With the rise of e-commerce business, the demand for delivery companies has risen. These companies don’t use the traditional method for delivery. They use technology to cover all the steps of delivery. These companies are third-party logistics providers.
Third-party logistics are also known as 3PL companies. These companies handle everything. Transportation, warehousing, inventory forecasting, order fulfillment, packaging and other necessary things required are done by them. These companies tie-up with big and small e-commerce businesses and handle various things for them. Many companies have started investing in third-party logistics.
One such company is Delhivery. Delhivery franchise started as a small company from a 250 square feet room in May 2011. In just 8 years, the company has expanded both in name and size. Today it is one of India’s most sought out startup companies.
History of Delhivery Franchise
Delhivery is a delivery, express mail, and third-party logistics service provider. The company was founded in the year 2011 by a group of friends in Gurugram. Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan and Kapil Bharati are the founders of Delhivery.
The company initially started as a hyperlocal express delivery provider to local offline stores. They delivered flowers and food locally in various parts of Gurugram. Delhivery started from a 250 square feet room which served as the company’s corporate office, despatch center, call center, and development center. It started with 10 people including 4 delivery persons.
The online retail segment was expanding exponentially in India. The founders were intrigued by the size and potential of the industry and decided to expand the business. By June 2011, the company had acquired its first e-commerce client. They started testing waters and soon realized that e-commerce delivery was very different from traditional delivery.
By December 2011, the company was successfully delivering 500 packages per day. The company focused on using technology fruitfully. The company has grown immensely since its inception.
Recently the company took over the operations of Saudi logistics Aramex India.
Delhivery Franchise USP
Delivery of products can be a tedious and tiring chore. Not everyone enjoys it. Everyone wants someone who can release them with the tedious process of delivery. In the last few years, many delivery companies dealing in third party logistics have emerged in India. These companies have taken over the long process of delivery for the e-commerce business setups.
Delhivey is India’s largest and most profitable technology-enabled Express Logistics Company. The company has a wide reach in the country. It covers more than 8000 pin codes all over India.
The company was started in Gurugram in 2011. Today, the company has widened its network and is now deep-rooted in the logistics business. The company’s main aim is to fulfill India’s online consumption demand. Delhivery wants to achieve that by using the most advanced technology available. The company provides the best industry solutions, domain expertise, and pan-India operations.
The company offers a list of services which include last-mile deliveries, third party fulfillment, and warehousing services. The company also provides software solutions to the sellers.
Delhivery is trying everything possible to make the delivery process as easy and uncomplicated as possible. The company through its website registers the information of the sellers. They collect the products from the footsteps of the sellers’ place and initiate the process of delivery on behalf of the seller. The company makes it possible for the customers and sellers to connect faster.
The company has opened its warehouse. Delhivery handles more than 3 lakh shipments per day. The company has a tie-up with more than 100,000 merchants, 25000 clients, and 1800 retailers spread all over India.
Today, Delhivery is India’s largest e-commerce facilitating company.
I think as you are interested in logistics related franchises, you should also check out Amazon Delivery Franchise, before making your final decision.
Benefits of owning a Delhivery Franchise
Delhivery has received funding and backing from big companies. Companies like Tiger Global Management, Multiples, Carlyle Group, Fosun Group, Nexus Venture Partners fund Delhivery.
Delhivery has tied up with many e-commerce business houses to deliver their products. These business houses only give their business to Delhivery. They trust the company immensely. Even small businesses use Delhivery to deliver their products.
The company took into account the reasons for the failure of big traditional courier companies in the modern business world and converted the traditional delivery system into a profitable modern, technology-driven business. The company has devised modern techniques to make Delhivery a successful business.
The company charges a minimalistic amount for delivery. They also provide cash on delivery option which makes ordering things easy for people.
Handling of products
The work of Delhivery starts with picking up products from the sellers and ends with the proper delivery of the products to the buyers. The company handles everything between these two steps. Each product is handled with extra care and is packed very efficiently. The products are also delivered with extreme care.
The company which started in 2011 has become a brand name in itself in just 8 years. The company is the most trusted delivery partner. Many companies have placed their trust in this company.
