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An on-demand delivery app gives you instant and easy access to a whole host of professional services and goods, all orderable from your phone with quick delivery. So, do you need to make an on-demand delivery app to compete?
The on-demand delivery services market has become pretty diverse; it’s now for more than just taxis. You can get food, shopping, errand running, maids, dog walkers, and B2B logistics on-demand. Revenue for platform-to-consumer delivery is now $70,741 Million. Even prior to the coronavirus, experts expected 8.2% growth annually. The famous names on on-demand delivery have made the system synonymous with taxis and food delivery, but they’re even diversifying.
User penetration for on-demand delivery is now 9.5%, and spending is growing for these apps across various industries. As consumer expectations rise, do you need an on-demand delivery app to meet those expectations?
What Benefits Do On-Demand Delivery Apps Provide for Business Owners?
The main benefits of using an on-demand delivery app for your business are:
On-demand delivery startups have lower operating costs than traditional methods. Those making the deliveries are part-time contractors, without the same obligations as regular employees. While regulations are changing in some jurisdictions, the costs involved with staffing up a fast-paced and scalable delivery service are still considerably lower.
This is the most significant benefit for customers, but you’ll get the convenience as well. On-demand delivery apps simplify the entire process. Customers place an order exactly when they need too, and a contractor delivers the goods all through a phone. The whole process should be incredibly simple and convenient.
Delivery services app opens new opportunities and possible streams for revenue that would otherwise not be accessible to your business. During the current quarantine, delivery apps have seen a boom in orders as they bring the outside world to the customer.
On-Demand Delivery App Types
A food delivery app like Uber is well known, but the types of service offered by apps are much more diverse:
Business to Business (B2B)
Business to business on-demand delivery apps connect one business to another with the fast on-demand service of a customer-facing app. Expectations have risen, a study by Project44 found that 94% of people making business purchasing decisions expect the same experience you’d associate with a business to customer on-demand delivery service.
Some of the on-demand delivery companies that have stepped up to fill this market include Metrobi, Instacart, and Bolt. The B2B component of Bolt offers same-day deliveries and multiple drop-offs in a single run. It’s estimated that B2B eCommerce will be worth $1.8 trillion by 2023, so building an on-demand mobile delivery app for a slice of that market is a good prospect.
Business to Consumer (B2C)
Business to consumer on-demand delivery apps facilitate goods or services directly from providers to their customers. These can be apps for delivery that serve single providers like a specific restaurant selling their own food, or a multitude of providers on offer from a single platform, like UberEats, Deliveroo, and Seamless.
These delivery services apps significantly cut their costs and can come with an in-built customer base from partnering with known brands. The business to consumer market is expected to continue growing by 8.2%. While most revenue is still generated in China for this market, it is rapidly growing internationally with the coronavirus being a significant driver.
Person to Person (P2P)
Person to person is an increasing portion of the on-demand app market. These allow individuals to make transactions through a convenient platform. The apps provide a sense of security in person to person transactions. The big names in this sector include Glocalzone, WunWun, and Local Guddy.
Glocalzone is a particularly innovative on-demand application. It connects people traveling with customers aiming to buy a product from a different country. Travelers can make some extra cash and the purchaser cuts down on the expense of importing hard to find goods. It quickly reached over 100K users, despite being a niche area of the on-demand package delivery market.
On-Demand Delivery App Industries Breakdown
On-demand delivery apps are good for a lot more than just delivering your take out. They’ve set a standard for ease of use and convenient customer experience. Customer expectations has risen, so this standard is expected from a lot of different industries and businesses. These are some of the industries that currently have on-demand delivery apps:
Goods delivery is the largest driver of revenue in on-demand delivery, with a focus on speed and experience. Some of the biggest on-demand apps for goods are Postmates and Uber Eats. The revenue from Uber-like delivery services is expected to hit $161.74 billion by 2023.
Uber Eats has seen 64% growth in recent years. This is driven in part by its international market share, and exclusivity deals with well-known restaurants.
