How Much Does It Cost To Develop An On-Demand Delivery App?

How Much Does It Cost To Develop An On-Demand Delivery App?

By Akhil Kumar | December 17, 2019
On-Demand Delivery App

When hunger pangs, check out the food delivery app.

When you want to get a pedicure at home, beauty-based applications are just a click away.

You want brands delivered at your place, e-commerce apps are there to help you out.

You name the service and there is an app for it available on the app store. In fact, there are a lot of apps, on-demand apps…!

2.2 million apps dedicated to Apple App Store users whereas commanding 2.8 million apps are available for Google Play Store users. Imagine the massive amount of applications and app idea fluttering in the market to connect your needs. 

If not all, the maximum number of applications is dedicated to an on-demand delivery service today. 

From beauty based applications, food delivery apps to home care services, there are lots of dedicated on-demand delivery business apps available easing the life of users than ever.

On-demand delivery apps are in major trend from the last few years. And if not in the coming year, these apps are going to revolutionize the market wholly in a couple of years from now. 

To match the demand, the chance to meet user’s emerging need, a scope to generate ROI, founding a brand, businesses, startups, a layman, a restaurant owner, a flowerist or who not are investing in on-demand delivery applications. 

So, why not you?

Believe it, on-demand apps are a luxurious treat. 

Get An In-Depth Understanding of On-Demand Applications

Before moving any further, have a look at the infographic to gain on-demand market insights and who are benefiting from such applications.

On-Demand Delivery App

Like the infographic? Well, we have more to show you.

The next 7 minutes of your day will give you insights about the on-demand applications to start your career with.

So, take a comfy corner, grab a cup of coffee, we are about to gain great insights-

We believe our infographic must have answered the most basic questions related to the on-demand delivery application until now. But if you are still in doubt, we are just a click away. 

With it, let’s get started- 

Benefits Of On-Demand Delivery Business Applications

  1. They are fast
  2. They are cost-friendly
  3. They are convenient
  4. They are transparent

Let’s get an in-depth understanding of these benefits- 

#1- They are Fast

On-demand service applications ensure consumers to place orders in blazing fast speed, using just tap or swipe.

No matter, if you are searching, booking/scheduling, ordering or doing anything, handling all these things in just a click from a single app is possible. 

Also, the competition is quite stiff in the market and to take the app on the success side of the graph, on-demand delivery mobile app development companies are coming up with great ideas to develop one.

#2- They are Cost-Friendly

Service that fits the budget of both-consumer and owner is what defines on-demand delivery business applications.

Different services being rendered by the on-demand delivery application carries their own set of prices and timing. 

From the customer’s point of view, on-demand applications are filled with great deals, discounts, promotions, etc. that too on a daily basis. And on the other hand, from the perspective of business owners does not require to invest in vehicles, logistics, along with full-time couriers for delivering the products. 

Furthermore, like the taxi booking application, the model on which on-demand delivery apps stand is based on independent contractors who are using their own set of transports. 

This statement can be validated by the statement given by Bloomberg which says- business owners can save a lot as there is no need to pay for paying payroll taxes, insurance, vacation time, sick days, medical claims, etc. 

#3- They are Convenient

The convenience provided by these apps goes beyond delivery while shaping the world to the core. 

These on-demand applications are absolutely handy when it comes to providing access to users for smart search, real-time tracking, payment modes, and on-time delivery.

#4- They are Transparent

Being transparent endorses the brand’s unique approach to gain trust from the customers.

To do so, there is no better way than feedback, review and rating options. By offering these options, the changes in the service can be made accordingly. 

Types Of On-Demand Applications

Based on what user demands, on-demand applications are basically divided into three types- 

  1. Business to Business (B2B)
  2. Business to Consumer (B2C)
  3. Consumer to Consumer (C2C)

Let’s figure out what they are in detail-

1 – Business to Business (B2B):

On-demand applications that are meant to connect businesses supporting them globally. Eventio, Cargomatic is the right examples of B2B apps. 

B2B apps are further divided into two segments called- 

  • Horizontal – Offering services to multiple industry sectors
  • Vertical – Offering service to a single industry sector.

2 -Business to Consumer (B2C):

These on-demand applications facilitate the transactions of goods and services among providers and consumers. For example-, Starbucks is an example of B2C apps.

