Business idea - delivery drivers
Discussion
I know quite a few people who own restaurants and take aways and one common problem is lack of delivery drivers.
I suspect one the main reasons is that demand is usually on the weekends and its not very well paid when you factor in its usually cash in hand and you pay your own transport costs. It appears for many it is a 'top up' job or a job on the side.
I was thinking of setting up a 'delivery driver recruitment agency' - the idea being I have certain people on the books who I can call if a take away needs a driver. I place them and skim a bit off the top. It would be very much a 'when needed' approach like a temp recruitment agency rather than a permanent recruitment agency.
I am not expecting to make millions but if you had a few people on everyday and you were even making £10 off each it may add up to a hundred or two a week.
I have worked out that the going rate around here is around £10 an hour. Either £7 an hour with £1 a delivery or £10 straight up. drivers are employed usually between 4 or 5 hours on average it seems.
So lets say £50 a shift at £10 an hour for 5 hours.
Just to be clear, I am NOT competing with Deliveroo per se. The feedback I have is that traditional take aways that always did delivery only use Deliveroo because they have to and they prefer to retain their own delivery driver to use instead of a Deliveroo provided driver where possible as it costs them more money to use Deliveroo. Deliveroo only seems handy for those that never did deliveries/don't want to employ drivers or takeaways who have no drivers available.... So I think the 2 can coexist until maybe in a few years delivery dominate everything or implode.
I have a couple of problems though
Firstly, I would need to charge a driver out at say £15 an hour in order to make it worthwhile for the driver to work for me and to make any money off the driver. So say a £50 5 hour shift for a normal employee - would cost the take away say £75 to use my driver. But bearing in mind this is 'emergency use'. Off that the driver may get £65 and I get £10. So not much in it. But the £75 may be too much for any take away to want to pay. Part of the problem is the length of the shifts doesn't leave much room for play.
Secondly, I have to stop the take aways nicking my drivers. The only incentive would be to pay my drivers more - but the thought of permanent work over earning an extra £10/£20 on a shift with me may tempt some away if they can get regular work.
My thinking is that even if I had 5 or 6 drivers, if I was earning £10-20 each time I placed them then its all good.
There is scope to expand as there are hundreds of take aways out there over a wider area.
The other idea I had was offering drivers when a restaurant is busy 9i.e for a limited period) - so if they need someone to do a couple of deliveries they can call us in. The problem is that Deliveroo charge a % and can do so because they know the value of the order. For me it would really have to be a fixed fee which may not make it worthwhile for the driver or for the take away so not sure. Maybe require them to pay an hourly rate regardless of how many deliveries done.
This would not be my main income/job.
I did come across this which looks similar but also a bit dead https://one-delivery.co.uk/
Note - my idea is ONLY to do with delivery - nothing to do with supply or getting involved in marketing of the actual food.
Any thoughts?
I suspect one the main reasons is that demand is usually on the weekends and its not very well paid when you factor in its usually cash in hand and you pay your own transport costs. It appears for many it is a 'top up' job or a job on the side.
I was thinking of setting up a 'delivery driver recruitment agency' - the idea being I have certain people on the books who I can call if a take away needs a driver. I place them and skim a bit off the top. It would be very much a 'when needed' approach like a temp recruitment agency rather than a permanent recruitment agency.
I am not expecting to make millions but if you had a few people on everyday and you were even making £10 off each it may add up to a hundred or two a week.
I have worked out that the going rate around here is around £10 an hour. Either £7 an hour with £1 a delivery or £10 straight up. drivers are employed usually between 4 or 5 hours on average it seems.
So lets say £50 a shift at £10 an hour for 5 hours.
Just to be clear, I am NOT competing with Deliveroo per se. The feedback I have is that traditional take aways that always did delivery only use Deliveroo because they have to and they prefer to retain their own delivery driver to use instead of a Deliveroo provided driver where possible as it costs them more money to use Deliveroo. Deliveroo only seems handy for those that never did deliveries/don't want to employ drivers or takeaways who have no drivers available.... So I think the 2 can coexist until maybe in a few years delivery dominate everything or implode.
