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Idea 86

The highest-risk idea in the whole catalogue.

A shared rural delivery network — several producers, one van, one round. It is the idea with the best-sounding pitch and the worst risk profile of anything documented on this site, and we would rather say that at the top of the page than at the bottom.

We are flagging this one as the highest risk in the catalogue

Of everything in this chapter, this is the idea most likely to lose real money, and the only one where the failure mode includes somebody else’s business going down with ours. It is documented here because it keeps being proposed, and the honest thing to do with a persistent bad idea is to write down exactly why it is one.

The risk register

Six reasons this is harder than it looks.

  1. Rural drops per hour are the whole business, and they are terrible.

    An urban courier does twenty to thirty drops an hour. A rural round in west Oxfordshire does five or six, because the drops are four miles apart down lanes with passing places.

    Every cost in the model — driver, van, fuel, insurance — is per hour. Every revenue line is per drop. A business where the revenue divides by six and the cost does not is a business with about a third of the margin it modelled.

    Everything about a last-mile network is drops per hour, and rural drops per hour are dreadful.

  2. It is an employment business, not a logistics business.

    The moment there is a van and a round, there is a driver, a contract of employment, a working time directive, holiday cover, sickness cover, a vehicle inspection regime and an operator compliance question if the van gets any bigger.

    Nobody proposing this idea has ever been describing that business. They have been describing software.

  3. Chilled changes the risk from commercial to legal.

    An ambient parcel that is late is an annoyance. A chilled parcel that has spent six hours at fourteen degrees is a food safety incident, and the liability for it sits with whoever put it in the van.

    Shared chilled distribution between independent producers means every producer in the scheme is exposed to the temperature discipline of every other producer’s packing bench.

    One producer’s bad packing bench becomes everybody’s recall.

  4. Shared means somebody has to be in charge, and nobody wants to be.

    A shared network needs a single operator with a single set of terms, a single insurance policy and a single point of liability. As soon as that exists, it is not shared — it is a courier company that several producers use, which is a thing that already exists and is called a courier company.

    Every genuinely shared version we have modelled either has no accountable party, which is unworkable, or has one, which is not shared.

  5. The volume is seasonal in exactly the wrong shape.

    Farm produce peaks in a six-week window in autumn and again for Christmas. A van and a driver are twelve-month costs. The winter and spring rounds would run at perhaps a third of capacity, and there is no second business to fill them because everybody nearby has the same season.

  6. And the alternative is genuinely quite good.

    A national carrier does this for about six pounds a parcel with tracking, insurance, a claims process and somebody else’s employment problem. It is unromantic and it is very hard to beat on anything except the story.

    The lockers on the previous page are the honest version of this idea: aggregate the last mile into nine staffed points rather than trying to own two hundred doorsteps.

Modelled, not measured

What the arithmetic actually looks like.

LineRural shared vanNational carrier
Drops per hour 5–6 Not our problem
Cost per drop, at 60% load £9.10 £5.90
Cost per drop, at 90% load £6.40 £5.90
Chilled capable Only with a refrigerated van at +£14k Yes, at a surcharge
Winter utilisation ~35% Not our problem
Who carries a lost parcel Us Them
Who employs the driver Us Them
Who is liable for a temperature breach Us, for everybody in the scheme Shared, with a process
If you must

The version that might work, if anybody insists.

One van. One round. One day a week. Ambient only. Three producers, all within eight miles of each other, all with the same seasonality, sharing a single operator who is one of the three and is paid for it as a job rather than as a favour.

No chilled. No promises about time windows. No growth plan. Reviewed after six months against the national carrier cost per drop, and abandoned without sentiment if it loses.

That is a small, ugly, survivable version of the idea. Every version larger than that has, in our modelling, been worse than the thing it replaces.

The honest bit

This is the only idea in the catalogue we have documented in order to argue against it. The pitch is excellent, the environmental case is real, and the arithmetic does not work at any scale a group of small producers can reach. If somebody builds it and proves us wrong we will rewrite this page, name them, and say so at the top.

The version we think does work.

Nine staffed collection points instead of two hundred doorsteps.

Wondering

What people actually ask.

The two questions this page gets most, answered without a support ticket.

No. This is an unsolicited third-party demonstration build, not affiliated with or endorsed by any of the businesses it describes.

Public filings, published rankings and press reporting, each labelled on the page as a verified record, a founder claim or a third-party estimate.

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