As the brick and mortar economy of years past continues to fizzle out, now at an accelerated rate due to a global pandemic, the race to transform traditional storefronts and warehouses into distribution centers for same-day and next-day delivery has intensified. Businesses need to keep up with the demand for an e-commerce delivery. The gig economy is necessary for this but not without risks. In order to do that, businesses need to factor in 3 major risks for an in-house delivery program.
With the high demand to have everything delivered to your door, many businesses needed a quick solution with minimal effort. They turned to third party administrators to assist with an online shopping platform and independent contractors for deliveries (i.e. Instacart, Postmates, or DoorDash). But at what cost? In addition to the high fees these partners demand, businesses found themselves in a situation where they don’t own the customer experience or data. This leaves them in a vulnerable position economically.
Where to Begin
Businesses want to keep as much as possible in-house to control their brand and revenue. But where do they start to build an in-house delivery program? They need to think about the infrastructure of the program and who will handle the operations. Additionally, they must consider how to recruit and onboard 1099 workers and who will manage the human resources aspect. Furthermore, who will manage the workflow of the drivers and handle the payroll and taxes? Finally, how will accidents and risk management for drivers be solved and what kind of technology can be put in place to hold all of these pieces together? Companies can waste time, money, and resources by trying to build a program from scratch. In today’s era of wanting quick solutions, time is not on their side.
In-house delivery app-based platforms appear to be a popular strategy in 2021. Businesses creating and operating their own delivery app-based platform will be assessed on a completely new set of regulatory requirements, primarily related to worker classification. The gig economy is dependent on self-employed/1099 entrepreneurs, who use gig apps to source customers for their businesses. While many States and jurisdictions welcome the gig economy, others are more antagonistic and the Federal Government is beginning to address this brave new frontier as well. Companies who fail to properly classify delivery drivers as independent contractors and who fail to operate in a way that is consistent with the State-by-State guidelines of doing so may face legal challenges, which could inhibit their ability to reinvent themselves.
Solution: Partner with a company who has experience, expertise and customized solutions to have your brands best interest.
Whether your delivery program has done deliveries before or is being set up for the first time, Delivery Drivers, Inc. (DDI) is your partner to build and scale your delivery program for your business with a unique backend delivery strategy solution, tailored specifically to your business model.
With our unique solutions, knowledgeable staff, and over 25 years of industry experience, DDI provides a seamless experience for connecting customers with delivery drivers. Through our proprietary platform we provide full-service tools in human resources and driver management from:
- Recruit, Onboard and Enroll Top Quality Driver-Partners
- Assist with Accounting, Payroll and Tax Services
- Provide Risk Management through Compliance and Legal Expertise
- Protect your Business with Occupational Accident Insurance, Contingent Liability Insurance and Screening Products