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How to Start a Dispatch Rider Business in Nigeria

  • October 10, 2022

Dispatch rider business in Nigeria is one of the fastest growing ventures that anyone can start from anywhere and in any state in Nigeria.

This business is very profitable as a lot of startups now need to quickly deliver products to customers, and this comes as a result of the pandemic when people have to work from home.

Since then, a lot of companies have seen the benefits of using dispatch riders, and this has rapidly increased the demand for more dispatch riders in the country.

This business has continuously made people millions of naira over the years, and it is very easy to start. So, if you have it in mind to start, this post is just for you.

In this post, we’ll be discussing not only how to start a dispatch rider business, but also the cost of starting, its profitability, and how to be successful as a dispatch rider in Nigeria.

Are you ready to know all that? Then let’s get started!

Who is a Dispatch Rider

In this modern age, a dispatch rider is someone (messenger) who delivers urgent goods such as documents, food, and other fragile items to the doorstep of the receiver with the use of a bike.

Dispatch Rider Business in Nigeria

Dispatch rider business in Nigeria

Also known as bike logistics or bike delivery business in Nigeria, dispatch rider business involves the movement of goods from the point of origin to point of consumption with the use of a bike in exchange for payment.

This business is very popular in the country, as it is very hard not to find a bike delivery company in any state in Nigeria. This is because it is easy to start and very profitable.

In Nigeria, dispatch riders’ companies work mainly with cook-on-demand restaurants, and also ecommerce businesses that sell portable and light weighted products. This is because it is easier for those businesses to get the products quickly to their destinations, compared to other modes of operation offered by logistics companies.

You can become a dispatch rider in Nigeria all alone yourself, or if you have a reasonable budget, you can start a bike logistics company, which is the most profitable dispatch rider business in Nigeria.

Of course, there are lots of such companies all over Nigeria including Gokada, Kwik, Konga, Brain Express, Redstar Express, etc.

Read Also: How to Start a Successful Logistics Business in Nigeria

How Much Do You Need to Start a Dispatch Rider Business in Nigeria

If you really want to start a bike delivery business in Nigeria, one thing that definitely will come to your mind is – what is the cost of starting a dispatch rider business in Nigeria?

Since this business can be started either all alone or as a company, the capital required to start a dispatch riding business in Nigeria differs based on approach.

However, to become a dispatch rider where you’ll carry out all the day-to-day activities pertaining to the business, you’ll need at least 400,000 Naira to start the business. While starting as a company where you’ll need a lot of bikes as well as hire staff, you’ll need at least 1 million naira to start a dispatch rider business in Nigeria.

Related: How to Start Exportation Business in Nigeria and Make Millions

How Profitable is Dispatch Rider Business in Nigeria

While a bike delivery business costs a relatively huge amount to start, with this heavy capital, is dispatch rider business even profitable in Nigeria?

That is another question asked by people while looking to start the business. Of course, it is. As long as ecommerce businesses, and also enterprises that need to deliver products keep advancing, the bike logistics business is still relevant and profitable in Nigeria.

Talking about how much money can be made, dispatch riders do charge based on location, distance, and also the type of products they’re dealing with. For example, if as a dispatch rider you get an order to deliver pizza from one point to another which would take about 20 minutes ride, you may charge up to 1500 for the delivery.

Just imagine having multiple of such orders in a day! That means you’ll be making up to 15,000 naira and even more daily. Now if you started as a company with 5 bikes bringing in 15k daily, you could be making around 2 million naira plus monthly.

That’s just how profitable a successful logistics business is in Nigeria. The more you grow, the bigger your profits.

See Also: 35 Businesses to Start with 100K and Become a Millionaire in Nigeria

How to Start a Bike Delivery Business in Nigeria

Now that you’ve known how much it costs to start a dispatch rider business in Nigeria, and how profitable it is, what’s left now is to start the business, I believe! How then?

1. Get to Understand The Business

The first thing to do in starting a dispatch rider business in Nigeria is market research. Here you’ll need to understand the in and out of the business, and how exactly it works.

To get the best result from your market survey, ensure that your research is based mainly on where you intended to start the business as some aspects of the business may differ based on location.

To achieve this, you’ll need to meet with dispatch riders, and make finds on the following.

  • Requirements for starting
  • Capital needed
  • Best approach to the business
  • Challenges and risks involved
  • Profitability
  • Legal laws guiding the business
  • The best type of clients to work with
  • And so on.

Once all these questions have answers, then, you’re good to proceed. Keep in mind that the result from here will serve as a road map for the remaining steps.

