On-Demand Delivery App Development: How to Make It Right

It is a great time for on-demand delivery apps. The industry is booming and the COVID-19 pandemic has given it even more push. So if you want to know more about how to build a delivery app and why it can be extremely beneficial for a business, this article is exactly what you need.

Let’s start with the on-demand delivery app development industry and what sectors can profit from such solutions.  A couple of years ago services like Uber were one of a kind. But today the same approach is applied to a multitude of spheres, from logistics and food to healthcare.

The market revenue only for global courier and service delivery was estimated at $325.2 billion in 2020. It is safe to say that it has been growing ever since. Even before the pandemic hit, the number of people using at least one food delivery app grew by 21% in 2018 in the US. 

And after, companies of all industries that offer on-demand delivery via smartphones have boomed – think about Bolt or Lyft, for instance. A well-built on-demand delivery app is convenient for customers and profitable for businesses.

Overall, when it comes to on demand delivery service, there are three types of solutions:

  • B2B model – used for logistics, hiring, supply chain, etc.
  • B2C model – services are offered to end customers. These solutions are widely known: Deliveroo, UberEats, and Glovo.
  • C2C model – a customer provides services for customers and an app connects them. The most successful example is probably Uber.

Building a delivery app can be a startup in itself or can be a natural progression for an existing company.

Besides the ones named above, here are some of the most successful on demand app development projects globally are:

  • DoorDash;
  • Postmates;
  • Grubhub;
  • Delivery Hero;
  • JustEat;
  • Glovo, etc.

However, it is not only about food. There are many other software solutions used in education, healthcare, and retail. Before one questions how to start a delivery service app, it is important to know all the possibilities available.

Most Profitable Sectors for On-Demand Delivery Apps

It is completely possible to build a delivery app for any type of product or service that can be delivered. Yet, some industries have proven to be extremely profitable in this regard.

Food and Beverages

This sector comes first because when one even thinks about an on-demand app development company, they usually recall this one. Applications for all types of food deliveries are commonly used by people all over the world.

It is an incredibly profitable sector as there will always be demand for food. The worldwide food delivery market size is expected to reach $223.7 billion by 2027.  

Transportation

The next sector includes everything in terms of logistics. A company can build a white label on demand delivery app for city transportation, like Uber. Or they can create B2B software for shipping, for example.

Home Services

The next sector where a business can benefit from creating an on demand delivery app is home services provision, for example, Handy and Taskrabbit. On these applications, customers can connect with other customers that offer a multitude of house chores.

Different laundry services also go for this category. The global market for online on-demand laundry services is projected to cost $96 billion by 2024.

eCommerce and Retail

Not surprisingly, eCommerce is also developing incredibly fast. It is extremely easy to shop online from the comfort of one’s home.

Many brands and enterprises choose to build an on demand app to make this process even simpler. Think of Aliexpress.

Some companies create their brand apps, which is also a valid option.  The fashion industry in particular looks into “how much does it cost to create a mobile VR application” for customers to try on items digitally.

Healthcare

Many healthcare organizations look for an on demand delivery app development company to fit their needs as well. There is a public request for doctor appointment solutions that help to save time. Customers are also interested in online medicine delivery, for example, ePharmacy. Some companies even offer doctor consultations via applications, especially in the sphere of mental health.

Education

Last but not least, education can also hugely benefit from on demand delivery software. There is a steady demand for more flexible learning models. Private tutoring is easily done online and specific software makes it more comfortable for both learners and teachers.

Reasons to Build On Demand Delivery App

Surely, the choice of on demand food delivery app development depends on the business goals and objectives of an organization. However, the reasons behind it are often similar as they are tightly connected to the benefits.

Transportation or food delivery app development allows for growing a business, increasing sales, retaining customers, and opening new opportunities. There are three main reasons to consider investment, namely:

  • Market potential. There is a constantly growing demand for such services and solutions. On-demand delivery brings a lot of opportunities in various sectors and it would be a shame to miss such an opportunity.
  • Reaching the audience. If you are not going to meet the needs of your target audience, someone else is going to do that. The opportunity to reach as many potential customers as possible is the key to any business success.
  • Convenience and transparency. It is a solution that is both comfortable for a company and users. Such solutions provide transparent revenue and payment opportunities. Customers get more choices and higher quality of services. Companies get more clients and increase their profit sources.