I have a couple of problems though
Firstly, I would need to charge a driver out at say £15 an hour in order to make it worthwhile for the driver to work for me and to make any money off the driver. So say a £50 5 hour shift for a normal employee - would cost the take away say £75 to use my driver. But bearing in mind this is 'emergency use'. Off that the driver may get £65 and I get £10. So not much in it. But the £75 may be too much for any take away to want to pay. Part of the problem is the length of the shifts doesn't leave much room for play.
Secondly, I have to stop the take aways nicking my drivers. The only incentive would be to pay my drivers more - but the thought of permanent work over earning an extra £10/£20 on a shift with me may tempt some away if they can get regular work.
My thinking is that even if I had 5 or 6 drivers, if I was earning £10-20 each time I placed them then its all good.
There is scope to expand as there are hundreds of take aways out there over a wider area.
The other idea I had was offering drivers when a restaurant is busy 9i.e for a limited period) - so if they need someone to do a couple of deliveries they can call us in. The problem is that Deliveroo charge a % and can do so because they know the value of the order. For me it would really have to be a fixed fee which may not make it worthwhile for the driver or for the take away so not sure. Maybe require them to pay an hourly rate regardless of how many deliveries done.
This would not be my main income/job.
I did come across this which looks similar but also a bit dead https://one-delivery.co.uk/
Note - my idea is ONLY to do with delivery - nothing to do with supply or getting involved in marketing of the actual food.
Any thoughts?
Edited by Mojooo on Wednesday 30th June 04:33
I don't like peeing on people's ideas and you've clearly put some effort into this but.....
If there's drivers available then unless you are offering them to restaurants at a lower price, the restaurants will hire them directly.
If drivers are thin on the ground then you have the same problem as the restaurant.
And don't forget that most of what drivers earn is through tips. I have a friend and his wife who deliver for a local Thai place. They've been doing it for years. They do Thursdays through to Saturdays and get more in tips than they do in wages. They'll do 6 drops an hour and average a fiver tip per drop. So between them, working three hours a night for three nights a week, they're brining in over £600 a week - £2.4k a month.
So by the time you factor in all the costs of starting up and running the business and taking into account all the risks, I'd say that you'd make more money as a delivery driver.
But if you believe in it, go for it but go carefully.
Mojooo said:
one common problem is lack of delivery drivers.
I can't see anything in your proposition that would overcome this problem. I sort of understand the idea of creating a 'pool' of drivers from which you can assign to demand but you have to fill that pool in the first place.If there's drivers available then unless you are offering them to restaurants at a lower price, the restaurants will hire them directly.
If drivers are thin on the ground then you have the same problem as the restaurant.
And don't forget that most of what drivers earn is through tips. I have a friend and his wife who deliver for a local Thai place. They've been doing it for years. They do Thursdays through to Saturdays and get more in tips than they do in wages. They'll do 6 drops an hour and average a fiver tip per drop. So between them, working three hours a night for three nights a week, they're brining in over £600 a week - £2.4k a month.
So by the time you factor in all the costs of starting up and running the business and taking into account all the risks, I'd say that you'd make more money as a delivery driver.
But if you believe in it, go for it but go carefully.
IMO, you still haven't solved the problem of where you're going to source drivers from.
If takeaways can't source them now, what makes you think you can?
You seem to be thinking that this is 'emergency' cover so businesses will pay more and you can afford to pay more and attract drivers with permanent work. I don't think that will work......this is low paid, casual work - drivers aren't interested in permanent employment or suchlike - they just want the most cash they can get.
Are you in recruitment now?
Do you have contacts with a ready supply of drivers?
On the plus side, you'll have low overheads so won't lose much by giving it a go.
If takeaways can't source them now, what makes you think you can?
You seem to be thinking that this is 'emergency' cover so businesses will pay more and you can afford to pay more and attract drivers with permanent work. I don't think that will work......this is low paid, casual work - drivers aren't interested in permanent employment or suchlike - they just want the most cash they can get.
Are you in recruitment now?
Do you have contacts with a ready supply of drivers?
