How to Build On-Demand Delivery App: In-Depth Guide

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How to Build On-Demand Delivery App

Feeling Hungry? Order your favorite meal. Wanna go somewhere? The taxi is right at your door. Have health issues? Get medicines within a few minutes; everything you need is at your fingertips, thanks to the on-demand delivery apps. 

In recent times, there has been a striking rise in on-demand delivery applications in various industries, such as food, grocery, healthcare, gifting, travel, and more. As a result, we are seeing an emerging number of businesses welcoming this domain and model. 

According to Statista and Harvard reports,

  • “U.S. consumers spend $57.6 billion annually in the on-demand economy to serve almost 22.4 million users.
  • The revenue in on-demand mobile app segments will reach around 500 billion U.S. dollars by 2025. 
  • Almost 49% of on-demand users are millennials aged between 18 and 35, 30% between 35 and 54, and 22% are 55 and older”. 

The ultimate convenience and endless possibilities of these apps are disrupting every industry. The apps are in demand more than ever. 

In this blog, we’ll walk you through what on-demand delivery app are, their benefits and features, how to build them, and much more. 

What is an On-Demand Delivery App 

What is On-Demand Delivery App

On-demand delivery app is a software, platform, or mobile application that allows users to order products or services from their smartphones, laptops, or desktops.  

These apps work on-demand and supply models; they allow people instant access to things they need, and this chain has become an integral part of modern lifestyle.   

Basically, with one app, the users shop for the goods and services they want to purchase and arrange for them to be delivered in just few minutes. It is indeed the most convenient and flexible online shopping option. 

On-demand delivery apps are used in diverse industries such as food, travel, health services, healthcare, etc. However, all these sectors have different on-demand delivery types and models. Now, Let’s delve into the types of on-demand delivery apps. 

Types of On-Demand Delivery Apps

There are diverse types of on-demand delivery apps, models, and services. There are three main types of on-demand business models. 

Business to Consumer(B2C)/ Enterprise to person(E2P) 

This type of on-demand delivery app eases the delivery of services and goods directly from businesses to consumers. Restaurants mostly use it for delivery service to their customers, like Starbucks, Dominos, etc. 

The other model in this category is that service providers use it to service for different businesses on a single platform like Zomato, Swiggy, etc. There is great potential in the B2C market, and it is seeing rapid growth now.

Business to Business(B2B) / Enterprise to Enterprise (E2E) 

These models are built to connect with other businesses. Businesses often need to communicate with other companies directly for operations or transactions. For that, B2B apps are used. 

These apps can serve a single industry(vertical) or multiple industries ( horizontal). The expected future prospect of the B2B sector is $2.0 trillion by 2024. 

Consumer to Consumer ( C2C)/ Person to Person ( P2P) 

The C2C app model is completely consumer-centric. The C2C app enables a consumer to sell or buy goods or services directly from another consumer. 

Here, the consumers use the platform to affiliate their products and to facilitate the transactions. 

These apps are highly convenient and affordable for both sides of users. The prime examples of these types of apps are eBay, Quickr, Etsy, etc.

No matter what the app model is, some features should be present in this app. Let’s look at some must-have features. 

Connect for On-Demand Delivery App development

Must-Have Features in On-Demand Delivery Apps 

In all the on-demand delivery apps, there are some features that are must-haves, no matter which industry you are building the app for. 

It mainly consists of three sections, – the first is customer/User end features, the second one is the Admin app feature, and the third is delivery/driver app features. 

It’s essential to integrate all these features effectively to ensure seamless use of mobile app services. Let’s take a brief look at the features and requirements of each section.

Features in On-Demand Delivery Apps

Customer App Features 

Customer features are a big deal in the on-demand delivery app development because users’ convenience boosts your business. The must-have features for the customer section are:  

  • First, is easy to sign up with a phone number, email ID, or social media account. Then, place an order to add their service or products to the cart or wish list and save them for the future; also, there should be the option to edit orders for future help. 
  • The scheduling feature should be flexible so user can get delivery according to their preference. Give users multiple payment options like cards, cod, or online money transfer apps, with safe, fast, and reliable service. 
  • Another must-have feature is real-time tracking, as the user wants constant updates about their order, giving them real-time and push notifications to keep the user engaged. Give users transparency with the in-app call and chat feature for all their queries.
  •  Also, it allows them to keep track of their orders if they want to repurchase them. And, of course, reviews and ratings are a must for a better understanding of services and products. 
  • Lastly, geo-location is important for multiple reasons, such as tracking delivery agents, getting updates on the possible locations near you, and more. So, all in all, these features are essential for the customer. 

