For around 2 days, I kept on meeting different vendors to get a good deal. And finally when I found one, I asked them to send the truck to my door at 9 am. However, the truck arrived at around 10 the next day, and that too after hundreds of calls at the office.

We helped in loading the truck and left for the train. Two days later, when we entered our new house, we found that the truck had not yet reached. We called the vendor to confirm, asked for the contact number of the truck’s driver, but all in vain. There was no trace of the truck.

It was two days later our truck arrived and revealed the accident and other issues it faced and apologized for not being able to contact.

Whenever I look back, I find it hard to not think, “What if we had no time to find and analyze different deals? What if the truck never arrived at our place?”

Thanks to the introduction of the concept of On-demand in logistics and courier business, it is least possible to happen in the present time. 

Today, from finding a logistics and courier service provider to tracing the track, everything is possible in the real-time through an on demand logistics and courier services application. Something that has not solely indicated a wave of disruption in the logistics and courier sector, but also encouraged companies to look into how to start their own on-demand business and get a bigger slice of the market.

Assuming you to be a logistics & courier service company who has either not witnessed the benefits of on-demand or is sitting on the fence regarding entering the market, I will be giving you a brief glimpse of the whole in this article.

But firstly, let’s ponder upon the challenges that made entrepreneurs embrace the idea of riding the uprising ‘Uber for X’ wave.

Challenges Faced by Traditional Logistics and Courier Service Industry

1.  Cumbersome Processes

In the traditional logistics and courier business model, multiple third-party companies are participating such that they may or may not be interacting or exchanging information with each other. This often creates confusion about the participants and makes the process complicated and tiresome.

This marks the foremost challenge that demands innovation in the existing business environment.

2.  Changing Customer Expectations

With the rise of digital adoption in all walks of life, users are becoming more demanding. They are expecting faster, cheaper, and effective services in every aspect, which is again making logistics and courier service providers to bring their team on board and discuss how to meet their changing needs.

3.  Delayed Delivery

Many times, drivers fail to reach the destination or deliver couriers and other goods on time to the consumers due to government regulations, accidents, and other such situations. This again ruins the reputation of the existing business model and make it imperative for business leaders to explore the potential of On-demand and other such concepts.

4.  Lengthy Paperwork

Traditionally, all the documents – be it related to making a deal, loading goods, delivering products, or managing the maintenance expenses – are paper-based and quite lengthy. Because of this, it becomes nearly impossible for the business leaders and drivers to access them anytime and anywhere and accelerate the complete process. This, again, acts as a barrier in the development of the logistics and supply chain management segment.

5.  Higher Cost

Be it paying the toll tax, hiring new drivers, reimburse for the delayed delivery, coordinate with third-parties, or buy new tools to make a customer strategy, everythings adds to the cost associated with running a business; making it yet another challenge hindering the path to a successful venture.

6.  Poor Feedback System

Last but not least, the tiresome processes and huge amount of work have left workers with less time to check and respond to the feedback shared by the customers. In fact, not every online logistics company offers this service. Something that accounts for a poor feedback system to be another challenge faced by the logistics and parcel delivery service providers.

With this covered, let’s take stock of how on-demand helps logistics and courier economy in solving these challenges.

Benefits of going On-demand in Logistics and Courier Business

1.  Convenience

The on-demand logistics apps have made it possible for consumers to come across the top service providers, book for a delivery, choose the pickup date, location, and much more – anytime and anywhere. This convenience has lifted the business and made consumers more interested in taking the services of the organizations involved with on-demand business model.

2.  Time Efficiency

By investing in on demand service app development, business leaders are able to provide high-end services to their target customers without involving multiple third-parties into the equation, asking for endless questions, as well as organize the inhouse processes and assign different assignments to their drivers in real-time. This saves time required and gives them enough space to focus on launching new products/services and so on.

3.  Cost Effectiveness

On-demand logistic applications have brought the customers directly in touch with the top service providers. They have eradicated the need for third-party agents and even streamlined the process, which has eventually aided in gathering more outcomes with minimum investment. 

Also, it has made it possible for the entrepreneurs to run their business without hiring new drivers or vehicles, which again adds to the profitability of the business.

4.  Real-time Tracking

The biggest advantage of considering on-demand in courier delivery and logistics business is real-time tracking. As the name suggests, this functionality enables consumers as well as business leaders to track the vehicles (or fleets) in real-time. While this assures consumers about the courier delivery, it aids companies to see how to optimize the process and grab better opportunities in the marketplace.

5.  Minimum Paperwork

By launching an on-demand mobile application, it has become much easier for the companies to store every single piece of information about the products, drivers, vehicles, and other associated entities and maintain the record in real-time. Something that has eventually been helping in saving time, efforts and making the ecosystem streamlined and profitable.

6.   Enhanced Security

The real-time tracking, better optimization of processes and other such factors also help the logistics and supply chain management companies in ensuring high-end data security into the ecosystem. This aids in building a trust between customers and service vendors as well as bring more profits into the environment.

7.  Ease of Warehouse Management

The process of warehousing has always been challenging for the logistics and courier service providers. 

However, with the inception of on-demand in the industry, it has turned out to be an effortless and time-saving process since the application gives you detailed information around where the searched product is stored, what’s the status of the warehouse, and more – all with a single tap.

8.  Smoother Supply Chain Management

Not just in the case of managing a warehouse or making a courier delivery, the on-demand logistics applications have also brought a major difference in the supply chain process.

The applications have eased the process of tracking the goods while moving from one process to the next, check for the fraud cases, make effective communication across the teams, and much more.

9.  Effective Fleet Management

Traditionally, it was quite tough for the logistics and parcel delivery companies to keep a track of every single vehicle they have, the routes they have travelled, the number of deliveries made, the license expiry date, and much more.

However, with the advent of on demand mobility solutions, this has become much easier, quicker and efficient.

10.  Better Inventory Management

Right from checking the availability of any particular good in the warehouse to detecting any discrepancies, malfunctioning of any machine, and more, the on demand logistics mobile applications have made the inventory management process more streamlined and seamless than ever before.

11.  Improved User Experience

Unlike earlier when users were supposed to meet multiple agents and stand in long queues to get a perfect deal for them, the on-demand applications have made it possible for them to come across the top service providers and make a booking with a few taps on their smartphones. 

Also, the apps have offered them the opportunity to track their orders in real-time, communicate with the associated driver, direct them for a faster delivery, change the delivery address and date, and much more. Something that has indicated a better user experience. 

12.  Business Expansion

Lastly, the inception of the On-demand concept in this industry has opened a new set of opportunities for the businesses. It has encouraged them to look beyond their premises and see what and how introducing new technologies into their business process can enhance their productivity and profitability.

Because of such benefits, various entrepreneurs have already started consulting a reputed on demand mobile app development company and refer on demand mobile app development guides to get familiar with trending statistics, cost to develop a logistic app, business and revenue model to prefer, and determine why on-demand platforms fail. And this way,  enter the league of top on-demand logistics and courier services brands. A few of which are –

Now, while this information is valid to invest in on-demand software development and start your own logistics and courier service startup, it is good to uncover the future trends and prepare for a successful future ahead. 