On the plus side, you'll have low overheads so won't lose much by giving it a go.
All drivers would be self employed
Feedback I have been getting is tips are not so great since covid but the drivers can keep their tips.
The issue is a lack of drivers but also just getting them at SHORT NOTICE - the initial idea is that they have my number and call in an emergency
In theory I would then find someone to do it if I can.
Feedback I have been getting is tips are not so great since covid but the drivers can keep their tips.
The issue is a lack of drivers but also just getting them at SHORT NOTICE - the initial idea is that they have my number and call in an emergency
In theory I would then find someone to do it if I can.
1. Why would the drivers work for you if you can't guarantee a reasonable amount of work? The model only works if you have 'spare' drivers able to go to work at short notice, which suggests that fairly often they won't be working
2. Flip side of this, if you don't have good availability of drivers when restaurants call, why will they call you?
Plus, it really is a decent amount of work, unless you automate it with an app. Essentially you are acting as a dispatcher. You need to be on call for x hours a day, in case staff are required. And when the call comes in for help, you then have to call around your team of drivers, to find one that isn't down the pub, or decided to watch the football, or has taken a job at McDonald's but forgot to tell you.
2. Flip side of this, if you don't have good availability of drivers when restaurants call, why will they call you?
Plus, it really is a decent amount of work, unless you automate it with an app. Essentially you are acting as a dispatcher. You need to be on call for x hours a day, in case staff are required. And when the call comes in for help, you then have to call around your team of drivers, to find one that isn't down the pub, or decided to watch the football, or has taken a job at McDonald's but forgot to tell you.
Mojooo said:
All drivers would be self employed
My former business partner owned an executive ground transport business that operated on the same basis. The only difference being that they delivered wealthy people to airports, offices and their homes, not a kung-po and special fried rice to number 46.Here's the issue you have.
What you are seeking to do is essentially formalise what at present is a largely informal type of business. Most drivers are doing deliveries to top up pensions, wages or benefits. And it's mostly off-book.
You will have a legal obligation to ensure that each driver is properly self employed, that their credentials are in order, insured, etc.. That takes time and resource.
Plus, as you've identified, drivers are in short supply and the need to adhere to all these compliance issues will only seek to create a barrier to entry for those that might otherwise be interested.
And for the service to be attractive to a restaurant owner, they would need to pay you less or at least the same as they would a driver directly but you would incur a cost higher than that to attract the number of drivers you need.
It's difficult to see where the value proposition is in your model.
Countdown said:
Just remembered - I know some local takeaways will use a local private hire firm if/when they get busy. It's a win-win for both, the drivers aren't sitting around doing nothing, the Takeaway isn't employing more drivers than it needs to.
That is something I have picked up on. Although its usually taxi drivers filling in because they are quiet because of covid etc.I spose the issue is would they prefer to scout around looking for drivers on a Thursday evening or do they want to have a number that they can call that may solve it.
I think there may be enough people out there who just want casual work as and when.
The real difficulty for me is whether a take away will pay the premium and whether there is enough money in it.
Mojooo said:
All drivers would be self employed
Feedback I have been getting is tips are not so great since covid but the drivers can keep their tips.
The issue is a lack of drivers but also just getting them at SHORT NOTICE - the initial idea is that they have my number and call in an emergency
In theory I would then find someone to do it if I can.
How will you find drivers and how will you get them at short notice?Feedback I have been getting is tips are not so great since covid but the drivers can keep their tips.
The issue is a lack of drivers but also just getting them at SHORT NOTICE - the initial idea is that they have my number and call in an emergency
In theory I would then find someone to do it if I can.
You need to be able to deliver the service, not just 'try' or get a driver 'if you can'. If a business calls you looking for a driver and you can't provide one, they will not call again.
It appears to me that you are trying to make a profit from something that is at the low end of the job market. Why would takeaways pay you £15/hour when they can get it cheaper by going direct? Also if you are providing the work to the drivers HMRC is likely going to look at them as employees therefore you will be their employer from the HMRC point of view with all the extra costs that incurs such as NI, sick pay, holiday pay, pensions etc.
