Logistic space is dominated by traditional players like FedEx and UPS. The on-demand model is looking to disrupt this vertical as well. The popularity of on-demand delivery like UberRush and Roadie is making waves in the logistics space.
In this article, i will go through the components required to make an app like Roadie and the costs for making an minimum viable app. The advanced features like predictive pricing and route optimization are not covered. However, you can contact us to get detailed pricing on those components.
Famous On-Demand Delivery Apps
UberRush
Roadie
OnDemand Delivery Business Model
The model is simply the uber model which connects delivery boys, bikers, cars or pickup vehicle drivers with users. Some companies start with their own delivery teams initially and than start accepting delivery boy applications. It is impossible to scale and compete without adding third party drivers like the on-demand model.
Colloboration with other On-Demand apps and ecommerce websites
Most on-demand business normally take orders from their own app. However, one can also do deals with local ecommerce stores and other on-demand apps like on-demand labor apps and provide them the delivery services via the on-demand apps. This adds an overhead of writing API’s for other companies to consume but it becomes a strong driver of bringing businesses for the startup.
OnDemand Delivery App Components
The on-demand delivery app ideally needs three apps
Native iOs and Android Apps for Users
Web App for Users
Native iOS and Android apps for Delivery Boys.
On-Demand Delivery App Features
On-Demand Delivery apps usually require these features
User App
Create Job for Users
Ability to specify the pickup and drop off location
Size of Package.
Time to pickup the package
Promo codes
Cancel Orders (with cancellation fees)
Rate Delivery boys and also give feedback
Push Notifications
Real Time Tracking of Delivery package
Real time messaging for driver and user to communicate
Once the job is created, the app sends the job to the nearest drivers. Ideally to those who are already driving that way and at that time.
Delivery Boy App
Ability to accept jobs.
Ability to get push notification on jobs.
Order history
Rate Users.
Add Car/Vehicle and capacity.
Job Assignment Model
The job assignment can be done on two models. One is the model where the driver who accepts the job first gets the job. The second model is that the job is shown to all the drivers in the nearby area and all the drivers make a bid on the job. The user can see who made the lowest bid and can select the delivery person.
The model can further be strengthened by introducing artificially intelligent pricing that automatically goes up and down based on demand and peak areas.
Our Recommendations
We highly recommend you to start with the mvp model. Start small and grow with users feedback
Start at a local level. Ideally in a particular area of a city. The on-demand app is all about matching users to providers. You have to keep the right balance between both otherwise both go away.
Make customer service your number # 1 priority. Have a backend call center to hear customer complaints and help them in real time in case they have an issue. Don;t just leave email to complaint. We understand it is costly but it matters a lot.
Create programs to retain your contractors by giving them bonuses, appreciating them, doing local meetups and trianings for them. They are your representatives in front of the customer. How they behave in the field will define the brand of your company.
Cost and Timeline
For normal uber applications, a web app is not recommended. However, for on-demand delivery a web app is highly recommended as users can also give orders from website. Similarly, an api can also be provided to take orders from third party apps and websites.
Deliverables
The deliverables for on-demand apps include
iOs and Android apps for Drivers/Delivery Boys
iOS and Android apps for Users
Website for users.
Admin for backend with basic analytics
The average cost for building each of these solutions from scratch is 12k USD. The total cost comes at around 36k USD and delivery time is 3-4 months.
However, with our on-demand platform components, we can build this solution for you in the range of 12k USD to 15k USD. Please note that we are not clone providers. We recreate a custom UI and custom user experience for your on-demand delivery app according to your unique requirements and re-use our ready made components to build your on-demand app.
Meanwhile, we can also integrate unique features like predictive artificially intelligent pricing models, ticketing system, crm integration in the solution if you already have an on-demand delivery app or want to start with full feature set that an on-demand business requires.