On-Demand Delivery App Development: Useful Tips for Your Business

The on-demand business model is a new one on the market. Nevertheless, it spreads globally appearing in big and small devices here and there. Food delivery, taxi services, corporate events — you can apply it in a huge variety of business spheres. So, we’re not surprised many entrepreneurs pick on-demand apps as an idea for their business development. Are you one of them?

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

On-Demand Delivery Marketplaces: What do They Have in Common?

If you have already looked through some information about on-demand delivery, you could’ve noticed that it’s beneficial for almost any business area. But to lead your startup to success, learn the very basic principles of on-demand delivery marketplaces:

  • Prices are lower than the ones of your competitors working on the traditional delivery field.
  • The payment process is fast and safe.
  • The product is delivered as quickly as possible.
  • There are lots of contractors who are ready to sell their products and services within one marketplace.
  • Mobile UX is a very significant aspect.
  • Any user can rate the work of any contractor.

These points show how clear and reliable such a marketplace model can be, that’s why it finds so many admirers all over the world. By the way, let’s say a few words about global trends…

The On-Demand Economy in Numbers: Same-Day and Next-Day Delivery

To win the attention of the customers, more and more brands offer the same-day delivery. It’s not a luxury service nowadays but a necessity that many people prefer to use on the regular basis. But first things first — let’s see more numbers on the subject from 2Flow.

  • 49% of people shopping online are millennials with the age of 18 and 34 years. The group with the age between 35 and 54 years is 30% of customers.
  • 43% of consumers say that their overall satisfaction with the service was formed by the in-time delivery.
  • 63% of shoppers say that it’s important to know about the estimated delivery time or date.
  • The same-day delivery starts (and never stops) growing with the compound annual growth rate of 154%.
  • And finally, 280 companies in 16 industries offered on-demand services in 2016. In the year of 2014, there were only 6 industries and 76 active companies.

One Way or Another: How You Can Apply 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.

Becoming a part of the existing provider’s work. In the previous part of the article, we’ve mentioned contractors who work within one application. Lots of marketplaces let any business become such a contractor and get all the benefits from a platform. For example, you won’t have to attract new customers and spend much money on creating your own program.

Building your own application meeting your company’s needs. 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. As you see, it’s not a startup — it’s a natural extension of the marketing activities.

No matter what way you eventually choose, you should know that this is your opportunity to bring more convenience to the customer’s experience. As for your company, it gets more loyal and content buyers.

Features of On-Demand Delivery Apps: Providing a Higher Convenience

You already know that user experience and fast services are one of the most important traits of on-demand delivery applications. Keeping that in mind, you should create an app not only for the customer’s convenience but also for the courier’s quick interactions.

From the customer’s perspective:

  • Creating an account.
  • Card registration. It is necessary to add an auto-payment feature for the quick payment process.
  • Ordering a service or a product. An app solely is needed to place an order no matter what product or service is being sold.
  • Pick-up and drop-off location of an order.
  • Delivery price. It should be shown as soon as a pick-up & drop-off location is chosen, plus tips for the courier can be added in the end.
  • Tracking. If the app deals with a material product, tracking can be available to follow the package. It may be sometimes applied for services too — we know how the Uber taxi can be tracked.
  • Multiple cards and automatic payment. With these options, you add more speed to the payment process. Automatic features make ordering almost effortless.
  • History of orders. It’s especially useful for those people who prefer ordering one type of product several times in a row.

From the courier’s perspective:

  • Creating an account. On this stage, it’s important to provide an account’s approvement from the administrator.
  • Information about a new booking. First, when the order appears in the app, couriers have some time to approve it or disapprove. To make a decision, the app gives them certain information: a pick-up address and distance to it along with the distance between a pick-up and a drop-off addresses.
  • Status of the order. It’s also important for a courier to know about the customer’s activities: when he rejects an order, approves it, or picks it up.
  • History of bookings. A courier should see the list of all orders he’s dealt with, including rejected bookings.

Now you know what features make your app an on-demand delivery product of a high quality. There are more details ahead concerning your spending on such a project.

The Cost of the On-Demand Delivery App Development

How do the features that we’ve just mentioned look in numbers? This is what you can expect from the on-demand delivery app development.

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
  • Backend development — 300–500 hours

Total: 1400–2400 hours

Taking the average hourly rate of the Ukrainian developer as 35$, an estimated cost of the on-demand delivery app is $49 000-$84 000

Knocking on the Customer’s Door

Businesses go further and get to the customer’s house — and the faster they get there the better. This is how the evolutionary way to the on-demand economy looks like.

While you’re thinking about your product, customers want to purchase it as soon as possible. Smooth payment process and fast delivery — these are the factors of your success provided by the professional team of developers.

This story is published in The Startup, Medium’s largest entrepreneurship publication followed by 286,184+ people.

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