How to Start a Delivery Business in Nigeria (And the Real Reasons Many Don’t Last)
In recent years, delivery services have become one of the fastest-growing businesses in Nigeria — especially in cities like Lagos, Warri, Port Harcourt, Abuja and Benin. With the rise of e-commerce, food vendors, and Instagram stores, the demand for reliable dispatch riders keeps increasing every day.
However, while many people rush into the business because of its daily cash flow potential, a lot of them don’t last beyond a few months. The major reason? Riders.
Yes, the rider issue has been the single biggest challenge behind the downfall of most dispatch delivery businesses. Let’s take a closer look at why this happens and the options available to anyone planning to start.
- Salary-Based Model
In this option, you hire a rider and pay them a fixed monthly salary.
At first glance, it sounds straightforward — you provide the bike, handle fueling and maintenance, and the rider delivers packages daily.
But here’s where the problem lies:
Once the rider leaves in the morning, you can’t monitor how many deliveries he actually completes.
He’ll account only for the jobs you gave him, even when customers call him directly for personal deliveries that you may never know about.
Unless you find a completely trustworthy person (which is rare), you’ll constantly battle with incomplete accountability. Meanwhile, you still shoulder the fueling, repairs, and monthly salary, regardless of how the rider performs.
2. Weekly Remittance Model (“Balance and Work” Option)
This second model is what many people call “Balance and Work”.
Here, you give the rider your delivery bike, and he remits an agreed amount every week.
You are not responsible for getting him customers — the rider finds his own clients and takes care of fueling, repairs, and maintenance.
The issue with this model is rider inconsistency.
Most riders tend to rough-handle the bike since it’s not theirs. They usually drop it the moment it develops a fault or whenever they find a “better offer.” You’re then left with a damaged bike and no rider.
3. Hire Purchase Model
This third option is considered the most sustainable among individuals running delivery setups independently.
In this model, you set up a delivery bike and give it to a rider on a hire purchase agreement. The rider remits a fixed weekly amount until the agreed total (ROI) is completed.
The beauty of this system is that the rider treats the bike with care, knowing that it will eventually become his once he finishes payment.
You also don’t have to source customers or handle maintenance — everything is on him.
And if he ever considers quitting, the thought of how much he has already remitted — and what remains to complete the ownership — keeps him committed.
How Heinrich Logistics Solves All These Problems
At Heinrich Logistics, we’ve built a system that completely absorbs investors from all the day-to-day struggles of managing a delivery business.
Here’s the 4 Simple Steps:
- You provide fund for the bike
- We Handle the Setup
- We Hire a Skilled Rider
- Then finally, you formalize your partnership by signing our service agreement protecting both the investor and the company.
You don’t have to worry about riders, maintenance, or finding customers.
Just plug in your bike and start earning stress-free.
Final Thoughts
Starting a delivery business in Nigeria can be highly profitable — but only if it’s managed the right way.
Instead of battling rider problems and unpredictable earnings, partner with Heinrich logistics or any logistics company that already has the structure, systems, and customers in place.
Heinrich Global Logistics Ltd
Website: https://heinrichlogistics.com
Email: info@heinrichlogistics.com