Admin App Features

In On-demand delivery apps, the Admin section and its features are critical because they manage the app’s overall functionality. So the features it should have are:

  • First and foremost is order management; there shouldn’t be any chance of errors in customers’ orders that deeply impact business. Then there is customer support; you need to have proper customer support for users’ help. 
  • Also, the Admin panel should have good real-time tracking for both their work help and user order. 
  • One of the essential features on the Admin side is Analytics, which provides overall insights into the app, sales, business, statistics, and more. It also helps in improvising the app and work. 
  • Assigning tasks to drivers and delivery partners is a solid task from the admin side, as well as managing shifts, timing earnings, and more. 
  • And just like driver management, there should be proper customer management for taking active care of them, their order, and services and also make aware of the discounts, codes, and more.

Delivery/Driver App Features

In the On-Demand delivery app, drivers and delivery agents play key roles in customer satisfaction and work management. For the delivery section, some features need to be included:

  • Start with registration, where the agents register with the app and can provide products and services to the customers.
  •  Delivery partners should have transparency and ideas about all the coming orders and services and choose or accept requests at their convenience. 
  • Give them an in-app chat/call feature to communicate directly with customers and get clarity on time, location, and other details. 
  • Provide drivers with proper GPS support so they can give customers deliverables on time. Also, they should be provided with an earnings tracker to manage their earnings better. 
  • The one additional feature for nowadays on-demand delivery app development is time planning; it is beneficial for the driver to manage their time efficiently. 

If you need more insights into on-demand delivery app features and integration, read our case study of Shohoz, an all-in-one service app in Bangladesh.

Now that we are done with the features of these apps, it is time to learn about the app development steps. 

How to Build an On-Demand Delivery App?

After going through all the surroundings of the On-demand delivery app, it’s time to understand its development.

Steps to Build On-Demand Delivery Apps

Steps to build On-Demand Delivery Apps

Step 1 – Research and Validate 

Before developing the on-demand delivery app, research what the audience wants. Use online surveys, social networking, groups, share ideas, etc., to understand your target audience; after getting a clear idea of what the app offers, start building the app. 

Collect all the information about everything that needs to be included in the app. The first and best approach for this documentation is to list and answer questions yourself. 

Question answers like – who is your target audience? What is the unique feature you will provide? Which platform will you use to design? Etc.

Step 2 – Select Development Method

At the moment, building on-demand delivery apps is challenging and needs to be done with proper specifications. A proper understanding of the app requirements should be provided. 

There are many ways to build the app, such as 

  • Using app builder platforms 
  • Hire mobile app developers 
  • Outsourcing app development team
  • Hiring freelancers

But in all the circumstances, be clear about the platform you want to choose to build the app.

Step 3 – Design and Develop

In this step, you will create your on-demand delivery app’s technical and visual aspects.

Here is where the tech stack comes into development. This tech stack is categorized in three ways. 

Frontend Development 

The frontend side of development works as the face of the app. Here are the few major used tools:

Backend Development 

The app’s functionality depends on the backend of the development. It manages analytics, security, storage, and more. 

  • Database systems 
  • Languages and frameworks
  • Web servers 
  • Website performance testers
  • Collaboration services 

Development Platform

This platform is made for mobile phones; as MADP ( mobile app development platform), this software permits businesses to launch, build, and test mobile applications. 

Also, MADP provides hybrid apps with MAM tools for web capabilities integrated with mobile app management.   

Step 4: Create an MVP

Before launching your final app, you are advised to make an MVP with minimum features. 

The MVPs are shown to a limited audience and designed for early testing, so if there is any issue with MVP, it can be fixed efficiently and easily.

Also, the major reasons for having MVP are increased product sales and the success rate of the final product. It is the best method to get feedback from first users with minimum expenses and easy efforts. 

Step 5: Launch Final Product 

Once you are done with MVP and integrated feedback, launch the final products. 

Ensure the product is high-quality, performing, and efficient with several integrations and implement an agile development process. 

Publish the app into the Play Store and App Store to make it available to the audience; also, market your app to reach out to more people. 

