How to begin a bike delivery business in Nigeria

Bike Delivery Business in Nigeria is not a new trend, it has been around for some time but have been overlooked by most entrepreneurs that have not carried out a feasibility study on this growing business niche.

Bike Delivery Business in Nigeria can be distinguished from other modes of delivery (like the ordinary mail delivery) by features such as delivery speed, tracking, and swift delivery time.

Traffic around most populated cities can delay other forms of delivery but bike delivery system of package transportation enables home or office delivery of packages and other items to arrive on time as it is rarely involved in traffic jam situation.

Majority of the E-commerce sites such as Konga and Jumia have come to terms with this growing niche and made it possible for bike delivery companys to be part of their delivery option to speed up delivery.

Furthermore, The global pandemic (COVID 19) made it possible for business minded individuals to explore this niche of business. Out of the total population of 160 million in Nigeria today, 60% of this population would prefer to sit at home and get their ordered products at their door step.

Bike delivery business in Nigeria makes it possible for packages to arrive as at when due, and thus increasing the percentage of E-commerce lovers on a daily basis.

In this tutorial, we are going to cover the following;

How to Start a Bike Delivery Business in Nigeria

Starting a bike delivery business is not all rosy as their are their are advantages and disadvantages to be considered.

But in this easy guide, you will learn all the important things you need:

1. Raise Funds to Start the Bike Delivery Business

For a business to start its operation, funds needs to be made available to ensure smooth operation. Raising money to fund startups most times in Nigeria is not always rosy.

But in this difficulty, their are a number of ways you can seek funding for your bike delivery business idea, and they are:

1. Bootstrapping

This is the process of financing your business by sourcing out any personal fund which includes your savings or any property you may have. This reliefs an entrepreneur from the bog of repaying loans.

2. Funds from Friends and Family

It can never hurt to ask your friends and family for start up capital even though some might consider this as an odd option. Some of your family and friends may be able to recommend beneficial options to you and probably give you little cash as assistance.

But one must ensure that a business plan is already on ground as evidence before asking friends and family members for funds.

3. Partnership

In cases of insufficient capital to finance the business, partnership options can also be considered. Partnership is the arrangement between two or more persons to run a business and share its profits and liabilities. Partnership can help finance entrepreneurs to start the bike delivery business in Nigeria.

4. Sourcing for Grants:

Grants are non-refundable amount of money given for a specific reason. Agencies that have been verified to give out business grants in Nigeria includes Shell LiveWire Funding, Tony Elumelu Entrepreneurship Program, Bank of Industry, etc. Most grant giving agencies require a business plan as evidence

5. Crowd Funding:

Crowdfunding has proven in recent times to be the bedrock of most Startups as they provide business owners and intending ones with a platform to raise money from individual and other supporters across the web.

6. Apply for Loans:

Most Micro Finance Banks in Nigeria have made provisions available for micro loans without collateral to assist low income entrepreneurs in setting up their businesses

2. Register your Business or Company Name

This stage involves registering your Bike delivery business name with the Corporate Affairs Commission (CAC) to build reliability and brand trust from your potential customers and reduce sanctions and harrassments from government agencies.  You can visit the Corporate Affairs Commission’s website www.cac.gov.ng for more enquiries.

3. Bike Delivery Business Plan

A business plan is an entrepreneurs guide to business success. Business plan helps to direct businesses to the goals and objectives which are achievable, pointing out difficulties or weaknesses which may be overlooked ordinarily and strategies to beat these difficulties.

Business plan makes it possible for investors to see through the business and analyse if the business is suitable for investment or not. In order to win investors, the entrepreneur must ensure that the business plan is outstanding.

When creating the business plan for your bike delivery business in Nigeria, it is important to take the following into consideration:

  • Executive summary
  • Business Description
  • Market strategies
  • SWOT analysis
  • Competitive analysis and your selling point
  • Legal, regulatory, social and environmental problems
  • Operations and management plan (Cost of products, risk analysis, contigency plan, exit strategy etc)
  • Financial factors
  • Appendix

We can also write an accurate and attractive Business plan for you to suit your bike delivery business in Nigeria in respect to your city of coverage.

Send us a mail at: [email protected]

4. Equipments and Branding for your Bike Delivery Service

Just like every other business, bike delivery business in Nigeria has a some equipment that it requires for its operations to be successfully done.

The equipments of your Bike delivery business should be branded for easy identification. (e.g. branding the motorcycles, envelopes, packaging cartons, etc.)

The following are the equipments to be purchased before starting a bike delivery business in Nigeria:

1. Motorcycle(s):

Purchasing a motorcycle depends on your start up capital, as the cash at hand would make you decide if you are buoyant enough to purchase one, two or more motorcycles.

A good motorcycle in Nigeria costs between N280,000. to N350,000. after getting the motorcycle(s) you also need a delivery box. And a delivery box costs between N27,000. to N50,000. depending on your location.

Remember to brand your motorcycle and delivery box for easy identification.

2. Laptops and Mobile Phones:

A laptop (though optional for a starters) is important and could make documentation easy, as it can be used to take orders, record cash inflow and outflow, and track the delivery rider’s location at all time.

