The all-in-one solution to every shopping-related challenge today is an on-demand application. On-demand application is an extremely profitable segment in current times. The application’s marketplace is raining with Uber-like apps serving people with food, grocery, medicines, and more on-demand.
When a lot of industries are caught under recession due to COVID-19, on-demand applications drive the economy. Entrepreneurs suffering from FOMO (Fear Of Missing Out) are quickly moving towards on-demand delivery app development. And why shouldn’t they? On-demand apps are shaping the future of this industry. People prefer the “30 mins to food delivery” over visiting restaurants. A Harvard Business Reports indicates that there are 22.4 million on-demand app consumers annually, who spend around $57.6 billion over these apps.
We would like to share one more thing. Even while you are reading this, there are thousands of other entrepreneurs who are discussing an on-demand app idea or have started reaping the benefits. Are you planning to join this advent and build a robust on-demand delivery app to reshape your business? If yes, then read this systematic guide on numerous forms of on-demand delivery applications and ways to develop a delivery app like Mrsool successfully.
First, let’s explore the forms of on-demand applications:
On-demand applications can be divided into three major categories.
Person to Person:
The easiest way to understand Person to Person on-demand applications is by understanding the functioning of courier delivery apps. In such scenarios, a person can request a service or a product from another person on the same platform.
Airbnb, Uber, Postmate are some of the great examples of P2P app services.
Enterprise to Person:
Big brands often prefer to go for this business type. In this business type, the business/enterprise has its own on-demand app service using which its customer base can place an order. The enterprise receives the order through the app and delivers it to them. Remember our “30 mins to pizza delivery” example? It’s exactly the same business type. Dominos, McDonald are some examples of this business category.
Enterprise to Enterprise:
In this business type, an enterprise is dependent on various other small enterprises for service provision. These small enterprises are a part of the larger enterprise which operates through the app. Larger enterprises resort to such small enterprises for services like maintenance, service, delivery, etc.
We have a prevalent example that would easily explain the working model, Walmart. Walmart has its own application but is connected through Walmart’s supply chain platform.
Benefits of developing an on-demand delivery application for your business:
It is difficult for the delivery app development company to meet the rising demands of on-demand app development. These companies are continually striving to improve and survive in this competition. The main reason behind this increasing demand and drift to on-demand apps is the benefits list.
On-demand delivery applications have penetrated various verticals of the industry. They offer numerous benefits to businesses as well as customers. We have covered some compelling benefits that will drive your crazy.
Millennials prefer to get a swift delivery of the products that they order using electronic gadgets. They pick up the phone, place an order, and have the product at their doorsteps. Just a few taps, and they have it. Hence the traditional process, which usually took around 1-7 days, is reduced to around 20 mins to 24 hours delivery module.
On-demand application development doesn’t involve a long list of services and features. Some of the key features like order placement, delivery, and maintenance, that’s it. On the other hand, businesses earn a big chunk of money by investing just a minimal amount of development cost.
On-demand apps is an analog term for convenience. A customer can place an order using the app, track it in real-time, and get it delivered at their preferred time. In the same line, enterprises do not have to engage in manual paperwork, inventory management, and other tasks, which can lead to errors. The whole process from order to delivery is streamlined as well as customized for the customer.
The real-time tracking, feedback, and push notifications allow customers to be aware of their order from time to time. They are free to leave feedback for unsatisfactory service or a bad product. Thus a customer feels free to express their experience. At the same time, the businesses have the privilege to utilize the feedback and improve upon it.
Which are the business sectors you can enter into with your on-demand application?
The on-demand business industry isn’t new; there are already strong players like Uber, InstaCart, BigBasket. But having said that, endless opportunities are waiting for you when you enter the on-demand market.
Food and Beverages Delivery:
This industry needs no introduction. COVID-19 has made it evident that the on-demand food and beverages demand will never slow down; it is here to stay and for long. A savior in time, on-demand food and beverage delivery applications are booming.
Like a bottle of old wine, it is getting better, customized, and modernized. If you explore the features of Mrsool, you will be tempted to build a food delivery app like Mrsool.
With the team of developers or hire mobile app developers, you can try your hands and be the next, Zomato, InstaCart, or UberEats.
Next on the list is on-demand courier services. Here, you can be a helping hand for the people who wish to send couriers from one part to another. This app type provides the utmost convenience to the customers and saves a lot of time and resources.
Adding more to the information, the courier can be of any form, laundry delivery, beer delivery, or say grocery delivery.
