Today, the famous on-demand Uber model can be located in different fields, all the way from groceries to healthcare. Nevertheless, duplicating this idea in another market niche is just not enough to make it a success. Consideration of many factors is crucial, as there are many pitfalls associated with delivery on order.
Two industry giants, Shyp and Uber, failed to turn their on-demand package delivery models into a success. In fact, Shyp ended up shutting down their business, while Uber shut down their delivery service – UberRUSH.
Both new ventures, UberRUSH and Shyp were based on the assumption that many people don’t care about paying a premium to get products quickly. This perception has led businesses into a bind, as customers want fast delivery but are not willing to overpay for it. At last, it appears that fast delivery is not likely to become a lucrative independent business model to give retailers a competitive advantage.
Uber learned an important lesson in a hard way and utilized their newly learned experience to UberEats. This company is now the fastest-growing food delivery system in the United States. The partnership between partner restaurants and the UberEats app is what makes this venture so profitable.
Partner restaurants share about 30 percent of the order price with Uber for promoting their food when a customer places an order through UberEats. Furthermore, UberEats services are in higher demand than UberRUSH, as there is a constant demand & a healthy market for food delivery, although demand for items to be sent is inconsistent.
In this post, we will address solutions to the design of on-demand delivery applications, and look at the cost of developing such an app for both Android and iOS platforms. But first, let’s define what the real meaning of On-Demand Apps
What is an On-Demand Service App?
Let’s recapture briefly what an on-demand app is. Simply put, an on-demand app enables the user to order any product or service and deliver it over to their doorstep literally, whether it’s a drive, meal, cleaning service, or something else you might think of.
Essentially, the answer to “What is an On-Demand Service App?”
It is a connection among users and their needs— a connection in the form of a mobile app. In fact, there are considerably more elements than a mobile app that link users to products and services, and we’re going to talk a little bit about them.
Why The On-Demand Apps?
The post-Uber era launched a tide of mobile-first experience-focused start-ups. In fact, the on-demand economy grew by 58 percent in 2017, according to a recent survey by Rockbridge Associates. The users of this technology fancy it for certain reasons. Some of them are:
- Instant Access
You can order a service virtually from anywhere with a few taps in a classic on-demand app. You can order sushi, taxi, makeup, etc. whenever you want, as long as your smartphone has an Internet connection.
- High Degree of Control
Usually, on-demand apps have an interactive map feature that allows consumers to track the delivery. This map gives users a sense of control and makes them feel comfortable, at the same time.
- In-App Payments
With the on-demand applications, the users can use a credit card or a debit card to pay for services and goods from a mobile app. As there are several security layers, we have come to rely on payment systems within apps. For starters, before making an app available to the public, Apple and Google will conduct an audit. In particular, when paying from a mobile app, users feel safe. Imagine yourself, paying from within the app or being redirected to a payment gateway page, what do you personally prefer?
Market Analysis For On-Demand Apps
There’s nothing new about the market for on-demand delivery apps, and going through the present scenario, there’s an app for almost anything. However, not many of these applications are well established, as most of them function in a restricted geographic area. But, here are some exceptions, however. UberEats exists in 13 countries in more than 50 cities and is flourishing rapidly. Let’s take a gander at the most popular on-demand delivery services sub-categories:
- Package Delivery
Companies like Shyp, Uber, and Doorman have struggled to provide adequate volume, as assigning a driver to one pick-up place is often not enough just to cover delivery costs. This problem has been fixed by Roadie. It offers crowdsourced delivery services via individuals who already are heading towards delivery rather than sending a driver. The Roadie mobile app enables users to enter and match deliveries to their daily and planned routes. This approach helps save money for the company as it can pay less for its drivers than traditional courier service.
- Food & Grocery Delivery
Instacart and Postmates are prime examples of food and grocery delivery services. Instacart concentrates on delivering food. They employ personal shoppers (contractors) who buy and supply customers with products. With the help of their own delivery people, Postmates distributes groceries and other on-demand goods.
- Delivery For Retailers
Because there’s a lot of online purchasing on smartphones and tablets going on these days, some of the largest retailers have leaped into the on-demand delivery bandwagon. For example, Amazon provides Prime offers customers enjoy same-day delivery in more than 10,000 cities. There are also many startups developing on-demand delivery apps for brick-and-mortar retailers specifically. For example, Deliv uses private contractors to deliver products for a fee from shops and malls. Deliv partners to solve their last-mile problem with Adidas, Sony, and other popular brands. For both sides, it is a win-win solution that allows a retailer to reach a wider audience and the delivery service to grow their user base much faster.
On-Demand Delivery App Development Cost Breakdown
The on-demand app that we use daily— the consumer app” — binds us to a service provider. To react and be capable of delivering the service, service providers also need an app for them.
Also, there needs to be a web-based dashboard tool for the corporation that takes a cut-off service provider fee – to track orders, etc. Let’s look more closely at the on-demand application development cost of three prime components of any typical on-demand delivery service app.
We will focus on the sets of features in:
- The Consumer App
- The Service Provider App
- The Web Dashboard
So, let’s dive into the details.
The Consumer-Facing App Costs About $37,000
What are the critical features in an on-demand consumer-facing (CF) device that costs an average of $37,000 to develop? Let’s have a glance at it.
- User Profile
A user profile is a section in any application where the users (consumers) can add or remove, basically edit their own data, such as names and photos; set interests, etc. Each section also contains the application’s registration & authentication in the application!