For laptops, you can purchase a fairly used laptop online from shopinverse

A mobile phone is of high priority for you to make your bike delivery business in Nigeria to run successfully. This is needed for steady communication with the rider and the Customers. Customers and potential ones can also get in touch with you for enquiries via the mobile phone.

A mobile phone must be given to the delivery rider to communicate with the customers when need be.

5. Building or Hiring an Office space

Bike delivery business in Nigeria is on a steady increase, and would not back down any time soon and thus it needs an office space.

It is not just enough to have all the equipments, the office space is the place where you will park your business equipments like the motorcycle, storage of goods to be delivered, and it should be spacious enough for your staff(s).

An offline office builds brand trust as customers and intending ones will have a place to go to and lay complains, or make enquiries.

6. Obtain the required License(s)

After Purchasing the Bike, you need to register the motorcycle the State and Local Government office of the State you wish to operate the business in. If you are making deliveries within a state, you can opt for Intrastate registration, And if you wish to go your state of business operation, you need the interstate registration permit. It is advisable to add a few bucks and obtain both interstate and intrastate registrations.

Very importantly, get the required Local Government Sticker of the place where your business is situated and if you have a branded motorcycle is registered with the advertisement agency of the state where your business is located.

Bike delivery companies in Nigeria are required by law to register and obtain a license from the Courier Regulatory Department of Nigerian Postal Service (NIPOST), the body given the responsibility of registering and licensing delivery companies in Nigeria to ensure lawful operation of business.

Requirements to obtain the license to operate a Bike Delivery Business in Nigeria

Before operating a bike delivery business in Nigeria, you are required to make the following available for registration with NIPOST:

  1. Certified true copy of Certificate of Incorporation
  2. FORM CAC 1.1 (Application form indicating the minimum share capital of the company which should be N2,000,000.)
  3. Memorandum and Articles of association
  4. Company’s Tax Clearance Certificate for the last three years or in the case of new company, evidence of tax/VAT registration with the FIRS;
  5. Leasehold Certificate or tenancy agreement in respect of the company registered office;
  6. Indemnity insurance policy of N500,000. (Five Hundred Thousand Naira) and evidence of the capital base of N2,000,000. (Two Million Naira) or a bond of equivalent value
  7. Evidence of Payment of the License and application fees;
  8. Names, qualifications and addresses including telephone and/or fax numbers of all Directors of the company
  9. Samples of your branded business materials (waybills, labels, envelopes, bags, registered trademark (if any) and other documents that may be required)
  10. Partnership, merger, alliance (or such other arrangements) agreements (if any)
  11. Other information or evidence that may assist the Ministry in from time to time.

It is important to note that License is usually renewed on a yearly basis (once per year)

Please ensure that you have an insurance plan on ground as this will save the bike delivery business from accidental bills.

7. Hiring Delivery Bike Rider for the Bike Delivery Business

The bike delivery motorcycle needs a good and safety conscious rider (dispatch rider) in order for the business to move forward.

Hiring a Bike rider is not really easy especially when you are starting the business because of trust issues, as the dispatch rider would be handling cash. But the following points below can help you to employ a potential dispatch rider. Upon employment, request for the following:

  • Two (2) guarantors from the potential employee
  • Copy of his identification card, verify the original copy upon submission
  • A genuine address and addresses of the guarantors (verify these addresses)
  • A next of kin

The following requirements above can help you put your mind to rest while monitoring the activities of the newly employed dispatch rider.

8. Setting prices / charges for the Bike Delivery Business

Delivery prices and charges vary according to your location (State) for a start I suggest you carry out a survey for yourself (by asking prices from other competitors or delivery companies). After that, you come up with a suitable flat rate, then you can increase this charge and set different charges according to your customers location as your customers increase.

9. Advertising the Bike Delivery Business

Advertisement is the a process of creating awareness for your bike delivery business both online and offline. Advertise your company online and look for ways to get in touch with individuals and new E commerce businesses that sell their products online.

You can also run paid advertisement with with social media websites like Facebook, Instagram and so on. Paid advertisments are more effective if done well.

We can also help you Build and Manage your online presence, manage your social media handles, run online paid adverts that would suit your bike delivery business in Nigeria in respect to your city of coverage and bring back high conversion.

Send us a mail at: [email protected]

People always ask the question “Is bike delivery business profitable?”

The answer remains YES! It is profitable. Bike delivery business in Nigeria is at its infant stage and thus it keeps on growing everyday, and as long as the need for E commerce keeps increasing, their will be need for more trusted hands to carry out the job due to increased demand.

Every business man understands that increase in demand means more money.

Some of the bad experiences of other entrepreneurs in bike delivery business in Nigeria are:

  1. Customers Refusing to accept damaged goods
  2. Customers refusing to pick up their calls to give proper direction to the delivery personnel
  3. Bad traffic occur if the road is bad

Divine

Divine Lewis is the C.E.O. of Nairahow. A business strategist, Digital Marketer and a blogger who loves sharing knowledge to educate others.

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