How to Develop a Successful On-Demand Delivery App? A Beginner’s Guide

The on-demand industry has gained huge popularity over the past few years. People started to avail of various services via on-demand apps. This is because the convenience of booking the service is as easy as possible with almost a few taps. Uber is the pioneer, which has set foot in almost every sector and redefined how customers purchase products and availing services. Even though several apps are in existence, there is space for new on-demand services apps as the requirement/need is skyrocketing. 

Three different categories of on-demand service apps

 If you aim to establish an on-demand service business, you should have a clear understanding of the various categories of on-demand mobile apps. Typically, there are three different categories: Business to Business, Business to Consumer, and Consumer to Consumer. Let’s explore. 

  1. Business to Business – This type connects different businesses on a platform. In this, service providers and service takers are not the end-users; they are facilitators. The app users/customers can book a service without looking even for the provider. Promising examples of this type of business are Amazon, Walmart, Flipkart, and UrbanClap. 
  2. Business to Consumer – This model allows businesses to sell products and services to customers. Examples of this model are Amway, Starbucks, and Dominos. 
  3. Consumer to Consumer – In this, users connect with the other users for selling/buying products/services. The individual person is the one who offers these services in the app. BlaBlaCar is a perfect example, in which the riders will share the ride, whereas the car owners can accept the ride request to finish the service. 

On-demand app ideas that you could consider for your startup

There are a plethora of money-making on-demand app ideas, flourishing the on-demand market and fulfilling the customers’ demands. Three top-notch app ideas that you could consider for a successful business are as follows.  

  • Food delivery apps

The on-demand food delivery app will enable users to order their favorite food items from the nearby restaurants of their choice. The ease of the ordering process inspires the customers to prefer the app. Inevitably, the demand for such apps is growing day by day. Notably, the online food delivery sector’s net value in 2020 was $9207 million, estimated to grow at a rate of 9.5% from 2020 and 2024. Therefore, developing a food ordering & delivery app is a wise idea to consider.    

  • Medicine delivery apps

The healthcare industry has also taken a shift to the digital space with the evolution of on-demand medicine delivery apps. Such apps are helpful for the old patients as they cannot move out of their homes and buy medicines from the pharmacy store. Instead, they can order medicines online and get them delivered to their home. Furthermore, the need for this app has increased in the Covid-19 crisis, when everyone prefers to shop online irrespective of anything they need.

  • Taxi-booking apps

There is cut-throat competition existing in the ride-hailing industry. The indisputable fact is that Uber, a pioneer in the market, has created such a trend, inspiring young entrepreneurs to initiate a taxi business. Market research shows that the ride-hailing industry’s net value is projected to reach $258,384 million by the end of 2021. Thus, it is the perfect time to launch a taxi booking app.

Check out the core features that an on-demand delivery app should possess.

The on-demand delivery comprises: Customer app, Delivery person app, Service provider app, and Admin panel. It is known that the app’s functionality is framed with the feature-set integration. Ensure to never miss out on the following important features in your on-demand app.    

Features of Customer app:

  • Real-time GPS tracking

The GPS tracking system incorporated in the customer app will enable the users to track the order status in real-time. They can also check the estimated time of arrival (in case of taxi booking) and delivery date/time (in case of delivering ordered products).     

  • Book now or schedule the order

Users have the ease of placing their order in real-time or scheduling it at their convenience. While placing orders, they have to include required information like delivery location and contact details. If chosen for scheduled delivery, they must select the delivery time/date in addition to the basic information.   

  • Reliable payment gateway

It would be best to offer multiple payment options to the customers, so they will choose the one according to their preferences. Ensuring the digital payment transaction is safe, secure, and reliable. Besides providing the online payment option, cater to the cash payment. 

Features of Delivery person app:

  • Accept/reject the request

The delivery person has the option to either accept or reject the delivery request based on their availability. If a particular delivery person does not accept the request, it will be passed on to the next nearby delivery person to fulfill the customers’ order request.

  • Availability status

The delivery person can show their availability status by enabling this toggle. This ensures that the delivery person is ready to accept the upcoming requests and fulfill the customers’ demands on time.   

  • Earning tracker

The feature integrated into the delivery person app will facilitate the delivery person to manage the earnings regularly. This helps to keep track of the earning status at their fingertips.   

Features of Admin panel

  • Real-time analytics

As a business owner, you can check out the usage of your app using this feature. You will get insights into the overall app’s performance in real-time. Besides, you will be able to know which segment of the app needs improvement. Thereby, it leads to the path for business growth. 

  • User management

Through the admin panel, you are able to manage the customers’ activities, including payments and discounts. Also, you can view the queries raised by the customers. Resolving these will pave the way for businesses to thrive.  

  • Delivery person management

You have the authority to manage the delivery person’s earnings, including commissions, incentives, and penalties. On the whole, you can view and manage the revenue generation and profits in return.  

Key strategies to consider when you start a business with an on-demand app

When you aim to initiate a business with an on-demand app, you have to be aware of some of the factors and strategies to consider. This is for business to thrive and compete with your rivals. So, have a glance at the following points.

  • In the initial stage, consider launching the on-demand app locally. Later, you can expand your business by operating the services in other cities/countries. Opting for the global launch at the very beginning might require a huge investment. 
  • Be an early bird! In the meantime, of developing the app, promote the app to your target audience. This way, you can grow your brand awareness and visibility. 
  • Notably, you can think about launching a minimum viable product with limited features so as to get attention from your target audience. With minimal investment, you can proffer the services to the customers.
  • Introduce loyalty programs or customer retention programs to retain your existing customers. To create trust among the customers, including the ratings & reviews system in your app is essential. 
  • Furthermore, it is requisite to update the users with information like order/booking status. Sending personalized notifications paves the way to increase customer engagement.  
  • Even after the app deployment, keep an eye on your app’s performance. Check on the analytics incorporated into the panel and get insights regarding the status of the app from the customers’ point of view. This way, you can proffer an app, performing better and letting the customers navigate through various options hassle-free.   
  • Above all, perform market research and competitor analysis to draft a successful business plan and stay ahead of your rivalry with your unique selling points.

Final words

2020 has changed the face of the on-demand economy, in which people started to opt for on-demand apps for every basic need. Without a doubt, establishing a business with an on-demand delivery app is a top-notch idea that you could consider in 2021. This is because the on-demand market is thriving, and will continue in the foreseeable future.  

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