This is a guide on how to start a delivery business in South Africa.
Delivery businesses have been important since mankind moved into the industrial age and are not going anywhere. This is one industry that will not be at a disadvantage from technological advancement. In fact, it is benefiting from the surge in eCommerce and online shopping. We might do a lot of things online and buy things online but we still need them to be moved from A to B. This is where courier companies come in.
Requirements for starting a courier/delivery business
This business does not need a lot of things to get started, the soul of this business is a vehicle. If you have a good, reliable vehicle then you are 80% there. You will need the vehicle to deliver packages, one vehicle is enough to earn you the minimum wage at the very least in South Africa. It’s best to go with a cargo van because they offer that much more space, allowing you to deliver more packages and make more money.
If you can’t afford a cargo van, you can get started with a motorbike, bikes are way cheaper and will earn you enough money to make a living in South Africa.
Other equipment includes things like Cell phone, GPS, clipboards and you might need a hand truck, which you can get for around R500.
Registering the business
You can register the business for only R125 through the CIPC. You will need to invest in a good and brand-able name and easily recognizable logo.
The main benefit of registering this business is that you will be able to act as an independent contractor. Which means funds will be deposited directly into your business account, which in turn means you will be taxed as a business and not as an employee or individual.
There is a number of ways you can get clients for your delivery business. For one, you can get started with Takealot. Takealot is an online store that sells just about anything and they are constantly looking to outsource delivery services. According to Takealot; you can make between R5 000 and R12 000 per month delivering for them. This range includes lighter vehicles and scooters. Find more info here
It’s important to note that you are not only limited to Takealot, you can outsource your services to other businesses like UberEats, Checkers and so on. The requirements for being an independent contractor are usually very low.
You can also contact your local stores and try to get them to use your courier services. Try your best to be professional, you can do this by printing business cards and having a website, you can get a very affordable website from Promta Web Services. Google AdWords can be used to target people that are searching for “courier services”. You will need to have a website for this, Google might charge you anywhere between R10 and R30 per person that it sends to your website.
You will need to get insurance for your vehicle, this may cost you around R600 in South Africa. You will also need to ensure the cargo that you will be transporting.
This is a business that can be started by just about anyone, you must be prepared to spend a lot of your time on the road. Starting a delivery business in South Africa is not very complicated. Try to keep an eye on your fuel consumption. Do you have any thoughts or questions? Comment below.