How to Start a Bike Logistics Business in Nigeria

If you want to learn how to start a lucrative bike logistics business in Nigeria, you are on the right page. 

In this post, you will have all the necessary information on how to start a profitable bike logistics business in Nigeria. 

A bike logistics business can be your sure way to fortune if you run the business the right way. Businesses that make money on a daily basis are very profitable and worthy of diving in. 

The bike logistics business has been around for a while in Nigeria, but few players are into it because of the market size and lack of knowledge about the business. Also, Nigerians don’t like to go into business when they don’t see people succeeding in it. It’s in our nature. 

COVID-19 forces us to rethink many things. And one of them is trading. To curb the spread of the viral disease, a lockdown was imposed. Only essential workers were allowed to go to work. 

Public places like malls, eateries, clubs are closed to limit physical human interactions. People began to shop online like never before. Even the people who are sceptical about buying things online changed their minds when there were no other options. Online shopping skyrocketed. Since then, things have not remained the same. People now buy anything online. 

Now, even brick-and-mortar businesses are beginning to sell online to reach more customers. Online shopping cannot be completed without good delivery services. The rise in online shopping makes the bike logistics business more lucrative in Nigeria. Who sells things online without delivering them? Very few. 

Let me back the profitability of this business with data. As one of the fastest-growing industries in Nigeria, as of 2018, the value of Nigeria’s logistics sector was estimated to be 250billion naira, a rise of 50billion naira from the 2017 figure, according to the 2018 Logistics and Supply Chain Industry report as reported by Vanguard. 

Generally speaking, the interesting thing about the logistics business in Nigeria is it’s still a mess. Mess in terms of service delivery. If you can provide good service to meet people’s needs, you can beat any company and become one of the top players in the industry. 

The players are not meeting up with the demand in terms of innovation and service delivery. Tolaram Group, the manufacturer of Indomie noodles, relied on the service of logistics companies to deliver their products to distributors throughout Nigeria when they started. Many disappointments and problems made Tolaram Group built a new logistics company themselves to solve the problems coming from the third-party logistics service providers. 

Printivo relied on logistics companies to deliver products to customers when they began running their company. They had to later set up their own logistics department to ensure that printed items get delivered to customers on time. 

K Express is owned and operated by Konga. The company used to be a department in Konga. When they saw the boom, they had to separate it from Konga to stand on its own as a company. 

As the headline reads and without wasting your time and attention, let’s dive in:

How do bike logistics businesses make money in Nigeria

Bike logistics businesses make money in Nigeria by charging customers per delivery carried out. They charged based on the distance and weight of the package/parcel they deliver for customers. 

For instance: In Lagos Mainland, bike logistics businesses charge N1, 000 averagely. Even in the mainland, some businesses charge N1, 500, N2, 500 to deliver an item. It all depends on the weight of the package and the distance. They charge N500 flat to deliver an item within an area. For instance: to deliver a package from one part of Ojota to another part is N500.

The number of customers and the bike you have determine how much your business can record in revenue in a day. A bike can do more than 20 deliveries on a busy day. When you do your proper calculations, you’ll see your potential revenue. 

Step by step guide on how to start a bike logistics business in Nigeria 

  • Have a business plan 

The first step to take to get the business idea off the ground is to have a bike logistics business plan in place. As it’s not advisable to run a bike logistics business in Nigeria without having a plan in place. 

A business plan guides you on what to do and what not to and how to ensure that your desired result is realized. 

A good business plan identifies the goals of the business, offers evidence that the goals are achievable, documents the core principle that will lead to success, and establishes a high level of milestones of achievement that can be used to verify that the plan is working. 

One of the misconceptions about having a business plan when starting out is the plan has to be big. And which is not true. Your bike logistics business plan can be a one-page plan

Many businesses fail in Africa and Nigeria every year mostly because of a lack of business plan. The bike logistics business can crumble easily without a plan. Give your business direction by having a plan in place. 

  • Purchase bike(s) for the business

Once you pass the phase of the business plan, the next step now is purchasing bike(s) for the business. 

The 200 CC engine bike is the lowest bike you can use to run the business. In fact, this is what most businesses use in Nigeria because of fuel efficiency. 

There are different kinds of brands in the market. Qlink, Daylong, Bajaj are some of the good brands you can go with. 

