Technology has completely revamped the shopping experience. On-demand delivery apps have geared up, providing products and services whenever and wherever customers desire.
Psychology claims that people crave instant gratification and wish to own goods immediately. 49% of potential customers are inclined to purchase from sellers offering same-day deliveries. Let’s just say that on-demand delivery apps have decoded that desire and cashing it successfully.
The revolution stimulated when Uber, a ride-sharing service, was launched in 2009. Since then, we haven’t looked back. On-demand delivery app development is trending in our software houses as startups and enterprises are drooling over the potential.
But, don’t blindly jump on the wagon. Understanding the process and requirements of on-demand app development is crucial before deciding. This blog explicitly explains the journey, with industry stats, helping you score your position in the marathon.
1. Why an On-Demand Delivery App?
Statistics promise a bright, very bright, future for on-demand business solutions. The on-demand market revenue is expected to reach $335 billion by 2025. Customers will shift towards a convenient experience, promised by on-demand delivery apps.
Research shows that 61% of consumers are willing to pay more for same-day delivery. Over 25% of consumers may abandon the purchase if the seller does not offer same-day delivery. The game is leveling up and you need to catch up to remain relevant in the business arena.
2. Why Do Customers Prefer On-Demand Delivery Solutions?
Here are some reasons that drive customers towards on-demand delivery apps, guaranteeing undying potential for businesses.
- On-demand businesses offer lower prices than traditional sellers, thus, attracting customers. Also, the convenience it brings along convinces customers that it is worth the trouble. For example, people still call an Uber during fair hikes instead of getting a yellow cab.
- Mobile phones are an integral part of our lives. We take them everywhere, even sleep with our phone next to us. 52% of website traffic in 2018 was generated through mobile phones. Therefore, any service available on the phone is convenient, accessible, and minimized efforts to obtain.
- On-demand delivery apps accommodate users’ preferences. It delivers the products and services exactly when customers wish to receive it.For example, you can’t otherwise find a plumber late night and must wait for the morning. Jiffy, a home service on-demand app, will send you a plumber within three hours.
- The on-demand delivery apps have fast, safe, and convenient payment methods. You can add your credit card on the Uber app and pay directly via the card. Other apps add the change to your account wallet that you can use for the next purchase.
- The apps require minimum efforts to book an order. For example, you can skip the suggestions, address confirmation, and other formalities by McDonald’s customer service. You can no place the order via the app. It stores your details and lets you place the order within a minute.
- On-demand delivery apps offer a range of vendors to choose from. For example, Seamless, a food delivery service, lets you order food from thousands of cafés, street restaurant, and eateries. So, you can choose a budget-friendly meal.
3. Should You Invest in an On-Demand App?
Listed below are some reasons for you to invest in an on-demand app solution:
- As mentioned earlier, the on-demand market revenue will exponentially increase in the coming years.
- It’s a preferred choice by customers. They have experience on-demand businesses and the taste of instant gratification demands more.
- It’s cost-effective and saves inventory management costs. Uber, the largest ride-sharing service, does not own a single car. Instead, it provides a platform to connect customers with cars.
- It allows businesses to cater to larger target segments due to the extensive mobility offered by on-demand apps. For example, Uber is available around the city as it easily accommodates drivers from different areas. However, a cab service controlled from the office would only cater to nearby areas.
Read More: Developing a Chart-Topping On-Demand App
4. How to Develop an On-Demand App?
Do your homework before you step into on-demand app world. Here is the key to success on-demand mobile app development:
- Select the Industry
- Choose Your Role
- Hire an On-Demand App Development Company
- Choose On-Demand App Features
Step 1: Identify an Industry to Cater
Not every industry is ready for an on-demand business app. Some businesses best remain traditional. Thus, begin by identifying the right industry to tap.
Some industries are ripe enough to adopt on-demand business solutions. Explore your options in the delivery of food and beverages. There is no way that food delivery decreases. Instead, with small street cafés opening at every corner, we need third-parties to provide delivery systems to small vendors.
Recently, transport and logistics are seen around on-demand app development. Consider developing an app that delivers parcels in the shortest time. Nevertheless, apps like Jiffy, providing home services have tremendous potential too.
They key is to automate daily activities, for a sustainable business.
Step 2: Identify Your Role in the Business
There are several keyholders in an on-demand app solution. Let’s talk about Uber. I keep talking about Uber because every one of us has used it at least once.
Uber is a platform that connects customers with available cars. So, you can be the platform, like Uber or Alibaba.
On the other hand, you can run an on-demand app for your business. You will be the platform as well as the service provider. McDonald’s app is a perfect example.
So, you can either serve your own products via an on-demand app or provide a platform to serve someone’s products.
Step 3: Choose an App Development Company
You require a reliable and experienced company for on-demand app development. It’s a major investment, thus, requires perfection. Also, on-demand businesses are all about efficiency, timely delivery, and convenience. The last thing you want is your app crashing at the last minute. What good is Uber if it stops working when you need a drive back home at midnight?
Meticulously choose your on-demand app development company. Through industry research is essential before you sign the contract.
Look for a company with experience and review its previous on-demand app. Have a look at the reviews and ask around your friends and business partners. Make sure the company is competent in offering the app features you require.
Step 4: Shortlist the Features for Your On-Demand App
Every on-demand business requires different features. For example, ridesharing services require integration with the maps, but a pizza delivery service may not. Similarly, some businesses require accounts for vendors while others are customer-oriented.
