How to Build a successful On-Demand Delivery App for a Profitable Business?


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The emergence of on-demand delivery apps has revolutionized customer experience by offering them speed and convenience. Because of a sudden increase in demand for daily utilities and essentials, on-demand delivery apps have seen a significant growth amidst the COVID-19 pandemic.

ondemand delivery App
Global startup entrepreneurs are eagerly planning to focus on on-demand delivery app development to grab a slice in the on-demand growth pie.

In this blog, we will guide you on how to plan your on-demand app effectively.

But before that, let me show you the various delivery models that you can adopt in 2020 for high revenue.

Which kind of on-demand delivery app is best for your startup?

Business to Business (B2B)

Business to business on-demand apps connects different business. In this model, service providers and takers are not the end-users of the service or product. These apps can facilitate your business transactions at a global level. B2B apps can either serve one industry sector or multiple industry sectors.

Business to Consumer (B2C)

Launching your on-demand app is a smart thing to do. You will get an opportunity to reach a wider audience and increase client loyalty amongst the existing clients. A great example of a B2C application is the on-demand delivery app by Domino’s Pizza. In addition to all the features of a classic pizza delivery app, it has a pizza tracker that allows users to track their order preparation in real-time.

Peer to Peer (P2P)

In the P2P app model, users themselves create offers for products or services for other users to use or buy. Here, the app acts as a platform that gathers ordering consumers with service providers.

Peer to Peer On-Demand Apps connects end-users with end-users. For example, eBay, Etsy, Uber, Postmate, Instacar, etc.,

How to build an on-demand delivery app for your business?

Choose your business model wisely

The first step in building a successful on-demand app is choosing a suitable business model. You have to decide whether you’ll be going for a retailer app, postal service app, or an on-demand delivery app.

To make the correct choice, consider several factors like business specifications, target audience, long-term goals, resources, etc.

You can highlight your presence in the on-demand market by promoting your on-demand delivery app on popular social media platforms.

Be clear about your business goals

Every app has a main purpose that it serves to the targeted niche. Building an on-demand app is more than just developing it. You need to understand the specifications, opportunities, and requirements of your business model.

To know that, you need to find answers to questions like:

  • Will it be only operational in city,country or across the world?
  • What will be the type of delivery?
  • What will be the average size, weight, and packaging that you’ll prefer for your on demand business?

Answering all these questions will bring more clarity on the scope and functionality.

Prioritize your requirements

If you are developing an on-demand app just for the sake of making it, then you are just following the herd of corporates.

As an entrepreneur, you must have a clear idea about why you need an on-demand delivery solution.

An on-demand app is just the thread of your bow, which you are pulling to give sufficient force to the arrow, and eventually hit your target.

Must-have features of an effective on-demand delivery app

Real-time tracking

Real-time tracking is a salient feature of an on-demand delivery application. It helps you to build a great customer experience by assuring them of the secure delivery of their products.

You can easily monitor your fleet of vehicles from any location via maps and also get updates and the trip summary at the end of the trip. You can also find a suitable driver for delivering your products.

It will also enhance the customer experience as there is an option for saving multiple addresses in an on-demand delivery app.

Feedback and ratings

The person rates the service and writes feedback about your on-demand delivery app.

Creating an on-demand delivery app is not all about developing and publishing them on app stores.

The publisher must clearly define the types of users they are targeting, business rules, strike partnerships with suppliers and providers, and define a budget.

Push notifications

Push notification helps you to be at the top of your user’s mind. However, overuse of it could cost you a bulk of users.

Please note that Push notifications are just a part of your on-demand app and not a promotional trick.

Your Push Notifications should be a tool to supply your customers with some value and to remind them about your existence.

Rewards and offers

You can attract new customers by providing them with lucrative promos and offers. Every consumer is different and will show their interest in various proposals. Ensure that you carry thorough research before introducing any offer.

For this, you can try various offers or a combination of them to see which one works. It won’t cost you a million if you introduce some offer. You can try the refer-a-buddy program or give free service for the first three orders.

These offers will expand your user-base as more users would get interested in taking advantage of those offers.

What to keep in mind while building an on-demand delivery app?

Choose the right marketplace

Launching an on-demand app won’t be enough. It is equally important to market your app amongst your target users. Partly to set your foot right in the app store and slightly to sway audiences by letting them know that there’s something unique in store for them.

It is advisable to master the art of mobile marketing hack and get things right for your business.

You have to aggressively promote it using various media like social media platforms, print media, television, connection, etc. Your aim should be to generate curiosity among users before its launch.

Start your business wisely

To build a successful on-demand delivery app, you need to conduct in-depth market research to help you to obtain valuable insights into the current market scenario.

It helps you to understand the various strategies used and mistakes made by your rivals. You can learn from those errors and come up with a better plan. Ensure that you involve users’ reviews in your research. Ask your target audience what they want and take all the necessary decisions to suffice them.

Chart out your delivery costs efficiently

Reducing delivery costs makes your prices more competitive, which helps you to get the best contractors due to higher wages.

You can reduce your transportation costs by smart route synchronization, which means that drivers receive orders in the same area where they are.

The second solution is to use a commercially reasonable delivery coverage that can be up to a certain distance. Ex. Deliv

Implement the best feedback

If you want to grow your on-demand delivery business, allow your customers to rate your app in the play store. It will help you to understand your current situation in the on-demand delivery market.

It has seen that some discrepancies like bugs and sudden crashes will occur despite making a remarkable on-demand app. Customer feedback helps you to trace and resolve crashes. Some features may be missing in your on-demand app. You can add more features to improve your app by implementing the best customer feedback.

Make your customers feel valued

Wish your customers on their birthdays and marriage anniversaries with the customized messages. These messages will strengthen your bond with the customers, which will help you to grow your business. Do not send unnecessary messages to your customers, as it will bother them and create a feeling of dissatisfaction for your on-demand app.

What will be the development cost of an on-demand application?

For arriving at the development cost of an on-demand application, you need to consider the following points :

  • Which mobile app development company will you hire to make an on-demand delivery app?
  • Which mobile platform will you choose? iOS or Android or both?
  • What services do you need from your app developer after launching your on-demand app successfully?
  • What security features will you need for your on-demand delivery application?

Considering all the above factors, we have found out that the estimated cost for a courier delivery application will be around $21K to $29K.

How to make money from your on-demand delivery app?

To save yourself from the situation of losses before earning your first revenue, let us guide you on how you can monetize your on-demand delivery app and reap the profits in the on-demand markets :

Make your prices flexible

The best thing about an on-demand delivery solution is that you can fix a flexible pricing structure. You can charge high delivery rates in the area where the demand for your product is high and charge nominal from the customers from the lower demand areas. This strategy will help you to attract more customers from the areas with low demand.

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. You can also gain some extra dollars by advertising your service providers.

Charge for your deliveries

You can charge the persons for giving advertisements in your on-demand app. 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.

Bottom Line

On-demand delivery services have witnessed a hike in business due to the COVID-19 outbreak, but don’t expect them to be a short-term fad. An on-demand delivery app will not only earn significant benefits but will also add value to your business.

Using the above-mentioned strategy, you can kickstart the launch of your on-demand mobile app. If you are confused about the next steps or are not sure about your business idea and choice of technology, our experts can help.

Keep following this space to know more about delivery app development.

Mushahid Khatri
Mushahid Khatri is a Chief Executive Officer of Yelowsoft which is one of the leading Taxi dispatch software . He believes in sharing his strong knowledge base with leaned concentration on entrepreneurship and business.


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