So you’re interested in learning how to start a delivery service? That’s fantastic! It’s not a bad idea, because we already know that Covid-19 is driving up demand for home logistics delivery services. That being said, there is a right way and a wrong way to start a delivery or courier service company.
This is the first in a series of articles on how to start your own delivery service business. In this part, we’ll look at how a business owner should conduct a competitive analysis. This would be immensely beneficial to any new small business that needs to ensure that its business strategy is effective, that it attracts potential buyers, and that it eventually succeeds. Let’s get started!
Table of Contents
- What is Competitive Analysis?
- Why is it necessary for a delivery company to conduct a competitive analysis?
- What are the Benefits of a Competitive Analysis for Businesses?
- What Should be in a Competitive Analysis?
- What is the best way to do a competitive analysis for a delivery company?
- Frequently Asked Questions (FAQs)
- Final Thoughts
What is Competitive Analysis?

We’re EasyRoutes, and we’re in the business of providing you with amazing route planning technology for your company. We want our users to succeed as well, which is why we’ve included this guide. So let’s get this party started!
What is the concept of competitive analysis?
A competitive analysis is a method in which a courier company owner examines all of the competition in their market area as well as the business community. The goal of a competitive analysis is to gather data, knowledge, and actionable insight in order to build a successful company.
Local courier services, as well as the disruption caused by major distribution companies such as Amazon Flex, Amazon Prime, and Uber Eats, can all be studied.
What kinds of data are analyzed?
Customers are important to business owners, and they want to make sure they know everything there is to know about them. The industry, customers, business structure, product, client needs, strengths, weaknesses, and much more are all factors to consider.
There’s also insurance policy review and background checks, state licenses, promotional strategies, startup expenses, company insurance policies, freight insurance, and so on.
What should be analyzed in the delivery service space?
- What should be looked at in the distribution service?
- The issues in terms of a delivery service or courier service are as follows:
- In the service area, who makes deliveries?
- Do large corporations have their own delivery divisions or do they rely on third-party delivery services?
- What are the various courier services available?
- Do they primarily distribute food or other packages?
- What are the limits of their delivery?
- How many clients do these businesses have? Discover their exclusive customer service techniques.
- OperationsΒ (equipment, delivery vehicles, etc.).
In short, you want to extract as much valuable information from your rivals as possible. You want to know more about them, including their tactics, weaknesses, strengths, product ranges, and go-to-market strategy.
Why is it necessary for a delivery company to conduct a competitive analysis?

There is no need for us to take any action. It is, however, the prudent thing to do! Any company that wants to be successful would want to participate in one. You may want to do one for a variety of reasons.
- Awareness of the business marketplace: Recognize the other businesses in your region, determine which ones seem to be doing the best, and estimate the size of their operations.
- Service offering understanding: A competitive analysis can help you understand what resources consumers have to choose from. Is it quick? Are the deliveries made locally? Is it possible to have a delivery on the same day? Is it true that deliveries are specialized in some way? And so on.
- Customer comprehension: Understanding the various types of consumers or users who may choose to use delivery services is essential. There are always “segments” or “niches” of users. You can build a variety of customer avatars using these. In our article on customer discovery, we go through this subject in greater depth.
What are the Benefits of a Competitive Analysis for Businesses?

There are several advantages to conducting a competitive analysis; but, in general, it will result in the following advantages or outcomes:
- Business preparedness: If you’re launching a new small business delivery service, you’ll want to be as organized as possible.
- Customer Acquisition Made Easier: A competitive analysis can help you identify new customers and transform them into loyal customers, allowing you to expand your customer base.
- Time and money are saved: When one is well equipped with reliable business knowledge, all of one’s most valuable resources β time and money β are better utilized.
- More opportunities for business success: In the end, this is what matters; as we all know, approximately 80% of small businesses fail within the first year, so you want to make sure your delivery service and small business succeed.
What Should be in a Competitive Analysis?

Here are the parts and information you’ll need:
Company Background and Experience
- Company or business name
- Boss or Exec name
- Website
- Social Media Platforms and Content
- Facebook page
- Founded (year)
- Number of human resources (employees)
- Estimate # of customers
- Vehicle, car, pickup truck, box truck. and equipment inventory
- Other admin info β liability insurance, business license
Product Intelligence
- What services are they providing?
- How much are they charging for each type of service?
- Strength of their product (what can you copy?)
- Weakness in their product (what can you exploit?)
- What are the logistics requirement?
Customer Intelligence
- Who are the primary users of their service?
- Who are they targeting in their marketing?
- What message do they use?
- Do they have ads? Loyalty Program?
- What experience do users have with them?
- What are their requirements?
Go-To-Market Strategy
- How are they finding clients?
- What ultimately sets them apart?
- Why do customers choose them?
What is the best way to do a competitive analysis for a delivery company?

Okay, no more wasting time! Let’s get this party started! Here’s a step-by-step guide to help you!
Step 1: Create a spreadsheet to track your research
- Create an excel sheet
- In the column headers add competitor 1, competitor 2, etc.
- In the rows, add all the types of info listed above
Step 2: Do your research
Begin by conducting a Google search for all of your local competitors. Add any relevant information you can find, such as their name, the car or cargo van they drive, demand, the area they cover, supplies, food delivery, phone number, and so on.
Fill out the spreadsheet with all of this information.
Step 3: Talk to others
Return to your roots. Take to the streets. Make contact with others. If at all possible, locate current customers. Alternatively, speak with your relatives and neighbors. See what they have to say about some of the players based on their experience with them.
This should be added to your master spreadsheet.
Step 4: Repeat until you feel you have a good understanding of the whole picture
Continue in this manner until you have a thorough understanding of your area and the type of clientele you wish to represent.
Step 5: Profit
Hopefully! π€
Frequently Asked Questions (FAQs)

Is it a good idea to start a delivery service business?
This is a personal question that needs a personal response. In short, there is a lot of demand for delivery services, so if this is anything you’re interested in, you can investigate it further.
What steps do I need to take to start my own delivery service?
It is strongly advised that you begin by considering your objectives and intentions. The next field to concentrate on is research: business owners should look at services, competition, and everything else that might contribute to a profitable service offering. Following that, a new company should always make a strategy. Finally, business owners may begin marketing their products or services.
Final Thoughts
In conclusion, we hope you find this blog useful. We want you to be prosperous in your endeavours. It’s never easy to start a company, so any assistance is always welcome. Please let us know if we can assist you in any way. If not, enjoy your deliveries!