Because most consumers are stranded at home owing to the coronavirus pandemic, they have turned to on-demand delivery apps for necessary goods and services. To meet this demand, logistics companies are striving to develop an on-demand hyperlocal delivery business model.
Retailers’ attitudes about on-demand delivery apps have shifted as a result of the COVID-19 epidemic.
Retailers who do not offer on-demand delivery services are losing a lot of money and looking for other ways to keep their firms afloat. On-demand services are desperately needed in many places since they are hyperlocal in nature and cater to immediate requirements.
In a hyperlocal on-demand firm, the entire transaction is completed in a matter of hours.
The actual presence is another reason why consumers trust hyperlocal on-demand deliveries over non-hyperlocal deliveries. Stores’ physical presence enables them to respond to customer complaints.
For hyperlocal and non-hyperlocal enterprises, delivery and logistics are not the same. Warehousing, long-distance transportation, and other logistical legs are not a concern for hyperlocal enterprises.
Clearly, a lot is going on under the surface when it comes to on-demand delivery apps. Let’s look at some of the challenges and opportunities to create a delivery app and how you can overcome them.
Challenges for the Delivery App Business
- Evolving Consumer Perceptions
Any on-demand delivery service’s ultimate goal is to expand its market share by providing the highest possible value to clients at the lowest feasible cost.
Even as competition intensifies, on-demand delivery market participants have upgraded the marketing game to the point that clients are spoiled for choice. This destabilizes the client base and undermines brand loyalty.
On-demand delivery companies are using marketing strategies and tactics to increase interaction to reduce client churn.
- Maintaining Quality Standards
Due to the high demand for online orders, delivery partners are finding it difficult to deliver orders far away from the customer’s location while keeping the highest level of quality.
The contrast between items available at the store premises and those delivered to one’s home creates a major gap that on-demand delivery companies should work hard to close.
- The Prospect of Larger Players
A well-known on-demand delivery business takes up a larger market share, leaving less room for other businesses to compete.
This is one of the most difficult obstacles for small and new businesses in the industry to overcome to build a huge customer base with a greater value.
- Handling Customer Expectations
Regardless of how large the market acquired is, if the businesses are unable to meet client needs, it is an unsuccessful endeavor.
Customers’ pleasure is not solely the duty of delivery partners, but also of those working at the point of origin, the restaurant personnel.
As a result, closing the gap between delivery partners and vendors to collaborate and satisfy customer expectations proactively is a difficulty.
- The Transportation Conundrum
On-demand delivery firms confront enormous logistical obstacles.
The scope of receiving higher orders from a given location, allocating the proper number of vehicles, maintaining the quality, and other important logistics-related difficulties are some of the critical logistics-related issues that on-demand delivery companies face.
When choosing a last-mile logistics approach, on-demand delivery services must consider all of these factors.
Opportunities for the Delivery App Business
- Food Delivery: Food delivery allows people to order their favorite cuisine via an app and have it delivered to them in no time. You can start your food delivery business with a specific customer base that includes a wide range of cuisines. Always start small and with a limited delivery range. You can gradually develop your delivery business by expanding your delivery range once you’ve established yourself.
- Laundry and dry cleaning services: Working people benefit from laundry and dry cleaning services since they only have the weekend to enjoy their lives, and this service prevents them from having to spend their valuable weekend time doing laundry. On-site, in-site, and marketplace laundry delivery services are all viable options.
- Courier service via bicycle: Bicycle courier services have grown in popularity because they can easily avoid heavy traffic and move messengers from point A to point B within the city in less time than any other method of transportation. To start this business, you’ll need a courier license in the area where you’ll be operating.
- Delivery of groceries: Grocery delivery resembles food delivery in many ways. It is, however, easier because you are not required to bring groceries immediately. Grocery deliveries have a longer delivery window because they are rarely needed outside of normal business hours. To establish a grocery delivery service, you’ll need coolers to keep your inventory fresh, a delivery van, and a website or mobile app where clients can place orders.
Solutions for the Delivery App business
- Make your Clients are Engaged
It’s critical for your brand’s image to keep people interested. Throughout the journey, you must keep your consumers updated about their package.
You can keep your consumers informed by providing them with an expected arrival time as well as real-time tracking. Additionally, you can use live chat to keep customers informed and interested.
Sending SMS is another approach to keep customers informed.
- Invest in Technology
If you’re still running your delivery business in an old-fashioned manner, you’ll never be able to compete with on-demand delivery goliaths.
To do so, you’ll need to first construct an on-demand delivery app, which will turn your standard delivery service into an on-demand service.
The app should have powerful features like route-optimization, automated resource allocation, real-time tracking.
- Better Packaging
In the delivery industry, the packaging is extremely crucial. Your package will be safe throughout the voyage if it is packaged properly.
Packaging that is of high quality and attractive can also leave a lasting impression on buyers, as it can serve as a differentiator and a USP.
- Management of Delivery Costs
There are numerous phases to the delivery industry and there’s a cost associated with each of these legs that adds up to the total cost of your delivery service. These legs can be optimized by utilizing cutting-edge technologies that can uncover cost-cutting options across the board.
Most of the challenges to create a delivery app can be overcome spectacularly if you have the right tools and solutions at your disposal.
Tookan, a delivery management software, helps you to create a delivery service app boasting incredible features designed to uplift your delivery operations.
Get in touch with us today to learn more about how we can help you create a delivery app equipped with all the tools and features needed to run successfully.