On-demand delivery services are experiencing a surge in popularity. During the pandemic, on-demand delivery businesses such as Uber, Instacart, and Lyft have almost doubled their revenue.
Platform-to-consumer delivery revenue is now $70,741 million, according to an online report with a predicted annual increase of 8.2 percent even before the coronavirus.
People now have access to a wide range of professional services and items via on-demand delivery apps, which are available 24 hours a day, seven days a week. Food, clothing, maids, and dog walkers are all available with a single click.
Furthermore, user penetration of on-demand delivery apps has reached 9.5 percent, and expenditure on these applications is increasing across a variety of businesses.
If you’re planning to start your own on-demand delivery business, now is the time.
Wondering to create a delivery app? We’ve put together the perfect guide for you.
What is a delivery app?
Because we all live in a digital age with our smartphones in our hands at all times, there’s a good chance you’ve used an on-demand delivery app at some point. Some popular use cases of on-demand services include hotel reservations, food delivery, and transportation.
An app for delivery is one that allows you to order any service and have it delivered exactly when you need it. It’s as simple as that. You can order whatever you want with only one tap.
Also Read: Top 5 Ways to Improve Your Delivery
In most circumstances, the on-demand application has two sides; the first side is the user base that requests services; the second side is an enterprise or another user base of service providers that accepts and completes the request.
Delivery app industries
On-demand delivery applications can help you with a lot more than just getting your food delivered. They’ve established a benchmark for customer convenience and ease of use.
As customer expectations have risen, a variety of businesses and industries are set to achieve these rising requirements. On-demand delivery apps are currently available in the following industries:
- Healthcare: Doctors on demand is a prime example of an on-demand delivery firm that has become popular in the healthcare sector. The telemedicine industry makes consulting a doctor as simple as ordering your favourite pizza. Doctors can examine, diagnose, and cure patients simply by video conferencing from their phone. By 2026, the healthcare industry is expected to be valued at over $50 billion.
- Logistics: The number of logistical on-demand delivery apps is steadily increasing. Uber Freight, an on-demand, long-haul delivery service, has experienced rapid growth in the past couple of years. The company is thriving, with outstanding results thanks to the fact that it splits the vast bulk of its revenue with carriers. Similarly, Uber Delivery is an on-demand package delivery service with sustainable growth. By 2030, the on-demand logistics sector is anticipated to be worth over $75 billion.
- Goods Delivery: Goods delivery is amongst the most important sources of revenue in on-demand businesses, with a focus on speed and experience. Postmates and UberEats are two of the most popular on-demand food apps. Uber-like delivery services are predicted to generate over $161 billion in revenue by 2023. In recent years, UberEats has grown by 64 percent, fueled in part by its global market share and exclusivity agreements with well-known brands.
- Taxi Services: The most well-known on-demand apps are probably taxi services. You unlock your phone, it recognises your position, you enter your destination, receive a quote, and book a ride, all in a matter of minutes. Uber and Lyft are amongst the most well-known on-demand automobile companies. While Uber and Lyft dominate the market, many independent cab companies have had success with their apps on a small scale.
How to create a delivery app?
Step 1- Analyse the market
For a successful app creation, a thorough market analysis is a perfect way to start. Here are some factors you need to analyze before starting work on your app development.
- The size of the market is determined by the type of on-demand business. Food and taxi-hailing services, for instance, are amongst the most popular on-demand delivery services globally.
- Identify your target market by concentrating on the type of customer you wish to acquire.
- What motivates customers to order online? Cost, speed, size, time savings, group orders, and other considerations could be fuelling this demand. Find out whether your consumers prefer the more expensive 1-day delivery or other less expensive but slower options.
- To get a full and clear picture of your competitors’ strengths, assess them against each of the market criteria.
- Investment, access to resources and location are some of the most prevalent roadblocks. Use the information from your market research to create a SWOT analysis.
Step 2- Select a business model and revenue generation plan
In the on-demand sector, there are several ways to make money, including membership plans and service fees (percent from the order cost covers the delivery expenses, public relations (via banner, video, native ad, interstitial ad, incentivized ad), and merchandising and e-commerce.
Step 3- Locate a reputable software development firm
We propose focusing on hiring an app development vendor for a successful project. You’ve got the best of both worlds here: a low chance of failure and a low cost. Delivery app developers like Tookan make the process a breeze and offer spectacular features designed to make your delivery operations a breeze.
Step 4- Plan and prioritise the features of the on-delivery app
You must consider the most crucial functionality and anticipate how customers will react to it. The app should meet all user needs; without being overburdened with features. Features like real-time tracking, dispatch dashboard, auto task assignment, and hassle-free payment options are a few that are essential for any on-demand delivery app.
Step 5- Product testing and launch
Without many sessions of testing different stages of the project: UX/UI design, app code, synchronization of the front-end and back-end of the system, etc., successful on-demand courier delivery app development is difficult to envisage. Testing helps identify potential issues with the app before it’s made public. With proper testing, app developers can also fine-tune the app and fix any errors they identify at the last moment.
Step 6- Plan for app support and development in the future.
Once you’ve completed the first version of the on-demand delivery app, you should consider how to grow the system and incorporate appropriate upgrades depending on market developments and real customer input. Change is the name of the game and keeping your delivery app constantly updated with great features and making it more user-friendly is the ideal way to bring in more customers and retain your existing ones.
Step 7- Work on the project’s offline side
You must also evaluate how to organize your company’s day-to-day operations. Setting up agreements with suppliers and couriers, as well as legal covering and early marketing efforts, are all part of this process. A well-designed app is of no use if there’s no business plan in place to bring in customers and run the operations in a profitable manner.
Ways to improve your delivery
A delivery business is successful when the deliveries are on time, the in-app experience is seamless, and customer support is available 24/7.
With a power delivery app, you can focus on improving all three of these aspects and make your delivery operations a roaring success. While building a delivery app from scratch is an option, it’s not the most viable one since the time taken extends to multiple years and the cost shoots up accordingly.
Instead of developing a delivery app in-house, you can engage the services of Tookan, a delivery management software. Here are some features you get to enjoy when you choose Tookan for your delivery app development:
- Mobile apps and websites that are fully customizable and responsive, allowing customers to order on the go
- Beautiful marketplace templates that you can customise to fit your needs. You have complete control over the appearance and feel of your online store.
- Organize your catalogue into categories such as type, season, veg/non-veg, sale, and more.
- Inventory management that ensures you never run out of on-demand products at any given time.
- Analytics that provide precise data and conclusions to aid in the direction of your organisation.
- Set up fixed-price, tiered-price, weight-based, and location-based shipping prices.
- Create bespoke bots for your marketplace to engage customers and maintain consistency—it only takes a few clicks to get started.
- Set discounts on individual products or the full product catalogue to attract consumer orders, and reward loyal customers with loyalty points.
- To find business insights, use a simple drag-and-drop interface to create attractive and intelligent reports and dashboards.
- Over 100 external payment gateways from across the world are used to provide a safe and secure payment process.
Creating a delivery app from scratch isn’t as difficult as you would imagine it to be. With Tookan, you can create a delivery app packed with impeccable features without spending too much time or money.
Get in touch with our team of experts to learn more about how Tookan can help you set up an on-demand delivery app.
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