Make sure you don’t add unnecessary features. Not only will it make the app expensive, but add to its weight. Research shows that users are reluctant to downloads apps that occupy more space. Mobile phones have limited space, so your app shouldn’t ask for too much of the memory.
Some important features of an on-demand app include:
- Search Bar: If your mobile app acts as a platform, like Amazon, then a search bar is the key to helping customers find their desired products. Any app that allows users to choose their vendors must have a search bar. However, apps that automatically assign a vendor, such as Uber, don’t require the search bar. A simple menu for categories would do if the choices are very limited.
- Schedule the Service: On-demand businesses are grounded on conveniences. Thus, it is important to let customers choose the time they want to avail the service. It’s an essential feature for all on-demand apps. Whether you’re delivering coffee or offering a ride, always include a scheduling feature. Empower the customer!
- Customer Reviews: Building trust requires acknowledgement from a third party. Allow customers to review your products and services, so potential customers can read. It makes users believe that you don’t fear feedback. Don’t remove negative reviews. The more real you keep it, the better it is. Furthermore, it helps promote vendors and service providers working with you. It’s a win-win.
- Payment Options: No on-demand app development is complete with a range of payment options. The more the options, the better. Let customers pay conveniently via credit card, online transfers, PayPal, cash on delivery, and more. Some countries are heavily dependent on credit cars while others prefer cash on delivery. Consider preferred payment options, based on your target segment.
- Real-Time GPS Tracking: As fancy as it sounds, real-time GPS tracking is expensive and requires extensive integration and high-end functionality. Avoid it unless you really need it. Nobody wants to track their Starbucks rider every minute. However, everyone wants to track their Uber ride ride. You may offer order tracking to let customers know when the parcel leaves the warehouse, leaves for delivery, and so on.
- User Accounts and Vendor Profiles: Allow users to register their accounts. It saves them the trouble of entering contact details and delivery address every time. Also, it provides you with insights into the target segment. You can use the data for various marketing efforts. Platform-like apps also require vendor profiles. For example, Alibaba has thousands of sellers, each with its own seller profile.
Carefully choose the options and don’t go overboard with adding anything and everything. A simple spot-on mobile app enjoys higher conversions and sales. Yet, don’t miss out on essential app features for your on-demand business solution.
Read More: E-Commerce Website to a M-Commerce App
5. How to Make Your On-Demand App Successful?
With businesses pitching in the on-demand world, the industry is likely to saturate soon. Thus, all the reasons to stay proactive, offer exciting features and surprise the customers.
Listed below are the steps to follow for developing an on-demand business solution:
- Choose You Target Segment
- Select Your Vendors and Sellers
- Keep the Purchasing Process Simple
- Subtly Boost Sales
In this section, I’ll discuss the recipe to ensure your on-demand business is an attraction in the industry.
Which Target Segment to Cater?
An on-demand business automates a traditional business model. For example, a food delivery app replaces takeaways and call-to-deliver. A ridesharing service replaces regular cabs. A call-a-doctor app replaces clinic visits.
However, it takes time for people to adopt the new tech way. Don’t fear to tap a niche. People didn’t start trusting Uber from the very first day. It took time to establish credibility. Your business will need time before it’s everyone’s favorite.
Identify the segment you wish to serve. Conduct thorough research to know the segment beyond demographics and psychographics. The key is to experience the reasons and circumstances that will create the need for your product.
6. How to Choose Sellers for Your On-Demand Business?
Customers will trust your brand name and care less about the sellers. For example, people don’t know the sellers on Amazon. But, the reliability of Amazon stimulates customers’ purchase behavior. Thus, it’s Amazon’s name on the risk.
Meticulously choose your vendors for their service will determine your success. One bad experience with Uber and the news is all over social media.
Here are some factors to consider before working with a vendor:
- Ability to meet quality standards
- Ability to meet product demands
- The time required to provide suppliers
- Factors affecting lead time
- Ability to deal with unfortunate situations that may delay deliveries
The efficiency of the vendors will determine your greatness.
I cannot emphasize enough on the importance of convenience for on-demand mobile apps. Make it easy to register user accounts, asking for necessary information only.
Design plays a key role here. Use subtle colors that don’t camouflage the information and allocate sufficient space for visuals and text.
Make a layman use your on-demand app. If he is unable to make the purchase in the first go, you really need to review the process. The simpler the process, the higher are the chances of conversions.
Tip: Use your analytics to remind users when they leave products in the Shopping Cart.
8. How to Boost Sales on Your On-Demand Business?
Push notifications help boost sales, but, only in optimum amounts. Don’t overdo it or users will uninstall your mobile app. Too many notifications will annoy customers, especially at the wrong time.
Let us you target segment usually purchases at midnight. Notifications in the morning will do you no good. Know when and how to hit your customers.
Also, make customers feel loved and cared for. Customize your offers for your customers. For example, offering a discount on baby clothes to a 16-years old unmarried boy is completely useless.
Summing it up….
On-demand businesses are on the rise and will grow exponentially in the coming years. More companies are offering same-day delivery. Thus, all the reasons for people to shift from traditional companies to on-demand solutions.
At Cubix, we develop powerful on-demand mobile apps with exciting features that guarantee user attention. With high-end order tracking functionality, customers trace their products from the moment an order is placed. We bring together Artificial Intelligence to speed up delivery processes and help track business performance, with real-time insights.