So, let’s take a stock of future on-demand logistics and courier trends.

Future Predictions to Consider While Entering On-demand Logistics & Courier Industry

1.  Self-Driving Trucks

Autonomous trucks and vehicles is one of the most discussed logistics tech trends of the time. This technology will bridge the gap between the number of drivers on duty and the increasing demands for delivery services. Also, they will come to the rescue in the case of maintenance issues and help with taking other fleets/products to the warehouse when met with an accident or any other calamity.

2.  AI-enabled Robots

AI-powered robots are again going to make a huge difference in the logistics and courier service businesses. They will not just improve the customer experience, but also speed up the processes, offer more convenience, enhance route planning process, and more. Which will ultimately make it possible to delight the targeted user base with minimum efforts.

3.  Drones

As you might have already seen in the case of Austrian Airlines and Amazon, drones will accelerate the delivery process, document damage outside of the aircraft, and free up the workload of technicians and later, lower down the maintenance cost.

4.  Advanced Delivery Algorithms

Advanced delivery algorithms are also anticipated to leave a remarkable impact on the on-demand logistics and courier services business environment.

It will introduce the power of task-order matching, geo-analytics, and dynamic route optimization into the market, which will lead to improving efficiency at work, and so is the productivity. 

What’s more, it will enable customers to automate their whole delivery chain.

5.  Blockchain

The use of Blockchain in Supply chain management is also one of the trends that will aid the service providers in ripening higher benefits.

Right from securely validating document transactions to improving compliances, monitoring freet capacity in real-time, identifying fraud risk, issuing smart contracts, and monitoring performance, the technology is adding value to the logistics and courier services economy.

6.  Digital Twins

Digital Twins is yet another trend that will reshape the logistics and parcel delivery service market in the coming years. 

The technology, with its potential to create a digital replication of any physical entity, enables service providers to collect product and packaging data and employ the information to detect potential weaknesses and recurring trends to enhance the future operations. It will also enable them to make accurate 3D models of their centers and experiment with the layout changes or launch of a new equipment to record the impact in a risk-free manner.

Furthermore, it will assist them to test different scenarios, increase work efficiency, improve delivery times, and aid self-driving cars in getting familiar with their routes.

7.  AR/VR

As already mentioned in our article around AR benefits for Businesses, the technology empowers workers to detect the location of any object using the virtual labels added to the object, view the 3D image of the products, and get real-time access to navigation information. This eventually simplifies the processes, saves time, as well as reduces fatigue.

Likewise VR technology, when incorporated into driver and freight management systems, provides companies with the functionality to track them in real-time, reschedule the tasks, and optimize the process efficiency to a greater extent.

Now, as you have gone through the trends and predictions that are expected to change the landscape of logistics and courier services industry, it is likely that you are ready to improvise your existing business processes. Which further indicates that you are up for hiring an On demand app development company and enjoy better opportunities and profits.

So, do not waste a single minute. Look ahead to contact our on-demand experts today! Discuss your idea with our team and also, feel free to disclose your challenges and get a customized mobility solution.

The post How Does On Demand Impacts Logistics & Courier Management Sector? appeared first on Appinventiv.

“Your food will be delivered in 20 minutes.”

“The hired plumber will reach to your doorstep by 4:00 pm”

All such messages have become a part of our lifestyle, all thanks to the On demand business model. 

The concept of delivering/receiving products or services in real-time has changed the business landscape. It has not solely added convenience and personalization into the process, but has also paved the way for higher consumer engagement and revenue generation across different industries, be it healthcare, education, transportation, food, or eCommerce. 

This has made newcomers show an interest in the idea of On demand app development and get a bigger share of the market which will be valued $335 Bn in 2025. Whilst, at the same time, it has made the entrepreneurs and marketers already having established businesses wonder about the impact of the On-demand economy on their businesses. Something we will be talking about in this article.

But firstly, let’s have a quick look at the current state of the On-demand economy.

An Overview of On-demand Economy Growth So Far

As per the Harvard Business Review, more than 22.4 Mn users spend over $57.6 Bn on On-demand services. This includes spending of around $36 Bn on On-demand marketplaces, $5.6 Bn on taxi services, and $4.6 Bn on food/grocery delivery services, annually.

Also, it has been noted that 86.5 Mn US citizens have used an on-demand service at least once in their lives.

Another report states that 51% of people who offered online services in the on-demand economy saw a rise in their financial situation, while 64% of them are hoping for an improvement in the future.

Such on-demand mobile app economy statistics are clearly indicating the proliferating market scope and encouraging everyone to step into his economy and leverage a wider range of advantages. But, what’s more interesting is the way it is transforming the traditional business model.

Ways On-demand Economy Disrupts the Business World

1.  Better Opportunities

One of the biggest challenges that the On demand business model has solved is the friction in the offline purchasing process. This business model has aided consumers placing an order for any product/service online and getting it at their doorstep in real-time. This efficiency and effortless nature of the services have received high-end recognition from the consumers; making them inclined towards on-demand services providing companies.

A result of which is that today, almost everyone is looking ahead to rise in the uprising ‘Uber for X’ wave. They are launching on-demand based startups, be it in the field of healthcare, transportation, education, or retail.

2.  Emphasis on Entrepreneurship

The On-demand app solutions are also bridging the gap between Entrepreneurship and corporate career. It is letting employees pick the working hours on their own and get the payments according to the work done. This has streamlined the lives of those who wish to start their own businesses or are doing multiple jobs to survive. Also, it has brought a significant effect on the workplace culture, making everyone respect the Entrepreneurship spirit of each other.

3.  Higher Personalization 

Thanks to the functionality of gathering and analyzing user data of Uber, Airbnb, Via, Instacart, and other such on demand delivery services startups, consumers have gotten a taste of personalized services. They are no longer satisfied with the traditional way of business processes and wish every company to operate in a way to deliver a highly engaging experience to them.

This has come up as a great opportunity for businesses whose niche industry is still not disrupted by the On demand economy. And furthermore, plan around how to offer the finest of personalization facilities to be the first one in their niche market.

4.  More Workplace Flexibility

As shared earlier, the on demand business model has provided employees with the opportunity to pick their own working time and get the payment accordingly. This has introduced flexibility in the workplace; making everyone contribute to their fullest while studying, enjoying vacations, and performing other daily chores. And eventually, ensure higher employee satisfaction and business growth.

5.  Increased Scalability

On-demand app solutions are highly secure and scalable. So, when you introduce them to your business processes, you get a highly scalable method to meet the diverse needs of your business.

These pointers have directed entrepreneurs and marketers to accept that the On-demand business model is more profitable than the traditional model and thus, it is imperative to switch to the former one. 

However, if you are still confused if this is the right decision for your business or not, scroll down immediately.

What Does the On-Demand Economy Means for Your Business?

The On-demand economy has moved beyond early adopters and has gained huge traction among consumers who wish instant, safe, and personalized experience. Also, as per NTRS data, On-demand services have been touching the lives of every individual. A few pieces of evidence of which is that –

This has made it clear to all that the On-demand economy is reshaping the world around us. A ripple effect of this that even the top established brands have collaborated with on-demand startups to enter this economy and explore better opportunities. Which again indicates that it is necessary to consider the On-demand business model for experiencing sky-high business opportunities and growth.

