How do Determine the Cost of an On-Demand Delivery App?

Devstree IT Services Pvt. Ltd.
3 min readApr 11, 2024

On-demand delivery services have surged in popularity in recent years, offering convenient door-to-door services worldwide. From shopping for groceries to hailing a ride, these apps have become essential for accessing various services with just a few taps on your mobile device.

Some characteristics of an on-demand delivery marketplace include:

1. Expedited delivery of products and services
2. Prioritization of a mobile-first user experience
3. Competitive pricing compared to traditional service providers
4. Seamless payment methods
5. Independent and part-time work opportunities for contractors
6. Implementation of actionable rating systems

KPIs for On-demand Apps
Key Performance Indicators (KPIs) play a crucial role in assessing and enhancing the success of on-demand delivery apps. Here are two vital factors to consider:

1. User Acquisition:

Local Launch Strategy: On-demand services thrive initially within localized areas with dense populations, requiring minimal investment to start. Focusing on local markets fosters rapid user base expansion without compromising service quality.

Pre-Launch Advertising: Extensive advertising across various channels, including social media and PR, is essential before app launch to generate buzz and attract potential users.

Referral Programs: Implementing referral programs incentivizes existing users to invite friends, offering benefits like free delivery, thereby expanding the user base organically.

Retailer Collaboration: Partnering with retailers, initially smaller ones and later larger chains, leverages their existing customer base to fuel user acquisition efforts.

2. User Retention:

Quality Customer Service: Providing exceptional customer service and ensuring reliability are paramount for retaining both customers and service providers (contractors). Prompt resolution of issues and maintaining trust are key strategies.

Feedback Integration: A robust feedback system allows users to provide actionable insights post-delivery, driving continuous app improvement based on user preferences and suggestions.
Special Offers and Loyalty Programs: Offering vouchers, gifts, and discounts encourages sustained app usage. Tailoring higher discounts for long-term users and implementing loyalty programs foster user loyalty.

Responsive Customer Support: Easily accessible customer support through the app ensures quick and friendly responses to inquiries and complaints, further enhancing user satisfaction and retention.

By monitoring and optimizing these KPIs, on-demand delivery apps can effectively attract and retain users, fostering sustainable growth and success in the competitive market landscape.

How to Find the On-demand Delivery App Cost?
Determining the cost of developing an on-demand delivery app involves several factors, including the expertise and time of developers, designers, project managers, and industry standards. The cost varies among companies due to additional features and functionalities tailored to specific audiences.

Estimates are based on the number of hours required for development and the hourly rates. For instance, a typical on-demand app like Uber or Lyft may take around 2000 hours of development time at an average hourly rate of $30, totaling $60,000.

Key features such as promo codes, referrals, and payment integration with mobile wallets or credit cards also influence costs. For example, implementing promo code functionality may require an additional three days of development.

Devstree IT Services, a leading mobile app development company, has experienced rapid growth in various sectors, including restaurants, healthcare, education, and entertainment. We prioritize user-centric app development using advanced technologies.

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Devstree IT Services Pvt. Ltd.

Devstree is a Top Mobile App Development, Game Development, Web Development and AR/VR Development Company in India, USA & Europe. https://www.devstree.com/