Money Management
November 11, 2024
Delivery service is a booming business in Kenya that gained momentum from the onset of the COVID-19 pandemic. Individuals, entities and businesses relied on delivery services to bring documents, parcels, and goods to their destinations, minimising movements.
The business is accelerated by trends in technology, youthful population and increased disposable income from a Kenyan middle class growing at an average annual rate of 5%. As a delivery driver, you can choose to work on a full-time basis or part-time.
If you choose to work full-time, you can work for a delivery company, set up your own delivery outfit or use delivery apps.
The part-time job is based on hours or the number of days you can choose to work aside from your full-time job. This is one of the best options you could choose to create an extra income in addition to your 8-5 job, if you own a vehicle.
According to estimates, on taxi hailing apps such as Bolt and Uber, delivery drivers could make more up to Ksh100,000 per month. Those working with Jumia deliveries are estimated to be making between Ksh2,000 to Ksh3,000 per day.
The delivery job is mostly associated with motorcycle or bicycle riders due to their nimbleness in traffic and savings in fuel costs. If you own a motorbike or bicycle, this could be a great idea to create an extra income. In this article, you will learn about how to make extra money doing deliveries in 2022.
Delivery refers to taking things; letters, parcels, goods, foodstuffs etc. from one destination to another where they are required. There are two categories of delivery; online and traditional delivery.
Online delivery refers to taking goods ordered via e-commerce channels to the home or locations specified by the buyer. Online shopping gave rise to online delivery done by driver shoppers. These are drivers who complete orders done by customers by taking goods to their homes.
The traditional model of delivery includes sending letters, parcels and goods via traditional companies that deal in courier services.
According to the Fitch Solutions 2020 report, an increasing joint venture between delivery companies and retailers in Kenya and the increasing urban youthful population play a vital role in delivery service growth.
The report also cites technology and its emergent trends including mobile money services that have eased transactions between customers and delivery drivers.
Now, before we dwell much into how you could make money by offering delivery services, let's take you through what you need to become a delivery driver.
Earlier, you learnt that if you own a motorcycle or bicycle, you are better placed to become a delivery service provider. Either of them is an essential basis for a delivery driver, especially for short distances within a metropolis. Make sure you observe all riding rules.
Apart from a motorbike, a delivery driver should have;
A good phone that supports GPS location services will make your delivery services efficient and convenient. It will also aid in your communication between the delivery company and the customer. Some delivery companies require a rider to download an application, from which he gets the orders to deliver goods.
As a delivery driver, you should invest in the right equipment to gain a competitive edge. These include insulated delivery bags, cooler boxes, and stash like straws or serviettes in case you are delivering food.
You should also have a pen and sticky notes to keep your delivery schedule in order. Others include protective gear like disposable gloves and masks for health safety.
If you are using a bicycle or motorcycle, it is very important that you purchase all the protective gear from helmets to gloves, riding jacket and trousers to boots. You do not want to jeopardise your future earning potential by riding without protective gear.
As a delivery driver, you should create a good customer relationship with your clients. Make sure you counter-check orders for accuracy.
Perhaps you are asking yourself, how then will you make money after you have met these requirements. The next step you should take is to look for a delivery company or clients.
There are many delivery companies in Kenya, including Jumia, Uber, Bolt, Glovo and Take Eats Easy. These companies have different rates they pay riders.
According to Jackson, a Jumia delivery driver based in Nairobi that this writer spoke to, the company pays about Ksh100 per delivery and only pays an extra amount (variable pay) for trips more than 1km or outside Nairobi. He said it's up to the rider’s determination and speed to get more orders from the application.
“You should have a good phone and put notifications on so that you get alerted when a new order is placed. On average, within a day you can get 20 orders, meaning you can make around Ksh2,000,” says Jackson.
According to Payscale, the average salary for a delivery driver in Kenya is KSh 242,197 per year. On the other hand, Salary explorer places the monthly average salary at KSh 41,900 and KSh 57,300 for courier delivery drivers.
You could choose to work with these companies or as an independent driver. Working as an independent driver would require you to look for clients and customers like restaurants, offices and homes.
This is where working as an independent driver comes in. Remember you should put on all the required gear and have good communication and customer relations skills. These will give you a competitive edge and referrals from one customer to another.
Money254 talked to two independent riders in Nairobi to find out how much they make delivering within the CBD, areas around town and the city outskirts. They revealed a pay range of about Ksh200-300 per delivery within the city. Delivery to areas far from the city like Thika, Limuru, Ngon, Mlolongo, Ruai and Kikuyu, the riders charged around Ksh500 - 800.
The riders this writer spoke to operate their own delivery service business identified as ‘Urban Fastdrive Deliveries' and ‘Sally Deliveries’.
“The secret to this business is making customers satisfied. Keep your deliveries fast, efficient and convenient. That is when you will receive more orders from them,” says the owner of Sally Deliveries.
The Urban Fastdrive delivery operator said that, within a day, he makes an average of seven trips earning him around Ksh2,500 - 3,500.
Working as a delivery driver requires specialisation in one line. If you are open to delivering food, groceries, letters, parcels or general goods like clothes or furniture, specialising in one could give you a competitive edge.
According to Jumia Kenya Food Index Report 2020 released in October 2020, Nairobi leads among African cities in online food delivery. The survey estimated the average online food market in Kenya at Ksh1.8 billion, projecting the trend to continue up to Ksh3.8 billion by 2024. It also indicated that the country’s active online users of the service - at 2.1 million - would double by 2024.
“Home delivery from restaurants and supermarkets is growing fast as more consumers are choosing to order home or office,” reads the report in part.
A similar report released by Uber Eats in 2021 showed that grocery deliveries in Kenya continue to gain traction, accelerated by trends in technology, e-commerce and the post-COVID-19 economy.
According to the report, one customer ordered over Ksh33,509 worth of groceries within one day. There were a total of 4,889 grocery orders made within a day.
Therefore, choosing the right delivery line could define how many deliveries you will make within a day and how much money you could make from them.
These trends inform the booming market which has the potential for riders to make extra money. You could tap into these trends to achieve your dream of making an extra income from your day job - or pivot into making this a full-time engagement.
The delivery service is one of the traditional jobs that has been boosted by the adoption of mobile technology by Kenyans. Companies, businesses and entities have embraced e-commerce. Consumers order goods online and businesses look for delivery drivers to complete the transaction and the trend continues.
Tapping into this, especially if you already own a vehicle, could supplement your sources of income.
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