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Cycle Logistics Workshop (May 2016)

Setting up and Running a Cycle Based Delivery Business
by

Gary Armstrong

on 2 June 2017

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Transcript of Cycle Logistics Workshop (May 2016)

Information for Start-up Delivery Companies
2. Equipment
3. Market Research
5. Pricing & Delivery Area
4. Service Types
6. Marketing & Promotion
8. Potential Customers
9. Staffing
7. Unique Selling Points
10. Set-up & Running Costs
1. Business Planning
Ice Breaker
What Information Does A Start-Up Delivery Company Need?
5 seconds each !
1. Business Planning - Why?
Collate ideas & research into a structured format
SWOT analysis (strengths, weaknesses, opportunities, threats)
Determine whether the business is commercially viable
Clarify the business purpose to funders, partners, staff
Model business scenarios and potential pitfalls
Set out strategy for the business
Set targets and objectives
2. Equipment
Standard bicycle with shoulder bag and/or panniers
Standard bicycle with trailer
What are the advantages and disadvantages of these equipment types?
3. Market Research - Cargo Types
B2B
B2C
4. Service Types
Three main service types
a. Mail
Operating Issues:
- suited to delivery using standard cycles (with or without trailers)
- cost effective against postal service
- most effective in high density residential/commercial areas
- volume delivery
- delivery can be undertaken at any time
- attractive to local authorities/eductaion/utility companies
b. Point to Point
Operating Issues:
- suited to standard cycles and cargo bikes
- fast delivery
- cargo size dictates capacity
- reliant on customers contacting you
- optimising efficient use of available capacity and riders
x
y
a
b
c. Last Mile
Operating Issues:
- suited to cargo bikes & trikes
- usually working on a sub contract basis
- insurance issues (goods in transit, storage)
- best suited to high density residential/commercial areas
- need a secure deport for interim storage
- proof of delivery administration
- physicality (electric assist)
Other Services
1. First Mile/On-forwarding
2. Bike/Train Combination
3. Advertising
Ad-hoc services vs contracts (daily & regular)
- Regular income!
- Allows loads to be consolidated
- During regular run may be able to service an ad-hoc point to point job
- Efficient use of cargo bike space and rider
Contracts are King!
a
b
c
d
e
5. Pricing & Delivery Area
Pricing Variables
Distance Travelled
Single or Multiple Delivery Zones
Size or Weight
Timed Delivery
Contract Rates
Mail
Sub-contractor
Considerations When Determining Your Delivery Area
Size of delivery area - keep it small
Time between extreme points
Time/Distance between key points
Be aware of natural and man-made obstacles (eg. rivers, bridges, hills)
Identify off road cycling infrastructure
Terrain - don't have your depot at the bottom of a hill!
Identify alternatives to congestion hotspots
6. Marketing & Promotion
Exercise2 Identify up to 10:
- General Marketing/Promotion Ideas
- Targeted Marketing/Promotion Ideas
General Marketing Ideas
Targeted Marketing & Promotion Ideas
Develop target list of organisations
Establish relationships with receptionist & administrators
Don't be afraid of telephone cold calling - 7 times before success
Visit smaller customers with your cargo bike
New client in a sector - target their competitors
A customer complaint is a gift
Be proactive with existing customer base
Regularly survey your customer base
Free of charge pilot - prove your service
Develop a portfolio of case studies
8. Potential Customers
Exercise 4 - Identify 15 Business Sectors & Potential Items for Delivery
9. Staffing
Employed or self-employed
Physicality of the work
Recruitment
Management
7. USPs (Unique Selling Points) of Cycle Delivery
10. Set-up & Running Costs
Exercise 5 - Identify Set-up Costs & Running Costs for a Cycle Based Delivery Business
Information for Start-up Delivery Companies
2. Equipment
3. Market Research
5. Pricing & Delivery Area
4. Service Types
6. Marketing & Promotion
8. Potential Customers
9. Staffing
7. Unique Selling Points
10. Set-up & Running Costs
1. Business Planning
Summary
Exercise 3 - What are the USP's of Cycle Delivery?
Cycle Delivery USPs
Cost Effective (but not cheap)
Fast & Reliable
Flexible Delivery Capability
Secure
Professional
Environmentally Friendly - Green
Positive Image - Fun, Smart, Trendy
Local
Set-up Costs
Company set-up & registration
Cargo bikes
Company image & design
IT & Communication equipment
Running Costs
Premises/storage rental
Utilities
Insurance
Cargo bike maintenance
Staff
IT & communications
Marketing & promotion
Professional services
Funding/cashflow
Setting-up and Running a Cycle Based Delivery Business
Tell Us:
Your Name
Where you are from - Town, Country
What you hope to get out of this workshop
Background
Innovative cycle based delivery company - Cambridge, UK,
www.outspokendelivery.co.uk Twitter: @outspokendeliv