Transportation and logistics service:
Another popular service exploding in the on-demand app delivery segment is transportation and logistics. Uber, Lyft, Hailo, Bla Bla have already marked their presence, when are you initiating?
There is an increasing demand for such services, and if you develop a typical application entailing all key features, then you have a high potential to leave your footprints.
Home Service delivery:
When the whole world moves at its fastest pace, it is difficult for the younger generation to perform DIY tasks like fixing water leakages, fixing electricity issues, and more. They prefer to hire a professional who would do the job.
This segment is comparatively new but highly explored by the new generation. You can define the problem type that you are planning to solve and develop an application for the same.
What is the working flow of an on-demand delivery application?
In simple words, request → approve → Payment → pick up → delivery → Feedbacks and reviews is the general flow of any on-demand delivery applications. We would understand the execution of an on-demand app with a simple pizza delivery app ( we know you would easily relate to it)
You (customer) explores the pizza options and places a final order to the service provider.
The app admin can accept or reject the request based on the business type. Don’t worry, for pizza delivery apps; the request is always accepted.
Once your order is accepted, you will be landing on the checkout page to make the final payment.
The service provider will prepare your order and hand it over to the delivery service person. The service person will pick up your order and leave for delivery.
Your pizza order is delivered at your doorstep.
Feedbacks and reviews:
You, being a happy pizza consumer, are asked to leave feedback for the service you have received from the Pizza brand. You leave a 5-star rating for your delicious pizza.
Ways to monetize your on-demand delivery application:
Some of the monetization ways at a glance are:
In-app paid features;
Peak hour charges:
You can earn money by charging customers for product delivery. These charges can not be hidden from the customers and are clearly mentioned in the invoice. However, you can charge a flat fee and earn profits.
In-app paid features:
You can allow your customers to unlock more and better features in your app if they opt for a premium model. The premium model means something more than the customers pay to access features like special combo offers, discounts, free services, and more.
Quote often, you would have seen advertisements popping up when you are operating the applications. In-app advertising is a great way to generate revenue for your business. You can allow merchants/businesses to market their products by publishing an advertisement on your application.
Peak hour charges:
People often wonder how the rate of the same Uber route increased by two times during the peak office hours. Yes, increasing the service rates at peak hours is also another way to monetize from the on-demand applications.
What is the estimated cost of on-demand app development?
We are often encountered with this question, What is the cost to develop an app like Mrsool? And the simplest answer we give is, it all depends on the complexity and the number of features you add to it.
It is difficult to estimate the exact cost of app development at the initial stage; however, you can expect it to fall somewhere between $10,000 to $50,000. Some of the critical factors that directly affect the total cost of app development are:
Number of platforms you target;
Number of features you integrate;
Rates of the app development partner;
Number of iterations;
Number of hours dedicated for app development;
What are the key features of an on-demand delivery app platform?
We will not dive deep into the feature set of on-demand delivery app development, because we have discussed them at length in our respective app categories blog. However, we will just give you an idea about the key features of the on-demand delivery applications:
The customer’s screen’s key features are menu, search, order placement, order tracking, order scheduling, payment, in-app chat, in-app GPS, review, and feedback.
Admin is responsible for monitoring the on-demand application. The key features from an admin perspective are: accept/reject order requests, manage orders, manage notifications, manage delivery systems, reporting, and analytics.
Delivery persons’ screen:
Necessary features from a delivery person’s perspective are, order approval, pick up point, in-app GPS, in-app chat, order history, feedback, and ratings.
How will you grow and retain your app users?
You can not survive the competitive market if you do not have a retention strategy in mind. You need to retain both your customers as well as your contractors. We have listed some effective ways that will assist you in retaining loyal customers.
To retain a loyal customer, you can,
Offer them great customer support;
Allow them to leave feedback for their services;
Offer them contractor screening;
Give them special offers and discount coupons;
Same way, for retaining contractors you can,
Offer them lucrative business rates;
Allow them to work on flexible work schedules;
Make transportation affordable for them;
Show appreciation for their services or give them credits for their work.
On-demand applications shape the future of multiple industries and trust us. If you decide to invest in developing an on-demand application like Mrsool, you will reap maximum benefits in the future.
We hope this guide will help you theoretically in building an on-demand application. With the help of the right expertise, we would advise you to initiate your project idea. We at Kody Technolabs will help you define the full scope of app development, show you the roadmap and provide you with an affordable budget for your project development. Contact us for any queries and suggestions.