Quantcast
AlleyWatch Daily Pulse Email   

Freelance Bike Delivery Guy for NYC Startups Makes $50,000 a Year

4149877449_cc02b3b4f6_z

It’s becoming faster and easier to get anything you want, when you want it.

A lot of the thanks go to people like Sean Lyons, a 23-year-old bike messenger in New York City who rides between 20 and 25 miles a day. Lyons splits his time between jobs for three different on-demand delivery services.

Lyons works for Uber RushPetal by Pedal—a flower delivery service—and WunWun, a startup that promises free delivery of anything within Manhattan in under an hour.

As an aspiring professional photographer, Lyons resorted to bike messaging to save money. When he started, he expected to make about $20,000 annually, but between three companies he now expects to bring in $50,000.

Lee Hnetinka founded WunWun last year and hopes to expand to other cities.

WunWun reports that Trader Joe’s is among the most popular place that users order from. Typically, orders peak on Sunday nights and during thunderstorms.

With the likes of Google and Amazon making deliveries, and recently Uber announcing a test for consumer delivery services in Washington, it remains to be seen which players will emerge as leaders in the on-demand delivery sector.

Sucharita Mulpuru, principal analyst at Forrester Research, said that while there is massive venture funding pouring into the space, the biggest challenge is figuring out the economics of how to make logistics practical.

According to her research, it can cost between $10 and $20 to deliver a package, yet on average people don’t want to pay more than $3 to $5.

“People typically want free over fast. If you can do both, great, but I don’t see how we’re going to get to economies of scale anytime soon,” she said.

Mulpuru said that whichever company is willing to lose the most money will ultimately have the potential to win. Between the complexities of inventory management and high delivery costs, Malpuru predicted it could take a decade or more for any player to become profitable.

Reprinted by permission.

Image credit: CC by J&R Music World

About the author: Uptin Saiidi

Uptin Saiidi works for CNBC’s “Power Lunch” and is a producer for CNBC.com’s  “The Starters,” an online series covering innovative startups.

Prior to joining CNBC, Uptin was at MTV News where he digitally produced, wrote, shot and edited. He has also written for Huffington Post and New York Post.

Uptin is a graduate of The George Washington University where he studied Finance, International Business and Communications. He’s currently pursuing a Journalism certificate at NYU’s School of Continuing and Professional Studies.

  • Startup L. Jackson

    I heard this group of guys working at Shipster are on track to make $70K a yr. Damn

You are seconds away from signing up for the hottest list in Silicon Alley!

Don't miss any of the stories shaping entrepreneurship. Sign up today.