Gary Armstrong
gary.armstrong@outspokendelivery.co.uk
EU project to promote the use of bicyles for carrying cargo in urban environments. www.cyclelogistics.eu
Cycle Logistics is a growing sector
Practical alternative for 25% of cargo currently carried in urban areas
Solution to congestion, pollution and noise issues
Fun area to work in
Community of operators across Europe in European Cycle Logistics Federation
http://eclf.bike
Thank You For Listening
Feedback Welcome
gary.armstrong@outspokendelivery.co.uk
Potential Customers/Business Sectors
1. Professional Service Firms
2. Local Authorities
3. Printers
4. Businesses with multiple sites
5. Universities & Colleges
6. International, National & Local
Delivery Organisations
7 . Magazine Publishers
8. Payroll Processing
Bureau
9. Business receiving cheque
payments
11. Dry-cleaning & washing operations
10. Repair services
12. Shops & Stores
13. Pharmacies
14. Catering operations
15. Florists
2. Equipment - Advantages /Disadvantages
Standard bicycle with trailer
Cargo bike (manual & electric assist)
Cargo trike/quad (electric assist)
Advantages
Disadvantages
Fast & agile in traffic
Ease of use
Low purchase cost
Low maintenance cost
Ease of storage
Can be used on-road & off-road
Easy parking
Can be taken on a train

Limit to size of package carried (weight & volume)
Lack of visibility
Negative image
Security of bike when making delivery
Advantages
Disadvantages
Ability to carry larger loads (up to 250kg)
Flexible cargo carrying capability
Cargo security & weather protected
Easy loading and unloading
Designed for purpose (professional)
Potential advertising revenue
Mobile consolidation capability
Comparable with a small van
Slow in traffic
Purchase cost
Maintenance cost
Storage when not in use
May be restricted to the road network
Range when fully loaded
Parking
Greater rider ability required
Rider strength & stamina

Standard bicycle with shoulder bag and/or panniers
Advantages
Disadvantages
Low purchase cost
Low maintenance cost
Can be hitched to many bike types
Ability to carry larger loads (up to 80kg)
Can be used on-road & off-road
Potential advertising revenue
Trailer can be unhitched and taken closer to customer
Limited cargo security
Open to the weather (although closed boxes available)
Storage when not in use
Maintenance of 2 items of equipment
Push/pull effect when riding

Need to lock bike & trailer
Stability
Advantages
Disadvantages
Ability to carry larger loads (up to 100kg)
Flexible cargo carrying capability
Can be used on-road & off-road
Cargo security & weather protected
Designed for purpose (professional)
Ease of use
Potential advertising revenue
Purchase cost
Maintenance cost
Storage when not in use
Additional bike security required
Loading and unloading
Greater rider ability required
Overloading risk making bike
unstable & subject to cracks

Trade association for cycle logistics operators
http://eclf.bike
Cargo bike (manual and electric assist)
Cargo trike/quad (electric assist)
Exercise 1
Equipment - Innovation
Electric assist trailers
Containerisation
Refrigerated Boxes
5-wheel cargo bike
motor in each wheel
4 wheel quad pulling trailer
Not very efficient - unless charging a premium for the service!
Micro Consolidation Centre
Locate a container in an area
difficult to service
Delivery company drops items off in container
Cargo bikes kept in container over night
Full transcript