So, let’s not remain thinking about the same! Let’s look into how you can give a tweak to your existing business model. Aka, introduce the concept of On-demand in your business. 

How to Prepare Your Business For On-demand Disruption?

1.  Begin with Due Diligence 

The very step every business owner must take to make a wise decision related to entering the on-demand economy is to gather and analyze a heap of data. That implies, connecting with managers, workers, targeted audience, on demand app development companies, and others and remaining updated with all the information that further helps with understanding the economy both at the local and global level, becoming familiar with benefits and drawbacks of transiting from traditional to the on-demand business model, and more.

2.  Keep a Balance Between Innovation and Stability 

When talking about switching to the on-demand business model, entrepreneurs often struggle with maintaining a balance between innovation and stability. Mesmerized by the types of technologies playing a pivotal role in the on-demand economy and associated features, they often end up making multiple changes in their business process at once, which sometimes make them distracted from the core value of their brand or the basic need of the targeted user base.

So, it is again a must thing to discuss your on demand-powered business model with your in-house team and hired on demand app developers to ensure that you could reap better benefits while making minimal changes in your traditional business strategies.

3.  Consider Legal Regulations 

As already hinted earlier, the on-demand economy enforces flexibility in working hours. Meaning, anyone can be hired for part-time, contract-based, or freelancing job opportunities. Now, since various legal implications are involved in this process, it is again required that legal regulations are followed effectively during the transition. Otherwise, you might end up with misclassifying of employees, which can result in legal penalties, taxes, and interest-based on the same.

4.  Collaborate Effectively 

Another effective way to shape a win-win business solution by investing in On demand mobile app development is to collaborate with local groups. This approach will not solely aid you to fulfil your business needs, take advantage of their existing network, as well as contribute to their good. So, look ahead to it.

5.  Ensure Flexibility  

Lastly, when forging the path towards embracing on-demand business models, it is imperative that you remain flexible with your future plans. This will help you to quickly grasp the changing market and user requirements, and make the requisite changes in your business plans. 

In a nutshell, whenever an opportunity comes knocking, you must have a digital transformation plan ready with you.

By this point, you would have been acquainted with how the On-demand economy is revolutionizing the business model, what impact it can have on your business and how to prepare for the same. So, rather than taking the back seat now, start with hiring the best On demand app development company and begin working on this idea and make your business outshine in the On-demand services market. Good Luck!

The post How will the On-Demand Economy Affect Your Business? appeared first on Appinventiv.

I was heading towards the kitchen to have some water when I noticed that the light of the next room was still on. I slowly entered the room and saw my flatmate sitting next to the laptop with sparkling eyes. 

On asking, he said that he was thinking of cooking Pasta and Brownie for evening, but found that we do not have required ingredients. So, he was ordering all the groceries, which will be supplied to our door by next morning itself.

Hearing this, I realized how much our lives have changed with the COVID-19 outbreak. While there was a time when we used to rush to market to buy fresh veggies and fruits, along with satisfying our temptation for burgers, things have completely changed now.

Due to the fear of getting infected with Coronavirus and implementation of regulations like Social distancing, our grocery shopping patterns are changing, and so is the industry.

Taking the same into consideration, today, we will be discussing the Coronavirus (COVID-19) Effects On Grocery Business in this article – followed by where the industry is heading to.

In a hurry? Jump directly to –

1. Current State of Grocery Industry
2. Challenges Faced by the Grocery Businesses During Pandemic Period
3. Rise of On-demand Grocery Delivery – the Future of the Industry
4. How to Prepare for the On-Demand Grocery Delivery Market Successfully?

Current State of Grocery Industry

The Coronavirus outbreak has made an unprecedented impact on the global economy. It has compelled various companies to shut down or look for an alternate revenue stream to sustain in the marketplace. However, when it comes to the grocery industry, the effects of this virus outbreak is quite unusual.

While Coronavirus has created a panic state making users buy more than required items, it has also made them focus on essential goods only. An impact of which is that grocery retail industry segments like that of food and beverages, electronic shopping, health and personal care, and general merchandising is seeing a significant rise in their sales. Whereas, the motor vehicle and auto parts and food services market are experiencing devastating blows.

The virus has instilled fears in the hearts of consumers, making them prefer online grocery shopping over visiting physical stores. A result of which is that while brick-and-mortar stores and supermarkets sales have cut by significant ratio, e-grocery platforms have recorded a rise in average daily user rate by 40,000 during this global pandemic period.

Also, as per Google trends, the number of searches around grocery delivery services have increased dramatically.

Likewise, a significant surge is noted in the average daily downloads rate of popular on-demand grocery apps; making both Entrepreneurs and investors look ahead to riding on uprising Uber for X wave.

This has indicated that the offline and online grocery business streams are going in two different directions. However, it is not so. 

Various surprising elements are coming forth that are proving that both online and offline grocery domains are getting affected by the Coronavirus outbreak, though the extent is different. One of such elements is the set of challenges they are facing – a glimpse of which is covered in the next section of the article.

Challenges Faced by the Grocery Businesses During Pandemic Period

1.  Change in Business Model

The foremost challenge faced by the grocery industry is change in the business models. People, with the intent to avoid physical contact, are looking ahead to using different mobile payment apps. They are also hesitating to buy groceries from areas marked as hotspots or in crowded shops.

This is making it difficult for brick-and-mortar retailers and wholesalers to retain their customers and drive sales without changing their traditional business and revenue model.

2.  Poor Supply Chain Management

As earlier stated in our article on the impact of Coronavirus on industries, around 40% of companies including grocery retails are suffering from supply chain management issues. 

These businesses are finding it hard to plan and control their supply chain efficiently and meet the increasing demands of consumers mid of lockdown and corresponding situations.

3.  Less Workforce

Since the grocery workers have to remain in contact with multiple people during their job, they are afraid of getting in touch with an infected person and losing their lives. On the top of it, various reports have revealed the number of grocery and supermarket workers who died because of the novel coronavirus pandemic crisis. 

These factors are preventing them from going to work, which is eventually making grocery business people wonder how to manage their work with limited human resources.

4.  Delivery Delays

In most of the grocery shops, delivery partners work on a contractual basis. During this crisis period, they are not showing the willingness to work due to the fear of getting infected. 

This is again making it difficult for grocery wholesalers to deliver all the food items at the doorstep of their consumers in real-time.

5.  Transition in Consumer Behavior

Last but yet the biggest challenge faced by grocery businesses these days is the drastic change in the consumers’ demand and search behavior.

It has been reported that consumers have begun cooking 6 dinners at home on an average, compared to just 3.8 dinners weekly in 2018. 

Because of this, they are requiring more supplies of food and essential items at their place. But, to avoid multiple visits to stores, they are looking ahead to stocking up items at their place. 

A result of which is that many shoppers are not able to find 40% of the grocery items mentioned in their shopping list even after visiting the store twice or thrice. 

Besides, it has also been noticed that consumers are buying only particular items over all the fancy things, which is creating an imbalance in the internal management process. 

