Today people are increasingly turning to on-demand delivery. Hence, the number of such service users will be 2.613 million by 2027. Moreover, the sector’s incomes are predicted to increase from 2022 to 2027 with a CAGR of 13.68%. Thus, developing on-demand delivery software is an excellent idea. This article guides you on such software development with no mistakes.
Choosing On-Demand Delivery App Type
Before you start developing your food delivery app, determine which type it should be:
Marketplace
The primary purpose of such software is to aggregate several restaurants in one app. Aggregators enable users to browse the menu, pick dishes and pay for them. The most commonly used monetization model for marketplaces is an order fee. The well-known Uber Eats belongs to this type.
Restaurant chain apps
By developing such software, restaurants reduce idle and boost orders’ number. As a rule, such apps are fully managed by the restaurant administration: they are responsible for ordering and delivery. Often they hire couriers who bear ready meals.
Pondering a Delivery App Idea
Another critical point is to think through all the key issues to ensure that the project will be successful. Therefore, you should pass through these sequential steps:
Step 1. Conduct market analysis
This point includes identifying the leading competitors and your target audience. First, review your rivals and specify their weaknesses and strengths. Next, it is crucial to identify your target audience and understand their needs. This step will help you determine the main points to focus on.
Step 2. Forming a customer journey
You should specify how customers will utilize your app to make it more user-friendly. Then, draw up a step-by-step interaction flowchart considering every action.
Step 3. Think about the design
Your delivery app needs to have a well-thought-out design. Choose a professional software vendor who can create several prototypes and pick the perfect one.
Step 4. Determine MVP features
A Minimum Viable Product (MVP) is the app’s version that contains only basic features; therefore, if you build MVP app, you can decrease initial investment and launch your app faster.
Exploring Top Delivery App KPIs
To track your app’s profitability, you should analyze Key Performance Indicators (KPIs) that include:
- Number of orders. This indicator simplifies the company’s progress tracking.
- Profit per delivery. By tracking income and expenses, you can determine the app’s profitability.
- Conversions. This indicator shows how many app users ordered something. The higher it is, the more profit you will receive.
Deciding on Monetization Models
To profit from your on-demand delivery app, you can try one of these strategies:
- Restaurant fee. Set a fixed percent fee per order or offer paid collaboration for a month/year.
- Advertising. Charge for higher search positions.
- Extra fees. Generate additional revenue with higher delivery prices during peak hours or bad weather.
On-Demand Delivery App Features
Delivery apps are a complex ecosystem that connects clients, deliverers, restaurants, and administrators. That also means that you’ll have to engage a team with great expertise that can provide you with the mobile application development services of highest quality. For instance, Uber Eats includes a separate application for each process participant. Let’s find out how to make an app like Uber and what features to develop.
The client app should be well-designed and feature-rich. For example, it allows customers to choose dishes and pay for orders, as well as:
- Track the deliverer;
- Receive order status notifications;
- View ratings and leave feedback.
The courier app has simplified functionality to make it comfortable to use on the go. It includes navigation and route optimization, and access to order information.
The app for restaurants allows them to manage menus and orders. As for the admin panel, it is the key to restaurants, payments, and other processes management. It also provides access to all analytics.
Also, each application must have a well-thought-out registration feature to ensure data security.
On-Demand Delivery App Development Cost
Delivery application estimate includes a complete development cycle from initial consultations to final quality assurance. Therefore, to calculate its cost, you should multiply the development time by your software vendor’s hourly rate.
If we estimate the on-demand delivery app development time for one platform (iOS or Android), it will be approximately 3000-3500 hours. This is the equivalent of $150,000-$175,000. Therefore, to simultaneously make an on-demand delivery app for both platforms, regard cross-platform development on Flutter to save time and costs.
Please note that the estimate above is approximate and may vary based on the features’ number and complexity and your technical partner’s hourly rates.
Summary
Developing on-demand delivery service is a great way to get ahead of the competition and increase your profits. Find a reliable technical partner to make your idea come to life and enter the market with your app.
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