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Everything you Need to Know Prior to Build an On-Demand Delivery Application for Profitable Business

Everything you Need to Know Prior to Build an On-Demand Delivery Application for Profitable Business

Friday May 22, 2020,

11 min Read

on demand delivery app

Many might have a lot of inquiries related to an on-demand mobile app solution from different delivery businesses. Here, in this blog, you will get the correct reason to kick start your own on-demand business in the right way. A step by step procedure on how to plan your on-demand delivery business plan. 

But before getting into the guide let me share with you the various delivery services that you can adopt in 2020 for high revenue gain. 

The variety of businesses that are in need of the delivery app service

Everyone loves food, we all are well aware of the food delivery services and how it is gaining popularity in the current market of today’s world. Thereby, it makes many business people kick start their own food delivery service. With an excellent business option, you are able to gain high revenue in the food delivery service.

One of the most promising revenue growth in on-demand delivery businesses is online grocery delivery. Nearly 63% of consumers order online because many don’t like to shop in crowded stores during rush hours. This predicts the huge demand of the business and turns many of the professionals to start to invest in it. 

With the help of the on-demand application, everything's made simple, where you can easily order anything and it will be delivered right at your doorstep within a few minutes. In such cases, world alcohol market revenue is leading to other on-demand services. So, it's a better idea for the young entrepreneurs to get into the liquor delivery business for a higher profit.

Each of the on-demand applications provides different services. You have to download each of the respective applications for the required service. What if you are able to order your foods and grocery at the same application? It will be a boom right for us if we get everything from one application.

The simple rules to get a rough vision of future app prospects and growth potential

If you take a survey of successful business brands, their key to success will be by providing a unique value proposition to their customers. The profit of the on-demand application lies behind the delivery service. It shows the worthiness of delivery service in the modern world. But before getting into the on-demand delivery services, you should know about the accurate market value. 

By knowing the current market value of the particular delivery business model, you can easily gain the profit in your on-demand business without any loss. Here, let me share with you the simple steps strategies to get a clear vision of your future delivery business app prospects and growth potential. 

  • The first and foremost step is to verify the customer’s needs if you're planning to develop an on-demand delivery app service. So it is a must to study the needs of the targeted customers and make the business plan according to it. Since we are living in 2020, it is easy to take the survey online by sharing your ideas on social media. 

For example - you can create a google form and post it in social media with the required hashtags. This helps the users to fill their suggestions and feedback, by taking the survey from the customers. It lets you decide the correct business model and exact location to launch your delivery business for gaining high revenue.

  • Once you’re finished with your survey and the step is to gather the information about your competitors. Keeping a close eye on your competitors allows you to know the gaps in their service. You can try to fit the gap by providing the required things to the customers. It can be done easily by analyzing the app store’s feedback on their application.

For example - If your competitor gained high profit in area A and gained low profit in area B. Then your main focus should be on area B and how to attract the area B customers. By doing so you can earn high revenue and it allows you to withstand your competitors.

  • Rather than knowing about the customers and competitors, you should also make sure of the visibility. There are many technology websites that help startups to gain popularity. For example “product hunt” is one of the great platforms to access the popularity of your startup idea. Creating a page is not difficult today. All you need is an account to answer all the queries.

Once you choose the right delivery business model that must be suited according to your region requirements. Then, the next step is to identify the necessary features to be integrated into your delivery business application. We all know that every app has its own specific purpose to serve their customers. So here I have listed a few questions that you should ask yourself before planning the features.

  1. Will these features make the workflow easier than before?
  2. What are the main features that satisfy the users of the app?
  3. Are these features in my developing budgets?

To develop or build niche features, you should think of the customer’s shoes. This allows you to meet their needs and simplify their daily struggles. Here, I have listed 3 steps that to be verified during your feature integration process

The steps to be checked during the feature integration process

  • Prepare a Brainstorm - write your ideas and workflow that appear in your mind and give it to the experienced developer or a developing team to cross verify the possibility. This process helps you to neglect the unnecessary things.

  • Structured planning - Once the neglecting process is over, you will be having the list of important features. Run your budget analysis to know whether these features are applicable or not for the integration. If not, select the alternative options given by the experts.

  • On-field test - Before launching the full product, you have to pre-launch it with few required features and let the users use it. It helps you to get the valued feedback from the customers. It helps you to solve the missing gaps in the application service.

