in your ascent up the corporate ladder. A business plan can assist you in gaining a better understanding of your competition and the best approaches to outperform them.

A business plan helps you figure out just how much money you’ll need to get started and where you can get it (if need be). A business plan allows you to run your company on paper while putting everything you’ve written down into action physically and through hard labor.

STEP 3: OBTAIN AN OFFICE LOCATION

In order to manage a logistics company, you need an official address where your office can be found, so getting an office space is critical.

Mobile clients can drop in to raise enquiries or waybill a shipment in the office space where your bikes will be stored. Companies are thriving in the digital arena, with the exception of a logistics company.

It’s also important to understand the standards for beginning a logistics company in your area, as they differ from state to state. Knowing this ensures that your company runs smoothly and without problems in the near future.

STEP 5: INVEST IN A CARGO BIKE

Cargo bikes are necessary in the operation of a bike logistics company since, as the name implies, they are used to do errands, pick up shipments, deliver them, and perform other key activities.

The relevance of this cannot be overstated since you can skimp or throw out cargo bikes while operating a bike logistics company; in fact, cargo bikes are the most vital.

STEP 6: HIRE DISPATCH RIDERS

Riders who can dispatch the cargo bikes and do the essential tasks are required. Dispatch riders ought to be well enough to have experience in customer service and public relations. This is significant since they are the public face of your organization. The cyclist must also be knowledgeable about the area’s roadways and be trustworthy.

STEP 7: GET EQUIPMENT & TOOLS

Here’s a rundown of the essential equipment and tools you’ll need for your bike logistics firm.

• Dispatch Boxes – Dispatch boxes are required in the operation of this business since they will be mounted to the bike and will aid in the conveyance and transportation of the items.
• Computers/Software – In order to run a business like this, you’ll need a tracking device or software. Tracking software allows you to know where your riders are at all times and how to get to them.
• Mobile Phones – Cellphones are required since they will allow your customers to track where the postal worker is in the event of a delay. Riders, clients, and the firm all require phones.
• Store – A store is required so that items can be held until they are ready for delivery and do not spoil or become damaged during transport or storage.

STEP 8: GET YOUR BUSINESS KNOWN THROUGH MARKETING

Your logistics company should be advertised both online as well as offline. Search for opportunities to contact online merchants and those who offer things through social media channels.

Make contact with companies, agencies, and businesses that will need your help. Kaymu, Dealdey, Konga, and online food vendors are just a few of the companies that allow businesses to self-fulfill orders.

HOW MUCH DOES IT COST TO START A LOGISTICS BUSINESS IN NIGERIA?

Having known the process involved in starting a bike logistics business in Nigeria, let’s take a look at how much it will cost you to get started. From this information, you will know what to budget for this biz.

The bike logistics firm needs a fair quantity of funds for the acquisition of equipment and manpower, but you can get started with just ₦400,000. ₦360,000 can be used to acquire a decent bike with a plastic container for carrying things.

Bike is particularly convenient for logistics businesses since it can easily maneuver through traffic (meandering in and out of traffic) rather than a car. Run a complete insurance policy on the bike to avoid problems in the case of an accident. The cost of the delivery box is ₦26,000. This is also a must-have for the bike logistics business.

PROFITABILITY OF BIKE LOGISTICS BUSINESS

Let’s look at how much you will earn from the bike logistics business. Take a look at the instance below:

Suppose you have roughly ten firms using your platform, each of which sells 100 things on averages every month. This translates to 1,000 deliveries in a month. If you deal with companies to collect ₦400 every 1kg of goods delivered throughout Lagos or to your location, you will earn ₦400,000 in a month for 1,000 items delivered.

After deducting operating expenses such as petrol, recharge cards, engine oil, salary, bike maintenance, and possibly other stuff, your take-home pay for a month will just be around ₦200,000.

CONCLUSION

To summarize, the logistics industry is an ongoing industry that has yet to become crowded. Even more than before, people require the services of a logistics firm. It is indeed a step in the correct direction if you’re wanting to start this business. Best of luck!