The on-demand delivery service graph is growing exponentially day by day. Most prominent companies like Bolt and Uber have made their annual revenue double even in the pandemic. As per the report, the revenue of the on-demand delivery app service is now $70,741 Million. One of the important factors is when the entire world was affected due to pandemics; even then on-demand delivery service industry has grown.
With an on-demand delivery app, people can access professional services and goods in a 24/7 environment with a single click. Because of it, it is one of the booming trends for a successful business.
If you still doubt whether you should go with an on-demand delivery app, keep scrolling slowly entire article to know about the charges, how to get it for business, and which you need to focus on to make sure the success.
- Different types of on demand delivery apps
- Revenue model
- User acquisition
- User retention
- Transport and delivery expenses
- How to build on-demand delivery service apps?
- How can we help?
As we are in the digital era with a smartphone 24/7, it is the possibility that you have used an on-demand app atleast once in the past for ordering food, booking hotels, booking taxis and ridesharing and all of these are on-demand delivery services which are booming in present time.
The on-demand delivery app allows you to avail of any service on your demand in a single click. The process is quite simple. Just click and grab whatever you want. In most cases, there are two sides of the on-demand delivery app, which are:
- User side who demands the service
- Service provider side that accepts your demand or request and completes it
Overall, an on-demand delivery app enables users to demand service whenever or wherever they want.
Now let us understand more about the different types of on-demand delivery app.
Different types of on-demand delivery apps:
Types of on-demand delivery app depend on what kind of user base is engaged in providing the services, and the on-demand delivery app is categorized into three types:
1. Business to Consumer (B2C)
Business to Consumer on-demand delivery app enables the business to make service transactions with the Consumer directly. Companies deliver products from their stores to Consumers by utilizing the B2C model. For example, Dominos, Starbucks and more.
2. Business to Business (B2B)
Business To Business on-demand delivery app enables the business to connect with other businesses. In this model, the service provider and Consumer are not end-user of the service. B2B on-demand delivery model can serve a single industry as well as multiple industries.
3. Consumer to Consumer (C2C)
In the C2C model, the on-demand delivery app connects the end-user with another end-user, where the user creates offers on other user’s products to make it use or buy. For example, eBay and BlaBla Car.
Starting any on demand food delivery business is proper planning and other calculations. So think revenue model appropriately to plan your investment. There are some following options for making money out of your business idea.
1. Delivery fees
You may also charge cafes or restaurants that do not have a delivery charge option, or you can take it from the customer directly. For example, Foodpanda charges a 10% commission per order while UberEats charges $4.99 with the delivery price depending on the total distance. In the same way, if you are operating on demand grocery app, you can charge to a grocery shop or ask for the commission to the Consumer directly.
2. Commission charges
Most of the time, restaurants pay your on-demand food delivery business a fixed monthly price for serving their valuable customers without charging them, and it works well for new food joints.
Advertising is one of the most obvious ways to retain existing clients as well as to attract new customers. The promotion of newly established food joints may also help to increase your revenue without any additional investment. Suppose if you owe on-demand laundry service app, you can advertise any new laundry business at your on-demand app for marketing purposes.
What are the KPIs you should consider before building an on-demand delivery app?
The development of an on-demand delivery app consists of proper planning and research to make it more successful. One should not forget the following important KPI’s to make an on-demand delivery app successful.
1. User acquisition
The primary idea behind the on-demand delivery business model is to provide cheaper and fast delivery. So, to attract more customers to use your on-demand delivery app, do not forget to consider the following points.
- Start with Locals
- Pre-launch on-demand delivery service marketing
- Effective use of referral programs
2. User retention
User retention is applicable to both deliver agent and stakeholder both in the on-demand delivery app business. Suppose you own on demand taxi app delivering service. It is always to give users expected service to retain them for further service, and it not only helps to retain existing clients but also chances to grab new clients.
There are the following customer retention strategies that should be followed in user retention.
- Customer support
- Service feedback system
- Special offer announcement
3. Transport and delivery expenses
Transport and delivery expenses are also important KPIs that should be kept in mind which developing any on-demand delivery app. there are the following ways you can cut your transportation cost.
- Always deliver your service in selected areas
- Use cheap transportation option, but quality should be maintained
- Try to synchronize route during the delivery
How to build on-demand delivery service apps?
Some step-by-step instructions are used to develop on-demand delivery app solutions, which are discussed in detail below.
1. Requirement gathering
The very first step to develop any application is the collect the requirement. At this stage, you need to collect all that you want in your on-demand delivery app., you need to answer the following questions.
- Is your business concept unique
- How many competitors are there in market?
- Who will be the end-users?
- Is there any unique feature that makes your app stand out alone among the competitors?
- Who is the target audience for your app
- What security features are there in your on-demand app?
2. Visual designs
After requirement gathering, the next step is to create a screen for an on-demand app. Now create a wireframe for your app. schedule meetings with stakeholders to get feedback regarding design and development. It is a good practice to hire any third party full-stack development company that understands the development cycle well.
3. MVP Creation
Before launching the final product in the market, you should create an MVP (Minimum viable product) first, a product with minimum features designed for early testing and open for other improvements.
Once the MVP is finalized, the next is to develop the final product. Develop final product using agile development techniques with several other product iterations to ensure high-quality final product.
Once the project development work is completed, it is time to test the final product using software product testing techniques such as white box testing, black box testing and manual testing to see whether the expected result is coming out or not. If a product qualifies all the tests, now it is ready to deploy to the play store to bring potential customers.
How can we help?
After reading the on-demand app delivery guide, we assume that you might be thinking to develop an on-demand delivery app for your business. To get an amazing on-demand delivery app for business, you should have hired the best on-demand development company with a passion for on-demand app development with proper skill and experience.
We are experts in on-demand delivery app development, holding years of experience and expertise. We have developed so many applications with all the required functionalities and features so far. We have a team of skilled developers holding years of development experience and many successful projects.
The on-demand delivery app is the future of application development, and most of the companies are coming forward to have their app. So if you are looking to have an on-demand delivery app, then it is the perfect time to scale your business with the amazing features of an on-demand delivery app. however, it is crucial to understand the challenges you must face in the market changing scenario. With the help of depth research, a solid plan, a great development company take your business to the next level.
Author: Hermit Chawla