On-Demand Delivery App Development: Features, Benefits, Costs

how to build an on demand delivery app

The dawn of mobile technology has brought a dramatic shift in the world’s economy, which is getting wider with the delivery of products/services anytime, anywhere at the fingertips through mobile apps. More specifically on-demand delivery apps like Uber, DoorDash, GrubHub, Postmates, and Airbnb are the pioneers that have reinvented traditional business models with doorstep service delivery.

According to PWC research, the ripples stirred by the pioneers in the global economy have soared the revenue of the on-demand sector to a whopping $335 billion by 2025.

The growing popularity of on-demand services making new businesses join the race to pick up the pace with the changing trends and enjoy a slice of the benefits pie. Undeniably, the future of the on-demand economy is bright and the businesses to take up this opportunity will shine.

However, on-demand app development is not a plain-sailing journey. There are a lot of challenges that stand in the way of building an on-demand app that results in unmet customer needs, poor UI/UX design, or performance issues. We receive a lot of inquiries from clients looking to build an on-demand delivery app regarding- How to avoid these pitfalls and a lot more? In this guide, you will get answers to all the whereabouts related to on-demand delivery app development. Let’s dive in!

What Is On-Demand Delivery App?

An on-demand application is a mobile application that acts as a marketplace or dedicated platform where multiple businesses or a single business can sell their products/services and enable customers to order them in real-time at the fingertips at the place and time they want. Both aggregator and independent models are popular under the on-demand business umbrella, which brings enormous benefits to businesses.

Benefits Of On-Demand Delivery App Development

The on-demand delivery business is a good concept that’s leveraged by the diverse industry verticals to enjoy a bunch of advantages. The on-demand app development brings a broad spectrum of benefits to businesses that are:

  • Independent businesses launching the on-demand delivery app can scale it to a marketplace that brings transaction fees to the business owner for every transaction that occurs on the platform.
  • Modern customers are used to one-click booking, ordering, or scheduling which makes booking easily accessible.
  • Businesses get the opportunity for personalized marketing that encourages users to purchase more products/services.
  • Building an online presence helps in improving the branding and awareness around the products/services.
  • Loyalty programs and relevant offers increase sales and retention which increases the ROI.
  • User activity analysis enables analyzing things that interfere with the users so that solution is improved accordingly.
  • 24/7 services through live chat or AI-enabled chatbots improve customer services and free up staff for valuable activities accordingly.

Features of On-Demand Delivery App

Making the mobile app perform to the notch always requires the right mix of basic features and trendy features just the way it’s defined in the guide determining the must-have features in the mobile app. the on-demand platform work for all the parties involved in the app when the set of features created for separate interfaces that are connected in some way.

An on-demand delivery app comprises 4 parts:

  • Customer app
  • Seller app
  • Courier app
  • Admin app

Customers’ app features

User registration: users can download and register to start accessing the products/services.

User profile: users can create, view, and manage the profile with delivery address, phone number, and preferences management.

In-app search: users can directly search for products/services by entering their name, type, brand, or category in the search.

Order placement: users can select the product, add it to the cart, and place the order after making payment and providing shipping details.

Effortless payment: users can easily pay using multiple payment modes such as credit card, debit card, mobile wallet, PayPal, or third-party payment gateways.

Order history: users can view the products/services ordered to date. Also, they can reorder things with a single click.

Push notifications: users get notified for essential information such as offers, discounts, order status, payment, and more.

Rating and review: users can submit their feedback regarding the products and services provided by the business.

Business/Seller’s app features

Registration: the vendors can register and sign in using the provided credentials by the admin after approval.

Products/service management: vendors can add and manage the products or services that they are providing through the platform along with the price tags.

Order management: vendors can manage the order acceptance request based on their availability and can change the availability status.

Courier app’s features:

Registration: courier person can register with the app after their profile gets approved by the admin.

Order management: courier person can accept or reject the delivery requests based on their availability.

Toggle status: courier person can update the availability status when they are not available to take any orders.

Navigation: courier person can easily reach the location following a pre-determined route using GPS technology.

Earnings: vendor can view their total earnings on a daily, weekly, and monthly basis.

Admin app’s features

User management: View, access, and manage the users’ data to better handle the issues, if raised.

Vendor management: Add, view, and manage the vendors and the information related to their offerings.

Product/service management: Manage the products/services content and their price when required.

Analytics: a single dashboard allow the admin to view the variation in the number of users, orders, and other factors impacting business ROI.