3 – Consumer to Consumer (C2C):

Apps that enable consumers to exchange goods, services or products between each other. Here, customers are free to buy or sell products via C2C apps carrying the same rights as that of another customer. For example- eBay, Etsy showcasing the ease of C2C applications.

Factors Affecting Cost of On-Demand Delivery Applications

Before moving into core of the cost to build a On-Demand Delivery App, the structure of the typical on-demand mobile application is divided into three parts- 

1 – User Application:

the app that lets users search for their queries along with finding the solution, reviews, pricing, feedback, tracking orders, etc. 

2 – Service Provider Application:

The side of the app where companies, businessmen, startups are required to fill in their information, portfolios, product description, etc. Here, the need for user persona emerges to understand what a user is looking for.

3 – Admin Panel:

Elements that allow services and providers to add feeds, updates, deals and discounts in the application.

As per the structure mentioned above, there is a list of features for an on-demand delivery app that should be included in the on-demand mobile application. 

For an in-depth understanding, scroll down how much does it cost to develop a mobile application before going any further. 

Once done with a basic understanding of the Cost of On-Demand Delivery App breakdown, we are good to go to gain knowledge of the on-demand delivery application cost.

So, without further ado, let’s get started- 
This is the basic Cost of On-Demand Delivery App-structure-

Cost of On-Demand Delivery App-structure
Hours VS. Features

When this was about the technical aspects or human resources, Cost of On-Demand Delivery App is also based upon the features too-

#1- User Registration and Profile

This is the first and foremost feature in the on-demand delivery application. These are the features that will connect users to the app more precisely.

The Cost to Create an On-Demand Delivery App here looks like- 

  • Design – 10 hrs
  • BackEnd – 24 hrs
  • Android/iOS – 40 hrs

#2- Maps Integration

On-demand application is nothing without the integration of map integration. The feature will work for both the user and the customer. The Cost of On-Demand Delivery App break here is divided into-

  • Design – 4 hrs
  • BackEnd – 16 hrs
  • Android/iOS – 8 hrs

#3- Lists and Filters

Lists and filters are something that helps users to search for things they want in the application. To serve what asked for, the breaking of the Cost to Create an On-Demand Delivery App looks like- 

  • Design – 12 hrs
  • BackEnd – 16 hrs
  • Android/iOS – 40 hrs

#4- Product Description

This segment belongs to the detailed description of the company, service, product altogether adorned with customer reviews, photos, and conditions. Cost to build an On-Demand Delivery App breakdown here looks like- 

  • Design – 16 hrs
  • BackEnd – 16 hrs
  • Android/iOS – 32 hrs

#5- Favorites/Wishlists

This is the feature meant for the owners to understand the choice and preference of the user. The feature will uplift and enhance the overall user experience. Cost to Create an On-Demand Delivery App breakdown here will somehow look like- 

  • Design – 4 hrs
  • BackEnd – 4 hrs
  • Android/iOS – 12 hrs

#6- Payment System

Offering various payment gateways to the users will incur a cost. Therefore the Cost of On-Demand Delivery App breakdown here will be like- 

  • Design – 8 hrs
  • BackEnd – 16 hrs
  • Android/iOS – 24 hrs

#7- Ratings, Reviews, Comments, and Feedback

Your on-demand delivery application is nothing without the integration of features for an on-demand delivery app like ratings, reviews, comments, and feedback. In fact, without these, the chances to correct what is wrong in the app along with what can be added or subtracted from the app can never take place. Thus, including these in the app should be taken as a priority. 

This priority cost breakdown looks like- 

  • Design – 4 hrs
  • BackEnd – 4 hrs
  • Android/iOS – 16 hrs

#8- Push Notifications

How will you inform your users about the new service you have recently included in the app? The answer is to push notifications. Through this feature, the information can easily be conveyed to the users. The cost to develop an on-demand delivery app breakdown will somehow look like this-

  • Design – 2 hrs
  • BackEnd – 40 hrs
  • Android/iOS – 32 hrs

#9- Choice Of Country

Once done with the cost breakdown of the on-demand delivery application features, the choice of the country also plays an important role.

The cost to develop an on-demand delivery app also depends upon the demographic, zone and country. For example, if you are looking at the mobile app development company in the US, there are high chances that you will be required to pay more. 