To mitigate these challenges and bring their business back on track, along with keeping the safety of end users and employees into consideration, many grocery stores have taken telling steps. One such step is investing in building an on-demand delivery app.

But, how profitable is this action? 

Will on-demand grocery delivery business model reflect any change in the future of the industry? 

Let’s unveil in the next section of the article.

Rise of On-demand Grocery Delivery – the Future of the Industry

On-demand grocery delivery, one of the segments of the on-demand industry that is aiding in the coronavirus fight, is slowly and gradually becoming popular.

Also, a survey by eMeals has revealed that 34% of the respondents are sending their weekly shopping list to online grocery stores or delivery services apps instead of going to their local stores. They are relying upon pickup and delivery services of Walmart, Kroger and Instacart to stay safe during the quarantine period even when they might have to face delays in grocery home delivery or wait for 2-3 days. It has also been concluded that this pattern of consuming groceries will last longer, even when this global emergency won’t exist any more.

What’s more interesting is that not only the top on-demand grocery delivery apps have improved their processes, various companies have entered this space too as a measure to prepare their on-demand business for the post-COVID world. This includes –

1.  UberEats

With COVID-19 having a direct link with food, people are hesitating to order food online. They are rather tending to getting groceries dropped off at their place. 

Considering this, Uber Eats have taken an impeccable approach to fill the business gap. The Uber subdomain partnered with France’s supermarket giant, Carrefour to deliver groceries to Paris residents in real-time. All consumers have to do is to give a call between 11 a.m. and 11 p.m. for getting groceries and other essential items including that used for hygiene and cleaning. 

Likewise, this on-demand ride hailing services provider is also planning to deliver items from pet stores and pharmacies, and delivering gas station convenience store items to people’s homes in Brazil and Spain, respectively. And this way, add more numbers to the astonishing Uber statistics.

2.  Delivery Hero

Delivery Hero, one of the reputed global online food ordering and delivery marketplaces, have also taken commendable efforts to help businesses survive this phase. It has added around 50,000 restaurants and 1,500 other verticals such as groceries and pharmacies into their marketplace in the past three weeks to deliver engaging onboarding services.

They have extended free delivery options to a wide range of targeted user base and embraced the concept of contactless delivery. In addition to this, they have also introduced additional payment cycles to support cash flow for their partnered small businesses.

3.  DoorDash 

DoorDash has also introduced a new program to deliver essential things like paper towels, cleaning supplies and medicines at doorsteps of consumers’ homes. Something, for which they have partnered with a broad range of stores in the U.S region such as Casey’s General Store, 7-Eleven, and CircleK.

4.  Zomato 

Likewise, Zomato – the brand that made various Entrepreneurs take an interest in building a restaurant-finder mobile app – has collaborated with Grofers to introduce the grocery delivery service across 80 cities in India.

Bonus: Facebook has also tied with Jio to make it possible for local grocery stores to leverage the power of WhatsApp platform for taking their business online within the JioMart platform.

Because of all such efforts and collaborations, the on-demand grocery delivery market is anticipated to grow from $36.2 Bn to $117.0 Bn between 2019 and 2023.

These numbers have given rise to Entrepreneur’s interest towards determining if this pandemic period is the right time to invest in the grocery delivery app idea. 

Assuming that you are one of those who are thinking in this direction or would love to know the next step, let’s wrap up this article talking about the things to consider to enter this market successfully.

How to Prepare for the On-Demand Grocery Delivery Market Successfully?

1.  Do Market Research and Competitive Analysis

To start your own on-demand business or take your existing grocery business online, the foremost step you need to take is to understand your market thoroughly. When you have a clear idea of what your users want, what their pain points are, what strategies existing brands are opting, and more, you can make better decisions.

So, do not overlook the need of performing an extensive market research and do competitive analysis.

2.  Invest in MVP Development

Embracing the concept of Minimal Viable Product(MVP) is also one of the finest steps towards successful entry to the on-demand grocery market. After all, it will aid you in testing the water without making a hefty investment or putting your brand’s dignity at stake.

3.  Decide the Optimal Business and Revenue Model

Since the core idea behind making an investment in the form of On-demand grocery app development cost is to earn some money, exploring different business models is also a must.

So, take a dive deeper into the market and see which business model will add more bucks to your bank account and invest for the better future.

4.  Pick the Best Features and Tech Stack

There’s no denying that it’s these features and functionalities and the technologies operating at the backend that help you to capture the attention of your targeted user base and keep them hooked to your brand services/products. So, it is imperative that you take a step towards choosing the right features and technology stack while formulating your app idea.

5.  Hire a Reputed App Development Partner

Another factor that is must to consider while planning to step into the On-demand grocery market is to hire the right developers. Implies, hiring an On demand service app development company that has an expertise and experience in creating such solutions, have received accolades from previous clients, have an engaging portfolio, have tried hands on the latest technologies, and are eager to aid you in refining your app plan and derive better perks in the future.

6.  Promote Your Application Smartly

Building a perfect mobility solution is not enough. It is again required to follow a mobile app promotion guide religiously and market your application abruptly.

So, bring your marketing team on board and discuss how to harness the power of different platforms and strategies to reach a wider audience and gain better profits.

7.  Be Adaptable

Just like Delivery Hero, Zomato, and Facebook, you must also be ready to adapt in the market. While creating short-term and long-term goals is one thing, you must also keep your inhouse team and app partner in touch to get the requisite changes implemented in your on-demand grocery delivery application quickly and efficiently.

The post COVID-19 Effects on Grocery Business: How to Survive the Phase? appeared first on Appinventiv.

On Monday, in a fintech conference, Uber announced that it is launching its own financial products line under the name of “Uber Money”. 

This long-awaited initiative is directed towards facilitating Uber drivers to manage and access their money in real-time or in the words of Peter Hazlehurst “cash right away,” while also rewarding regular Uber customers. 

Uber payment service will enable drivers to get their earned money instantly (after every trip) via Uber debit account rather than waiting a week for their income, which was the case up to this point. This initiative includes three financial products – Uber Wallet, Uber Debit Card, and Uber Credit Card (revamped).

The Uber’s cash digital wallet will allow drivers a no-fee $100 overdraft protection, which they can use when in a cash-strapped situation.

Peter Hazlehurst, the head of Uber Money said in the blog “For drivers in the US, and expanding to more countries soon after, we are updating the no-monthly-fee Uber Debit Account, powered by Green Dot, to integrate seamlessly into the Uber Driver app.”

He also mentioned that the company wants ‘every dollar earned on Uber go further’ for which they have revamped Uber Debit card launching with the cashback facility on gas beginning from 3% up to 6% only for highest level Uber Pro drivers.

It is bought under speculation that this new initiative might be the result of years-long criticism on Uber. The company was accused of showering all the attention on riders at the expense of its drivers. But now Uber has come clean and has introduced Uber Money for drivers to manage and save money while also earning reward points.

He also announced at the conference that the company is putting efforts into expanding its financial services for the unbanked drivers in the markets namely, Brazil and Mexico.

