COVID-19 has impacted our lives on many levels, from a personal level to a business level. With the emphasis of safe distancing still a priority, the need for on-demand delivery services has risen in popularity, particularly among home-based businesses and small enterprises.
Many home-based business owners have sought on-demand delivery services as a life-saving straw to keep their businesses running amidst the pandemic. With so many delivery services available at our fingertips, it may be hard to choose a delivery service that suits our business nature the most.
In this article, we compare the 4 most popular on-demand delivery service to the different types of home-based businesses with some factors to consider before choosing the delivery service that is right for your business.
#1 Perishable Foods, Glassware And Other Fragile Items
A melted cake will not only ruin someone’s day but also ruin your business reputation. For some businesses, especially home-based bakeries and home-based florists, sending your products through the right delivery service is of the utmost importance.
For example, GrabExpress states that they do not handle “Fragile items” which includes flowers and cakes, while RydeSEND states that customers can send fragile items such as cakes at their own risk. On the other hand, delivery services such as Lalamove has a special service to send food. GOGOX does not provide such information, which we take to mean it doesn’t handle such deliveries. This applies for most other fragile products.
If you are a home-based baker, home-based florist, or run a home-based business dealing with glassware, you may not want to send your products at your own risk.
#2 Delivery Speed
For some businesses, speed can be of utmost concern.
In this regard, Lalamove and RydeSEND guarantee a 55 minutes and 50 minutes islandwide delivery respectively. This is promising for home-based bakeries that need to ensure their products reach their customers in optimal condition.
Other delivery services such as GOGOX also offers a 1h “express delivery” service, with an additional payment of $3. GrabExpress is a same-day delivery service, but does not explicitly state its delivery speed.
#3 Delivery Cost
If speed is not a top priority for your business, price should be your next biggest deciding factor when it comes to delivery. If your home-based business only requires to get an item from point A to point B within a reasonable amount of time, GOGOX is typically the cheapest delivery service out of the other delivery options, where delivery fares can sometimes go as low as single-digit prices.
For example, a delivery request from Bishan Junction 8 to Woodlands Causeway Point for example. If you wish to deliver an item that is under 3kg within a reasonable amount of time (2-3hrs), the price will be $10 coupled with the promo code.
If you are looking for a faster option to deliver your items, there are other options that can fulfill your requirements. For the same distance, the prices for Lalamove, GrabExpress and RydeSEND will be $15, $17 (subjected to surge pricing) and $18.10 respectively. Similarly, GOGOX offers an express option that promises to deliver your item within 1h for $13 after applying the promo codes, which is still below the other delivery service costs.
#4 Acceptance Rate
While you may be attracted by the low prices that some delivery services such as GOGOX offers, one downside may lie in its unpredictability in acceptance rate. Acceptance rate refers to how long you have to wait before the delivery service notifies you that a driver has accepted your order, which is usually within several minutes.
Most delivery services provide an estimate of how many minutes it takes before a driver accepts your order. Unfortunately, this feature is absent on GOGOX, perhaps because it is less well-known compared to the other delivery services. This also means that the duration before a driver picks up your order, depends totally on your luck.
Even though some business owners selling non-perishable goods such as apparels or electronics may be willing to compromise on waiting time just to make the most affordable delivery arrangements, it is recommended to try waiting for up to 30 minutes after placing the delivery request. Anything more than 30 minutes may not be worth the wait and depending on the listed price of delivery, it may be a wiser option to switch to an alternative delivery service such as RydeSEND for smaller packages or Lalamove for larger items.
Capacity can be misleading for some home-based businesses looking to deliver their items using these services. Take the motorcycle delivery for example. The weight limit imposed by GOGOX is 3kg while the weight limit imposed by GrabExpress and Lalamove for their motorcycle delivery is 5kg and 8kg respectively. For less than double the price, Lalamove is able to deliver more than double the weight of what GOGOX is able to deliver. RydeSEND does not offer a motorcycle option.
Other than RydeSEND, GOGOX, GrabExpress and Lalamove also offers multiple item deliveries for a small top-up.
This means “sciencing” your deliveries a little bit to calculate if you can send a heavier load and make two stops for slightly more, compared individual trips for both items. You may quickly realise that a cheaper option may turn out to be more expensive.
Whilst all delivery services allow you to deliver small items which are 3-8kg or less, and up to 20kg for car delivery options, only GOGOX and Lalamove offer delivery services of larger items. On these delivery services, you can deliver up to 6,000kg and the latter up to 2,000kg.
#6 Payment And Compensation
On GrabExpress, rider are not supposed to collect cash from you or the recipient. It only accepts payment via GrabPay. In the event of loss or damage, your parcel is covered up to $200. This is an indication that you should refrain from sending parcels worth more than that.
On RydeSEND, you can only make payment via RydePay Coins or your Visa/Mastercard. RydeSEND provides a compensation of up to $100.
With GOGOX, you can choose to pay via cash or credit card. It does not state whether it provides compensation for lost or damaged products.
Lalamove has a compensation limit, but this was not found on its website. Lalamove also states that compensation will be in Lalamove credits or replacement product.
You also need to read the fine print in relation to damaged products, as fragile products may not be covered in the first place. If the product was not packaged properly, compensation may also be withheld. Many delivery services also require documentation to provide compensation and do not provide compensation for secondhand products.
It All Depends On What You Do
The nature of your home-based business may determine which delivery services best suits your needs. After all, it is more important for your product to be delivered to your customers in optimal condition and within a reasonable timespan, rather than skimping on price and risk damaging the items.
Looking at the price alone can be a misleading gauge as a cheaper price does not necessarily equate to better value. Aside from the price, it is also important to look at the relevant limitations and regulations imposed by the different companies.
Choosing the most suitable delivery option for your business is not only about the price but also identifying what you really need. Besides, why would you want to pay $30 extra just to deliver something that can be delivered at nearly half the price?
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