On-demand business model of Packrs app

Balwinder Klair
Packrs
Published in
3 min readFeb 27, 2019

In the modern markets on demand business model is taking over the world. It is increasing at a fast rate on our devices.

Out of everything, food delivery and parcel delivery is the most prevalent. Most of entrepreneurs now chose on-demand modal for their business.

Here you can find all necessary data, starting from the very essence of similar products up to the number of features and their cost.

What is similarity between all On-Demand models?

Basic principles of on demand models are same. They are as follow:

  • Delivery price is relatively cheaper than traditional methods.
  • Fast and secure payment methods.
  • Faster deliveries.
  • Mobile UX is a important part of this modal.
  • User comes first.

Applying the On-Demand Delivery Model

A few words at the beginning were enough before real actions. If you’re interested in practicing on-demand delivery in your company’s work, there are two ways you can consider.

One way to be in on demand model is to join the existing provider’s work. Many markets allow businesses to join them as sellers. In this way it is possible for them to attract new customers without spending much money to make their own platform.

Another way to create a good offer for your customers is to build your own app product. No one else knows your audience better than you do, that’s why lots of entrepreneurs choose building their own on-demand delivery tool.

Features of On-Demand Delivery Apps

Most important features as we all know are user experience and very fast delivery. Keeping that in mind, you should create an app not only for the customer’s convenience but also for the courier’s quick interactions.

Estimated cost of on-demand delivery app

Various aspects are taken into account for estimated cost.

The team size:

2 UX/UI designers

2 front-end developers

1 back-end developer

1 QA-engineer

1 Project manager

Features taking the most of the working time:

  • Simple admin panel — 30 hours
  • The booking process — 32 hours
  • Tracking — 40 hours
  • Push notifications — 48 hours
  • Smooth payment — 50 hours

The overall mobile development in numbers:

  • App design — 140–300 hours
  • Front-end development — 515–800 hours
  • Back-end development — 300–500 hours

Total: 1400–2400 hours

And charges would be accordingly

Packrs app being an on-demand delivery platform analysed the scenarios and took an intelligent approach. We used modern technologies which basically reduced hours and hence of course the costing.

We used React Native, a platform by Facebook for developing Android and IOS apps. With same code base both IOS and Android apps can be developed greatly reducing the cost by half.

  • App design — 100–120 hours
  • Front-end development — 300–400 hours
  • Back end development —100–150 hours

Total: 500–700 hours

Customer first approach

Customers are main driving force behind a successful delivery platform. They need smooth payment process and fast delivery. And should be given main consideration.

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