Vagabond’s vīv Can Yield Revenue From Local Deliveries

Posted On: 10/12/2018

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A hot topic at recent industry gatherings has been the potential for this industry's route service capability to solve parcel-delivery problems for large e-commerce companies while generating additional revenue for operators. Vagabond Vending's Juan Jorquera pointed out that the versatile platform offers a practical approach to exploring this potential.

"Operators' accounts are currently ordering kitchen, janitorial, bathroom, office and other supplies from Amazon, Office Depot, WB Mason and other corporations to which they're not loyal, and that provide very limited service," Jorquera told VT. "With vīv Supplies, convenience service providers can sell and fulfill orders of office, kitchen, janitorial, bathroom, breakroom supplies. Vagabond helps process and fulfill the orders, operators receive/pick up the orders, and drivers drop off the supplies.

"Operators keep the profit margin be-tween the cost of the supplies and what they're sold for," he explained. This amounts to about 15% to 30% net margins, depending on what the accounts are ordering.

"Operators have great relationships with accounts and may be using vīv in machines and at micromarkets to sell products to them. Other local businesses probably want access to those same customers, and operators can profit from these relationships by offering product delivery to them with vīv."

Examples might include restaurants/food providers targeting workplace service accounts for catering and/or large-quantity orders, partnering with pre-packaged meal providers to deliver to vīv-enabled Markets at accounts, and even enabling third party businesses to deliver directly to consumers and businesses, Jorquera instanced. "Operators split the service fee paid by those third-party merchants with Vagabond."

Similarly, he added, the vīv Order Ahead option gives convenience services operators the ability to enable their customers to place orders at dining facilities ahead of time, so that their orders are ready for pickup when they arrive. This way, they avoid having to wait in long lines, wasting their free time. Kitchens are also streamlined in the process, as they are able to handle more orders in less time and avoid losing patrons to "walk-away" prospects who see a long line and leave to patronize another food purveyor.