A firm providing logistics, Dellyman, said the outbreak of COVID-19 pandemic was not bad for its operation as it has helped it to strengthened its business leading to double-digit growth. It said this is a proof that aggregating logistics assets is the right solution to the challenge of same-day delivery in the country.
Its founder/Chief Executive Officer, Dare Ojo-Bello, who spoke in a virtual interaction, said the marketplace has seen an uptick in all major indices, including a 45 per cent spurt in the number of active customers to 1,586 between March and last month – a 91 per cent growth from January 2020.
The period also saw a surge in the number of logistics companies soaring to 450, with over 100 verified and active on the platform.
He said in March, the firm sealed its first major partnership with fintech firm, Opay to boost its delivery assets by deploying some of the idle motorcycle assets from ORide. This led to an increase in the number of riders on the platform and over 3,000 orders completed by the first week of this month – a 93 per cent increase from February this year.
He said: “The numbers we have seen within the past two months is a concrete validation of our business model. We had initially assumed that it is because of the lockdown alone, but we continue to see even a more increased adoption after the phased easing of the lockdown started. We are now looking to even expand our capacity to be able to keep up with the growing demand.”
Launched in March, last year, he said the firm set out to solve same-day delivery problem in the country and has since grown revenue 20 times between January and April 2020 with average monthly growth within the same period averaging 145 per cent. It now targets over 5,000 orders in May alone.
The platform has seen 20 average daily customer acquisitions with about 38 per cent of the total active customers placing at least one order since coming onboard.
He said most of the orders have come from online retailers, restaurants and home kitchens offering custom meals such as soup; pharmaceutical products and other medical supplies, computer and electronics retailers, cake and confectionary makers, foodstuffs sellers, marketers dispatching multi-level marketing products and documents.
Logistics is one of the major pain points of electronic commerce in Nigeria. It constitutes the highest overheads for most online retailers making the e-commerce sector unprofitable and accounting for the number one reason many e-commerce firms have shut down in Nigeria.
Some existing e-commerce firms have had to build independent logistics infrastructure, but that comes at an incredible expense threatening the industry’s growth, which is projected to reach $75 billion in value by 2025.
Dellyman has set out to solve these problems specifically by tackling the shortage of logistics assets and providers, especially for long-range last-mile deliveries.
It also seeks to provide solutions to the issues of idle capacity due to the inability of logistics companies to connect with available delivery requests, while providing critical robust technology for efficiency of delivery services.
He said: “Overall, these problems are complex and difficult but Dellyman’s business model provides the right solution and the numbers prove it.
“The model leverages cutting edge technology that guarantees quick pick up and same-day delivery; provides increased access to logistics assets through aggregation; delivers an on-demand delivery service, while offering 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 get to choose a delivery.”
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