Uber Cash digital wallet comes packed with amazing features, including the facility for earners and spenders to keep a track of spending and earning history, move and manage the money, and also find other new Uber financial products – ‘all in one place’. The Wallet will roll out first in the Uber Driver app in the coming weeks and will then expand its way to Uber and Uber Eats apps in the time to come.

The company mentioned in the blog post that it is relaunching the Uber Credit Card, a flagship consumer product by partnering with Barclays. The Uber Credit card owners will now enjoy 5% cashback in Uber Cash when they spend anywhere on the Uber platform i.e., Uber Rides, Uber Eats, and Uber JUMP scooters and bikes. What is more, they will receive rewards upon hailing an UberCopter from Manhattan to JFK.

It is observed that 40% of the Uber rides payments globally are handled in cash, which is not a preferred situation for drivers as they don’t want to be carrying around change while their drive places or may sometimes run out of it. This is where Uber Money launch comes in to save the day. Drivers can accept the payment in cash now and settle the rest later, digitally.

In the words of Hazlehurst “Drivers don’t generally want to carry change,”… “They don’t want to be accumulating a bunch of cash that’s sitting in their physical hand while they’re driving around. And it’s slower, so they can’t go on to their next trip.”

Additionally, this $100 overdraft also works as a protector for drivers against the $34 penalty imposed by institutions like Chase Bank, which in 2017 earned nearly $2 billion by such penalties.

On the same matter, he stated: “Everything that we launch will be either fee-free or as low fees as we possibly can,” and that “Best price, best value for a customer, full stop.”

Uber Money launch is nothing but another initiative from Uber to enter the financial market after conquering various other. It is too obvious to not notice the main goal of Uber which is to immerse the market and make Uber a one-stop platform for all the daily needs of users.

It is without a doubt that Uber is continuously emerging as an inspiration to those who are seeking to enter the ride-hailing on-demand app development economy.

The post Uber Introduced its Digital Financial Service “Uber Money” appeared first on Appinventiv.

Before technology reached the heights of success, everything was basically manually done. Now, we all are aware of the short-comings of the manual process and that it is not an ideal way to do things, unless, the things we are talking about are Cheese Production and other occupations that need manual operating.

Shifting our focus towards the Real Estate Industry, it is known to be prone to verisimilitude since forever. The tribulations are a big cause of fear inside Buyers and Seller in regard to transactions for a property. Real Estate sector is not free from its errors and these errors are precisely part of the traditional process we talked about above. 

Although incredible advancements like Blockchain and other technologies disrupting the real estate sector, there is still room for improvement in the Real Estate technology domain.. While the shift from traditional to buying and selling has given a respite to the sector that was operating inside a bubble of slowness, there is still a huge gap continuously drilled deeper by the lack of instantaneousness.

The market, while on a pleasant rise, carries a potential for further growth. A growth that would be driven by On-Demand – something that we would dissect in this article today. We will be discussing the benefits of real estate mobile app and how on demand mobile app development is reshaping the industry.

Buying or selling a property is not as easy as shelling peas. It is considered a tediously long and nerve-racking process. If you need to buy a property, you are required to begin the hunt for a competent agent and are supposed to trust with your life-long investments. 

Well, it seems to be a risky business, since you can never be too sure of transparency in regard to listings you are provided with and the properties you are considering. You either have to take a leap of faith or rely on referrals from your acquaintances and family. 

Moreover, selling a property is no piece of cake either, as you also have to rely on an agent or a broker to hook you up with the buyers. Unlike using the convenience of mobile apps for real estate, this traditional approach comes with many discrepancies. Human errors can come in the way, personal prejudices can also create problems, and there are numerous issues that you may encounter while dealing in the Real Estate. 

What is The Scope of On-Demand in Real Estate?

Now, that when all industries are basking in the sunshine of advanced technology, why should the Real Estate sector remain in shadows of out-dated methods? Now, after considering all these problems that people face consistently, real estate mobile app developers had to find a solution to save the day, and also the declining state of the Real Estate economy. 

Every single of the real estate Mobile App Development Company which is active in the property sector is playing a role in changing the very grain of the ….. industry. By Introducing the On-Demand model in the mix, these development agencies have given birth to an integration which increases the benefits of real estate mobile apps.

On-Demand plainly means “instantly”. There is no “waiting” aspect in this approach, as it explicitly encourages fastidious services, from ordering food and clothes to now selecting Realtors and finding listings for the properties. Its popularity is proved by the fact that 50% of buyers found their desired property online, while only 28% of buyers trusted the offline method, by hiring an estate agent.

This need for instant-ness is what has resulted from the entry of millennials group of stakeholders who are now playing in the real estate ground. 

The Non-On-Demand Real Estate was not able to meet the demand with the supply and certainly was not efficacious. Instead of waiting for a chance flyer from a realtor in your mailbox, you can now see agents online with the help of On-demand technology. Everything is now at the fingertips of the customer and they can access property listings, agents, and also buyers at any time of the day.  

Now, that we have cleared the air about On-demand, let’s dive deeper and see how the amalgamation of On-demand technology with Real Estate has disrupted the industry to the very core. Moreover, we feel that this disruption was inevitable and much needed to change the worsening condition of the Real Estate Industry. If you are planning to develop your own custom real estate mobile app, then you have to be aware of every element that answers ‘What to know before developing your own real estate app’.

Impact Of On-Demand in Real Estate

There are several changes which On-demand brought into the picture of real estate. They all play a pivotal role in enhancing the experience of all parties involved in the Real Estate sector, so no one is left behind from the consideration. Below are the features of real estate app development integrated with on-demand model.

• Real Estate brokers go live

As we have mentioned above, On-demand real estate technology has enabled the agents and brokers to access and acquire customers online, instead of practicing the same old-school marketing strategies. On the on-demand property showing apps front, realtors can register themselves and boost their business. It is obvious that this poses as good news for buyers and sellers as well. Several apps like ArriveHome and Opendoor came to the front for making access to properties faster and easier.

Here, instead of buyers and sellers hunting for the agents, the agents compete for acquiring more clients. Meaning, sellers and buyers will have access to multiple experienced agents and will be able to choose anyone based on their description on the platform. 

• No need for Brokers

This may sound paradoxical in regard to the above-mentioned impact, however, such is not the case. Though On-demand provides a platform for agents to compete for the business, it also offers the elimination of the middle agent or broker from the equation for the buyer and sellers. 

Some apps facilitate the direct line of communication between the two parties with the help of chatbots. That gives customers options so that if they want a broker they can find one and if not, they still have that other option. Buyers and sellers can find their respective searches easily. This abolishes the need for any kind of mediator and makes the trade easier to follow.

• Time- efficiency

It is understood, when an industry or a process becomes On-Demand, it starts to promote time-efficiency. Since all the parties concerned can have access to each other easily, with an online process and without being dependent on the human factor, the buying-selling process also became less effort and time-consuming.

Everything is just a click away, and a click only takes a second. So, you see how fastidious the process became from finding an agent or broker to a seller or buyer. So you see how mobile apps are transforming real estate business with the help of on-demand model.

