Changes to demand and business models for courier services

Times are difficult for all at the moment, we only have to turn on the TV or read the newspapers for a few minutes to get that idea. Despite this however, the demand for courier services is increasing, along with a change in business model for many couriers. Our latest article takes a closer look at why this is the case, based on a recent report and study which has been conducted.

Although everyone is aware of an increase in fuel costs, a rise in inflation and overheads, the demand for courier services has actually increased by over 50% compared to levels before the covid-19 pandemic. Despite this however, it doesn’t mean that it is a win-win situation for couriers. Many have had to evolve and adapt not only because of covid, but because of the challenges that rising inflation and fuel prices have forced them to do. Over one quarter of those surveyed have reported a change in their business model recently which reflects that there is a shift occurring in the courier industry at ground and root level.

Regarding the increase in sales specifically, it is perhaps obvious that these purchases need to be delivered to customers, and therefore this accounts for the rise in demand for courier services, including same day courier services. Good relationships are key between online shopping merchants and couriers in order to keep their customers happy and stand any chance of repeat business for anyone involved within that chain.

Which sectors are driving demand?

As you might expect, clothing and retail is a big driver with over 24% increase in demand. Some of the other sectors also seeing a rise in demand for courier services include the food and drink sector, which accounts for a 21% increase, along with the construction industry. Agriculture, healthcare / medical and hospitality, all have seen increases in demand between 10 and 20% also.

How is the change in business model presenting itself?

It is no surprise that the current cost of living (and working) crisis played a heavy part in changing the way couriers operate their business models. According to the survey over 70% cited rising costs as a massive problem. This is however at least offset a little by the increase in demand. This is perhaps also a good thing for customers because more profit means it is less likely that significantly higher costs will need to be passed on, because they can be cushioned to a certain extent.

In other notable statistics in this area, nearly 60% of all couriers surveyed reported trying to increase their client base, and nearly 70% have strategies and plans to attract new staff and employees by offering better salaries and working conditions etc. It is perhaps a little much to claim that the courier sector is keeping the economy moving, but the increase in output and the corresponding turnover this brings is certainly helping to stop another sector of industry slowing or grinding to a halt! This is good news not only for the people involved directly, but for everyone, because as things get tough, our economy and demand still needs to keep pace.

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