Life full of bumps for motor couriers

Motorcycle couriers can be seen on any street, small or large, in Istanbul, however, their business is under assault from two fronts. Cutthroat competition from cargo companies and unlicensed couriers have eroded profits, while the hazards of one of the most dangerous jobs in Turkey is a constant threat.

Motorcycle couriers are dispatched by a central agency to pick up time-sensitive material from point A and deliver it to point B. They generally work for companies such as advertising agencies, law firms and banks. But they can also be privately hired for any number of errands.

Approximately 1,000 motorcycle couriers operate in Istanbul every day, serving as a speedy conduit by which business material is transmitted throughout the city. While motorcycle and bike couriers play a role in all major cities, the eternally deadlocked traffic in Istanbul makes courier deliveries a necessity for ordinary business arrangements.

There are over 50 licensed courier companies in Istanbul, the largest employing approximately 50 couriers, while the smaller ones may employ only 10 or 20.

Offering services similar to the Turkish postal system, the PTT, courier companies have expanded to offer international deliveries to and from Europe, as well as across the country. However, the majority of their business remains centered on their ability to guarantee the speedy movement of goods and documents within Istanbul.

Ahmet Beşlioğlu is the general manager at RTL Kürye, one of the five largest courier companies in Istanbul. "Anyone can be a courier," Beşlioğlu told Hürriyet Daily News & Economic Review. "All you need is a driver’s license and a helmet."

Unlicensed companies
This mentality has led to the development of unlicensed courier companies. Although most are small operations, they undercut standard prices, which further increases competition.

Unlicensed courier dispatchers will employ anyone who can drive a motorcycle, but the result may be undelivered packages or missing items.

"Unlicensed courier companies are the biggest problem we face," said Celalettin Sergin, a manager at Süper Kurye, arguing they reflected poorly on the industry and lead to shrinking profit margins.

Another challenge has come from the expansion of cargo companies. Cargo companies now offer an expanded array of cheap services to move items around Istanbul. "If people can plan ahead, then it’s cheaper to go with a cargo company," Beşlioğlu said. "It’s only when they can’t plan that they use couriers."

Hard data on the industry is difficult to come by. Due to the highly competitive nature of the business, no company would release specific data on their revenue and expenses. A source from KARİD, the umbrella organization for courier and cargo companies, told the Daily News "It’s impossible to know exactly what the industry looks like."

On average, larger firms claim to make upwards of 10,000 deliveries each month. Most companies have between a 3 to 6 percent profit margin.

This margin is eroding however, in the face of rising gas prices, the economic crisis and persistent competition. Although business is higher in the winter than summer, orders were down by as much as 30 percent last month.

An important problem that all companies admitted to was the "human cost." Approximately 80 percent of all couriers work on a commission, based on how many deliveries they make in a day. Couriers work long hours and are under extreme pressure to never miss a deadline. Accidents are inevitable.

A study published in 2006 found that over 90 percent of couriers surveyed were involved in serious accidents at sometime during their career. As a result of these conditions, an average of 10 couriers die every year in Istanbul.