The on-demand delivery companies are starting businesses in Singapore. And they are changing the way people get their purchase deliveries.
According to GoGoVan’s country manager William Ban, their service deliveries only takes hours not days. With the onset of third party app providers, these companies are shaking up the way of delivering goods differently.
Helping businesses to deliver faster
Companies like GoGoVan are connecting customers with their freelance drivers through their web based and mobile apps. Their average delivery takes 2 hours. This is due to the fact that they do not need inventories and central storage systems like the traditional logistics companies. The goods are sent directly to customers resulting in faster deliveries.
Another company Lalamove said that more businesses are start to come on board. For Fion Tan, the company’s managing director, consumers and business users are not used to getting their deliveries immediately and that they are willing to pay more for a faster service.
Consumer reactions to on-demand deliveries
Channel News Asia spoke to consumers and they welcomed the idea. Consumers think the service is useful especially for bulk items. In contrast, some mentioned how delivery vehicles sometimes don’t have company logos which makes it difficult to identify its drivers. This is because third-party app providers don’t hire their own drivers. This results in concerns regarding liability when a delivery becomes awry.
GoGoVan and Lalamove’s solution
Both GoGoVan and LaLamove mentioned that there are strict review systems for drivers in place. These include having drivers sign the Personal Data Protection Act (PDPA) form, looking at their demerit points, conducting face to face interviews and in-app rating systems.
According to Tan, only drivers that pass the PDPA and demerit tests go through these trainings with Lalamove.
Ban mentioned that they don’t have issues banning drivers when incidents are severe since one negative experience can ruin the other drivers’ reputations too.
Ban also added that not hiring their own drivers reduces fixed costs and allows their company to scale.
For companies wanting to join these on-demand delivery market, Vimi is a solutions provider for creation of these web based and mobile apps.