When Uber opened its new style of business in 2009, even they would not have expected their business model to metamorphose into a multitude of business ideas. What Uber had done is it had unlocked one of the biggest keys to success in any business – identifying some important attributes of the customer.
What Uber did, in essence, was to use the combination of the GPS and user profile in identifying the user who wanted a service and where and when exactly did they want a service! These answers had solved the million-dollar question that almost every business was facing. Now, businesses could attend to customers based on their needs and not speculate on whether or not they might need a service based on a few vague parameters.
One of the direct offshoots of the location-based on-demand technology is package delivery. Package delivery business is the generic manifestation of what Uber does with cabs, what Walmart does with grocery, and what UberEats does with restaurant food.
Need Know Before Launch An On-Demand Delivery App
1. The relevance of delivery services
Delivery services are, in essence, market places that connect people who need to get something delivered and the people who want to get something delivered. It reduces the dependency on courier services and also gives a chance for people to create their own brand without depending on a particular brand umbrella – a person who specializes in making healthy snacks does not have to be affiliated with UberEats or any other food delivery brand for partnership. This avenue also makes a lucrative business option for any entrepreneur to develop an on-demand delivery app.
2. Understanding the market
Shyp, Uber, and Doorman have tried to capitalize on this space but their attempts only ended up in vain. There have been a few evident reasons that contributed to their failure.
In hard ways, these brands understood that they missed out on providing sufficient density in services. It wasn’t enough for these businesses to send a driver to the pickup location as it might not completely cover the cost of delivery. People wanted to arrive at a fine balance between getting a timely service and the service being cost-efficient – something that these brands did not take into consideration.
Roadie, a small player based out of Atlanta, Georgia, has managed to sort out this issue. Instead of calling a driver exclusively to pick up a location, they use crowdsourced delivery services through people who are traveling in a particular direction. This has created a new layer of business on the top of an already existing one – in addition to providing the delivery of the package without much wait time, it has also cracked the code of providing an additional layer of income to people commuting in a particular route and at the same time, has also provided a cost-effective option for people who would like to avail the service.
You may like to read: All About Mobile Apps and Money
3. Customer acquisition
Acquiring customers should be a combination of presenting your competitive advantages to the right people. It is highly recommended that you start with a small population with a small investment. This will help you get recognized locally and will also ensure that you have tested your concept in a limited geographical area with a dense population. The statistical advantage that you acquire in terms of the number of deliveries and revenue will help you enlist new delivery contractors slowly and steadily without losing any pace on the growth and expansion of your business.
4. Customer retention
This is one of the most critical factors for your business success. Statistics have shown to lean in favor of customer loyalty – customers have been found to use the same delivery service time and again, and they tend to stay with the brand for a considerably long time. Users are hesitant when it comes to trying out a new company if they have already found someone that adequately satisfies their delivery requirements. A few simple steps can help with customer retention.
Your company should offer unparalleled customer support. The customers should have their issues resolved as quickly as possible and in friendly responses. They should be able to easily access customer support right options within the app instead of rummaging through hotline numbers that will put them on wait for a long time.
5. Contractor retention
Getting a lot of customers are not having enough contractors would be one of the worst nightmares that any delivery company can face. Retraining contactors is as important as retaining customers. It is to be understood that these drivers have chosen to be a part of the gig economy because of certain reasons and they should be honored at all costs.
The drivers should be given complete flexibility in fixing their work schedule. The contractors tend to enjoy this sense of freedom which might not be available in other jobs.
It all comes down to arriving at a balance between count of drivers and consumers. After all, any business is about balancing demand and supply!
6. Saving up on the transportation costs
Any monetary saving in the entire process translates into better prices for the customer, better remuneration for the delivery partner, and better profit for the company. Every possible effort should be taken to ensure that the cost of the service remains as minimal as possible.
It would be a great idea to invest in some computational power to ensure that there is the synchronization of routes. Roadie perfected this art by using drivers who have already headed in a certain direction. It helps both drivers and customers save money. Roadie drivers at anywhere between $8 and $650 per job. There are variables like the size of the package and the delivery distance that causes this difference.
It is quite evident that delivery services are all set to grow and in the era of independent creators, small businesses, and economies, it would not be surprising if the graph moves up and to the right faster than expected. Should you be an aspiring entrepreneur who would like to capitalize on this wave of business, you will need to invest in a delivery app development solution.
You can get in touch with companies that offer to develop on-demand delivery apps for you or customize white-label on-demand app solutions. They will take care to understand your requirements and deliver the app to you, so you can deliver delight to your customers!