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Key Areas to Consider While Developing an on Demand Grocery Solution

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May
21
2018

On-demand app-based startups have been a major trend since the entry of Uber. The huge acceptance of the "Uber for X" recommends that on-demand delivery services may be the future for many market segments, including grocery delivery. In this article, we'll examine ways to deal with on-demand grocery delivery app development and take a glance at the cost of developing a grocery delivery app for both Android and iOS platform. 

What describes On-Demand Grocery Delivery Marketplaces? 

  • Mobile first user experience 
  • Quick delivery of products or services 
  • Less expensive than traditional service providers or vendors 
  • Independent part-time working contractors
  • Flexible payment

Market Analysis 

The market for on-demand delivery applications is generally new. There are a lot of apps already competing each other in this field, however not all of them are established, as these applications just work in limited geographical areas. On-demand delivery services fall into the following subcategories: 

1. Package delivery. Key examples of these delivery services are Shyp and Kanga. Kanga delivers things to any address, while Shyp exclusively is focused on delivering things from your home. It's particularly useful for individuals who offer products through online markets like eBay and need to utilize a package delivery service to deliver products to vendors. 

2. Local food and grocery delivery. Instacart and Postmates are the prime example of food and grocery delivery. Instacart centers on grocery delivery. They hire personal shoppers (contractors) who buy and deliver items to clients. Postmates delivers both fast food and perishables from well-known shops like 7-eleven. In addition, Postmates also offers household items like dish cleanser that people typically purchase when they go shopping for grocery. 

3. Delivery for retailers. Since majority of online shopping occurs on smartphones and tablets, some of the major retailers have additionally entered on the on-demand delivery sector. Amazon Prime, for instance, guarantees to deliver Amazon products in two days. 

Many startups are nowadays developing mobile apps for physical retailers. That is really what UberRUSH does. It's a win-win circumstance for the two sides because a retailer can influence a larger audience while a delivery service can grow a customer base significantly quicker. 

To show signs of opportunities and threats of on-demand delivery applications, we have conducted an analysis and they are:

Top KPIs(Key Performance Indicators) for on-demand applications 

To make your application effective, you have to identify and track the most vital KPIs. For an on-demand grocery delivery service, you have to think about two things: user acquisition and user retention. 

How to develop the customer base 

Regardless of their speciality, on-demand service guarantee cheaper and quick delivery. This is the place their upper hand lies. In order for your business to hold this upper hand, you ought to think about the following: 

  • Start locally. When starting a business, it's normally easier to begin with small investments. In the on-demand sector, this implies you should test your idea in a limited geographical area with a dense population. This will make it simpler for you to select and assemble drivers and grow your audience without affecting the service. 
  • Promote your service even before launching the app. You should utilize all channels from social media to PR. Another concept to go after is to get customers through a referral program in your app. 
  • Team up with retailers: As we have just said, collaboration with retailers is an incredible method to grow loyal; audience, as the retailer has effectively done the hard task of gaining target audience. As a startup, you can work together with smaller retailers, however as you get noticed, bigger retailers may likewise be intrigued. Postmates, for instance, was recently collaborated with Starbucks. 

How to retain users
Maintenance applies to both clients and contractors. Obviously, you need your clients to continue utilizing your service. Yet, to be productive, you'll have to keep your service appealing for contractors also. 

We assembled a few strategies that will help you to maintain your standard for both clients and contractors: 

Retaining clients 
General statistics for delivery services proves that clients are exceptionally loyal. When they opt for any service, they tend to remain with it. Some of them need the inconvenience of experimenting with new organizations if they have effectively discovered one that can fulfill their requirements. Dependability and effective customer service are the best way to retain their customers. Here are a couple of ways to accomplish trust and allure: 

1. Incredible customer support: Customers should receive quick and cordial reactions to inquiries and complaints. Customer support should easily be accessible from the application. 

2. Significant rating system: After a delivery is completed, feedback is essential. Listening to client input is the best method to improve. Simply remember that it is vital to respond to the input to keep the user happy. For instance, if an Uber driver gets an excessive number of low ratings, their account will be suspended until the point when they pay for an Uber training session. 

3. Contractor screening: Screenings includes document verifications, video interviews, confirmation of a driver's permit, insurance, and license, driving history checks and evidence of reliable vehicle. 

4. Special offers: Customers will use your application again if they get discounts, vouchers or gifts. These offers can be actualized by means of loyalty programs. You can, for instance, give your clients higher discounts if they use your application on a daily basis. 

Retaining clients is just a single part of this KPI. The other part is retaining contractors. Here are four ways to keep the contractors that you can use in an on-demand app. 

Retaining contractors

  • Salary: What contractors get paid may differ, and it mainly depends upon the location. So as to keep clients, it's essential that the cost of an on-demand service be low, yet the contractor's pay should also be appealing. Or else, contractors will leave, to work for different organizations. 
  • Adaptable working schedule: One of the reasons why on-demand service is appealing for contractors is a result of their adaptable working schedules. Contractors get a certain freedom by scheduling their working hours as per their needs.
  • Covering transportation costs: Even an alluring salary may rapidly get finished if contractors need to pay for the vehicle. You should need to consider sponsoring gas and transport costs. 
  • Other sources of inspiration: There are numerous approaches to motivate contractors. Uber, for instance, has been sending its best seven drivers to the World Cup every year. Uber additionally has a rating system that enables drivers to rate their clients. 

Since we have addressed KPIs, we should investigate the fundamental features that your on-demand application developer can mobilize. 

Key features for an On-Demand Grocery Delivery App

An on-demand delivery application should have access to products or services, and an easy way to book them. The most vital features of an on-demand grocery delivery application are: 

  • Booking orders 
  • Scheduling a delivery 
  • Tracking delivery status on the map 
  • Review and Feedback about deliveries 

If your application centers on grocery delivery, then some additional features must also be included.

  • Product search
  • Shopping lists 
  • Wishlists
  • Real time messaging or calls 

How much does it cost to create an on demand delivery app?

Each project has a particular timeline to get developed. They are divided into app design timeline, app development timeline and backend development. The most time consuming tasks or features while developing an on demand grocery solution are admin panel, booking delivery, delivery status, payment processing and push notification. An average working hour for developing an on demand solution is in between 1400 to 2400 hours and the price ranges from $20/hr to $150/hr depending upon the package and feature list.

Our suggestions while developing an On Demand grocery solution

Begin locally. It will be convenient, to begin within a small area with a thick population. This will make it less demanding to recruit contractors, advertise, and test your idea. After gaining new clients, you can work on a bigger scale. 

Market your application before launch. This should be possible through social networking, offline commercial or referrals. 

Acquire trust. Earning trust is critical for an app’s success. You can earn trust by empowering contractor rating and reviews, screening drivers and offering client support. 

Influence your contractors to stay. Retain your contractors by making it more attractive to work for you. Making it attractive to work for your service may mean a focused salary, adaptable working schedule, reimbursement of transportation costs and other inventive sources of inspiration.

If you are looking for an On-Demand service to emphasize in your business, feel free to contact us and get to know more about different aspects of On-Demand grocery sector.
 

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