Long haul isn’t the only way to grow a trucking company and you don’t have to get an Amazon contract to build out last mile delivery services, these seven types of sellers need last mile delivery services too.
Last mile delivery services are becoming big business and that’s big, with a “b” as in billions. XPO Logistics just announced that it has set aside as much as $8 billion for acquisitions as part of its plans to nearly double the company’s last mile delivery hubs. Whether you’re interested in a company like this acquiring your transportation to expand its last mile delivery capabilities or you want to know whether you can grow your own trucking company by adding last mile delivery services, here are seven different types of companies that might be looking for a partner just like you.
Grow a Trucking Company with Last Mile Delivery Services for Companies Like These
1. Restaurants and Food Trucks
Amazon’s local restaurant delivery is limited to very dense urban areas, which leaves the vast majority of local restaurants out in the cold. What’s more, the vehicles you would need to perform local restaurant delivery are much smaller and less expensive than semi trucks and trailers needed for long haul or large loads.
2. Furniture Stores
Local furniture stores can compete more effectively with Amazon, Walmart, Wayfair and other big ecommerce retailers if they can accommodate online buying and local delivery. You may even already have a fleet size sufficient to take on last mile delivery services for a local furniture store (or several stores) without buying new equipment, which means a low cost of entry. Many furniture buyers also choose “white glove delivery” and assembly services, even when they cost $100-$200 more, which could help you increase revenues by delivering furniture even more.
3. Appliance Stores
Local appliance stores competing with Amazon, Best Buy, Lowes and Home Depot need to be able to include last mile delivery services and appliance installation services as a package deal. Each of these big chains may also be in the market for local transportation options, since Best Buy, Lowes, Home Depot, Walmart and other big chains are also competing with Amazon and other ecommerce sites.
4. Lumber and Construction Supply
The housing market is booming in many areas of the country. Lumber and construction supply companies that contracted when the housing bubble broke during the Great Recession may now find themselves under-equipped and unable to keep up with delivery demands. Your last mile delivery services could enable these companies to grow along with housing demand, creating a win-win scenario and a valuable business partnership.
5. Farm Supply
You don’t have to live in an urban area to provide last mile delivery services. Not only do farmers and ranchers buy from supply stores, they often buy from one another as well (such as horse ranchers who purchase hay and grain from farmers for feed).
6. Grocery and Specialty Food and Beverage Stores
Another category where smaller vehicles like vans could enable your trucking company to grow at a relatively low cost of investment (compared to the cost of adding semi trucks to your fleet). Consumers and businesses that purchase groceries may be looking for grocery and specialty food and beverage stores that include last mile delivery services.
7. Hunting and Sporting Goods Stores
Many of the wares sold by hunting and sporting goods stores are too big to fit in the average consumer’s vehicle. Last mile delivery services could be offered as an add-on at the point of sale as well as in the hunting and sporting goods store’s ecommerce site.
When you think last mile delivery services Amazon’s Prime, 2 hour and local restaurant delivery might all come to mind. And if you can score an Amazon contract for local delivery it could help you grow your trucking company overnight.
But even if you don’t end up making deliveries for Amazon, that doesn’t mean you shouldn’t explore the idea of adding last mile delivery services to your transportation business. There are many other types of businesses that need local delivery options. Some need them because they are competing with Amazon, others need them because consumers have spoken, saying they want the convenience of delivery for just about any type of goods.