The exponential growth of Australia’s courier industry
Thousands of start-ups are capitalising on the success of this $6bn industry
The last two years have proven that Australia’s $6.2 billion[1] courier industry, that saw exponential growth when online shopping boomed during COVID, is one of the country’s most resilient and lowest-risk industries, being classified as an essential service throughout the pandemic. As such, the CEO of a leading parcel delivery service says the industry – which also has low barriers to entry – is also seeing strong growth in start-ups joining, and capitalising on the success of, the big carriers.
Richard Thame, CEO at leading parcel delivery service CouriersPlease (CP) says individuals of all ages, backgrounds, genders and work history have recently started successful small businesses in the courier industry, many earning outstanding incomes. At CP, 130 small-business Franchise Partners have joined its network in the last year alone.
He explains: “The industry grew at its fastest-ever rate in the last two years. CouriersPlease’s own parcel volumes grew 65 per cent, its franchise network doubled, and its warehouse and support staff grew by 55 per cent. Last year, we delivered more than 28 million parcels.”
“The industry is now too competitive for start-ups looking to compete with the big carriers. Over 40 years, CouriersPlease itself has been continually improving its customer service and technology, and expanding its national network. However, those looking to start a business have capitalised on the success of franchise courier companies by joining their franchisee networks. Among the 130 Franchise Partners we welcomed into the CouriersPlease network, not one ceased trading or were sold due to trading difficulties.
Richard is also proud that the industry attracts a diverse range of business owners. CouriersPlease has many successful female, older Australian and immigrant business owners. “One of our most successful Franchise Partners in Queensland is headed by a woman, as is our company’s first Korean Franchise Partner. Many of our Franchise Partners are in their 40s, 50s and even 60s, having switched careers later in life or decided to try their hand at owning a business.”
CouriersPlease Franchise Partner Hiro Suzuki
CouriersPlease Franchise Partner Hiro Suzuki immigrated from Japan in 2015. Hiro joined the business as a Franchise Partner in 2016, at age 52, after working in the corporate world for many years in France and Japan. He also worked as a truck driver in one of Japan’s largest truck companies, during a time of strong economic growth for the country.
Hiro saw Australia’s potential for economic growth, particularly in the transport industry and, after moving to the Gold Coast, bought a residential franchise run at CouriersPlease in Robina, where he had exclusive delivery access for the business’ residential parcel deliveries in the area.
A keen observer, Hiro saw the potential for a CouriersPlease delivery run in nearby Burleigh. He says: “In late 2016, I purchased a second, industrial, run in Burleigh to capitalise on the potential earnings. This combination has worked well for me, and I experienced 10 per cent business growth in the first year. By that time, my small business operated three vans and had three delivery drivers. I worked to bring on potential customers and engaged with CouriersPlease’s sales team to build my business as much as possible.”
Hiro also learned from other local courier businesses. For instance, after seeing a competitor driver using parcel cages – which usually hold around 60 to 100 parcels – to carry and deliver large parcel volumes, Hiro bought a light rigid truck and had it designed to fit eight parcel cages. This enabled him to bring larger customers on board.
Today, Hiro has five drivers on his team and conducts bulk deliveries for major retailers such as Target, Myer, Kmart and local online retailers, alongside his typical residential and industrial runs. As a result, Hiro and his team conduct approximately 3000 pick-ups and 1500 deliveries each week. He has been able to steadily grow his business and enjoy a healthy return on investment, thanks to his mindset of continuous improvement and innovation, and his passion for customer service and small business.
Richard adds: “Franchise Partners like Hiro are the heart of our business and proof that, with commitment and hard work, anyone can find similar success, no matter their background.”
CP is planning to expand its network of 800-plus Franchise Partners and is currently recruiting in Melbourne and Perth. For more information, visit couriersplease.com.au/about/working-with-us/register-for-franchise
[1] ibisworld.com/au/market-size/