But the cherry on the top is that you can also outsource your mobile app development project too. Here is how a brief look at the country-wise hour to complete on-demand delivery app-

hour to complete on-demand delivery app

So, this is something the average Cost of On-Demand Delivery App reflects. 

Meanwhile, the crux of what is written above is shown in few scrolls more detailed and clutter-free. 

Cost of On-Demand Delivery App-structure

Figuring the Cost of On-Demand Delivery App, let us now understand how to build an on-demand application.

3 Easy Steps To Develop The On-Demand Delivery Business Application

#1- The Ideation Phase

This is the most obvious phase to pay attention to when it comes to how to make on demand delivery app. 

Figure out what interests the audience all the more and in what direction you can actually go ahead. Notice things around you on a daily basis that is bothering you, and bring out the solution to solve it. 

Once done with it, come to the core value of the application. Those core values include-

  1. Figure out whether to go native or cross-platform
  2. Know your target audience- Android or iOS.
  3. Think about the right technology stack
  4. Know the difference between frameworks.
  5. The app development methodology to follow- Agile or waterfall
  6. Whether to outsource mobile app development company or not.

These are the basic core values attached to your app idea. Make sure you are not skipping competitor analysis and features for an on-demand delivery app that altogether meant for hooking audiences.

#2- Design and Development Phase

This is the phase that is dedicated to the real construction, development, and creation of your app idea.

The phase basically consists of:

  1. Designing
  2. Building
  3. Testing 
  4. Launching

Here at Appventurez, we focus on each and every parameter to develop the right and required an on-demand delivery application. Understanding the core of the app development, we always remain transparent when it comes to the things a client should ask before handing over the project to the company.

#3- Post-Launch Phase

This is the final phase of the app that remains continuous forever. 

Once your app is launched in the market after all the ASO strategy, the need to feed it timely becomes the requirement. Make sure you are following the last-minute mobile app launch checklist before going any further.

If you want your app to taste the success forever along with making users actively using the app, make sure you are feeding it with valuable things along with updating the app at the right time

Check out- Apple’s ASO strategy to make your app reach the top. 

With it, there are use cases available to understand the types of on-demand applications more precisely. 

On-Demand Delivery Business Application’s Use Cases and Examples

These on-demand applications are certainly the best way to get started with. 

No matter whether the competition in the market is stiff or not, anyone can try their luck in it. Businessman, a person who is in the market without application or a layman with a great idea, these on-demand applications are offering great opportunities. 

To understand which industry got more potential, there is a list of on-demand applications ruling the market-

#1- On-Demand Food Delivery Application

Take the examples of Uber Eats, Doordash, Instacart, Grubhub, having groceries and food delivered at home is nothing new with these applications. 

These apps might look a great concept a few years back, but today for every food need, there is an app available in the app store. Be the restaurant owner or the customers, the ease and comfort of receiving and delivering food were never so efficient. 

Food domain no doubt is ruling the on-demand delivery business market, making it obvious for businessmen, restaurant owners to invest in on-demand food delivery app development.

In short, Food and food delivery app development can never get out of fashion. 

This is the reason, almost every year, startups and businessmen are investing hugely in the food domain trying their best to offer something above Uber Eats or Zomato. 

The complete guide to an on-demand Food delivery application can help you in-depth if you have set your mind to try your luck in the domain. 

Bonus – Get a look at the working, business model, revenue sources of Doordash

#2- Health is Wealth

Technology no doubt turned the healthcare domain a whole 360 degree. Talk about IoT based mobile application to on-demand mHealth applications, the connection between doctors-patients is strengthening. 

Both IoT based applications and on-demand mHealth applications are enabling users to connect doctors from the mobile device whenever and wherever required. 

Doctor on demand, PharmEasy is a few examples of on-demand mHealth applications.

Get a sneak peek at- 7 top tech trends accepted in the healthcare industry.

#3- Transportation and Logistics

On-demand logistics services are in demand due to the value they offer in terms of- 

  1. Real-time tracking
  2. On-demand transportation
  3. Payment options
  4. A pricing model that is transparent
  5. Messaging facilities between customers and suppliers

Take the example of Uber Freight bridging the gap between transporting freights and customers effectively. Another root of Uber is UberDeliver making customers deliver things and stuff anytime anywhere. 