I’m 100% sure that if you follow these steps without failing you will not invest your dollars on the wrong set of features that results in revenue drop.

Important features that should be added in the on-demand delivery applications

In the on-growing on-demand industries, here I have listed a few of the features that should be integrated to generalize the form of on-demand application.

  • Actual scenario tracking and monitoring - Once the customer places their order, they are allowed to track their service driver with the accurate time measurement. This lets you provide quick service and gain customer’s loyalty.

  • Variety of choices to pay the charge - There is no need to follow a tedious payment option. With the help of multi-payment options, the customers can easily pay their charges digitally and this gives a digital proof of fee slip.

  • Paperless feedback system - This is one of the best features that allow customers to rate and review your delivery service. This feature helps to promote your service as well as brings visibility in your region. You can also expect new customers too by using this feature. 

  • Instant pop-up notification - This feature helps you to stay ahead among competitors in your region and also allows you to create a connection with all your customers easily. The pop-up messages help to convey all kinds of offers and discounts to your customers. 

  • Revenue track analysis - The revenue tracker helps the service provider to maintain or to check his finances and helps them to plan his day accordingly. This feature helps both the service provider and delivery agents as well as admin to track their progress. 

The estimation cost to develop an on-demand delivery application

To be frank, no one can judge the development cost because it is based on the platforms you’re choosing and a list of features integrating. If you're assigning a freelancer he might be charging you more than an experienced group of developers. 

Or some might be charging based on hours they are working it charges more than you’re thinking. So it is better to refer to two or more companies and then join your hands with them. This lets you know the different services and you can choose the best one among them.

How to make money without losing the profit of the delivery business?

To prevent yourself from the situation of loss in your on-demand delivery business before earning the first revenue, let me share with you the revenue models that can be included in your delivery business to gain a standardized revenue. 

  • Peak time - One of the best things in the on-demand delivery business concept is you can fix the flexible pricing tags. If demand is high in certain areas, you are allowed to charge customers more. On the other hand, if it is low the delivery service price can retain the nominal. 

  • Delivery service fees - The delivery service can be charged by the restaurants or from the customers. For example, DoorDash charges its users from $0.00 to $7.99, alike Foodpanda gets a 10% commission on each order. Or you can also charge the customers according to the destination distance.

  • Commission from merchants - This is one of the common revenue gain models in the on-demand delivery business. You will be gaining high profit once you have linked with high service providers. According to this commission revenue idea, the service provider will pay a commission charge on each order or you can also charge them a fixed monthly price without charging them anything else. 

  • In-app advertising - In-app advertising is the most obvious way to attract new customers as well as new service providers. This allows you to retain the old users too. It is one of the hottest ways to attract customers and to promote service providers. You can also gain some extra dollars by advertising your service providers.

You are also allowed to include all the above-mentioned revenue models in one application. This lets you gain a standardized revenue growth without any loss in the profit of your delivery business. Here, let me share with you the top tires of the on-demand delivery business application service.

The current top tires of the on-demand app

  • Eat24 - Eat24 is an on demand food delivery app based service that partners with the nearby local restaurants. They also provide many services for their customers, and also available on both iOS and Android platforms. They have joined their hands with over 40,000 restaurants in more than 1,500 cities with more being also added each day.

  • Peapod - Peapod is an online grocery delivery application in Chicago, IL, and operates in several U.S. cities. With the help of this app, customers can enjoy the benefit of grocery delivery with a few touches on their smartphones. Peapod acts as a huge time saver for the busy scheduled people. 

  • Drizly - Drizly is an alcohol-based E-commerce platform, which is operating in more than 100 markets across the United States and Canada. Drizly is also known as Amazon for liquor. Customers will get the flexibility to order their preferred liquor from a variety of choices listed before them.

  • Rappi - Rappi is one of the on-demand platforms, which is setting a perfect example for young entrepreneurs like you. Either by the 2X revenue growth rate at the end of the year or the streamlined delivery service, Rappi has become the new revolution in the on-demand market industry within a short period of time. 

You’re at the end of the blog, I hope that you might have acquired the knowledge of how to develop an on-demand delivery service correctly without any lack in the developing period.

Bottom line

After going through this on-demand delivery application business guide, we ensure that you must have theoretically made the app and are ready to launch. Cross verifying the on-demand industries and the developed companies will let you gain extra knowledge. This will help you to choose the right decision in your on-demand delivery business model.

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