date_range 2024-07-17 00:00:00
Establishing a reliable and efficient last-mile delivery network presents a significant opportunity to unlock the full potential of Ethiopia's e-commerce market. This feasibility study explores the potential of establishing a last-mile delivery company in Ethiopia, addressing the growing demand for efficient logistics within the rapidly expanding e-commerce sector. The study examines market opportunities, technical requirements, and operational considerations, employing a mixed-method approach that includes literature review, surveys, and case studies. Key findings highlight the significant untapped market for reliable delivery service in Ethiopia. By leveraging local partnerships and advanced technologies, the proposed delivery network aims to enhance logistical efficiency and customer satisfaction. A central focus of this study is assessing the readiness of the current technology to support a last mile delivery operation. This includes evaluating the availability and integration of advanced logistics technologies, such as AI-powered route optimization, digital proof of delivery, and automated scheduling systems, tailored to the Ethiopian context. The financial analysis presents a promising outlook for profitability, driven by competitive pricing and strategic funding initiatives. Initial capital requirements include costs for delivery fleet, technology and equipment, and marketing. Operational costs are projected to start at $95,000 in Year 1 and increase to $175,000 by Year 5. Revenue forecasts start at $500,000 in Year 1 and grow to $1,500,000 by Year 5, resulting in net incomes of $145,000 in Year 1 and $647,000 by Year 5. The projected cash flow indicates a net operating cash flow starting at $235,000 in Year 1 and reaching $985,000 by Year 5.