How online shopping is driving fast-growing delivery business

Online lip gloss seller Gladness Mungo said delivery services had helped her business grow by allowing her to serve customers without employing a permanent delivery worker.

“My business is still small, so whenever I receive an order, I work with motorcycle riders who help me deliver products. I add the transport cost to the customer’s payment, and it creates an opportunity for both of us,” she said.

Ms Mungo further added that the arrangement had helped her focus on growing her business while ensuring customers receive their products on time. “The most important thing is trust. I can continue focusing on my work and reach more customers, while the rider earns money quickly from each delivery,” she said.

Her experience reflects a wider trend among online businesses, where entrepreneurs are increasingly depending on delivery networks to reach customers beyond their immediate locations. Business analyst Johnson Gaudence said the growth of delivery services was closely linked to the expansion of online businesses, especially among young Tanzanians using digital platforms to create income opportunities.

“Smartphone use has increased significantly, especially among young people. At the same time, e-commerce has expanded, and more consumers now prefer buying products online,” he said.

Mr Gaudence said changing lifestyles had also increased demand for delivery services as many consumers prefer solutions that save time and bring products directly to their homes or workplaces.

“People have busy schedules, so they appreciate services that make life easier. Although several delivery companies already operate in the market, there is still room for growth,” he said.

He said the sector had also created another source of income for transport operators, particularly motorcycle riders who previously depended mainly on passenger trips.

“Instead of waiting for passengers, riders can receive orders from businesses and customers who need goods moved from one place to another. This has created another income stream,” he said.

According to Mr Gaudence, delivery services are also supporting SME growth because businesses can reach more customers without investing heavily in physical shops.

“Small businesses can now expand their market through these services. By using technology, providing good customer service and understanding market demand, entrepreneurs can build sustainable businesses,” he said.

He encouraged young people entering the sector to explore different transport options, including small cargo vehicles that can carry larger volumes and support partnerships with restaurants, retailers and manufacturers. “Professionalism and reliability are important because good customer service helps build trust and attract long-term business relationships,” he said.

Technology enthusiast Dominick Dismass said the expansion of delivery services was part of a wider digital transformation that was changing the way businesses operate.

“What we are seeing is the digitisation of everyday commerce. A person no longer needs a shopfront to reach customers. A phone, a social media account and a reliable delivery network are now enough to start and grow a business,” he said.

Mr Dismass said technology had strengthened delivery services through digital payments, mapping applications, inventory systems and customer management tools.

“Every delivery generates data, including where orders come from, which products move faster, what time customers buy and how long deliveries take. Businesses use that information to improve operations, reduce costs and expand into new areas,” he said.

However, delivery operators say the growing sector still faces challenges, including unreliable customers, security concerns and rejected orders.

Delivery operator James Mushi said some customers place orders but become unreachable when riders arrive at the agreed location.

“There are times when a customer orders a product and asks us to deliver it to a specific location, but when we arrive they stop answering calls. That becomes a loss because we have already spent time and money reaching that place,” he said.

Mr Mushi noted that security risks pose another challenge, particularly when riders venture into unfamiliar areas.

He added that some customers reject products after delivery, claiming they do not match images they saw online, leaving sellers or delivery operators to absorb the losses.

Despite these challenges, industry players believe delivery services will continue expanding as more Tanzanians embrace online shopping, strengthening the role of technology in business growth and employment creation.