Now that the app has been developed let’s break down the cost of building it. 

Contact for On-Demand Delivery App development

On-Demand Delivery App Development Cost 

The cost of building an On-demand delivery app depends on its type, features, functionality, tech stack, hours invested, and more. 

There are native apps, web apps, and cross-platform apps, and the cost of each type of app varies. To develop the basic on-demand app, you need pricing for your desired features and functionality. 

Here, we will break down the average price range of features necessary in an on-demand app, depending on the hours that it will be consumed. 

But remember, this is just an average cost; the actual price of developing an app can be different based on its technology, features, hours, etc. 

FeaturesHoursCost
User Authentication (Sign up/Sign in)20-30 hours$1,000 – $2,500
User Profile Management20-30 hours$1,000 – $2,500
Search & Filters30-40 hours$1,500 – $2,500
Product/Service Listings30-40 hours$1,500 – $3,000
Shopping Cart20-30 hours$1,000 – $2,500
Order Placement & Tracking 40-50 hours$2,000 – $3,500
Payment Integration (Credit Card, PayPal, etc.)40-50 hours$2,000 – $3,500
Push Notifications20-30 hours$1,000 – $2,500
Reviews & Ratings30-40 hours$1,500 – $3,500
Admin Panel80-100 hours$4,000 – $6,000
Driver/Provider Panel80-100 hours$4,000 – $6,000
Geolocation & Mapping Integration40-50 hours$3,000 – $4,500
Customer Support Integration (Chat, Help Desk, etc.) 40-50 hours$2,000 – $3,500

A Good Read: Guide to Build 10 Min Instant Grocery Delivery App

After determining how much money you will invest in developing the app, it is best to learn how to generate money using on-demand delivery apps with strong revenue-generating mechanisms.

Monetize Your On-Demand Delivery App 

Monetize On-Demand Delivery App

Profitability and sustainability are the major key factors in monetizing your on-demand delivery app.  Here are some of the most trusted and appreciated ways to monetize from on-demand delivery apps.

  1. Delivery Charge

The delivery charge is the first and most basic strategy to monetize money in an on-demand delivery app. Each order has a delivery service charge, a fixed fee, or a nonfixed percentage. 

Later, based on the price of the product, then delivery distance, weight, packaging, and other details are added in terms of the delivery charge. 

  1. Subscription Model

The subscription model is a hit model in these on-demand apps. It provides consistent revenue no matter what industry it is. 

These models use pre-built SaaS systems for food, grocery, services, etc. These simple methods increase the growth of the business because of their quick service and without any hassle. 

  1. Interest from Merchants

When your on-demand delivery app is well taken by the audience, it gives a competitive edge to shops or restaurants. For this reason, the top players might turn to this platform for delivery. 

The app can generate profit and long-term cooperation with merchants on a commission basis. The merchants will pay a certain amount or percentage for every order the app delivers to their customers. 

  1.  Peak Time Delivery 

There is an excellent gap in generating revenue by peak-time delivery in the on-demand apps. You can raise the prices of delivery when it’s peak celebration times, busy hours, and distance. 

However, be precise with pricing because customers shouldn’t be overpaid for a service or product just for the delivery. 

  1. Selling API

The other way to make money is through selling these apps’ APIs. Coordinate with marketplaces, stores, and restaurants and offer them a delivery platform as an API. 

Then, these marketplaces implement your on-delivery service on their apps or websites so customers can choose your platform for delivery and your app earn from it. 

  1. Paid Advertising

Ads are the traditional way to make money and market products and services through on-demand delivery apps. Businesses showcase special products and services in apps through ads or banners. 

However, also ensures that ads are chosen carefully to maintain the brand’s reputation, which is to advertise and avoid negative perceptions.

  1. In-app paid features

A premium model in an on-demand app is the most effective way to generate revenue. Add additional features and functions for extra prices and make money from the extra service the app provides. 

Give paid features such as prioritizing customers’ orders and services, which give access to unique sales. This model provides customers with special packaging, customization options, etc. 

An Insightful Read: How On-Demand App Development Can Help Small Businesses

Benefits of On-Demand Delivery Apps

Benefits of On-Demand Delivery Apps

Fast 

The significant factor that has led to the success of on-demand apps is the time gap between the need for and delivery of supply. Users can order anytime and deliver fast with proper processes at any hour. The speed plays a great role in customer satisfaction. 

