In an industry worth a projected $6.1 billion* and still growing, courier and logistics firms are proving current successes according to a recent franchise study revealing positive trading in the sector.
The March 2021 Australian Franchise Sector Pulse Check confirmed that couriers, transport and logistics businesses were among those reporting good business for the first quarter of 2021.
Businesses helping keep other Aussie businesses on track by delivering the goods have been among the strongest networks for growth, continuing to open up units.
And while every sector is at risk of the fall-out from any further Government lockdowns (one of the franchise sector’s biggest concerns right now), the logistics and courier industry has avoided some of the ongoing challenges to do with landlords and tenancies that have impacted retail-based franchises.
The November 2020 updated Couriers & Pick-Up Delivery report from IBISWorld points to continued growth and increased competition over the new few years.
The report author writes “Industry revenue is projected to rise at an annualised 2.3 per cent over the five years through 2025-26, to $6.8 billion. However, the industry is anticipated to continue facing fierce competition from the postal services industry, particularly in the parcel delivery segment, over the period.”
IBISWorld has observed these trends in the courier sector:
- Booming ecommerce has boosted parcel delivery demand
- Mobile platforms offering on-demand delivery services have helped grow the sector
- Industry profitability has been constrained by high competition
- Custom transport services for online retailers are set to drive growth
- Australia Post is anticipated to remain a key external threat
- Low barriers are likely to lead to further competition with new businesses
This lively sector has performed well through the pandemic and it looks set to continue to grow and deliver.
Read more about the sector and discover the transport and distribution businesses in franchising.
*IBISworld Courier Pick-up and Delivery Services in Australia, November 2020