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How Much Does It Cost to Create an On-Demand Delivery App

How Much Does It Cost to Create an On-Demand Delivery App

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It’s hard to believe but Uber has already conquered ⅓ of the whole world and doesn’t plan on stopping. Such an eclat hasn’t gone unnoticed by majority, thus a range of Ubers for whatever was created in a blink of a few years bringing on a verily Uber Era.

Where did that conclusion come from? Just look at these data.

Uber stats

  • Total number of rides: 2 billion
  • Number of cities Uber used in: 450
  • Average number of daily trips: 1 million
  • Total business evaluation: $ 50 billion 

Guess many of starting businesses around the world are dreaming of a day they reached such indexes. Therefore lots of startups of similar services in different spheres were established.

Uber markets and players

Yeah, even for weeds there is a specific Uber app and pretty profitable should I say. But geographical littleness of such apps is what opens tons of possibilities for new participants to take part in this global market, full other locations, provide competition and make impressive money.

When you take a look at Uber, it becomes clear that there is something more behind such crazy popularity than just an app and a taxi. So what secret strategy one can perceive from observing listed on demand apps for delivery businesses and imply to shorten his own app startup costs.

How Much Does It Cost to Create an On-Demand Delivery App

Beneficial for everyone

To higher chances of an on-demand delivery service like Uber to become successful, it has to possess specific benefits to attract and retain contractors and customers. What characteristics are the most appreciated by customers and employees?

Customers prefer on-demand service because of:

  1. lower prices comparing to traditional services;
  2. comfortable in-app order, payment and booking options;
  3. fast and furious top on-demand services make delivery take only 60-90 minutes on the average;
  4. live tracking of order’s progress

Employees prefer on-demand service because of:

  1. schedule flexibility;
  2. freedom to choose orders;
  3. comparatively high salary rate.

It’s all good and alluring for potential coworkers and clients but still might be not enough to win over targeted auditory. What additional advantages one can offer to increase employees and clients retention?

Clients retention can be reached with:

  1. special offers, gifts and loyalty programs;
  2. friendly customer support and consulting system;
  3. engaging content that provides perks and advises on subject;
  4. rating system and prompt reaction to customer’s feedback;
  5. demonstration of progress on customer’s feedback implementation
  6. additional secondary on-demand services

As we can see, to meet clients expectation one should make a delivery process fast and higly comfortable, so that a client can no longer imagine his life without your on-demand service.

Employees retention can be reached with:

  • bonuses and prizes for top contractors based on achievement system;
  • additional expenditures covering;
  • paid insurance;
  • customers rating option, etc.

How Much Does It Cost to Create an On-Demand Delivery App

Pay attention to top apps in demand among on-demand services and conduct a little research on working conditions. What kind of advantages they provide for their contractors? Learning from your competitor’s experience is a nice strategy to make first steps towards business growth.

For example, you could learn from other great competitor on the market - Postmates app. It delivers almost everything and takes a symbolic $ 3-4 for its service. Recently lots of people have got curious about how much do Postmates make? Official data says business raised $ 55 million last year. Whether some are interested in how much can you make with postmates? People say it's about $ 25 per hour but in case of seamless packages and constant tips. You can download postmates driver app here and there

Among tools to embody and make a business model work to the full extent we need to define special aspects of in-demand delivery service app. That will be a first part of an answer to question on how to create demand service app. Let’s roll.

In-app features for on-demand delivery service

First to be said, there are should be two applications - for clients and for contractors - that will include different features to maintain the working process. It means a double price of the question how much is it to make a app like Uber, Postmates or Washio. Also total expenditures depends on quantity of features one decides to implement into application, so it should be carefully considered in advance.

Let’s list most important features for a client’s app:

Registration. General client registration, possible integration with Facebook or Google, payment card registration;

Order screen. Comfortable interface and filters to make an order list, cost and necessary time display;

Chat with an operator showing general order info;

Tracking delivery status that’s changed with order’s progress displayed on the map;

Delivery payment. It can be conducted automatically through credit card or mobile wallet;

Delivery rating and review. Prompt feedback on how to make a service more appealing.

Order history as an option to quick order duplication with ability to edit.

A set of features for contractor’s application:

  1. In-app registration for contractors;
  2. Account management that comprises list of delivered orders, ongoing deliveries, earned revenue and other.
  3. Route map integration to help make the shortest delivery track that may be easily built in with Google Maps and Google API integration.
  4. Chat with a customer in case there are substantial changes in the delivery process;
  5. Order and its status editing that’s executed as push-notifications for both parties.

Finally, how much is it to make an app for on-demand service app?

Each feature can be developed on the average for 6 business days, thus we can sum up 7 (features) х 6 (days) x 8 (hours) x $ 30  (minimum hourly rate) = $ 10080 

+ 10% Project Manager services

+ 20% QA testing

+ design 200 (hours) * 30

___________________

= minimal price of a client app will be $ 20.000 

Following same algorithm we get $ 13.500  for a contractor’s app.

Total minimal cost of apps for on-demand delivery service sums up to $ 33.500, which is 6% of potential profit and seems like a fair Postmates cost as example.

http://editor.thunderrise.com/blog/post-edit?id=51

Thunderrise Dev Team has recently developed and been successfully maintaining a grocery delivery system Lafka that was implemented into cognominal applications for iOS and Android. Service is considered to be among in demand apps and constantly expanding further. You may look for more details and visual material here.

Our Dev Team has rich experience in various spheres that we strive to make use of as much as possible. We will glad to accompany you if you have a wish to create an app that delivers fast food for example and reach scale of Uber, Postmates, Instacart and other trumpet apps. Contact us right away, we are ready to hear you out and help within our capabilities!