- Registration and login via email
- Registration and login via social network
- Friends invitation
- Customer’s profile
- Access to service provider’s profile
The average cost of designing and creating a profile page in consumer-facing mobile applications is around $3,000/-
- Market Place
The marketplace is a directory of services or products that you can purchase or order. Think about UberEats with a list of all the Food-Joints available in your city. This portion allows users to review their earlier work, see their feedback, or read a product description they want to order.
Also, the marketplace is the most complex part of the application and the reason for this is – it incorporates two sides: customers and suppliers of services. Also, behind all these eye-candy displays there’s a whole lot of logic.
- list of or products & service providers
- Profile of service provider or a product card with details
- Integrated Map to show available offers on a map
- Search and filters; favorites
The average cost of designing and creating a Marketplace PAge in consumer-facing mobile applications is around $11,000/-
Well, a mobile application that wouldn’t showcase a map screen proudly with tons of moving parts and interactivity is rare these days. The map screen provides two key aspects of the on-demand apps: They show delivery in real-time & they show the whereabouts of the service provider’s.
- An Interactive Map Screen
- An option to switch to the order details page
The average cost of designing and creating a Map in consumer-facing mobile applications is around $7000/-
The implementation of a widely available chatting SDK would allow direct communication between providers and customers. There are a number of chat SDKs on the market. It is always advised to choose the best one though.
- Basic chat boxes with images
- Group Chat Features
The average cost of designing and creating a chatbox function in consumer-facing mobile applications is around $3,000/-
A cart is the section of the application where users check their order details and confirm or cancel them. The app may also ask users to approve the details of their address or specify a different address. This section of the on-demand app, as one would expect, must also enable the user to see all accessible order options.
- Order Summary
- Edit Address Feature
- Payment Modes Editability
- Coupon Adding Features
The average cost of designing and creating a Cart & Order Review Feature in consumer-facing mobile applications is around $5,000/-
- Orders (Including Details and History)
It’s probably a good idea to allow users to check their past orders on-demand apps. Users can repeat instructions, leave a review, refer to a company with which they have worked, etc.
- Order History
- Order Details
- Rating Service
The average cost of designing and creating an Order Tracking & history Feature in consumer-facing mobile applications is around $6,000/-
The most noticeable portion of the app where consumers can update their username and password, Email addresses, contact details, connect their account with a credit card or other payment options, etc.
- Pretty much everything related to the application and the user’s information and preferences which he can tweak accordingly.
The average cost of designing and creating a settings page in consumer-facing mobile applications is around $2,000/-
The Service Provider App Costs About $30,000/-
One might believe that a service provider’s app should be much simpler than the customer’s on-demand app. However, the entire show is for the customers, right? There would be no reason to start the shenanigans of on-demand in the first place without a demand from the customers, right?
Well, on-demand giants like Uber have a different way of thinking. The business recently launched a new app for its drivers. We have pulled out the keynote and stuff about how their team of engineers interacted around the world with Uber drivers. Well, as the end-product of this collaboration, Uber fully upgraded the driver Uber app and added 60 new improvement features.
And we believe this is the right approach. Companies should equally care for both the customers and the service providers. Now, let’s break down into segments a standard service provider-facing on-demand application and see what probably accounts for the $30,000 price tag.
Service providers also want to know who their customer is, just like the consumer does. The app should allow access to the profiles of a customer. In addition, there should be an option for service providers to update their information.
- Email Registration
- Registration With Social Media
- Provider’s Profile
- Friend Requests
The average cost of designing and creating a settings page in provider-facing mobile applications is around $2,000/-
The core of a supplier app is the marketplace of the app. Here providers spend most of their time searching for gigs and an ideal customer in the app. To service providers, the marketplace segment is special and often contains live updates and other functions, such as back-office communication.
- List of consumer gigs
- Customer Details
- Job Card Details
- Live Notifications & Updates
The average cost of designing and creating a Marketplace Page in provider-facing mobile applications is around $13,000/-
- Orders (Active & History)
The Active Order” tab is the most commonly used segment in the provider app after the marketplace. Providers can see and track the specifics of their running orders here: cancel, complete, etc. Exposure to previous orders helps service providers to review their results.
- Active Pending Order Details
- Previous Order Details
The average cost of designing and creating an Order Management Page in provider-facing mobile applications is around $12,000/-
Reuse of the chat module implemented in the consumer on-demand, for the provider’s on-demand app will be a smart idea. Though it will need some tweaks and customization.
- Chatbox With Images
- Group Chats
The average cost of designing and creating a Chat Box in provider-facing mobile applications is around $1,500/-
You can’t get away with the same old boring stuff: passwords, service terms, manuals, etc when it comes to the settings app/ Again, the portion of the app that is inevitable but necessary.
The average cost of designing and creating a settings page in provider-facing mobile applications is around $1,500/-
The cost of the Provider-Side app is relatively lower than the customer-side app. This is mainly because the developers will be able to reuse most of the codes from the Customer-Side application in this one!
The Web Dashboard Costs About $24,000/-
Someone has to monitor all service providers and consumers, or things are going to get out of hand really quickly. You would like to provide an avenue for both parties to report abuse and be able to take action on your own. On average, the cost of creating a dashboard for any delivery management on-demand application comes around $24,000.
Hence, we can say that the average cost of getting an On-Demand Delivery App comes around $91,000. However, the costs may come-up to be a little high or low, depending on the company you get your app developed form or the experience the company has. Also, your demands and requirement of features also impact the overall cost of the application!