Published On: January 5, 2022
Last Updated: April 20th, 2022
The on-demand delivery app market is taking the market by storm. Be it the groceries, booze, or the salon-style blowouts at home, users today prefer to have these products/services to be delivered on demand.
The reason behind the entire hike is that the on demand process works over a single outline, ‘Give them what they want, when they want, and wherever they want’.
On demand economy statistics you need to know
The on-demand economy has been a tremendous success in the past few years due to its accessibility and ease of use. It has replaced the traditional way of doing business.
As per the latest PwC report, the on-demand mobile apps market will reach an estimated value of $335 billion by the year 2025. Businesses that are looking to invest in on-demand delivery services are going to make more money compared to traditional businesses.
The common problems in on-demand delivery app business
While the statistics above show the massive market of on-demand delivery apps, behind the curtains, there are numerous appreneurs who are facing certain problems to crack the ‘right code to success’.
Here are top three problems faced by mobile app developers/appreneurs while entering the on-demand app business:
1. Unpredictable market
The on-demand delivery app market is getting new members with every passing day.
However, the user requirements are changing faster than the service providers, and thus it gets tough for new ones to cope with the situation.
Not only the new entrants but also those who are already in the market, have to plan newer ways to retain the users and eventually sustain in the market.
2. Not as advertised
Advertisement is crucial for your on-demand delivery apps to reach masses. The appreneurs often adopt numerous advertisement mediums, to attract with their promising campaign.
However, the same often backfires due to false promising in advertisements. This might help you acquire customers at a faster pace, but faster to this you’ll lose them as they won’t find the same experience which you promised.
Another problem here is that you created a big ad campaign and subsequently received a good response. However, you weren’t prepared to serve the huge quantity. This again results in unsatisfied users.
3. The area
On demand delivery apps are built to provide faster and easy delivery services. No doubt that on demand business is successful model for startups, the startups often fail to define the area they need to cover, and also the one which has their target audience with the least possible competition.
Failure in any of these can subsequently disrupt your plans and subsequently your execution
4. Not considering the competition
In recent years, we have seen a flood of on-demand applications which has enhanced the competition to the next level.
Nowadays, the investors have an abundance of on-demand app services to choose from.
There is a plethora of apps in all the sectors that include food-delivery, taxi, eCommerce, home services, healthcare and many more.
In such high competition, it often becomes difficult for any newcomer to survive.
5. Failing to understand the local audiences
Many a times the problem occurs as the entrepreneurs fail to understand their local audiences. This mistake often proves to be costly.
The founders of on-demand delivery apps overestimate the demand of their line-up which results in them providing macro-level offerings to the micro-environments.
6. Neglecting user engagement
This is another problem that the entrepreneurs face. No matter, how big your idea is, there are still many factors that can cause its downfall. These factors are as follows:
- If the product only has a single use case.
- If the uber-like delivery service isn’t that engaging.
- If the product lacks multiple use cases.
If your on-demand delivery app has any one of the above three factor present then it could result in its collapse.
7. Lacking monetization strategy
The best On-demand delivery service apps are not only well known to the users but also financially successful. Therefore for successful app development, it is essential to plan a monetization strategy from the early stages of planning the app idea.
The monetization method can discover the functionality of the application, ways of its distribution. Strategies such as:
- Charge fees for access to extra functions
- Place announcements
- Make a free version and a paid version of the application
Another strategy that is gaining more popularity among small businesses is in-app selling when your business is not the app itself, but the goods you distribute.
How to overcome these problems?
Knowing the areas of concern and talking about them isn’t the only remedy. The requirement is to have solutions to these problems.
Keeping the same in mind, here we have listed few points which you need to keep check while coming up with an on-demand delivery app. They are:
1. Build a definition
An on-demand delivery business can’t walk for long if you haven’t defined the workings in right manner.
Ok, the term ‘right manner’ here is subjective. You need to first identify your potential.
By this we mean the area you can cover, the orders you can deliver (keep the peak days in mind), marketing plans etc.
To get this done, you need to be good with your skills to research, analyze, and implement.
You not only have to research the market but also of yourself based on above points.
2. Focus on retention
Not only at the initial stage but also later in your working days keep user retention is your key target.
When you try to expand your business without keeping your capability in mind, you have chances to lose the prevailing customers.
Not only this, if you wish to keep your delivery process smooth and swift, you don’t have to directly jump into the large market or plan to acquire new users. This can be done once you have the backup to deal with the bigger audience.
3. Automate and manage
People use Uber like delivery services because they wish to have prompt service at their doorstep.
Manual tasks can increase your burden and can delay the process. You need to ensure that the process you follow is automated as much as possible and is working smoothly.
To make sure that the latter is working, you need to manage the entire process. Keep a sharp check on the automated process, and the flow moves without any obstacle.
4. Be distinct
Being entirely unique is quite difficult today. The advent of the on-demand delivery app in no time to its peak.
There’s no industry which isn’t part of these services. So, to stand ahead in the market, you need to have the knowledge about the ‘gap’ which users are facing.
A close study can help you know the people’s requirement and what they are getting. Your aim has to be to fill this gap. This is the best way to be distinct with your services.
5. Stay updated with data
Though last in our list, but the point carries a huge significance. You need to have knowledge about the entire market.
This includes the users and the service providers, buyer preferences and the glitches they are facing.
Collect this entire data, analyze it, scrutinize it, and further plan and implement your on-demand delivery process.
The on-demand delivery app market is huge, and it has gained this status in last few years.
Knowing the pace at which it is expanding, it is important for you to have a grip over the market requirement and the people who are fulfilling it. It’s the gap that can help you accelerate and prosper your business.
Simultaneously, you also need to be aware of the resources that you have. Keeping the same in mind, you need to take steps further.