So how can a company create on demand delivery app? Here is what the process entails.

On Demand Delivery App Development Process

Whether you rely on outsourcing, an in-house team, or decide to rent a programmer, the application development process usually follows the same steps.

Step 1. Market Research

First of all, a company or a startup conducts market research. It is important to investigate the market gaps, existing solutions, and potential target audience. Who will this application serve and how will it address the existing needs of customers?

A business idea doesn’t have to be unique, but it needs to have something original to offer.

Step 2. Learn Your Audience

Create a customer profile. Who is the average audience member you are trying to reach with this solution? What are they interested in? What are their buyer’s habits? What is their budget? Define what particular features of the future application will serve them.

Draft the value proposition of apps for grocery delivery you are looking up to, for instance. Create a draft of functions your app will have for customer role, courier role, and administrator.

Step 3. Create Your Customer Journey

Customer journey is all the steps a user will take in the app to buy a product/service and after. It can include such things as:

  • Login/registration/profile management;
  • Search/filter;
  • Bookmarking;
  • Selection;
  • Order;
  • Choice of payment methods;
  • Receipt;
  • Tracking the order;
  • Order history;
  • Rating and review;
  • Notifications.

The users need to feel comfortable and navigate the app intuitively. It is also great to make all the processes easier for them, for example, by offering registration with Google or Facebook accounts.

Step 4. Hire a Team

Most of the time, a company or startup doesn’t have in-house resources for delivery application development, which is normal. Usually, when a business decides to create such a solution, they partner with experienced developers or teams.

A grocery delivery application development can be done via outsourcing, hiring a dedicated team, or partnering with a pre-existing agency.

The grocery delivery app development team normally consists of such professionals:

  • Project Manager – in control of the project;
  • Team of mobile application developers – do the coding;
  • DevOps engineer – streamlines and automates all the processes for maximum efficiency;
  • QA engineer –assures the quality of the product.

The number of developers depends on the specific project.

Step 5. Agree on Objectives with the Team

Now, when you have a team of experts ready to work, it is time to discuss and agree on the goals.  In collaboration, you create a roadmap of future development and decide on the exact features of the product.

After that, it is time to build an app!

When it comes to finding a team of professionals, many businesses choose to outsource development to other countries. It significantly reduces the on-demand delivery app development cost, which is one of the major reasons.

Salary Rates for App Development Specialists Worldwide

It might seem costly to develop food delivery app for many companies. So how to make a delivery service app without breaking the budget? The answer is outsourcing. Due to economic differences, the salary rates for the same level of skills are quite different in various countries.

Here are monthly salary rates for specialists that are part of a mobile application development team in 5 countries to illustrate this point.   

Project Manager

DevOps Engineer

Mobile App Developer 

QA Engineer

on-demand delivery app development cost

*Ukrainian salaries are provided based on Mobilunity’s Recruitment Team research on the local job markets. All salaries are net and do not include the service fee (in case of hiring on a dedicated team model). The salaries are provided for comparison purposes and could be not entirely accurate. Contact us to know the exact cost of hiring a developer corresponding to the required parameters.

FAQs About On-Demand App Delivery:

Mobilunity – Your Credible Partner in Ukraine

Mobilunity is a Ukrainian IT company that offers outsourcing, offshoring, and nearshoring to businesses all over the world. We have more than 10 years of experience in finding the best IT experts for all types of projects. We provide access to highly-skilled Ukrainian specialists and dedicated teams ready to tackle a project of any complexity.

So if you are wondering how to create a food ordering app and where to find excellent professionals, we are happy to help. Among our satisfied clients are such companies as 42Matters (Switzerland), ServIT (Sweden), Zenchef (France), Vayomar (Israel), Minedia (Japan), and ICUC Social (Canada).

Mobilunity provides dedicated development teams, building it from scratch only with the high-level talent you need. With our help, you can have your dream team that knows exactly how to create a food delivery app that aligns with all your business needs.

Looking for an on-demand app development company or a team? Contact Mobilunity today!

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