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How To Start Dispatch Rider Business In Nigeria – Bike Logistics Businesses

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One of the booming sectors of Nigeria’s economy is the logistics sector. The emergence of e-commerce and online shops has necessitated the need for this sector. The average millennial enjoys the comfort of opening and closing a purchase online in a few clicks without having to leave his house or office.

The chances of seeing a dispatch rider when you go out are way over 60%. Beyond online stores, some corporate businesses still use dispatch riders to deliver documents and other things related to their documents.

Nigeria’s logistics sector was worth ₦250,000,000,000 in 2018 and is expected to grow beyond this by 2023. The implication of this forecast is that many opportunities still abound in the industry.

Market overview and trade data

   2018 2019 2020
Total Market Size 132,988 141,000 300,000
Total Local Production 6,000 6,000 3,000
Total Exports 12 12 0
Total Imports 133,000 135,000 195,586
Imports from the U.S. 9,512 9,800 198,586
Exchange Rate:  1 USD 362 360 379.5
Unit: USD Millions > Total Market Size = (Total Local Production + Total Imports) – (Total Exports)

The use of bikes and dispatch riders is a core part of the logistics business in Nigeria and seeing that the industry still has room for growth and expansion, you might want to consider starting a dispatch business of your own.

dispatch rider in Lagos
dispatch rider in Lagos

This writes up gives you a basic knowledge of how to go about starting your own bike logistics business and get your share of this booming market.

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Why You Need To Start A Logistics Business

As said earlier, the market is getting bigger and bigger annually. There is a lot of money to make in this business if you play your cards well. In addition, it is important to note that the Nigerian market leaned towards consuming more than producing. This makes the demand for various goods moderately high.

From clothes to shoes, agricultural produce and even cooked food, there is hardly anything that cannot be bought online these days. This is a good reason to look at the prospects in this business.

Finally, a recent survey shows there will be an increase in online consumer demands for furniture, appliances, food and personal care, electronics and media, and fashion by 2023. All you have to do is position yourself.

How To Start A Logistics Business

Office space is important to your logistics business. There should be an official address where you can be found. This will aid your digital marketing campaigns. The next thing to do is to find out the requirements for starting a business based on your state. The requirements defer depending on the states. In Lagos for instance, the 200cc bike is recommended for logistics companies. The bikes will then be inspected by the VIO.

You will also need to write to the state government to obtain your okay paper but that has to be after your bikes have been inspected. After this has been done, you can proceed to register your bikes at any vehicle registration centre close to you. Do not forget to obtain the permit for your business from your state government. It should cost you only a few thousand.

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The next step to take after finishing with government officials is to draw out your business plan. It is important to note that though the business is lucrative, you have to devise a strategy that gives you your share of the market. You also need to know how to give yourself an edge in the market because of competition. This and many more have to be sorted out in your business plan so be ready to do the work.

Key Elements For Your Bike Logistics Business

Cargo bike:

A cargo bike is important for the movement of goods once the purchase and has been made. There are amazing brands for you out there. An internet surf should help you decide the brand you will love to use for your business.

Mobile Phone:

The mobile phone is essential for communication between your customers and dispatch riders. Most logistics businesses use android phones. It has a map feature that helps dispatch riders navigate directions to the customer’s pick-up point.


Your store can be the comfort of your home until you expand. As you expand, an official space will be good for business so look to grow. A store is important if you are combining e-commerce with your logistics business

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A computer is indispensable for your business. It will serve many purposes from record-keeping to data analysis and a host of other business tasks.


Since your business is essentially digital, you may want to look at building an app where clients can interface and connect with your business. It will also help you connect quickly to e-commerce stores that need your services to move their goods to their buyers

Social media platform:

It is no news that the world has gone digital. You need to build a strong online presence for your logistics business. A good way to go is to open social media pages. This grants you access to a whole lot of online merchants and food vendors and literally makes your business borderless.

Dispatch riders:

Dispatch riders are key to your bike logistics business. Without them, the business cannot work so put in some effort to hire dispatch riders. There are three things to look out for in your dispatch riders to make your business effective.

  • They must have a good knowledge of the nooks and crannies of your location. This is not negotiable
  • They must have good manners to relate with customers appropriately. A disgruntled customer is bad for business.
  • They must be trustworthy since they will be handling goods and cash.


A bike logistics business is lucrative. With a good business plan and diligence, you can have your share of the market largesse. Market your business online and offline. Let people know what you are doing so you can get recommendations or direct contacts from online merchants.

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