Cost to Create an On-Demand Delivery App [Real Costing Estimations]

on-demand mobile delivery app

 

Today’s is a fast-paced world. And, amid all responsibilities of work and home, we barely find the time to go about cooking food or buying groceries. Instead, we prefer to avail these services at our doorstep when we need them.

This trend formed the need for on-demand delivery applications. With a click, you can get services at your doorstep. A few things you can get delivered are:

1. Grocery
2. Cooked meals
3. Beauty / Personal care services
4. Cab services
5. Retail and delivery
6. Fitness services
7. Healthcare services
8. Domestic help services
9. Car washing services
10. Home cleaning services
11. Restroom services (Ola restrooms)

Since few years, on-demand delivery apps have become part and parcel of our lives. Businesses that want to build an on-demand app have a lot of options and avenues open to their exploration.

Let’s see how you can go about with on-demand app development.

 

Market Trends in On Demand App Development

Harvard Business Reports reveal that the on-demand economy allures over 22.4 million consumers annually to spend nearly $57.6 billion.

We can expect to see increased growth and spending on on-demand delivery apps since 49 percent of on-demand app users are millennials, while 30 percent of the consumers are between 35 to 54 years old, according to HBR.

Not very far behind, the older age is also catching up in using on-demand delivery services, majorly for healthcare.

 

Business Benefits of On-Demand Delivery Apps

Here are a few reasons why you can consider on-demand app development as part of your business strategy:

  • A report by Marketing Profs shared that 60 percent of US users are ready to shell out extra bucks to get things and services delivered to their doorstep in same-day deliveries. This clearly means that businesses that will have an on-demand delivery service will earn more than those who ignore this opportunity.
  • An on-demand delivery app can help you deliver a mobile-first experience to the user and thus earn their loyalty.
  • When you have an on-demand delivery model, you can deliver products and services at a quicker pace.
  • Since you don’t have to operate from an office, think Uber, you can offer services at cheaper rates than other traditional sellers.
  • As part of an on-demand delivery business, you can have a team of remote contractors working part-time for your business. Eliminate the hassle of managing an in-house team and cut down operational expenses.
  • On-demand deliver apps have a frictionless payment process so that you receive payments right into your bank account.
  • Leverage seamless rating systems to build credibility into your brand.

Build a business with minimal operating costs with an on-demand delivery mobile app.

 

Types of On-Demand Apps

Here are the top categories where on-demand apps are growing like a rage:

  • Transportation – Uber has revolutionized the on-demand transportation service space. On-demand taxi apps are one of the most used on-demand delivery apps. The most popular mobile apps in this category are Uber, Lyft, Shofer, and GoCatch. On-demand taxi booking services range from budget to luxurious.
  • Food Delivery – Various on-demand food delivery apps have sprung up recently. On-demand food is one of the most popularly used areas of on-demand delivery apps. In this space, there are a lot of successful service operators, such as UberEats, Swiggy, Zomato, GrubHub, and so on. On-demand food delivery apps are offering a range of cuisines so that customers can order a variety of food.
  • Doctor On-Demand – Medical care delivery is no more restricted by geography. On-demand doctor services are helping patients get treated in the comfort of their homes.
  • Beauty Services – Have no time to hit the parlor? Anyone can now access a beauty specialist based on their schedule- at their doorstep. People can now make time for personal care as it fits their schedule.
  • Coaching Services – On-demand delivery apps have changed the way we hire tutors. On-demand coaching services enable tutors to share their knowledge with learners any time the latter prefers.
  • Pet Care – Instead of limiting their services to their locality, pet care business owners are now moving into other regions that have high earning potential and expanding the range of their services.
  • Domestic Services – Innovative house cleaners are now using on-demand service delivery apps to reach out to their potential customers.
  • Outsourcing – Get the tiniest of tasks done by experts through a click. Log into apps such as Big Basket, Groffer, Urban Clap, LaundryRun, and so on- and get everything from food to services such as a manicure.
  • Fitness and Healthcare – A number of fitness apps can be used to track your daily physical activities. These on-demand fitness apps can give you physical challenges to push yourself and metrics to analyze progress. A few examples are Google Fit, Samsung Health, ASUS ZenFit, and so on.

 

Tips on Entering into the On-Demand Delivery Industry

If you are planning to start a business or redefine your existing business model to on-demand delivery, here are a few tips for you:

  • Focus on Convenience – What customers are really looking for in an on-demand delivery app is convenience. The more convenience you can offer them, the better the price they are willing to pay. An idea for an on-demand delivery app can only be successful when it has convenience at its core.
  • Identify an Industry – The idea is to pick a niche market and try to create a competitive advantage. You could be offering cheaper, quicker, or more convenient service. But, you need something to position your brand as a leading one in your industry. Focus on a target audience and quit pleasing each customer segment.
  • Address a Need – To make your application a standout concept, you will need to analyze your market and place your services to solve a need that is yet unmet. Solve a current need and see how you can gain an edge over your competitors.

 

The Cost to Build an On-Demand App

Here are a few features essential in an on-demand delivery app:

  • Client app or apps
  • Delivery app or apps
  • Booking delivery
  • Rejecting and accepting orders
  • Price calculation (along with taxes, commissions, delivery fee, price surge)
  • List of order and requests (past and upcoming)
  • Real-time tracking of orders
  • Maps and navigation
  • Payments gateway integration
  • Delivery confirmation
  • Customer service chat options
  • Referral system
  • Loyalty program
  • Product search
  • Wishlist / Cart
  • Reviews and ratings
  • Recommendation and sharing options

The amount of money that goes into getting an on-demand app developed would be proportional to the time taken in building it.

And, that would depend on the number of features you select for your app. According to the typical features of an on-demand delivery app mentioned above, we can proceed and get an estimate of the cost.

An average team of on-demand app developers might need around1500 hours to complete the feature set we discussed. We can get a rough estimation by multiplying the number of hours by the average cost of development in various countries.

The average hourly cost of development in the US is $150, in Canada and Australia is $100, and in India is $25.

Therefore, you might have to spend within the range of $5,000 to $30,000. The price might vary if you would like a completely customizable solution.

 

We house a team of on-demand app developers in India

CDN Solutions Group creates cutting-edge on-demand delivery apps for clients in India and all over the world. Having served in the tech space for over 18 years, we have developed a keen sight for business challenges and consult our clients to help them sidestep any.

On-demand delivery app development is one of the many IT services we offer at CDN Solutions Group. Leverage our capabilities in IoT, Blockchain, AI, ML, and other latest technologies.

We can build your on-demand delivery solution with a seamless UI/UX experience that boosts in-app engagement and helps you boost conversions through your mobile app.

We can integrate all essential features into your app and give it a fully-functional appeal. Not only that, but we also take care of the security and robustness of the app. Our developers work day in and day out to comprehensively test your app for any glitches.

We stay with you throughout the development process and beyond the deployment phase. We offer 24/7 support and maintenance services to assist you if anything minor or major comes up. We ensure the least downtime and strive to get things fixed in the first attempt.

Our customers vouch for our services and we have achieved a repeat business rate of 85 percent. We believe that we can help you solve the most stringent of business challenges through a tech-enabled app strategy and execution.

We house a team of expert designers and developers who work not for your satisfaction, but for your ecstasy.

Reach out to us with your idea for an on-demand deliver mobile app and we will get back in no time!

 

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