Jun 18, 2021

Mawazo Writing Africa

Writing about the main

From Zero to 100: Unique Business Model, COVID-19 and Competitors that Threaten Kwik Delivery

– Kwik Delivery founder Romain Poirot Lellig said the lack of competition will bring the logistics business in Nigeria to a standstill.

– The company plans to expand its business to more English-speaking countries in Africa.

– Lellig’s company is working with another company business model that Kwik has positioned for rapid growth in two years

The Nigerian business landscape is one of the toughest places to operate as a startup and Kwik Delivery collaborates with founder Romain Poirot Lellig is one of the businesspeople who cracked the code on scaling for growth / p>

The company started operating on Nigeria’s last mile exactly two years ago, exactly in June 2019, but it already has over 50,000 companies offering logistics services. Kwik has created a niche for itself by positioning itself between delivery agents and B2B customers.

Competitors are good for the Kwik business

This strategy has it one Place among them brought in the fastest growing startups in Nigeria’s last mile market. To keep the market firmer, Kwik recently raised $ 1.7 million in an African N250 billion supply chain market center in 2018.

That Additional money raised reflects investors’ confidence in the longevity of Kwik in a market consisting of Jumia Delivery, Kobo360, DHL, Africa Courier Express and Gokada.

“A business without competitors is a dead business. Do anyway We do a lot First. As I mentioned, we’re a technology-driven company. The value we create is based on data, processes and technology, not asset leasing or financial services.

” It’s a long game. Second, we are a B2B-centric company that enables companies to reduce their capitalization and grow their business by streamlining their logistics operations. “He said.

The company is accelerating its competitiveness against FedEx by providing a better delivery time compared to the giant.

” The uptime from FedEx is up expressed in days in different states or countries. Kwik’s timescale is given in hours and minutes in a city. “

Kwik delivers a different business model than market competitors.

Kwik’s business model is one of a kind compared to its competitors. Lellig explained how the company works: < / p>

“We don’t have any vehicles; We don’t employ drivers: we provide tools to support e-commerce retailers and delivery drivers alike, and we make sure that all actors adhere to the rules of the platform. To quote Lawrence Lessig: “Code is law”. This means that we are the organizer, innovator and promoter of the last mile market. Once a market is organized through technology, it can encourage tight integration, which can lead to economies of scale and growth for all parties involved. “

This seems to work for the company, considering the number of customers in its portfolio. Kwik’s operation is powered by the so-called Big Four of e-commerce technologies WooCommerce, Shopify, Prestashop and Magento supported.

“This means that it is you. As a retailer in Abuja with a WooCommerce website or a wholesaler in Surulere with a Magento B2B platform, you can enjoy the groundbreaking last mile Integrate the Kwik Delivery service into your online shop in just a few minutes and at zero cost.

“We recently opened our platform to vans and trucks as well and we have many more innovations that will be introduced soon.” he said Legit.ng

Overcoming challenges by complying with local laws

It’s easy for Lellig to stick to that too keep rules and there will be no bumps on the road:

“The drivers on our platform faced limited challenges as the Kwik Delivery platform puts strict enforcement of local rules first.

“Bicycles under 200 cc have never been allowed on the platform and we have worked under a nationwide NIPOST license from the start. You can be innovative and stay on the good side of the law at the same time. “

Although he described the price of the data bundle as an albatross for the growth of the digital market, the Kwik

” I had a discussion with Vice President Osibanjo im said last year that some issues need to be addressed in order for Nigeria to become the digital giant it deserves.

“One of them is the price of data bundles in the country, which makes no sense (they are more expensive than in France) and which is a clear hurdle for a large digital market in Nigeria.”

COVID-19 as a wake-up call

He said the pandemic has opened the eyes of several sectors to the digital transformation. He mentioned that banks and industrial companies had a wake-up call.

“I think it was a wake-up call for all economic actors in Nigeria, from banks to retailers to industrial companies. The Nigerian economy is currently running and is a great opportunity and will have significant benefits for the population. “

Lellig addresses the profitability of the last mile business

Lellig was not directly convinced how the delivery business is profitable, but he said the space offers value-added services.

The market that should be worth N250 billion in 2018 will double, but that will, according to Lelligs Forecast for the next 20 years.

“Logistics all over the world is a volume business. But the value of last-mile is phenomenal for any major international player looking to enter the Nigerian market that g Largest and Most Diverse Market in Africa o Doubling in size over the next 20 years.

“I’d like to add that, given the very fragmented nature of Nigerian retail, there are hundreds of value-added services that can be brought to the population through last mile deliveries,” Lellig explained.

For him, the last mile sector in Nigeria plays an important role in the restructuring and growth of the Nigerian economy as COVID-19 made it clear. He said streamlining logistics operations is a key priority for all Nigerian companies, based on his experience during the pandemic, there are tremendous opportunities that Nigeria’s policymakers can use to transform Nigeria into a digital giant – but not without affordable internet .

He proposed efficient digital key management practices to be a plus for the industry.

Kwik plans to enter more markets

It is believed that a company that can thrive in Nigeria can survive anywhere, so it’s no surprise that Kwik is positioning itself to spread its tentacles across the country.

On the company’s plan with the recently raised funds, Lellig said

“Our plan is to continue innovating in Lagos and other cities and continue to e.g. u grow. We have barely scratched the surface of Lagos, where 500,000 last mile deliveries are made every day. “

He added separately:

” Kwik’s mission is to serve in every African city with at least 2 million inhabitants. So that should tell you what we’re up to. For obvious reasons, we’ll focus on English-speaking African cities first. “