Is Dispatch Rider Business in Nigeria Profitable? [Insider Overview]

The turn of the decade and a rise in e-commerce and online buying has given fresh air to the dispatch rider business in Nigeria.

Whether you call it a Bike Delivery Business in Nigeria, a Bike Logistics Business in Nigeria, or a Dispatch Rider Business in Nigeria, they all mean the same thing.

This new liberty to purchase or order for whatever you want from the comfort of your home and have it delivered to your doorstep is something that we are not willing to trade for anything else any time soon.

Think about it for a moment, people no longer need to go to a vendor or even to the market or malls to make purchases as there are easy ways to get it done these days.

Look around your city and you will find a few dispatch riders or bike delivery business persons moving one package or another from a pick-up point to a drop-off point.

But for you, that really isn’t the problem.

I assume you are interested to know how to start a bike delivery business in Nigeria but you also want to know if it is as profitable as it looks; I know that feeling.

Before I launched my own business and subsequently moved into consulting and helping people start their bike delivery business from scratch, I carried out a great feasibility study to figure out if this dispatch rider business in Nigeria is really profitable or not.

So lets us get to it so that I can give insider information about the dispatch rider business in Nigeria.

Why Start a Dispatch Rider Business in Nigeria

One of the major challenges in the face of the failing business ecosystem in Nigeria is the need to invest “spare” money in a fail-proof business.

In the wake of several losses people have incurred from several “investment platforms”, the dispatch rider business has become a go-to investment for people who do not want to spend all they have in businesses with less guaranteed income models.

If you are currently looking for a business with a practical and scalable business model, then you should consider the dispatch rider business in Nigeria.

The market is never getting saturated any time soon and the demand for bike delivery services is constantly on the rise.

Is Bike Logistics Business Profitable In Nigeria?

Bike logistics business is very profitable in Nigeria as it has the potential of returning over 50% of your initial investment in a few months.

But that is not a complete answer; so instead of blurting out direct answers, let us do a little analysis.

You know a business is profitable when it has the [proven] potential to return a large chunk of the start-up income in the shortest possible time.

After consulting for over 45 dispatch rider companies in Nigeria and helping them start from scratch, I have found out that the biggest place you would invest your money while starting a bike delivery business in Nigeria is in the purchase of motorcycles.

Say you want to start with just one motorcycle, carefully managing funds would mean that you would be spending roughly seven hundred thousand Naira to start properly.

Handling 3 package delivery every day at the rate of 1000 Naira would mean a gross income of 78,000 Naira a month from one motorcycle – worst-case scenario (dispatch riders handle more than 10 deliveries per day), which in turn spins well over 900,000 Naira in your first business year.

The above figure is very practical and proven.

Considering over 900,000 Naira as a worst-case scenario for a business you started with about 700,000 Naira means that the dispatch rider business is very profitable in Nigeria.

Having given a rough (but practical) sketch of its profitability, let us look at how much it costs to start a delivery business in Nigeria.

Start Bike Delivery Business in Nigeria

How Much Does It Cost To Start a Dispatch Rider Business in Nigeria?

This question is definitely top-of-mind for 100% of the clients I have worked with.

Every reasonable business enthusiast would always want to know the cost implication of any business they intend to start, so lets talk a bit about what it takes to start a Dispatch Rider Business in Nigeria.

To figure out how much it costs to start a delivery business in Nigeria, we would take a look at some of the most important things you need to start and their cost implications.

Motorcycle: on average, a motorcycle used for dispatch rider business costs between 300,000 to 370,000 Naira.

Motorcycle prices may vary with the vendor, motorcycle model, and purchase location.

Your location would definitely affect how much you purchase a motorcycle.

Say, you are in Port Harcourt or Lagos, you can get a good motorcycle for 300,000 but that figure would vary for the same motorcycle when you are purchasing it at Abakaliki.

  • Mobile phone: a good mobile phone is highly recommended if you must successfully run a bike delivery business in Nigeria. If you intend to drive customers through social media, then you should go for a good smartphone that can handle fast internet connections.
  • Motorcycle tracker: motorcycle safety is of very great importance. There have been cases where a rider takes off with a motorcycle entrusted in their hands, and that is an ugly situation.

You need a motorcycle tracker to carefully track the current position and timeline of your motorcycle for the whole day. A motorcycle tracker can be gotten at the rate of 20-25,000 Naira.

  • Dispatch/carriage box: certainly, a strong dispatch rider box would cost a little bit of money, and so, budgeting 45,000 for both purchase and installation is entirely safe.
  • Permits & registration: this is location-dependent as what applies in Lagos and Abuja does not necessarily apply in smaller cities.

However, there are still some basic registrations and documentation that are universal and demanded if you must operate freely in your city.

  • Marketing & promotions: marketing and promotions is the one thing that guarantees how long you would stay in the business.

Bike delivery business in Nigeria is a very profitable business but without an array of customers, you would hardly have enough customers for your business.

While it is safe for you to invest in marketing your new business, you must understand that a new business takes a little bit of time to start having a steady flow of customers.

  • Miscellaneous: there is definitely so much more to starting a dispatch rider business in Nigeria than just knowing what important things you need.

You’d also need things like safety gears for your riders, business insurance, salary for staff, and other important things too.

Bike Delivery Business Plan in Nigeria

Do you really need a business plan for a bike delivery business? How important is a dispatch rider business plan for your dispatch rider business in Nigeria?

If you must start your dispatch rider business in Nigeria properly, then you should work on a well-detailed, and bankable business plan.

Granted, anyone can start a business even without a business plan but the thing is that any business started without a well-detailed, and bankable business plan is doomed for failure already.

There is the major importance of a well-written business plan that you must consider; things like Mission and Vision help you stay on track, and its abilities to help you figure out who your competitor is and how to outsmart them cannot be over-emphasized.

If you intend to get a load to start your dispatch rider or bike delivery business in Nigeria (which most beginners do), then you must get a properly written business plan as it gives you a good edge with funds acquisition.

If you need a business plan specifically tailored for your business, then you should get it from someone experienced who has started and is currently running the business.

We can also write a comprehensive business plan that would suit your city having worked with clients across major cities in Nigeria.

We have worked with Justdana Express Services, Bidex Logistics, amongst other pronounced dispatch rider businesses in Nigeria.

Click the WhatsApp button below to get a quick and comprehensive business plan that is practical (without exaggerations) and ready to be implemented.

What better way to start than to start with a well-detailed plan of action?


From an insider perspective, the dispatch rider business in Nigeria is very profitable but care must be taken while starting up to avoid unnecessary expenditure.

The profitability of this business cannot be over-emphasized as you have the huge potential to make back your initial investment before the end of your first business year.

If you are looking to start or establish a business with a guaranteed flow of income, then the bike delivery business in Nigeria is a good business to invest in.

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Noble Cyril

Noble Cyril is a result-driven Business executive and an award winning business writer who shares business principles and tips on several authority platforms. He has featured on several authority blogs and business publications across several industries. Follow him on Twitter: @naijabizhubng

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