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In 2020 the online delivery industry increased dramatically. Thousands of business owners had to immediately change the format of their businesses from “real” to online. Therefore, now is a great time to create your own on-demand delivery app.
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Why Create a Delivery Service App in 2020?
The growing potential of on-demand delivery apps has been statistically proven. In fact, revenue in this business grew to $136 million in 2020. Moreover, it is expected to show a 7.5% annual growth rate by 2024.
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The increase in demand for online delivery apps is associated with a trend toward global digitalization. Additionally, it is also related to the recent events connected with the outbreak of COVID-19 and the drastic changes the virus has caused in almost all spheres of life.
Many scientists expect another wave of the pandemic, and the risks to business owners who do not have online delivery services remain significant.
According to Instacart, a service that delivers goods that are purchased online, their sales have grown by 20 times in comparison with the weeks before the pandemic started. Moreover, the cost of average orders has grown by 20% as people buy more essential goods like antiseptics, masks, cans, cosmetics, toddler foods, and healthcare products.
Because of the sudden surge in demand for on-demand delivery applications, many entrepreneurs are now wondering how to build a delivery app. We hope this article will give you some ideas.
What Are the Monetization Options for Delivery Apps?
In just one week of the pandemic, the Instacart download rate showed a 218% increase. What’s more, Instacart is not the only delivery application that consumers massively installed. The increasing demand for such apps shows the potential market to new players.
However, if you plan to build an on-demand delivery app, you need to choose a business model first. For example, delivery apps and websites get their revenue using several monetization options:
1. Delivery Apps with a Membership Fee
Frequent customers for the delivery app pay for a yearly subscription that allows them to get lots of bonuses. The membership fee allows users to save money on delivery. At the same time, the owners of the platform get loyal clients and extra income for the development of their business.
2. Delivery Fee and Commission
The owners of on-demand delivery platforms get commissions from users who don’t want to buy subscriptions but prefer to order items as they need them. Commissions are usually a percentage of the total value of the order.
3. Price Markups
To recoup expenses, delivery platforms like Instacart charge higher prices than stores. Statistics say that delivery apps add around 25% to the initial prices.
You can earn additional money from advertisements and sponsors who want to show their ads to buyers on your delivery app.
What Are the Must-Have Features of On-Demand Delivery Apps and Websites?
Whether you want to create a food delivery website or an application, the range of functions will be similar for both formats. Here, we have collected all must-have features for on-demand delivery applications:
1. Convenient Search Options and Categories
The process of search should encompass both category and keyword search options. Users of your delivery app need to be able to find a product both in the list of goods or by entering a product name in the search bar.
2. User Account
All users of a delivery application must have their own accounts. This is where they can save their addresses or credit cards because these data will remain the same for their future purchases. They also should have the option to see the history and status of their orders, all available coupons, and discounts.
3. Payment Options
Clients for your delivery app should have many comfortable payment options. For example, they should be able to pay by card, cash on delivery, online wallets, coupons, or gift cards. Once clients submit an order, the platform should send an email to notify them that the order is confirmed and add this order to their order history.
4. Check-out Options
The process of check-out in a delivery app should consist of options such as:
- Viewing the items in the order
- Editing the items
- Applying payment options such as gift cards and coupons
- Choosing the date and time of delivery
- Adding additional information about delivery
- Details of payment
5. Range of Recommended Goods
Delivery applications, along with websites that provide recommendations for buyers, increase sales by up to 60%. When you show related items to your customers, they don’t have to waste time searching for them.
The best options are daily deals and the customer’s previously purchased items. Additionally, options for “often bought with” and related products can boost sales. Reviews and recommendations can also significantly increase the purchase rate on your site.
6. Admin Section
This is a necessary “backstage” part of the site that will help you and your staff perform various operations such as:
- Managing orders, shoppers, and customers
- Setting or changing prices
- Activating or deleting profiles
- Managing information on the site
A comfortable and staff-friendly admin section on your delivery app enables your team to work more effectively with clients and facilitates their daily tasks and operations.
7. Shopper Section
People who want to be hired as shoppers should register in the delivery app’s shopper section. Here, shoppers can manage their tasks and earnings.
Shoppers are people who accept customers’ orders, go to the shop, buy the ordered items, and deliver them to the client.
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Create Your Own On-Demand Delivery App
These days, entrepreneurs who want to start new and profitable companies have an appealing option: on-demand delivery apps and websites. The demand for these services is so high that current market players cannot cope. Therefore, now is a great time to enter this lucrative market.
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