On-demand delivery startups are becoming bigger in healthcare, like Doctors on Demand and Pager. Telemedicine allows customers to see a doctor as easily as they would order a Big Mac, So doctors can evaluate, diagnose and treat patients just using video calling from their phone.
Healthcare is estimated to be worth $52.2 billion by 2026.
On-demand delivery apps work effectively for personal services. TaskRabbit, Merry Maids, and Slate are all good examples of how platforms have flourished by connecting professionals with customers. Rover is an app for finding dog walkers and sitters, they managed an aggressive 575% year on year revenue increase early in life by disrupting the industry.
Logistical on-demand delivery apps are rapidly growing. Uber Freight, an on-demand and long-haul delivery service, has seen a fast expansion. The company is expanding rapidly, seeing great results by sharing the vast majority of its revenue with carriers. Uber Delivery similarly is an on-demand package delivery service that is seeing modest growth. The on-demand logistics market is expected to hit $75 billion by 2030.
Taxi services might be the most well-known on-demand apps. You open up your phone, it knows your location, you enter where you’re going, get a price, and get a ride, quick and easy. The leading names in on-demand cars are Uber, Bolt, and Lyft. Uber and Lyft dominate this market, but individual taxi firms have seen success in launching their apps.
How to Build an On-Demand Delivery App
An on-demand delivery app can completely change the way you do business and open up some great new revenue streams. So how do you make one?
Thankfully, you don’t have to spend the next five years mastering coding in C# or the nuance of UI design. Finding professionals with the right skills or using an on-demand app builder can be a very affordable investment to enter this market.
Hire an Outsourcing Company with Expertise
Hiring an outsourcing company gives you access to a full team of app developers with the expertise you need to build an app. This method gives you the same quality and experience as hiring an entire in-house department for app development, but at a fraction of the cost. You’ll save time compared with hiring a freelancer since less vetting and management is needed. A full team also allows you to scale considerably easier.
Using an outsourcing partner is the most efficient way to build your on-demand delivery app if you’re looking to keep your costs at a minimum and get things done to a strict timeline. You have access to experts in the field, but with outsourcing, you’ll make significant savings compared with hiring an entire team.
Like with a food delivery app like Uber Eats, features and the user experience are central to the final app. For your on-demand delivery app you will need features, like tracking orders, various safe payment types that work quickly, and updates from both the provider and the courier in transit.
Find a Freelancer
Finding a freelance who knows how to build an on-demand delivery app is another option for building your app without writing a line of code. The downside of this method is that it does require quite a bit of management and time put in while hiring. This is a great option if you’re trying to keep your budget under $10K.
Find On-Demand Delivery App Builder
An on-demand app builder is a relatively simple approach to build a delivery app. This is simple and suits a small budget, but the result matches that. It won't be easy to scale this type of app.
Here’re a Short Story on How Uptech Made an On-Demand Delivery App – Sprent
Sprent is an app that allows the user to safely and quickly purchase just about anything for sale in its city. With Android or iOS app users can simply pick a category and have it delivered by the courier team in a matter of minutes.
To build the app we conducted a lot of market research with the Sprent team to get a great understanding of customers, and their needs. Our team designed, tested, developed, and released all needed features for app in a timely manner. The final version of the app included all of the must-have features for a food delivery app, providing a simple way to order just about anything, track the delivery, and securely pay.
As a result:
- Sprent was featured by Apple as the 1st app to launch Apple Pay in Saudi Arabia.
- Sprent is the best startup in the Logistics category by GESALO.
- Sprent has 10K monthly active app users.
Currently we keep an eye on Analytics, focus on users feedback and work on scaling the product.
The on-demand delivery app market is seeing incredible growth in a lot of different industries. Developing one yourself though, that kind of requires a lot of programming knowledge and experience. Thankfully, there are ways for you to enter this market without all of that. Working with a freelancer or a builder can work, but, for many, the best solution is to work with an experienced outsourcing partner like Uptech. With this, you get the expertise you need to build an on-demand delivery app, without the high costs of hiring a whole team.