Affordable 

The on-demand app has greatly reduced operating costs for users and businesses, making it more affordable. Compared to the traditional methods, it saves expenses related to delivery services, employees, and transportation. But more importantly, it saves people time. 

Flexibility 

These on-demand apps are suitable for all kinds of businesses. It is scalable and beneficial in every sector because of its flexibility. It is easy to build customized on-applications with the help of an on-demand app development company for the business’s specific needs. Flexibility is a crucial benefit in business. 

Convenience 

With smartphones in our hands all the time, they have become a part of our lives, and these on-demand apps also partnered up with us. Finding and getting anything we want through these mobile apps proves the height of our convenience!

Scalability 

These demand delivery apps help to scale the business and open new opportunities. The apps give the business reach to a broader audience and increase its revenue. So, all the working sectors are developing new ideas to scale their on-demand apps. 

These apps are indeed the success stories of many people. That’s why the trend of building these apps is increasing; we will list out the top sectors using on-demand apps. 

Top Sectors for On-Demand Delivery Apps

sectors for On-Demand Delivery Apps
  1. Food Delivery – 

Who doesn’t like to eat their favorite meal from their favorite restaurant at home without even stepping out of the house? That is the reason why there is a high demand for on-demand food delivery apps. 

Apps like Doordash, Uber Eats, and more have significantly contributed to this sector with their exceptional services.

A Must Read: A Step-by-Step Guide to Creating a Successful Food Delivery App

  1. Healthcare- 

On-demand healthcare apps work differently than other apps. There are various types of healthcare apps, products, and services. 

In product-based healthcare apps, users can buy products from the pharmacy online and get them to their doorstep in minutes, for example, doctor or demand. 

In a service-based app, users can book online appointments for hospital or home checkups; these apps are built to help patients instantly and easily. For example –  Heal stores, MyChart.  

  1. Grocery

We all have a list of groceries we want for a day, week, or month. But we still miss out on many items. For that reason, Grocery-on-demand delivery app have been in demand since the pandemic, and now these are go-to apps.

Apps like Instacart, FreshDirect, etc, are the biggest E-commerce giants in this sector, and the demand keeps growing. 

  1. Transportation and Logistics –

All of us are bound with transportation and logistics, but the area cluster and users need clarification. So, the on-demand Transportation and Logistics apps are a success story in this industry. 

Features like tracking, In-app messaging, honest processing, and more simplify transportation and logistics services. 

These apps work in many ways; they help transfer parcels, move big products, and more with the proper tracking of deliveries. 

  1. Travel –

There are several aspects in the travel industry, from booking transportation, booking, finding tourist places, renting vehicles, and more. And all of these are easily solved by travel apps. 

With apps like TripAdvisor, Airbnb, etc., travel journeys are made simple, allowing travelers to have hands-on proper service and information on mobile phones. 

  1. Taxi Services –

There is a significant influence of the on-demand taxi service industry. Even so that, Uber is now synonymous with taxis. 

The reason for the success of these apps is their features like GPS tracking, communication with drivers, scheduling rides, and saving time and money. 

  1. Home Services – 

It is hard to find all the home services in one place, like home cleaning, electrical services, plumbing services, and more. For that help, home service apps are a reliable solution. 

The quickness and handyness of these services have made these on-demand home services apps popular. There is a wide scope for these apps in the future to make life easier.

  1. Gifts and Flowers 

In today’s time, gifting is challenging, especially at the last minute. So, these on-demand gifting apps are booming in the market. 

The apps provide a wide range of flowers and gifts, so you choose the best one to gift and give loved ones what they want. 

The features like scheduled delivery time, special doorstep delivery, etc, make it a great way to surprise loved ones with cute gifts. 

Build Your Own On-Demand Delivery App 

The On-demand delivery apps are thriving today; they will be the most significant Ecommerce trend in the future for all kinds of industries. 

Openxcell is a leading mobile app development company with extensive experience. We have crafted on-demand mobile apps for different services like healthcare, couriers, taxis, etc. We are committed to shaping the future of on-demand applications. Join us in creating and growing business together.

Connect with your On-Demand App idea.

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Manushi Khambholja
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Manushi, a former literature student, now crafts content as a writer. Her style merges simple yet profound ideas. Intrigued by literature and technology, she strives to produce content that captivates and stimulates.

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