With congestion increasing and the growing demand for convenience, it's no surprise that delivery services are so popular these days. Thus the rise in delivery has become a major trend among consumers around the world, especially due to the COVID-19 lockdown. This required delivery for everyone, and, for example, 65% of restaurants said they even managed to increase profits during the pandemic. Due to the growing demand and cultural climate, companies that do not offer delivery run the risk of falling behind their competitors. And delivery men are in demand today more than ever for companies of various profiles.

In-house delivery vs. third-party delivery

The coronavirus pandemic, which was once a luxury, has made delivery services indispensable overnight, be it food or electronics delivery. But whether delivery eventually becomes mainstream or not will depend on how it works now. With a record number of companies being forced to offer shipping if they haven't already, the question of which shipping model is best is on the minds of most owners and operators. 

In-house delivery services

Offering your own delivery service represents a fundamental trade-off between controlling the delivery process in terms of speed, service and quality, as well as the fixed and variable costs of doing it yourself. But if you are dealing with a large volume of shipping orders, providing an in-house delivery service means a large upfront investment in personnel and vehicles and means running a completely different type of business with a lot of logistical considerations.

In-house delivery services with e-bikes

So, for example, for a busy restaurant, using its own delivery service in addition to day-to-day operations is a drain on time and resources. And if you want your couriers to be highly mobile, you should at least buy a set of e-bikes, for example. Those are versatile and you have a good choice of them to choose from - just read a current overview on some good and not too expensive e-bikes by Mike Nomura at iTechCluster as an example.

Nevertheless, using your own delivery service allows you to fully control the quality of customer service, from the receipt of an order to the moment it is received. You must cover the running costs of delivery drivers and vehicle operation and maintenance, but you don't have to give up some of your margin on every order. And you will have access to customer data that you can use to retarget and build loyalty with a reward program.

Third-party delivery services

Third-party delivery services offer convenience to both customers and restaurateurs by connecting them through technology platforms. The biggest benefit for restaurants is the ability to quickly set up and outsource the entire delivery process with little or no upfront investment. 

For larger chains, it makes sense to fulfill their large order volumes using delivery platforms. They are more community oriented and try to offer a better quality of service. And for small businesses, it's a matter of compromising between costs on both sides, control over the quality of service, and the resources needed to manage the additional operations involved. 

Again, taking restaurants as an example: they also benefit from getting to know the platform's audience. For access to this audience, restaurants are giving up part of their profits, which are already small for many restaurants. Thus many companies try to avoid high margins and service issues by using small, local delivery platforms. 

Good e-bikes for in-house delivery services

By stating that you can afford to buy a whole set of expensive cargo bikes for your company's in-house delivery service, we can draw some comparison between the two - cheap and expensive.

Good e-bikes for in-house delivery services

However, most people will opt for the affordable (~ $ 1,000 excluding accessories) RadRunner from Rad Power Bikes. It is also compatible with more than 330 accessory kits and can be customised however you need - from basic cargo bike to heavy-duty carrier. Especially taking its 750W Bafang rear e-motor and 800 cycle high-output battery into the account.

Its counterpart, Tern GSD S10 (~ $ 4,000), created specifically to carry some heavy cargo. While not that much customizable, it has a doubled battery that affords very long time between recharges. And its custom-made Bosch motor is powerful enough to carry heavy weights at good speeds. Carrying capacity for both of them is not worth thinking about, but the latter is somewhat better suited for out of the box delivery work.