Payment management: Manage transaction fees that are charged from vendors and users whenever a transaction occurs through the platform.

How To Build On-Demand Delivery App?

For successful on-demand app development platform, it requires a well-thought, well-researched plan that streamlines the development process. Here, we will discuss how to make a delivery app in a step-by-step manner.

Market research

Market research analysis involves analyzing the market size, competition, and potential blockers that help in creating a better solution that meets the unmet needs of the customers and makes them happy.

Market size analysis involves figuring out the market value and the number of potential customers interested in a specific product in a particular region. It helps in identifying if it’s good to tap into the niche markets to achieve desired goals.
Analyzing market demands such as same-day delivery, low price, or massive ordering highlight the factors that enable the on-demand app to pick up the pace in the market and are most preferred by the users.

Benchmarking the list of competitors for every market demand helps you get a clear view of their strength and weakness, which, in turn, give insights into what unique you can do.

Define target audience

Every business has many segments which must be chosen first to define the audience that the on-demand food delivery apps will target. For instance, the food delivery app comprises many services such as grocery delivery, diet food delivery, junk food delivery, or prepared food delivery, which must be chosen before crafting the app because each option won’t fit the bill for the wide audience having diverse needs.

Target audience selection enables focusing on the specific type of customers you want to attract. Proper targeting enables meeting customers’ needs aptly and lets the brand known by its offerings.

Create a user journey map

When you are done with market research and target audience selection that helps you select the right set of features to keep in every interface, the next step is to create a user journey map. The user journey map explains how the users use the app from the users’ perspective. For instance, searching the products/services, selecting them, and then ordering the same following a certain process.

It helps in creating the app’s flow and logic that makes the creation of wireframe, prototype, and MVP.

Choose a business model and monetization strategy

On-demand apps are built with a specific on-demand business model such as an aggregator business model, order and delivery, or complete services based on business resources availability. After selecting any of the business models, the businesses can choose to monetize through the app using subscriptions, advertisements, service fees, merchandising, and others that on-demand economy leaders are using.

Deciding on a business model and monetization strategy beforehand helps in shaping the app’s design and functionalities of the app accordingly.

Build prototypes

The next step is to create a low-fidelity app structure that showcases everything done previously. A prototype is an interactive model of the on-demand applications that can be created by the designers effortlessly. Making the changes in the functionality, flow of the app, and interface won’t cost much to businesses. It’s a better idea to create a prototype for on demand delivery platform.

There are various tools available that business stakeholders can leverage to build the prototype in a DIY way.

Develop MVP version of the app

It’s time to build MVP with a set of basic features and test the users’ response in the real market. MVP- minimal viable product development is a time-savvy and cost-effective endeavor to collect users’ feedback and enhance the product based on their expectations.

MVP development is a good solution for businesses looking to enter the market in a reduced time.

Test and iterate the app gradually

When the MVP is launched in the market and user feedback is gathered, it’s time to reflect on the changes in the MVP version of the application and enhance it with more features and UI design upgrades. The app is continuously tested for UI/UX design issues, backend performance, functionality, and usability to make it stand up to par.

This process involves the active involvement of the testing & QA team, business analysts, and technical team to build and launch the app that’s most liked by the target users.

How Much Does it Cost to develop On-Demand Delivery App?

Building an on-demand delivery app from scratch typically costs you in the range of $30,000-$50,000. The app development cost for an on-demand delivery app varies based on various factors such as functionality (the number and complexity level), UI design, number of platforms, development approach- native or cross-platform, developer’s location, and technology stack.
You can also apply this simple formula to calculate the cost roughly.

Mobile app development cost = development hours * developers’ hourly cost

If you want to know the final price of the on-demand delivery app development precisely, the guide will help you estimate the cost of developing an app according to your requirements accurately.

How Prismetric can help in your On-Demand Delivery App development?

The success that a lucrative on-demand business model brings to some of the best on-demand delivery apps doesn’t signal the journey was rosy completely. It involves a lot of challenges that need to be addressed promptly that require the assistance of the on-demand delivery app maker to stay for a longer time in the fierce competition.

If you want to make On-Demand Delivery App, Prismetric has a team of expert professionals for mobile app development. The team of maestros is experienced in building on-demand solutions for more than a decade and has served many clients worldwide for their need of creating an on-demand delivery app. If you are looking for experts on how to make a delivery service app, feel free to drop us a line.

You can check our reliability, credibility, and expertise by verifying the reviews on Clutch or looking at our portfolio to make sure we are the best to create a delivery app for your business.

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