Delivery Industry Comes Out On Top During COVID-19
While many other industries have struggled to offset the economic damage brought on by COVID-19, couriers, delivery services and postal companies have not only managed to survive these tough conditions, but thrive.
The impact of coronavirus on the New Zealand economy is well documented. In April, research company Infometrics estimated that more than 250,000 jobs would be lost over the following year, and while business confidence began a return to normal after the first restrictions, August saw another lockdown – and another subsequent drop in confidence.
Indications are that times are tough for NZ SMEs.
Unless you’re in the delivery business, it seems.
Delivery and courier services buck the trend
Higher level lockdowns pushed consumers inside, and even lower level alerts limited people’s movements and typical behaviours. Physical stores were shuttered and closed, but online stores and ecommerce businesses were a different story. A report from CC Insight reveals that the average online order value has continued to grow steadily every month in 2020, with a significant spike during the April lockdown.
Where online sales increase, so too does the need for delivery services to deliver those orders – something demonstrated clearly by a recent IBISworld report that shows a revenue growth of over 10% in postal, courier pick-up and delivery services over 2020.
This growth is especially notable, as it comes off the back of a revenue decline over 2019. It would appear that COVID may have provided a shot in the arm to delivery, helping the industry buck the general trend towards decline not only for itself, but in comparison to the rest of the business world too.
When other industries seem to be struggling, delivery and courier services are discovering opportunities to grow. Will it continue? Time will tell.
If your logistics or delivery business is looking to capitalise on these opportunities with more equipment, more staff or a larger fleet, get in touch with GetCapital for a secured or unsecured business loan; perfect for rapid growth.