• Cost-Efficiency

Real Estate is already infamous as an expense incurring process. Most buyers are afraid of the expenses they might have to bear by hiring an agent and paying numerous commissions. Some people have to switch between agent to agent to negotiate the commission percentage. Why should they have to go through such pain after suffering enough to find a reliable agent or wait for the right buyer to appear? 

With the On-demand, they don’t have to pay excessive commissions ever, as the mediator is eliminated and the business transaction only includes the genuine buying/selling cost. 

• Buying and selling process

On-Demand had inevitably affected the very core of the buying and selling process in Real Estate and that too for the better. If we talk about buying first, it has become incredibly facile for any buyer to check the listings online, without the worry that they are not being provided with all the options in their scope. They can also use certain filters in the On-Demand apps to personalize their search and make their buying experience more interesting and effective. It increases their overall knowledge and convenience

Seeing for the front of Sellers, they also can have access to a myriad of buyers at their fingertips. They can select a more profitable buyer based on the bidding. It comes in handy for those who need to sell their property urgently and cannot afford to wait for months. Moreover, they do not have to now wait for the agents to swing their wand in order to get customers. 

• Reduced need for an on-site agent

Some applications developed as On-demand apps also allow the customer to visit a property without being assisted by an on-site agent. If you wonder what good it will do, then let us mention that it gives freedom to the buyers to visit the property at their own accord and be satisfied properly before making any commitment.

They can simply contact the buyer via an on-demand app and get access to the property within minutes.

• Digitized Offer-Submission process

On-Demand promotes the digitization of the Offer submission and acceptance process. With this, sellers can upload the listings of the property and the buyers can then get access to it instantly. There is no more waiting around for the agent to find the listings and then give it to the buyer, while you just sit ideally hoping everything to go right.

The businesses that are powering this shift making traditional real-estate instant are growing in number every passing day. Here are the top players of On-Demand real estate apps.

Use Cases of On-demand in Real Estate

There are additionally some other factors that can emerge as important and improve the state of the Real Estate Industry. Once, technology is introduced people always find innovative ways to utilize it to its maximum and enhance the overall experience of doing things. Let’s look at some use cases which may, in time prosper.

• Digital transformation

As the millennial demographic starts to take over the market, the on-demand housing market had skyrocketed in the past few years. According to research, 86% of younger millennials and 52% of older millennials were first-time buyers in 2018.  As an effect, Real Estate has gone through a major digital transformation rapidly. With the “right-now” kind of ideology, the Millennials are causing the Real Estate to up their game and provide them with the best ways to buy or sell the property.

The millennials pose as the largest demographic in the market as people of age between 39-53 constituted 24%, people aged 54-63 consisted of 18%, people aged between 64-72 comprise 14% and lastly, people aged 73-93 (Silent generation) constituted 7% of 2018 home buyers.

These new PropTech and RentTech products which are the future of real estate app development on-demand, hold potential for saving time and money, better workflow and streamlining processes fundamental to the industry. All the parties, namely, property owners, managers, and residents enjoy the benefits of more efficient, automated and enjoyable rentals. These technologies do everything from hosting an open house to collecting rent payments. Though disruption has started to root itself in Real Estate, we have yet to see what the future holds for it. 

• Promoted Space-as-a-Service model

Now that the demand for temporary services has surpassed the need for permanent services, Real Estate has also jumped into the trend. The space-as-a-service model offers the customers a temporary property. With the On-demand this method holds high chances of flourishing and gaining momentum in the coming future.

Not just the short-term office space has been made available to business owners and other customers but customized services are also made available. This will minimize the pains that people had to take for renting a place for an undetermined time period. They would have to first search for the rental property and go through the long and tedious process. But with this innovative model based on On-demand, people can access space even in an emergency.

• AR Integration with Real Estate to make buying personal

Augmented Reality is one of the most celebrated achievements of technology. Many industries have whole-heartedly accepted this technology, so why not Real Estate benefit should benefit from it? On-demand Real Estate utilizes this technology for remote property visits. This is a great thing for the buyers from different locations who cannot access the property at the moment but want an eloquent experience.

From a buyer’s point of view, AR in On-demand Real Estate saves the trouble for realtors to provide a physical presence for each property demo. With this, they are able to acquire wider customer reach and pitch properties that are available to buy, lease, and rental purposes.

• Scheduling Home tours

With the On-demand model, the option of online scheduling of home tours have been introduced keeping the interest of buyers, sellers, and also realtors in mind. There are two effective ways to achieve this: first is by turning all the listings as an open house, by which a can visit any property mentioned in the listing, at their own accord.

The second option is by placing a “tour” button on the app, with which buyers can hire agents to show them the properties of their liking. A professional agent’s help will only be a click away.

Now, if you, as a business wants to create and also know how to create successful real estate mobile apps then you must search for a competent real estate app development company which holds the experience of several years and knows what needs to be done.

Challenges associated with On-Demand in Real Estate

• Inconvenience for Homeowners

It is not always the case when someone puts their property for sale, they will be welcoming to the idea of a stranger, though a potential buyer, visiting their place at any time. This may cause a major inconvenience to the owners and can easily become frustrating. However, such is not the case with “for rent” market

• Safety Concern for Buyers and Agents

In the traditional and manual process, a buyer meets an agent in the office in professional settings and converse with them about their property needs. Trust factor plays a pivotal role in any kind of relationship, including Realtor-buyer as well.  However, with the on-demand Real Estate apps, usually both parties are strangers and so they may feel skeptical of their safety.

• Quality of Agents

Since anyone can register themselves as agents online, the trust factor is very bleak here. Some on-demand Real Estate companies combat this problem by providing the buyers with a feedback option so that they can express their experience with the agent, which will help other customers in agent selection.

Conclusion

In the end, I would like to conclude this article by saying that since the advent of the On-demand model, it has been adopted by nearly all industries and is adamant on improving the fundamentals of how things were and are done and also to improvise real estate mobile app development strategy. From the Real Estate front, On-demand has not only accelerated the process of property dealing but also made it more efficient in terms of time and money. It is impossible not to see the benefits of on-demand real estate mobile app development.

After all the innovations in real estate technology we have seen so far, there is still a lot more in our reach. The millennials with their “right now” mentality are making real estate app development things to speed up even more. We believe, that On-demand has a lot more to offer and that the future of real estate app development is very bright, we just have to wait and let tech-savvy people do their amazing work, which will reshape the face of the world.

The post On-Demand: Technology Shaping the Benefits of Real Estate Mobile App appeared first on Appinventiv.

If I would have asked this question a few years back, the answer would have definitely been elation and curiosity of whether there’s any genie (spirit) who is cleaning everything up. But, in the present time, all these incidents are common to experience – thanks to On demand home services apps.

Eager to know more about these mobile apps and the future scope?  For the next 8 minutes, we will be on a journey to the on demand home services app market– looking into the reasons why the industry is gaining momentum, who are the top players, the future predictions, and more.

On Demand Home Services Apps – Why are They So Popular?

An on demand home service app, as you can sense from the scenario shared at the beginning of this article, aid people in managing their busy lives. These on demand service apps enable people to hire someone to manage their household chores and boring tasks including cleaning, plumbing, painting, and moving and storage. On the other side, it also provides a source of high and constant revenue to on demand app development companies.