Another part of it- courier delivery app development is also gaining huge momentum side by side. 

#4- Taxi/Cab Services

Uber application entered the market with full force and changed the traveling game in the market. It gives rise to on-demand cab service applications in order to meet user’s demand like-

  1. GPS and map navigation features for an on-demand delivery app meant for letting users book nearby taxis making geolocation app development the most essential part of it.
  2. In-app messaging facilities between users and drivers
  3. Feedback, review, and ratings feature integrated into the application

The on-demand top taxi services in the market are transforming the way we all used to travel once. 

A guide to the taxi-booking application can clear all the hazy and blurry clouds about why taxi booking applications are revolutionizing traveling thing. 

#5- Home Services

Demands are always created by needs. 

Thus, the need created another demand for house cleaning and repairing applications. These applications are the perfect solution for those who often look for assistance when it comes to cleaning help in just a click. 

Look at Handy, Merry, Slate, Homejoy, these applications have gained good momentum in the home services segment in the market. 

#6- Car Rental Services

What will you do when you planned a sudden trip and don’t have a car? 

Well, in such a situation, car rental services will come as a savior. Turo, easyCar, Zipcar are a few of the examples that are showing how car rentals services are becoming the need of today’s lifestyle.

#7- Gifts and Flowers

Did it ever happen to you that you forgot your wedding anniversary date? Or you are in another city who wants to send gifts and flowers to your friend or beloved? 

Forgetting things is human nature and demographic distance is something that cannot be measured in seconds, to aid people from such situations, gifts, and flowers service-based application are available. 

Look at how Uber flowers, UrbanStems, Giftagram are prospering in the market delivering things and stuff at receiver’s doorsteps.

If you are willing to invest in the same, make sure to hire the right flower and gifts delivery mobile app development company. 

Attending to the use cases, let us check out the Cost of On-Demand Delivery App you all have been waiting for-

Finally, we have reached the end of the article. 

But here is the million-dollar question you should be aware of and that is- 

Why Should You Invest In On-Demand Delivery App Development?

If you are a startup, businessman or a person planning to invest in on-demand delivery applications, we got you 5 reasons to validate your doubt.

Here are the reasons- 

#1- Delivery Channels

With the demand for doorstep service, the delivery channels for on-demand applications are also increasing. 

Thus, make sure to offer delivery platforms that will simplify the process of ordering along with allowing customers to place an order via different channels. The channels may include social media, virtual assistants, smart devices, and many more. 

#2- Modern Digital Options

On-demand delivery mobile app development companies are no longer rely on human force to serve the user. 

There are more ways to serve the same while lowering the operational Cost of On-Demand Delivery App through robots, drones, etc. When you offer this, the chances of making your brand and app viral becomes easy. 

#3- New Business Dimensions

Believe it, for every need there is an app for the same. Start from food, massage, laundry, clothing to pet care, there is an app available for the same.

Thus, if you have made up your mind to deliver what is trending, get ready to indulge in the taste of success. 

#4- The Technology

When you offer something that is different from your competitor either earns you a great rapport or spoils the brand. 

Now that you have planned to go ahead with an on-demand delivery application, integrating the trending technologies like AR, VR in the application can earn you a great rapport. 

Apart from AR/VR, investing in AI app development can also come out fruitful. Using these technologies can help you expand your brand awareness while boosting sales. 

#5- The Help Of Big Data

The concept of big data is revolutionizing the on-demand delivery services sphere. The scope of big data helps in-

  • Road traffic
  • Customer purchasing history;
  • Items currently in the cart
  • Reviews and feedback on social media;

Food For Thought

So, now that you have reached the bottom of our article, it becomes our responsibility to offer you the summarized value of the on-demand delivery application cost. 

 The on-demand delivery application will somehow cost you around $90,000 with us. 

Here is how- 

  • Consumer On-Demand Average App- $36,000
  • Provider On-Demand Average App- $30,000
  • Web Average Dashboard- $24,000

If you still have a doubt, we have a solution for the same. Connect with us today…!

cost of on demand delivery app

Akhil Kumar

Co-Founder & Managing Director of AppVenturez Mobitech. An entrepreneur who is tech-savvy and aims to build the largest software business through technological innovation, keen business strategist and a passionate technocrat. He firmly believes in learning and earning by planning and performing.

⚡️ by Appventurez

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