How to increase security in the delivery sector
The delivery industry doesn’t stop growing. According to data from The NPD Group, home delivery orders in Spain have grown by 80% compared to pre-pandemic figures. In addition, it already represents a market share of 7% within the restaurant sector.
With this growth comes the associated risks of fraud and abuse, which can not only damage the reputation of the company behind it, but also put people at risk.
Regulators are beginning to require processes and measures that guarantee the safety of delivery people (more information on the Rider Law) and customers, while delivery companies need to maintain the efficiency of their cost structure and the low friction to the end customer.
In today’s post, we talk about the delivery sector and how to increase security:
Context of the delivery sector
Delivery apps are three-way platforms (restaurants, riders and customers), extremely complex to manage and that tend to have a predisposition to certain vices that must be worked on.
Here are the most relevant points of this framework:
→ Riders (distributors): they need to be close to the restaurant that has an order waiting and have a positive rating to be able to make the delivery (the positive rating is achieved based on the number of successful deliveries). Therefore, the riders who work the hardest tend to get a better rating and, consequently, continue to access more orders.
→ Restaurants: they negotiate some commissions with the delivery platform based on the volume of sales, but they don’t control the radius (physical distance) of the customers who will be able to see their offer in the app or the position in the platform’s search engine. Those better placed in the search engine tend to receive more orders and maintain a good position.
Why identity verification is needed in the delivery sector
Delivery platforms act as a digital link between customers and restaurants, but the physical interaction is between the customer and the delivery person. Two unknown people. The risks and threats are high on both sides, both from the person who goes to a house to deliver an order and from the person who is waiting for it.
Leaving aside isolated cases, fraudulent actions have been emerging on both sides.
→ In the case of delivery employees, the improper use of their delivery profile stands out. With the consequent difficulty in assigning responsibilities in case of damage of any kind.
→ In the case of customers, above all, the request for refunds and the claim of orders received as not received.
The complexity of fraud in the delivery services sector requires a proactive approach, an additional layer of security and protection, both for riders and end customers.
The reputation of delivery companies depends on their drivers, who deal directly with customers.
The vast majority of riders just want to work, access the delivery system (normally it is an app in which orders are assigned or the rider directly selects the deliveries they are interested in making) and earn money.
Confirming the identity of the deliverers before each service or during it is the most effective solution to reduce the risk of fraud. And more, starting from the fact that the companies behind this type of app do not usually have time to meet their riders or carry out adequate employee onboarding.
Relying on online identity verification in the delivery sector eliminates the possibility of registering already registered delivery people or with a record (it is connected to sanctions lists).
In addition, in case of contract violations or incidents of any kind by the rider, it is the only possibility to assign responsibilities, since the system will only allow you to register with your true identity.
For the rider it is very simple, when they enter the company’s app to see the address of a delivery, it will ask them to complete the identity verification (normally it is a selfie and a screenshot of the DNI or work permit). At all times, they will have instructions and, in reality, it is a very fast process. Once it is finished, they can continue working.
In the case of home delivery, guaranteeing the customer that the person making the delivery has their documentation up to date and is verified, offers confidence to open the door to a stranger. In fact, confirming that the delivery people are verified people increases the feeling of protection and will make them feel safer.
Confirming the identity of the other party when entering into a business relationship provides confidence throughout the process.
The client isn’t spared either. In recent times there has been an increase in identity fraud and order requests by users. Therefore, it is important to ensure that the delivery reaches the right person.
Home delivery companies must confirm that the correct recipient has received the order if they want to avoid losses and fraudulent claims.
In some countries, home orders may also include age-restricted products, such as alcohol and tobacco.
In these cases, verifying the recipient’s identity is a legal requirement. Failure to confirm and record the buyer’s age is a criminal offence.
For this reason, delivery companies must ensure that they comply with the legislation and that no minor receives deliveries of this type.
Identity verification in the delivery of age-restricted items allows the creation of a secure sales service.
Alice, identity solution adapted to delivery
If you are looking for a solution to delivery challenges, Alice Biometrics offers you an identity verification solution that can be integrated in a matter of minutes into any online platform to validate and register the identity of customers and delivery people.
Identity verification allows to increase security in the delivery sector, confirming and registering users accurately.
Alice provides a flexible, easy-to-use online identity verification solution that does not require any type of external hardware (only the mobile camera). In addition, it validates different types of identity documents, such as ID, passport, driving license, various permits, etc.
With Alice, the safety and security of the delivery community is guaranteed.