Franchising has emerged at a very fast pace in consumer services segment. Courier Service is one such sector where franchising is gaining grounds with lot of companies opting for franchise route for expansion. Explore the prospects of courier service fran
Courier service companies basically work around transportation of goods from one place to another, delivery of documents, packages, and larger shipments of products. These provide services to companies and individuals who need rapid service, accountability, and tracking that regular mail does not accommodate. Courier services are more reliable and dependable as compared to ordinary postal services due to less time consumed and delivery guarantee. However, with the introduction of modern gadgets and faster modes of transportation this system has also progressed a lot. Moreover, franchising is also one of the main stimulants of its popularity and profitability.
Franchising Courier Services
Franchising in this sector has grown with more and more players taking the franchise model for reaching out to far flung areas in the vast nation. Courier service companies are required to deliever important mails and parcels to any part, whether city, town or village in the country. Therefore, franchising can be the best mode for guaranteed delivery of the items. According to DS Patel, Channel Head, DTDC, “Franchising is an essential and most effective way of expanding the network. Opening our own company owned courier offices is very expensive and time consuming. However a franchise outlet is economically beneficial to the company.” As informed by Praveen Govindraj, Assistant General Manager, First Flight Courier, “Franchising definitely helps in directly reaching to far-fling areas for delivering items due to our local partners in those areas.” He further added, “Franchising can be a win-win situation for both the franchisor and franchisees as both benefit from it. The local partner (franchisee) has a much better idea of a particular locality than the main company which is based out of Delhi or Mumbai. Delivering parcels to small towns and cities becomes difficult and also take a lot of time if it is done by the company in metropolitan areas. At such times the local franchisee can be of great help.” This can be the major reason for courier companies to opt for the franchise route. Moreover, having local partners all over the nation, who deliver all items on time, also increases the credibility and profit making of the parent company.
Benefits for Aspirants
Courier service franchising offers tremendous scope for aspiring entrepreneurs who are looking for a viable way to establish their name in the entrepreneurial arena. Taking a franchise of a courier service company is an assured way of earning a regular income.
Courier services over regular postal services: The regular postal services have been taken over by the web arena with very few people sending postal mails and cards. However important official mails, documents and parcels are still sent by mail and for this courier service is the best way.
Partnering with a well-known brand: Customers would always prefer to send their important documents and parcels through a branded national company rather than from unbranded one. Being a franchisee of a well-known courier brand can easily fetch entrepreneurs’ good money and profits.
Low investment and start up: Aspiring entrepreneurs who are lacking in investment can also think of investing in a courier service company. Mostly these companies come under low-cost opportunities and do not require a huge initial investment.
Potential for expansion: The courier service is an ever-increasing sector with a space for more and more local partners to expand it further.
Degrees and qualification is not a hindrance: Entrepreneurs who are keen in investing in a courier service do not necessarily require many education degrees and other qualifications. Hard working individuals with a spirit to give timely deliveries to clients are the basic requirement.
Key Players in the Sector
Considering the benefits in the sector due to franchising many courier service players have entered the franchise arena. Few of the major players in the segment are discussed here. First Flight Courier, which started in 1986 provides courier services to all parts of the world. It presently owns 751 own offices across India, 522 associate offices, serving over 5000 destinations across India. The workforce of transportation services franchise is over 8000, which are located all around the globe.
Blue Dart Express, a part of DHL Express, has access to over 22,200 locations in India in addition to the global network of over 220 countries around the world.
Blazeflash Courier, founded in 1986 has a network, comprising of 290 own offices and more than 4200 franchises and 3535 destination all over India.
Overnite Express Limited, established in 1987 has more than 1800 franchise offices and serving over 800 destinations spread across the country.
As informed by Patel, “Investment by franchisees depends upon the type of city or town they want to set up their office. In DTDC we have four segments depending upon the city, as A B C and D category city. For metro city initial security deposit is of Rs One lakh, excluding the rental of the outlet, interiors, infrastructure needed. Therefore, an aspirant needs at least an investment of Rs 5 lakh.”
Word of Caution
The courier service franchising has many benefits for the aspirants but there is a word of caution also. Entrepreneurs looking for quick and short way of making money can have a hard time as courier franchising gives steady but low incomes. Therefore those aspirants who are keen on making a lot of money in less time should rethink about their decision to enter this field.
To conclude it can be said that there is no dearth of renowned players in this sector who can give a good platform to aspirants to climb the entrepreneurial ladder. Aspiring entrepreneurs will always be an added benefit to this wide field.