Essential Guide On The Cost of Creating On-Demand Delivery Apps

The Essential Guide On The Cost of Creating On-Demand Delivery Apps

July 28, 2018 by Mike Davis

The on-demand hypergrowth is upon us. In the next 5 to 20 years most of people will be able to get anything within a 5 to 60 minutes window. These are the wise words from a prominent personality, Gary Vaynerchuk.

And if the statement is to be believed, getting the things delivered in a window of 60 minutes is user’s dream come true. The trend of getting the things right at the doorstep is booming.

The relief of consuming the services with the comfort of the home is an added relief why users like to consume the services.

Let’s figure out the facts helping the trend of on-delivery apps to bloom exponentially:

  • While we are busy than ever before, the additional burden of FMCG (fast moving consumer goods) reaching to our doorsteps gets off our shoulders.
  • It’s far convenient to order, pay, and consume the services if we compare the same with the getting the things from a brick and mortar shop.
  • Services reach faster, anywhere anytime and with any product the users order.
  • Mobile-first user experience suits everyone from working professionals to the housewives.
  • Goods are delivered at affordable prices.
  • Payment becomes factionless with plastic money.

 facts helping the trend of on-delivery

Here are more facts on on-demand apps

  • 86.5 Million Americans of which 42% belongs to adult population have used an on-demand service.
  • 45 Million Americans that includes 22% of adult population have offered assistance as on-demand service.
  • Professionals related to offering on-demand services have admitted that their financial situation has improved in the past year.
  • A major population of youth is interested in offering on-demand services and 51% of service providers offering on-demand services are researched to be under 35 years of age.

The above-represented stats clearly explain the rage of on-demand services on the consumers and the service providers alike.

Here is a depiction of on-demand mobile service stats featuring quarterly financial trend :

on demand mobile services

A detailed analysis of on-demand delivery services (Types): The in-depth insights

Person to person

  • The very first kind of on-demand application where services or the products are delivered from a professional to another.
  • The services are delivered when a person asks for a service or product from another.
  • The demand often comes on the apps designed by an app published or by the enterprise.
  • Postmate, Uber, Airbnb are all examples of P2P (Person to person) on-demand app.

Enterprise to person

  • To deliver this kind of services, enterprises often create their apps to offer assistance on demand.
  • They aim to supply their products or offer their services when demanded by the users.
  • The users can only ask for the services after downloading the app to seek services or order products from it.
  • For example, any app base services let’s say Starbucks or McDonald’s deliver their services to anybody who downloads their apps.

Enterprise to enterprise

  • An enterprise (considerable a small one) relies on other bigger enterprises to run its business smoothly.
  • The enterprise could possibly be suppliers, service providers, maintenance company, etc.
  • Amazon web services is a fine example under this category that offers services to a number of enterprises seeking similar services.
  • Walmart’s suppliers often provide their services under this business model to the consumers.

Different types of on-demand delivery services

The KPIs of on-demand service applications

User acquisition and user retention are the two important KPIs. These service delivery apps must have these elements enacted perfectly within the application in order to ensure the app’s success.

An insight into the ways to grow the user base

As stated earlier, the products through on-demand service delivery apps reach faster irrespective of the app niche. Here is more on how publishers can grow the user base for the business in this competitive era.

Consider starting locally

A smaller investment to start a business is always the best idea. When you start such a business, it’s usually getting easier to keep an eye on the investment. You have the bandwidth to even incur the losses and sustain.

Starting locally also means that you have chosen a limited geographical area irrespective of its population. This also means the performance of your application on that limited geographical area.

Finally, it also gets easier for you to mobilize the drivers for pouring in the growth elements into your business helping you grow the user base without slowing down the service.  

Do advertise for your services

You can only enrich your user base when you have them and they are aware of the services you are offering to the users. Here comes the active role of advertising. Ensure advertising your services, and the product even before the launch.

Consider every possible source of advertising right from social media to PR. Make use of referral programs to spread the word about your services. Referral programs work exceptionally well for the newly established businesses.

Through your application, you could ask users to invite friends to use the app and get something free of cost in return.

Establish your communication with retailers

Collaboration with retailers can offer you some relief to add more clients to the user base. You could take the advantage of your retailer’s hard work that he has already done to acquire the customers. This was exactly what Instacart did to acquire its huge user base.

As a startup, make it a practice to collaborate with smaller retailers, and as you get noticed look around for larger retailers to make the connection with. Postmates, for example, recently went into collaboration with Starbucks and this marks the beginning of a new business collaboration for both of the brands.

build on demand delivery app

How to retain customers

Consumers are loyal to the services when they are served excellently with the services through on-demand applications. There are a few of them who goes through the inconvenience of trying another application. So, the advantage lies there only for on-demand app service providers to design products that could entertain the users.

Reliability and impeccable customer service are always going to win over the customers. Here are a few strategies to trust upon.

  • Exceptional customer support

Friendly response to customers is one essential aspect of delivering excellent customer support to the users. Trying being innovative while delivering these services to the clients.

  • Design special offers for your clients

Your on-demand delivery app is sure to taste the success if you have something to offer to the clients. The customers will want to use the app more and more if they can get discounts, vouchers or gifts. Try implementing these special offerings via loyalty programs.

  • Contractor screening

The process includes background checks, video interviews, verification of a driver’s license, insurance, and registration, driving history checks. Ensure delivering an app that is everything the users wish to consume.

  • Interactively designed review and rating system

Customer feedback is crucial for the proper health of any application. After a delivery is completed, customers love to star-rate the services in case it goes really well. Do include rating mechanism in your application and see what users have to say about your services.

How much does it cost to develop an on-demand delivery app?

The cost of on-demand delivery apps can vary depending upon the elements you include in it. Although there is no specific calculation on how much these apps would cost, the number of hours taken to develop the application would help to figure out the actual cost.

number of hours taken to develop the application

Here is a graph showing the pictorial representation of the cost incurred per hour to create such app in different countries.

In addition to the hourly cost of developing the application, these apps require integration with third-party services like Google Maps and the Payment Gateways depending upon the app features. This statical representation will give you a fair idea on how much does it cost to develop an application.

The blog gist in one glance

  • Start locally and then take advantage of spread through mouth advertisement
  • Do experiment within a small geographical area and then go large as the services bloom
  • Advertising matters, invest some time in promoting the application even before you launch it.
  • Be loyal to your clients. Earn their trust and then keep your services ever ready to reach clients as soon as they request the same
  • Review, ratings, and user feedback matters the most. Try including everything the users suggest through the feedback
  • Retain your contractors, take advantage of their field work, do get in touch with their clients to offer your services.

The upshots

The world of on-demand service app seems growing leaps and bounds. It is a kind of service that users wish to consume anywhere and everywhere. As the world is becoming more user-centric, try investing in these applications to get the benefit. The points illustrated above will help you to design an app that could easily allure the clients towards your services.


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