The home services segment of the On-demand economy is reshaping the world around us by acting a solution of the three challenges of the industry:-

1. Availability of Service Providers 

While some areas have plenty of service providers to take the help of, others have countable numbers of options. In such scenarios, an on demand service app development company acts as a medium providing the users with multiple options both locally and those ready to visit their areas for delivering services.

2. Reliability of Service Providers

 In the traditional market, it is quite tough to rely upon any service providers when not performing the task in front of you. But, when it comes to on demand household services app market size and on demand home services applications, then these platforms empower you to connect only with authorized service providers and pick the right one- based on the feedback from existing customers and other factors. This encourages the users to rely upon the service providers and feel free to leave their place with the provider while performing other tasks.

3. Quality of Work 

The reviews and ratings for the on demand app for home services, when created by the reputed on demand app developers help to get an idea of the quality of work the service providers offer and thus, go with the online on demand app development company that matches your needs and expectations.

While these were some of the challenges that On-demand apps for home services have catered, there are a myriad of advantages it offers, including:-

Significant Convenience

A majority of the On-demand home services applications provides all the home-related service options at the same platform. This makes it convenient for someone to look into different services without jumping from one platform to another.

Considerable Flexibility

While the customers get an opportunity to enjoy multiple services at the same platform, the service providers obtain the freedom to choose their own working hours and conditions. This way, the On-demand home services platform designed by the best software development company is adding flexibility to the marketplace.

Simplified Appointment Scheduling

Another reason why companies are investing in on demand services app development is that these applications offer the users and service providers the opportunity to check their calendar and fix an appointment for the job accordingly. This way, they can manage that the task is fulfilled on the day of their availability or the day with better optimal solutions.

Ease of Payment

The On-demand platforms that connect users with service providers often manage billing and payment transactions. This gives the service providers an escape from the stress of the payment and avails their best efforts into their responsibilities while making it easier for the customers to pay in different forms, apart from cash.

Higher Lead Generation

Last but not least, lead generation is also one of the reasons why businesses are embracing the concept of on demand mobile app development.

While the traditional methods might be still applicable, the On-demand mobile apps provide the service providers a platform to connect with a greater audience and transform their service offerings into a wholesome business.

With all these benefits, the online and instant home service market has become popular in the marketplace – making both users and service providers turn towards the On-demand economy. A few statistics proving this statement are:-

On Demand Home Services Industry Market Statistics (And Future Predictions)

1. The global on demand home services market size is anticipated to reach USD 1,574.86 Bn during 2020-2024. That indicates that more and more startups and established service providers will plan to enter the arena.
2. The landscaping segment generates annual revenue of about $600 Bn market in the United States only. This is also one of the online on demand home services market statistics to focus upon.
3. The moving and storage market has around 8,000 companies involved who produces around $12 billion of collective revenues.
4. The online home services app market, as previously covered in our article about On-demand mobile app economy statistics, will gain higher popularity this year. It will experience more requests from people for services like home cleaning, tutor service, carpenter, water heater repair, painter, etc. in addition to the demand for delivery of food, cab, and fuel.
5. The Global commercial dry cleaning and washing sector will become 3.4% more in demand between 2017 and 2023. Whereas, the Flooring segment will observe a 5% rise in their market value and Plumbing market will grow by 12%.
6. However, it is also predicted that the major slice of the market share will remain confined to the Top market players, implying it would be necessary for the new startups to take a deep thought of how to succeed your On-demand business in a crowded app market.

Now as you are familiar with what is the current scenario of the On-demand home services industry and what will be the future of the sphere, it’s the right time to look forward to uncovering everything related to on demand home services app development.

So, without ado, here are a few things you must consider when partnering with an On demand app development company to design your own home services application –

1. Understand User Persona

Since customers are the prime element of every business, it is necessary for the service providing companies to gather in-depth knowledge about their customers – their needs, expectations, age, region, and more to get a clarity of your goal and the target audience.It is also important because not all the people from all the areas across the globe are relishing the advantages of On-demand home services economy equally (as you can see in the graph shared below).

So, be open to performing extensive market research, gathering enough customer feedback and ensuring that you minimize the pains of the customers.

2. Analyze the Top Players

Though the demand for on demand household services app market size is increasing, the larger market profits are still going with the top players. In a scenario like this, if you perform competitive analysis for their mobile app idea, you can easily figure out what makes the customers magnetized to the services of these top players. This information can enable you to integrate those elements into your mobile app and thus, increase the chances of app success.

3. User Experience

Considering the importance of UX mobile app success, the next thing to pay attention to the type of onboarding and UX experience you are introducing in your application. This implies, adding the elements that keep the app users hooked to your platform and convince them that it is adding some value to their lives.

4. Push Notifications and Other Engagement Options

Focusing on the right use of Push notifications and other such engagement options is yet another thing to consider when making a ‘Home services On-Demand’ application. The push notifications, acting as a reminder to the users, will encourage them to tap on your app icon more often and perform some activity. This will improve your app engagement as well as ranking in the competitive world. Besides introducing push notifications, getting familiar with how to localize your app to increase its conversion rate by 200% is also a profitable method. So, look forward to exploring its potential in your niche market also.

5. Tech Stack and Development Cost

Last but not least, having a sound knowledge of what tech stack to integrate into your On-demand app development process and how much does home services app development cost is also helpful.

While these were some of the factors that must be considered while making an On-demand home services app, there can be various other constraints and challenges associated with the development process depending on the type of services and business model you pick. So, to get a complete idea of what things to watch out for turning your On-demand app vision into a mobile app, you should consult with an On-demand app development experts.

The post A Peek into the Flourishing On-Demand Home Services App Market appeared first on Appinventiv.

79% of existing users in On-demand economy are working as part-time. (Source)

On-demand labor market is expected to flourish by 18.5% annually in the next 5 years. (Source)

On-demand food delivery market hit $161.74 Billion by 2023. (Source)

These are just a few validatory statistics that prove how on-demand mobile app startups like Uber and Netflix have given birth to a market that both users and angel investors are partial about. 

What started with an on-demand ridesharing app has now extended into a number of different market segments ranging from grocery delivery, real-estate, beauty and cosmetics, at-home maintenance services, and more.

The present state of on-demand mobile app startup economy is such that no matter what industry you look into, you will find an active on demand mobile app development company working to make it real – time.

Now, even at a time when millions of mobile users are happily spending money to avail the perks of the convenient at-door service, there are businesses that are still on the fence when it comes to entering the on-demand market space. And the reason behind this is the notion that the on-demand economy has now become a bubble that is going to burst.

But we have On-demand app economy statistics that prove otherwise.

On-Demand Economy Statistics

The market that the on-demand industry has captured is growing progressively. The investors who couldn’t be a part of the trend when the uber economy was getting incepted but are now prepared to book their share.

The investment rounds focused on funding on-demand startups that started in 2014 with $74 Billion reached $10,293 Billion in the last quarter of 2017 and only expected to grow by huge numbers by this year.

According to the latest PwC report, the market for On-demand mobile apps and websites will reach a significant value of $335Billion by the year 2025.

