Wednesday, December 7

Delivery companies record rise in orders during Christmas week

It’s Christmas week again, a period characterised with gift sharing and a lot of shopping activities. A major sight during this celebration is the movement of gift items in form of hampers, and other wrapped gifts from one destination to another.

Christmas is a period where people particularly show love and affection to their loved ones and families by giving out gifts and spending time with them. An act which symbolises the tributes made by the three wise men to baby Jesus after his birth, according to the Holy Bible.

However, with the reduction in movement caused by the pandemic, people are more inclined to send their gifts rather than travel personally to deliver these gift items. In the same vein, consumers who now adopt online shopping more also must rely on dispatch riders and delivery service companies to deliver their items to them.

As a result of the recent developments, delivery and logistic activities have recorded a significant uptick during this Christmas period compared to previous months and even more than the preceding year.

Christmas, a goldmine for delivery companies

This act of giving out gifts has transitioned into a major business opportunity for retailers involved in the sales of gift items, and by extension, delivery companies. Due to the restriction on movement, as a result of the covid-19 pandemic, delivery and logistic companies have sprung up in their numbers across the country, and particularly in metropolitan cities.

Delivery companies now play a major role in the economy of Nigeria, helping in bridging the affected supply chain by transporting items from retailers to their desired consumers. The Christmas celebration has proven to be a goldmine for delivery and logistics businesses, locally and internationally.

According to Adeola from Peacock Logistics, she explained that delivery business has witnessed significant boost during this period compared to previous months, with increased demand for the delivery of items both locally and internationally.

“Compared to previous months, a lot of customers have really trooped in for us to help them deliver various items both locally and internationally,” she said.

A major challenge however, that has been faced during this period according to her is the inability to meet some very short deadlines. She explained that some customers will bring in their items and would want it delivered in as fast as 2 hours, which has been a major task by the company and its riders, especially in a highly congested area like Lagos State. However, she opined that they have been able to manage those challenges and ensure their customers’ satisfaction at the end.

In a discussion with Mr. Kingsley, a dispatch rider operating in Lagos State, he confirmed that the delivery business is currently at its best due to the Christmas festivity. He added that, “I have had to deliver every day for the past one week both on the island and in the mainland, truthfully it is as if this should not come to an end.”

He also added that, the increased demand for delivery services, will help the infant sector grow significantly as the adoption and trust for the service continue to grow.

Why this matters

The logistics and delivery service sector is a growing sector and plays a pivotal role in the effectiveness of trade in the economy. According to the NBS, the sector, which is a sub-activity of the transportation and storage sector, recorded impressive growth in the third quarter of 2021.

The transport service sector expanded by 6.49% year-on-year in real terms in Q3 2021, while the post and courier services recorded a 3.9% year-on-year growth in the same period. Despite the positive numbers, there is room for growth in this sector, as periods preceding the covid-19 pandemic were not as impressive as the later.

With the increased activity in this sector, it will be interesting to see the GDP numbers for the last quarter of the year, and how this will reflect in the country’s economy.