Delivery has become second nature to the e-commerce industry because of the integrated services it provides. It is reputed for its centralised warehousing facility, which enables it to coordinate between all the e-commerce platforms as well as other commercial enterprises. Delhivery has won much acclaim for furnishing wholesome solutions in logistics. These include supply chain services, full truckload shipments, partial truck-load shipments as well as express parcel facilities. Since its inception in 2011, this Gurgaon-based delivery business has extended its footprint across 135 cities in India and delivers about 40000-50000 thousand orders daily. This logistics and supply chain organisation delivers couriers that weigh up to 10 kilograms within 24 hours and takes about 4-9 days for long-distance deliveries. This company is associated with all the major e-commerce businesses, namely Amazon, eBay, Jabong, Healthkart, Flipkart as well as Snapdeal, among others. Its flawless delivery services have made it a preferred choice for many. There are several individuals who have shown a keen interest in setting up a Delhivery franchise.
Did you know? Delhivery delivers to seventeen thousand pin codes (17000) across India and is known to have the fastest logistics operations in India?
The rapidly growing e-commerce business has evoked a keen desire in many individuals to set up a logistics supply chain and delivery enterprise. Many have expressed a desire to become associated with Delhivery. The question everyone asks is: How to start the Delhivery franchise in 2022?
Expansion Locations of Delhivery
As a logistics company, Delhivery has implemented the smartest mechanisms to boost its operations from the very beginning of its operations. It has trucking terminals in Bengaluru, Delhi as well as Mumbai. It has made impressive partnerships to meet its varied functions. Some of its partnerships include Volvo, Spoton, Transition robotics as well as FedEx. With investors like SoftBank and the Canadian Pension Plan, the company is planning a massive expansion drive across the country through both inorganic as well as organic investments. With more than 6 million square feet of storage facilities, Delhivery has also started two new tech offices in Ahmedabad and Bangalore. The growing dependence on this company has made it imperative for the brand to set up franchises across the corners of the country. From Himachal Pradesh in the north to Arunachal Pradesh in the east and from Telangana in the south to Jharkhand in central India and Rajasthan in the west, it is speedily initiating business tie-ups with capable entities.
Investment Required to Set Up a Delhivery Franchise
A Delhivery franchise consists of two categories, namely:
The Cosmos franchise option encompasses a network of several stores in a neighbourhood. These facilitate deliveries to all the residents/commercial offices at their doorstep. The investment required in this franchise varies between ₹50 thousand and ₹2 lakhs depending on the city.
This involves entrepreneurs who are keen to start their individual freight pick-up and deliveries of various types of parcels. This franchise is more of an extension of the Delhivery network. This type of franchise requires an investment that can vary between ₹2 lakhs and ₹5 lakhs and is also dependent on the city.
Property Details and Other Requirements
- A franchisor must have at least 400 or 500 square feet of commercial space in an area which is comfortably accessible.
- The commercial space should be able to accommodate the daily consignments that pile up for delivery.
- The premises should be free of rodents which can cause immense damage to the parcels even if they are packed.
- The storage, even if temporary, should be able to protect the consignments from damage or leakage.
- The individual in charge should be adept at managing the collections and should be familiar with the surrounding areas.
- Staff requirements – Delhivery requires every franchisee to employ at least two individuals to manage the operations skillfully. These individuals are responsible for the operational cycle that starts with packing and ends with the successful delivery of the same.
- Training of franchise partners – The franchise partners are imparted training in all the departments. This training is conducted virtually as well as offline. They are provided training in the packaging mechanisms and price points, as well as in the processes which involve the collection and deliverables of the parcels.
The other basic requirements involve having the following:
- An office
- Laptop printer
- Barcode scanner
- Weighing machine
- A no-fuss internet connection at all times
- A dedicated official contact phone number/s.
- You have to be dedicated and operate in accordance with the regulations of the brand and ensure you have a really efficient support staff. The initial said the investment could be recovered within 365 days from the day of starting the franchise.
The Profit Percentage From Owning a Delhivery Franchise
Becoming a franchise of this technology-enabled logistics organisation comes bundled with its rewarding profits. Every franchise agreement is valid for a year, and the same can be renewed with ease. The approximate rate of return on a Delhivery franchise investment is about 15%. Most franchisees are able to break even after six months of operations. This can sometimes stretch to almost twelve months. In the case of a single franchise or a couple of franchise outlets, you earn a 10% royalty commission. A Delhivery franchise is considered to be more rewarding than its peers in the industry.
What Are the Various Steps to Start a Delhivery Franchise?
Given below are details on the different steps involved in starting a Delhivery franchise.
- Partner Program
After you familiarise yourself with the functioning of the organisation and its franchise operations, you can choose from two types of franchise options. These include the Cosmos and Constellation options. The Cosmos business model is a small-scale operations-based option. This is ideal when you are interested in catering to the requirements of a distinct area, e.g., a vast neighbourhood. It involves facilitating deliveries to the homes or offices, or even retail outlets within the boundaries of that neighbourhood. The costs involved depend on the city in which you are keen to start this type of franchise. It could start at ₹50 thousand and go up to ₹2 lakhs. The Constellation franchise model involves becoming an extension of the primary brand. The investment amount starts with a minimum of ₹2 lakhs and could stretch to about ₹5 lakhs.
- Application for the franchise
Once you have clarity on which program you are keen to get associated with, you should visit the official website of Delhivery, i.e., www.Delhivery.com. Once you log in, you have to click on the tab with the word ’partner’ on it. Select the program option. You will now be provided with a form that requires you to key in all your professional as well as personal details. Once you complete all the formalities, you should review the details and then submit the form. Within a matter of a few days from the date of applying, one of the authorised company personnel will connect with you. The person will discuss all requisite details, formalities, requirements and permissions that are necessary for setting up the franchise.
- Licenses and permissions
These are mandatory for every business operation. Some of the key requirements include a GST registration, VAT registration, as well as a Fire license.
- E-commerce agreements – this will detail the precise association with third-party logistics, which in this case is Delhivery. This serves as a legal document which states all the terms and conditions, as well as the payment rules. This serves to protect your part of the business and its operations.
- Promotional and marketing activities.
Despite the fact that you are undertaking a Delhivery franchise business, you will still need to create an awareness of your business. You can resort to various channels, both offline and online. Some of these include:
- Inserts in local newspapers which are circulated within that area.
- Setting up banners with important features of your business at other shops and retail outlets.
- Creating a business account on Facebook, an official Twitter handle, an official account on Instagram, as well as on Whatsapp and Telegram.
The contents of this article give you clarity on the various aspects of becoming a Delhivery franchisee. The company is financially well-supported by established and renowned brands, and that indicates stability and long-term growth as being a profitable franchise. The company incorporates technology in its entire operations which makes them fulfil its various commitments in a time-effective manner. The process of applying for a franchise is fairly simple, and once approved, you can start working speedily towards setting up the business. If you have always wanted to venture into the logistics industry, a Delhivery franchise makes for a worthwhile option. The investments are not too burdensome, but if you wish, you can also avail of loans. Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.