You can start a bike logistics business in Nigeria with a minimum of one bike, and add more to it later on as the business is growing. For people who have no prior experience in the business, this is a good path to follow. You learn along the way and the failure will be minimal. 

  • Register your business 

To run a standard bike logistics business in Nigeria, the registration of your company name must be done with the Corporate Affairs Commission. To provide courier services in Nigeria, you need to get NIPOST License. And NIPOST doesn’t give the courier license to individuals. You must do at least business name registration. 

Only a business name is enough to start with. You can upgrade to Limited Liability later on when the business grows; or when you want to bring in investors; or you want to expand to become a full-fledged logistics company in Nigeria. 

The Corporate Affairs Commission has now made it easy for everyone to register business names on e-portal. However, to avoid errors that cannot be corrected, you should consider hiring an expert or company to handle the registration. It doesn’t cost a fortune. 

In Lagos, you see people around the Corporate Affairs Commission who offer business registration service to individuals who don’t know how to. If you want to hire any of them, go with somebody who has an office around there, not a hawker. Why? A hawker may produce a fake company certificate for you and disappear into thin air. 

Customers do take registered businesses more seriously than unregistered ones. When you have your company name registered for inception, you build your brand and engrave it in the minds of people with good service delivery.

 In Lagos, it’s a common thing to see touts harassing unbranded bikes. You are free from these embarrassments when your company is registered and you have all the necessary papers. 

  • Get all the necessary papers for your bike

You need to register your bike and get some licenses to run a bike logistics business in Nigeria. Some papers are issued by VIO; some are issued by the Local government; some by the State government. And another by NIPOST. 

There are people whose job is to help people to register bikes and get necessary documents in Nigeria. Ask around for recommendations from friends and family.

Some papers are to be renewed every six-month; while you do some once a year. It’s good to know the government agency regulating any industry you are playing in. NIPOST is the government agency regulating the courier and logistics service industry in Nigeria. Once you pass this phase, your business is almost ready. 

  • Employ riders for your business

This is an extremely serious step and you must not take it lightly. Not that it’s more important than the previous ones but taking this stop wrongly can kill your business quickly. 

Good riders are good for the business; bad riders are bad for the business. 

I have seen riders crumble the bike logistics business in Nigeria for many business owners. The mode of payment is usually the problem. It’s difficult to satisfy and manage dispatch riders in this part of the world. 

The solution is a serious discussion with the riders before employment and reaching an agreement on what payment method to utilize. 

Business owners pay their riders salaries and commissions. They earn a fixed amount of money as salary every month. They get commissions based on how busy they are. 

The bike logistics companies in Nigeria also based their payment strictly on a commission system—no salary. They split the daily revenue into three: ⅓ to the rider, ⅓ to the company, and ⅓ for the maintenance and fueling of the bike. They put everything on record and by the end of the month or every two-week, the rider gets paid.

This payment method is a win-win for the rider and the company—no cheating. It motivates serious riders to work hard and earn big pay. Unlike the salary payment method where no matter how the rider works, the salary remains the same. 

Invest your time and energy to hire good riders and don’t be greedy with payment methods. Riders love businesses that take good care of them. Be a good human being. Be patient with your riders for your business to record success. 

  • Market your business

Business owners should not take marketing and sales lightly. And the bike logistics business is not left out. Market your brand and services to your potential customers.

 If you think well, there are so many things to do to bring in customers to your business doorstep. Your business logo is your face to the world. Hire an expert or company to do it for you. 

Design fliers to share within your business environment. Go online to get more customers outside your neighbourhood. Brand your bike in a unique way to attract people. Tell family and friends about the business. Word-of-mouth marketing still delivers. So, use it. 

Wrapping things up

Now you have all the necessary information on how to start a bike logistics business in Nigeria. The next step is action, action, action. Don’t shortchange any step at all. 

This is a simple path to follow to record success in business in no time. The road is not smooth. I won’t lie to you. But it is worth plying the route. Don’t give up. 

As you’ve made up your mind to act with this simple information, I would really like to hear from you. 

Do you have contrary opinions or comments or suggestions to make? Leave them in the tab below. Have you ever been in the bike logistics business in Nigeria before? Kindly share your experience for the benefit of the public. 

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