Shopify for Last-mile Delivery - Tools to Start a B2B Auto Parts Delivery Business
Tonquin is announcing a significant change to the overall opportunities possible for individuals seeking ownership and scale of a delivery business. Now with Tonquin, Providers can simply sign up to work on-demand or start from scratch building a truly independent delivery business. Auto Part Suppliers that become customers of Providers building their businesses will experience aligned service goals and the accountability of someone managing their successful use of the platform.
You might be thinking, "what could this mean?" Isn't Shopify an ecommerce site that helps people build online businesses to sell things? And if you thought that, you would be correct. Shopify is a marketplace that brings software tools together in a way that makes starting an online ecommerce business simple. So now you're probably thinking, "how does Shopify have anything to do with the last-mile delivery… of auto parts?" That is also a valid question. Let me tell you.
Tonquin is changing how everyday people can use the tools that the Tonquin platform provides to create an independent delivery business. Much like how anyone can go onto Shopify.com, sign up for an account, and begin creating an ecommerce store with some pretty simple tools— Tonquin has made those same achievements possible but for the creating, managing, operating, and growing of a last-mile delivery business. Let me explain.
People mainly go to Shopify to start a business online selling something that they make. To start, they use the ecommerce site builder and built in payment processor. With varying degrees of personalization, that's pretty much all you have to do to get started. Inspired by the utility, attainability and empowerment that a platform like Shopify gives to millions of people to start the journey of small business independence— we saw an opportunity to do the same with a service business like the last-mile delivery of auto parts.
So with this inspiration, we've refactored our tools (mainly the Delivery Provider App) to now allow anyone to start an independent delivery business servicing auto part suppliers from scratch. And most importantly, altered rate structures that allow for higher yields, business growth and true scalability using the Tonquin platform.
Getting started is free for both the Provider and their customers. Using the Delivery Provider App, a Provider can create customers and service them per delivery, hourly or per route all seamlessly through the app. Creating a customer gives that customer access to their own Vendor Logistics Dashboard. This is where the auto part store will have access to tools they need and be able to request platform-enabled delivery services in multiple ways. Tonquin's automated payment tools process the customers payment and pays the Provider.
How does this restructuring benefit auto part suppliers? Simple, an auto parts supplier's need to service their customers drives more people to want to create delivery businesses fulfilling that need. With natural competition in the marketplace, this creates an alignment of incentives to consistently perform and provide a good service. And because Vendors only pay for the services, Providers will want to make sure their customers are always deriving as much value and use from the platform as possible but at the same time, be able to not singularly rely on one customer if their services aren't needed.
With each service requested, a percentage of the cost is paid as a management fee to their Managing Provider (the Provider that creates their account). This creates two ways to generate revenue as a Provider— perform services for customer(s) and or other vendors on the platform, and earn the management fee from a customers use of the platform.
Just like any business there will be an endless number of ways to grow. Maximize service revenue by working closely with a single auto parts store in a local area and be available to them as often as possible. Maximize management fees by working with a prevalent brand like Napa Auto Parts or Advance Auto Parts to set up a portfolio of their locations and show them how to use marketplace enabled services to improve service to their commercial customers. Invest in acquiring and on-boarding other marketplace delivery providers in a local area to be available to service customers so that you can continue to grow. Or do a combination of both of these paths. The opportunities are endless. And as much as we're comparing this shift to a company like Shopify, the best part is that the best way for anyone to acquire an auto part store as a customer, will be to go in and talk to them. No out of the gate need to do crazy spending on advertising— all one needs is a phone, a car, and ambition. This is a huge benefit to operating a local service business as opposed to an online ecommerce store. Everyone is within reach.
The seamlessness to this process is all made possible because Tonquin's tools have been designed specifically for last-mile auto parts delivery and the auto part suppliers using them which makes acquiring and onboarding auto part stores as customers super easy. Combined with the business case that auto part suppliers are constantly in need of delivery drivers to service their high value business customers and looking to save on the cost to do so, this creates a dynamic of aligned incentives for individual providers to want to perform and grow. Selling their services, the services of other marketplace Providers and all of the additional benefits that a marketplace enables.
Coming soon, Tonquin is making the platform available in three new markets for anyone to sign up and get started for free. Included in the new account tier will be access to a Benefits and Resource marketplace that will make starting even easier. And with Tonquin's job being to support alongside anyone making the leap. We're very excited to begin empowering individuals to build and grow in their cities. And we believe that this is just the beginning!
Providers already on the platform will be converted into Basic accounts and must send a request if they wish to upgrade to a Builder account. Otherwise no action is necessary. Please visit Tonquin.com/builders to view the list of available features based on account type and the new abilities to earn through the platform.
No action is required for Vendors already on the platform.