The company is not just limited to providing logistics solutions to e-commerce companies. Delhivery also deals in express mail and delivery services.
What are the requirements to start a Delhivery Franchise in India?
The total area required to start a Delhivery franchise is between 400 square feet to 500 square feet. If the area is busy and congested and attracts a lot of business, then the company can allow a franchisee to operate from a smaller area. The proposed area must have enough space to store the couriers and accommodate equipment like the weighing machine.
Skills or Experience
No special skill or experience is required to start a Delhivery franchise. Any person who has the basic infrastructure to start a Delhivery franchise can become a franchise partner. The person has to manage pickup and delivery operations. He should have an understanding of local geography.
Regions of Operation
Delhivery’s head office is located in Gurugram, Haryana. It has regional offices in Mumbai, Goa, Bengaluru, and Hyderabad. Delhivery has a wide network spread all over India. The company is expanding at a rapid rate.
The company gives both virtual as well as physical training to the franchise members. They are trained for everything. The training takes place at the nearest Delhivery center. Full guidance and support are provided by the company to start a franchise outlet. The company also provides the latest IT systems. The franchise partners have access to an online training guide for future reference.
There is a requirement of two staff members to run one Delhivery franchise outlet. Both the staff members will have to look after all the processes related to delivering of couriers. They have to handle everything right from packing of the parcel to handing it over to delivery boys. The staff must know everything and they must be able to answer all the questions asked by the customers. They must also follow up from the company to know the status of delivery of packages.
How much does a Delhivery Franchise cost?
An investment of INR 50 Thousand to INR 2 lakh is required to start a franchise of Delhivery in India. The cost of investment varies from city to city. A small city requires a lesser investment in comparison to a larger city. Additional investment in necessities like a laptop, printer, barcode scanner, weighing scale, internet connection and the telephone connection is required. The company charges a 10% royalty of the income. The company provides the latest IT systems.
The company provides the franchise with two types of programs. One is Constellation and the other one is Cosmos.
In Constellation the franchise partner runs his parcel and freight pick-up and delivery business. To be a partner in the Constellation program, one needs to provide a security deposit amount of INR 2 lakh to INR 5 lakh. This amount is refundable. One can also provide a bank guarantee.
Under Cosmos, a network of neighborhood stores provides doorstep shipment delivery to nearby customers.
Years of bond and profitability
The expected rate of return on investment is 15%. It will take between 6 to 11 months to break even. The company signs a standard franchise agreement. The agreement is valid for 1 year. It is renewable on expiry of the contract.
Giant logistics companies make the delivery process for e-commerce companies very easy. These companies pick up the items from the customers, package them, transport them and deliver them. They take care of everything between the picking of products and delivering them. These companies are the lifeline of e-commerce businesses. They take a large burden off the shoulders of the sellers. E-commerce businesses are not just limited to product shipment. They include the delivery of flowers and food and everything available for sale on the internet.
One such company is Delhivery. Delhivery started as a small scale local delivery business by a few friends who quickly expanded the business into a national delivery business. The company today has its warehouses and regional offices. The company has spread its network all over India. Today they deliver products in more than 8000 Pincode areas. The company has reached great heights. It has opened doors for small local vendors to reach out to a larger audience and sell their products. With its strong network, the company makes delivery look very easy. Today, it is India’s most reliable;e logistics company.
To start a franchise of Delhivery one needs an area of 400 square feet to 500 square feet to start the business. The company provides two business models to choose from.
In the constellation model of business, the franchise partner runs his parcel and freight pick-up and delivery business. In cosmos, a network of neighborhood stores provides doorstep shipment delivery to nearby customers.
An investment of INR 50 Thousand to INR 2 lakh is required to start a franchise of Delhivery in India. The cost of starting the business varies from city to city. A larger city requires a bigger investment. Additional investment for things like a laptop, printer, barcode scanner, weighing scale, internet connection and the telephone connection is required.
The break-even period is estimated between 6 to 11 months. The return on investment is estimated to be around 15%. The company signs an annual contract with franchise partners. The contract is renewable on expiry.
In a very short time, Delhivery has earned a name for itself in the market. It is a very promising company.