My view is sadly that you are on a hiding to nothing.
My view is sadly that you are on a hiding to nothing.
Muzzer79 said:
Mojooo said:
All drivers would be self employed
Feedback I have been getting is tips are not so great since covid but the drivers can keep their tips.
The issue is a lack of drivers but also just getting them at SHORT NOTICE - the initial idea is that they have my number and call in an emergency
In theory I would then find someone to do it if I can.
How will you find drivers and how will you get them at short notice?Feedback I have been getting is tips are not so great since covid but the drivers can keep their tips.
The issue is a lack of drivers but also just getting them at SHORT NOTICE - the initial idea is that they have my number and call in an emergency
In theory I would then find someone to do it if I can.
You need to be able to deliver the service, not just 'try' or get a driver 'if you can'. If a business calls you looking for a driver and you can't provide one, they will not call again.
MustangGT said:
It appears to me that you are trying to make a profit from something that is at the low end of the job market. Why would takeaways pay you £15/hour when they can get it cheaper by going direct? Also if you are providing the work to the drivers HMRC is likely going to look at them as employees therefore you will be their employer from the HMRC point of view with all the extra costs that incurs such as NI, sick pay, holiday pay, pensions etc.
My view is sadly that you are on a hiding to nothing.
That is one of the questions I am unsure of and would need to do some researchMy view is sadly that you are on a hiding to nothing.
I have been pulled in once to do delivery once for a family friend when they had no one else. i am not sure how often that problem occurs.
as mentioned my general feel from people i know is that getting drivers can be hard but these people are not trying to recruit them in am ore mass/organised way - they are just looking around mates and people they know.
Mojooo said:
Countdown said:
Just remembered - I know some local takeaways will use a local private hire firm if/when they get busy. It's a win-win for both, the drivers aren't sitting around doing nothing, the Takeaway isn't employing more drivers than it needs to.
That is something I have picked up on. Although its usually taxi drivers filling in because they are quiet because of covid etc.I spose the issue is would they prefer to scout around looking for drivers on a Thursday evening or do they want to have a number that they can call that may solve it.
I think there may be enough people out there who just want casual work as and when.
The real difficulty for me is whether a take away will pay the premium and whether there is enough money in it.
I don't want to sound like a buzzkill but I have family members in this line of work so I know it quite well and lack of drivers is a minor PITA, not a major one. The one I know well has 2 cars doing deliveries on most days using staff on a fixed day rate and then tops up with self employed drivers at the weekends who get a similar day rate plus a "per delivery" fee to cover the costs of running their own car
Mojooo said:
Muzzer79 said:
Mojooo said:
All drivers would be self employed
Feedback I have been getting is tips are not so great since covid but the drivers can keep their tips.
The issue is a lack of drivers but also just getting them at SHORT NOTICE - the initial idea is that they have my number and call in an emergency
In theory I would then find someone to do it if I can.
How will you find drivers and how will you get them at short notice?Feedback I have been getting is tips are not so great since covid but the drivers can keep their tips.
The issue is a lack of drivers but also just getting them at SHORT NOTICE - the initial idea is that they have my number and call in an emergency
In theory I would then find someone to do it if I can.
You need to be able to deliver the service, not just 'try' or get a driver 'if you can'. If a business calls you looking for a driver and you can't provide one, they will not call again.
That's not what you're suggesting. What you've described is an agency for takeaway delivery drivers which is an entirely different model and still boils down to a) how you will find drivers and sign them up - given that most of those willing and able are most likely already working as a driver - and b) offer them out at a profitable rate?
Dr Interceptor said:
I use a local agency for van drivers for same day deliveries. Every time a van driver turns up to do a job that I've booked through the agency, they give me 'their' card and say "next time just call me directly, I'll do you a better deal".
I can't that being any different for you OP.
Yes the only way i can try and negate this is to offer a premium on the basis the take away pays a premium for an 'emergency driver'.I can't that being any different for you OP.
And also maybe those that don't actually want regular work every friday and happy to work for an agency as and when?
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