The term “on-demand applications” itself suggests that it satisfies the demanding needs of the customers instantly. The industry has disrupted the marketplace and tempted entrepreneurs from various verticals to make the next big move. However, the market is flooded with Uber-like apps that gratify the users.
Therefore we would always say, unless you have an enticing app idea that will please the users uniquely, do not act too soon. Validate your business idea and learn from your competitor’s mistake. This will give you a fair idea of how you can launch a profitable business.
Decide an on-demand delivery app development partner to work with, discuss with them if you can offer a broad range of services or not. Ask them about the tools and features that you can include in your app. Developing an on-demand app is not a cakewalk. This industry is constantly evolving and observing a wave of on-demand apps. If you are looking out for a guide that will help you validate your idea, then here you go.
The on-demand market is thriving with three basic types.
Type 1: Person to Person:
In this business model type, the application serves as a connecting platform between the service provider and the person who wants it. In simple words, one person contacts the other via the platform and asks for a service.
Type 2: Enterprise to Person:
In this business model type, the application connects users with the enterprise directly. The enterprise sells the product/services through the platform directly to the user.
Type 3: Enterprise to Enterprise:
In this business model type, one enterprise or small business sells products/services to other enterprises.
What are the available options to jump into the on-demand application market?
The on-demand delivery app development market is highly versatile. Entrepreneurs have a rising interest in developing a delivery mobile application for their own businesses. And you can give them a competition in the following field.
Home service delivery;
Automobile gadgets delivery;
Clothes shopping app;
You might try your fortune and make life more comfortable for the users; however, delivery app development services provision comes with a number of challenges. Challenges that can be overcome if you have given enough thought during the planning process.
If you are clear of what things to include in your Lean Canvas Model, How to make your PRD, functional Vs. non-functional requirement document, which tech stack you should select, and more. Then, you can simply get away with the situation if you follow the below-mentioned process.
1. Perform market research:
It is a no brainer that you can not initiate a project if you haven’t known your market. Therefore, research about things that are trending and how your competitor is making money. Pen down their strengths and strategies, which will give you a clear idea of which direction to move on. You can also analyze the areas that give pain to your target audience and know what they expect from your application. By doing this, you will have a clear idea of what features and functionalities to include in your application.
2. Verify the target audience:
Your aim to offer a particular on-demand service is to satisfy an actual pain point of the user. If you know who your target audience is, you can start planning your application accordingly. By defining your target audience, you can set up a connecting factor that will entice your audience.
It is important to set up this connection because, if you are marketing your product to the wrong audience without knowing their needs, you are landing your businesses in the wrong marketplace.
You can conduct online surveys and collect data about their specific needs.
3. Decide on the application flow:
You might not feel the need to do this exercise at the initial stage, but unless you have complete clarity of how your user will land and where s/he should navigate, you can not come up with a unique app.
Hence, decide how you want your customers to move within the app. Should they land on the product page, search option, profile, etc.? If you have their first point of interaction clear in your mind, you can easily gauge their journey forward.
4. Develop a prototype:
Prototyping is an integral part of the mobile app development process. In order to build a delivery app successfully, you need first check it by developing a clickable prototype. The clickable prototype contains all the elements and interactions that show how a user will move ahead in the journey.
A clickable prototype is almost similar to the final product & represents all the functionality and features in working condition.
5. Develop an MVP:
A Minimal Viable Product makes it possible for you to test your product idea. It is a product released with the basic yet necessary features and functionalities. You can take assistance from a delivery app development company in order to enter into the on-demand application market. Releasing an MVP is your chance to collect feedback from your valuable users and improve upon the shortcomings before a fully developed product is released into the market.
6. Identify the KPIs:
Identifying the Key Performance Parameters ensures your on-demand application’s ideal success. Keeping track of it gives you a competitive edge over the others. It gives you an idea about which strategies you should include to retain the customers and also manage the business expenses. Here are the few KPIs that you should consider for your delivery app development services.
Keep track of your growth. Analyze how many orders you have processed and how many more you can handle.
Check if your business is making considerable profits. Keep a note of the incoming and outgoing business cash flows.
If you plan to sell internationally, calculate the conversion rate, and check the annual revenue.
What are the noticeable features that you need to have in your on-demand delivery application?
The number of screens on your on-demand application depends upon the model you choose for business. However, we will highlight some of the general features that can be a part of your on-demand delivery application.
Your application design should please your prospective customer. The screen should be filled up with intuitive and engaging features like,
Add to cart;
Reviews and feedbacks;
Real-time chat with customer service
Delivery Person’s screen:
A delivery person’s screen should have all the elements that guide them to deliver the customer’s order on time. Some important features to include are:
Accept /Reject orders;
An admin is the backbone of any application. It is one who is responsible for all the management and tracking of the received orders. The admin’s dashboard should have the following features.
Delivery person management;
Review Order status;
Review payment details;
Feedback and rating review
If you are confused about which features to integrate into your application, then you should first-
Prepare a checklist of your expected list of features;
Check your competitors;
Analyze if that feature will solve a purpose;
Ensure that it falls under your budget;
Run a user acceptance test;
Check for the features deliverables.
Don’t get puzzled if you are given a long list of features to integrate. Sit down and evaluate each of the features that you can include in your delivery app development.
In the next section, we are going to answer an important question of this article,
What is the cost of developing a delivery mobile application?
Any mobile app development company would find it difficult to answer about the exact cost of on-demand application development. They can give you a rough estimate based on the features and complexities you discuss with them. Also, if you hire on-demand app developers, they have their own set of charges. They will charge you on an hourly basis, which may vary from $20 to $80.
However, multiple cost-driving factors affect the final cost of app development.
Location of the development partner;
The platform you wish to deploy your app on;
Backend infrastructure and administration;
Normally speaking, you can calculate the app development cost on your own. You just have to multiply the total number of hours with the hourly charge of the service. It would also help if you remembered that deploying an application over two platforms may take some time then going for one.
In our understanding, if we conclude, the total number of hours we would invest in a project is about 1500-2500 hours. Which further can lead the delivery app development cost to be somewhere between $10,000 to $20,000. This is a broad range to consider because each project is unique and charged accordingly.
We have talked about your spendings, now let us talk about your earnings. How will you monetize your on-demand delivery application?
There are various ways to monetize your on-demand application business. Let us explain to you about them in the next section.
Delivery charges: Since customers want everything on-the-go, they are ready to pay for the delivery service. You can charge them with a delivery charge over every order made using the application.
In-app advertising: Many people will want to utilize your platform to market their own products. You can charge these people for the advertisements they make on the application.
Peak hour charges: We all would have noticed how Uber charges 2.5 times during peak hours. You, too, can charge this extra fee during the peak works and generate revenue.
The stakes are really high when you wish to enter into this profitable business of on-demand application. If you want to be the next Uber, Airbnb, or Ola, you really need to buckle up before you begin this journey. We hope this article will help you in developing a user-friendly app that will break the market records. If you have any doubts, feel free to reach out to our experts.