Fuel Bikes vs Electric Deliveries: Is Your Delivery Partner Eating Your Profits?

Introduction

Teresa, a small business owner in Kiambu, runs an e-commerce store that offers handmade houseplant delivery services to her clients.

Like most e-commerce businesses, she relies on available app-based delivery services like Bolt and independent riders who are often individuals using an internal combustion engine (fuel-powered) motorbike nearby and charge a regular fee to deliver within Nairobi and its environs.

While rent savings might seem like an advantage for e-commerce platforms, those savings often end up being redirected into logistics costs. From her experience, delivery fees are the single largest expense for e-commerce businesses.

According to Teresa, delivering a package within Nairobi and its surrounding areas often costs significantly more than sending it upcountry! Occasionally, delivery riders sidestep the systems in place, seeking additional payment beyond what’s indicated.

Riders mishandling fragile packages, disrupting operations, and tarnishing a brand’s reputation make the situation even more challenging.

Despite its flaws, eWAKA has enabled small businesses like Teresa's to thrive without investing in costly in-house transport solutions.

We have designed an all-in-one mobile application that enables businesses to create delivery tasks automatically assigned to riders within proximity areas with just a few clicks.

In addition, our electric bicycles and motorcycles offer a compelling advantage: they provide predictable costs, lower maintenance, and freedom from fluctuating fuel prices.

What follows is an in-depth comparison of the costs and benefits of using eWAKA on-demand services vs. Teresa's current unpredictable logistics solutions.

Which option actually puts more money in your pocket?

Delivery rider on an eWAKA electric bicycle

On-Demand Motorcycle Delivery Services

As the name suggests, delivery services are requested on demand and popular with small e-commerce businesses that cannot afford a dedicated transport system.

Why Are On-Demand Costs Higher?

• Pre-order pricing: Businesses pay per trip instead of a fixed cost.

• Platform commissions: Delivery apps take a percentage of each trip.

• Surge pricing: Rates fluctuate based on demand.

• Limited control: No dedicated rider means inconsistent service quality.

Electric deliveries are made seamless.

Fuel Bikes vs Electric Deliveries: Cost Comparison

Let's start with the basics.

To get a true picture, let's first compare charging costs to fuel expenses, with total distance covered as a constant variable.

• Charging Costs vs. Fuel Expenses

Below is a breakdown of fuel and charging costs for a typical business engaged in last-mile delivery services, covering at least 150 km to its customers within Nairobi in a month. 

Fuel costs in Nairobi, Kenya : 

• Fuel price: KES 176.58 per litre

• Consumption rate: 35 km per liter

• Fuel cost per day: (150 km ÷ 35 km per litre) × 176.58 = KES 757.49

• Monthly fuel expenditure: KES 757.49 × 26 days = KES 19,694.74

  
  

Charging costs in Nairobi, Kenya :

• Daily charging cost: KES 150 × 2 batteries = KES 300

• Monthly charging cost: KES 300 × 26 days = KES 7,800

Considering only fuel and charging costs, a business in Nairobi covering 150 km daily spends approximately KES 19,694.74 per month on fuel, while an electric motorcycle covering the same distance incurs only KES 7,800 in charging costs. 

Electric motorcycle savings

This translates to substantial savings of at least KES 11,894.74, making electric motorcycles a smarter and more cost-effective choice for delivery businesses.

Now, let's break it down even further and compare the cost per delivery for each delivery option.

• Total Monthly Cost Per Delivery

Assuming Teresa completes at least 15 deliveries daily and operates for  26 days per month, we can calculate the cost per delivery for both options.

Total Deliveries per Month = 15×26 =390

Expense cost comparison

For each motorcycle, the total monthly cost per delivery is calculated as: 

(The total monthly costs divided by the total deliveries per month.)

• Fuel Motorcycle Cost per Delivery: 97,500 \ 390 = KES 250

• eWAKA Electric Motorcycle Cost per Delivery: 78,000 \ 390 = KES 200

Key Insights 

With 390 monthly deliveries, Teresa's e-commerce business using on-demand services with an eWAKA’s electric motorcycle will save approximately

KES 19,500 per month, leading to a 20% cost reduction.

Take Away

Now, small businesses must navigate the challenges of last-mile logistics creatively. While owning a transport fleet might seem like the ideal solution, it has complexities.

As e-commerce and last-mile logistics expand across Africa, electric bicycles and motorcycles are emerging as the preferred option for businesses offering last-mile delivery services.

Whether transporting food, water, or packages, businesses require vehicles that balance speed, cost-effectiveness, and durability.

eWAKA’s all-in-one platform ensures businesses like Teresa's have access to reliable, well-trained riders and streamlined delivery operations, effectively reducing costs.

If you seek cost efficiency and sustainability, don't fall for the current expensive and sneaky tactics of unpredictable last-mile logistics.

Book a free consultation today.

Together, let's push for a more equitable, efficient, respectable, and affordable logistics framework.