By Juliet Umeh
At a time when most companies are struggling against the negative impacts of COVID-19, the asset-free logistics market, Dellyman, is posting double-digit growth, proof that adding logistics assets is the right solution. for the challenge of same day delivery in Nigeria.
The market has seen an increase in all major indices, including a 45% increase in the number of active clients to 1,586 between March and April 2020, a growth of 91% since January 2020.
The period also saw an increase in the number of logistics companies to 450, with more than 100 verified and active on the platform.
Within the same period (specifically March), Dellyman signed its first major partnership with fintech firm Opay to increase its delivery assets by deploying some of ORide’s idle motorcycle assets. The company said this saw an increase in the number of passengers on the platform and more than 3,000 orders completed in the first week of May 2020, which translates to a 93 percent increase from February this year.
Launched in March 2019, Dellyman set out to resolve the same-day delivery problem in Nigeria and has since increased revenue 20-fold between January and April 2020 with average monthly growth within the same period averaging 145 per hundred. Now it targets more than 5,000 orders in May alone.
The platform has seen 20 average daily customer acquisitions, with approximately 38 percent of total active customers placing at least one order since arriving on board.
According to Dellyman’s founder / CEO, Dare Ojo-Bello, “The numbers we have seen in the past two months are a concrete validation of our business model. We initially assumed that it is due to the blockade only, but we continue to see even more adoption after the gradual relief from the blockade began. Now we are even looking to expand our capacity to keep up with growing demand. ”
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Ojo-Bello said that the majority of orders come from online retailers, restaurants and home kitchens that offer custom meals like soups; Pharmacies that deliver drugs and other medical supplies, computer and electronics retailers, cake and confectionery manufacturers, food vendors, marketers that send products and multilevel marketing documents.
Logistics is one of the main weak points of electronic commerce in Nigeria. It is the highest overhead for most online retailers, making the e-commerce sector unprofitable, and represents the number one reason that many e-commerce companies have closed in Nigeria.
Some existing e-commerce companies have had to build a separate logistics infrastructure, but that comes with incredible expense threatening the growth of the industry, which is projected to reach a value of $ 75 billion by 2025.
Dellyman is committed to solving these issues specifically by addressing asset and logistics provider shortages, especially for last-mile long-range deliveries.
It also seeks to provide solutions to idle capacity problems due to the inability of logistics companies to connect with available delivery requests, while providing robust and critical technology for the efficiency of delivery services.
“Overall, these problems are complex and difficult, but Dellyman’s business model provides the right solution and the numbers show it,” said Ojo-Bello.
According to him, “the model takes advantage of the latest technology that guarantees fast collection and same-day delivery; provides greater access to logistics assets through aggregation; offers a delivery-on-demand service, while providing a delivery infrastructure to retailers and e-commerce platforms so they don’t have to own logistics assets or technologies.
“Dellyman also puts customers in control as they choose a delivery company, the price, the pickup and delivery time, as well as the ability to track their packages.”