2. Draft a Realistic Business Plan

Whether you want to start as a dispatch rider or start a bike delivery company (hire riders), you’ll need a strategic plan which in combination with your market research, will lead you on the right path.

Since dispatch rider business in Nigeria is getting more and more saturated, you need to plan your business starting from competitors’ analysis. Outline what you could do to make your service better.

As part of your plan, you must include your marketing plan, outline how you would like your team to work, and point out your goals and targets needed to be met both financially and in terms of growth.

Finally, you will also need to outline your branding plan including the name of your company, logo, and colour.

Related: How to Start a Frozen Food Business in Nigeria

3. Arrange for the Needed Equipment

In case you don’t know, 70% of your capital as a logistics company goes into the purchase of all the necessary equipment including bikes, dispatch boxes, phones, and also stationary which is a must among others such as computers, software, stationary, etc.

Without a bike and a dispatch box, also a mobile phone, you can’t start this business, so you need to have all of them ready.

4. Register Your Business

After acquiring all the needed types of equipment, you need to register your business to get started. Although I have come across some dispatch riders even without a license, if you want to succeed, and also avoid problems, it is ideal you register your business and obtain all necessary documentation before starting.

If not others, try and register your business with the Corporate Affairs Commission (CAC) for a start. Also, if you carry out good market research, by now, you should have known if there’s an association of dispatch riders in your area or state.

If there is, make sure you join and obtain all the legal licenses to operate a bike delivery company. However, apart from CAC, the rest registration may not be relevant.

5. Set Up an Office Space

As a bike dispatch company in Nigeria, to work with big companies, you must have an office space where you can meet with clients.

The cool thing is that this office space can be a small apartment even in your house. Since you’re dealing with other people’s products, clients would want to know your office address before working with you in case of an emergency.

Check Out: How to Start Transportation Business in Nigeria

6. Hire Staff for Your Delivery Business

Only if you want to start all by yourself with just a bike you won’t need to hire riders. However, if you’re looking to start a bike logistics company, you’ll need to hire riders.

In this step of starting a successful dispatch riders business in Nigeria, you need to be careful and know the type of person you’re hiring. Make sure they are good riders, and also know where type live. If possible, make sure they have a guarantor, as there have been cases of dispatch riders running away with bikes and expensive goods.

7. Get Started

From market research to hiring riders, everything is all set for you to start your dispatch rider business.

So, in starting, your major priority is to drive sales. To do that, you need to find companies that are in need of your service, contact them, and promise a satisfactory service.

The best types of companies and businesses to start with include ecommerce businesses, cook-on-demand restaurants, eateries, and supermarkets that offer online platforms for customers to place orders.

One amazing thing about this business is that once you have a company as a customer, and you render a satisfactory service, chances are they are more likely going to use your service again, and end up being loyal customers which you can work with for years.

How to Succeed as A Dispatch Rider in Nigeria

From step one to step seven above is exactly how to start a dispatch rider business successfully in Nigeria. However, to be even more successful, you need to go a step further, and that is by building not just a business, but a brand.

Firstly, you need to start by taking your business online. Create a website and a Mobile App for your business and include features for customers to get quotes on shipping. Also, include a feature for customers to order your service online.

Just imagine how easy it is to order a uber ride online and get the service without even stepping out of your door until the ride arrives! That’s how flexible you should make your business for customers. 

Moreover, if you’re working with cook-on-demand restaurants, they’ve got more to do than always place a call that sometimes may not connect due to a bad network. But with a mobile app, they can just place a delivery service order in minutes.

Also, to succeed as a bike logistics company, you need to invest in advertising both online and offline. Also, put your brand in the mind of people by creating a social profile for your business and posting your clients’ success stories about your service.

Lastly, make sure to meet your clients’ expectations. If you promise a 90% satisfactory service, make it 100%. Deliver on time, care for the package you’re delivering, and also apologize for delays when necessary.

In essence, to be successful as a dispatch rider, or a bike delivery company in Nigeria, you need to do better than your competitors. Think outside of the box! There will always be a thing that your competitors are lacking, find it and provide a solution to it. By doing that, you’ll always be one step ahead of the competition.

Conclusion

The bike delivery business in Nigeria is very profitable and easy to start. Whether you’re looking for how to start a dispatch rider business in Abuja, Lagos, Port-Harcourt, Asaba, Onitsha, Kano, Karina, Ibadan, or any part of Nigeria, I believe this post has offered you all that you need to get started and be successful.