And, the CBInsight report of Global Unicorn Club revealed that 23 out of 310 private companies who valued at $1 billion by Jan 2019 belong to On-demand industry. These On-demand unicorns count for almost $203B in combined valuations, including popular rail-hailing startups Uber ($72B) and Didi Chuxing ($56B).

Not only this, various other reporting houses have reported that On-demand industry is set to flourish in the coming years.

And the same holds true for the growing number of user spends as well.

On-demand users spend on an average $57.6B annually

The On-demand mobile app economy is prompting over 22.4 million users annually to spend around $57.6 billion to get real-time services and they are happy making the payment.

Another report shared that 60% of the US users are ready to pay extra to get material delivered to their place on the same day delivery mode.

The scenario gives a clear indication that businesses who are looking ahead to investing in On-demand mobile app development will easily make more money compared to those who overlook this opportunity.

51% of Retailers are Offering Same-Day Delivery Service

Seeing the new buyer preferences and growing number of On-demand app economy statistics, many retailers have also entered the On-demand economy to offer same-day delivery service. An outcome of which is that the numbers of retailers investing in On-demand have grown from 15 percent to 51 percent by 2018 – a number expected to hit 65 percent by the end of 2019.

49% of On-demand consumers are Millennials

As per HBR, a major fraction of users embracing On-demand services – nearly 49 percent – are millennials. Whereas, 30 percent of the rest are of the age range between 35 and 54.

Also, it has been observed that men are the top consumers of On-demand mobile app economy, constituting of around 55% of the total numbers. In addition to this, 46 percent of these users opting On-demand services are found to have an income of less than $50,000 annually.

63% of On-demand Employees say that they are happy while working in the On-demand Economy

The On-demand economy growth also witness the introduction of new job opportunities. It has empowered students, workers, and others to embrace more flexibility into their processes and opt for projects/jobs for a shorter time interval. 

As a result of which, 70% of On-demand employees shared the sentiment that they are satisfied with their work and 63% admitted to being happier since the day they entered into On-demand economy. 

With this, we have seen how On-demand economy is disrupting the business world – making ‘real-time’ accessibility a crucial element of every business vertical. So, without making ado, let’s look into what’s new in On-demand app marketplace in 2019. This information will help you to find better insights to look into how to succeed your On-demand business in the crowded app market.

What Does 2019 Mean for the On-demand Economy?

2019, as we can see, is bringing a substantial impact on the On-demand mobile app economy. On one side, it is helping in introducing the concept of real-time and on-demand in different business verticals and fostering investment in On-demand app development, on the other side, it is reflecting a change in the paradigm of the existing On-demand processes and business models. For example:-

1. 2019 – The Year of More Consumers

With the number of smartphone users about to hit 5 billion in 2019 and 45% of the US users already enjoying On-demand app services, businesses will show more interest in finding answer to how to ride the uprising ‘Uber for X’ wave. They will realize that they can target a diverse range of consumers by investing in On demand mobile app development and earn hefty profits.

2. Personalization is Emerging Out as the New Face

In 2019, more businesses will pay attention to On-demand application services which will bring intense competition in the market. All will put more efforts into connecting their customers, understanding their needs, and providing them with customized services while working on their on-demand app’s performance level. In simpler terms, personalization will emerge out as the core element of On-demand marketplace this year.

3. On-Demand Food Services Entering Unknown Markets

The on-demand food delivery business, which was majorly confined to popular locations like the USA, will enter the less considered marketplaces. A consequence of which is that more of Entrepreneurs will show interested in knowing how much does it cost to build a food-delivery app like UberEats or GrubHub. 

4. Higher Investment is Being Made in Home Services

Considering the type of busy life we are having, On-demand home services app market will continue to gain higher popularity this year. People will ask for services like plumbing, beauty services, electricity, etc. in addition to delivery of food, grocery, and cabs.

While these are some of the revelations that will come true this year, let’s look into what the future holds for On-demand economy.

The Future of On-Demand Economy

It is undeniable how on-demand is changing the world around us, as we know it. No matter which business segment you belong to, chances are that someone in your industry would be thinking about investing in the on-demand market.

And this un-altering demand for the on-demand app services is not just the truth of the present day, the future has a similar story to share. The future of on-demand lies in a number of categories. Let us look at the major ones, which you should think of expanding your business portfolio into.

A. Hyperlocal

This is an on-demand model that revolves around the local provisioning of services and goods. This on demand marketplace ecosystem mainly operate within a few kilometer radium only. An example of this would be Roadrunner or Swiggy.

Under this category, business ventures will look forward to making the user experience far more comfortable and memorable. They will focus on speed and quality and aim to provide multiple options to the users to keep them hooked to their services.

B. e-Scooters

Ever since Bird came up with their e-Scooters in San Francisco, the demand for e-Scooter app development has been on a constant rise. Brands are now looking to enter the segment that the investors are clearly partial about.

Not only this, various governments have also shown a green signal to eScooter use in their place. 

Read:

• How to Start eScooter App Business {An In-depth Guide}
• 5 Dockless eScooter Companies to Join Bird and Lime in Louisville
• The Future of Germany is Mint Green: The Country has Regularized eScooters
• New York is Warming up to the Idea of Legalized eScooters
• After USA, it is now Japan’s Turn to Join the eScooters Trend
• Uber’s First Electric Scooter Service ‘Jump’ Launched in Santa Monica
• Uber Adds eScooters and Dine-In features For the US Locals

C. Self-Storage Market

More than 30% of the US citizens have extra space than they actually need and at least 40% of the citizens face the problem of lack of storage space. These on-demand apps are a solution to that. Using apps like Cuft, you can create a platform for people who need space to meet people who have it in excess and make the former use the space as a storage space.

Now that you have seen how the on-demand category is one that have established itself as a secure market, both of the present time and of the future, let us now finally look into the one factor that is a question that every Entrepreneur who is looking to enter the on-demand market is seeking answer to –

How Much Does it Cost to Develop an On-Demand Mobile App?

When an on-demand app development company develops an on-demand app, they develop an app that caters to three people – the user, the person delivering the service, and the business. And, the UI and app flow is entirely different in all of them, which adds on to the How to Build a Successful On-Demand Delivery App to a great extent.

Along with that, the category calls for a number of features inclusion like in-app payment, real-time sync, real-time tracking, chat support, rate and review support, and notifications, among many others. Since through one on-demand service app, a mobile app development company is developing three apps, the attached cost of the end on-demand mobile app is fairly high.

Keeping everything into consideration, the creation of On-Demand Startup Apps like UberEats or Lyft would take somewhere around 2000 and above hours. Now, multiply this number with the average hourly hours, and you will have with you the cost of on-demand mobile service app

The post Statistics on the Multi-Billion On-Demand Mobile App Economy appeared first on Appinventiv.

While the on-demand economy was earlier restricted primarily to on-demand ride-hailing businesses, today it has become a part of a number of sectors: food delivery, at-home services, legal and healthcare consultation, amongst others. The result of this expansion is that the on-demand economy has today become a revenue and funding magnet. It is safe to say that the on-demand economy is reshaping the whole world around us. 

While the expansion is good for the economy, it comes tagged with a prominent challenge for businesses – high competition.  

This article cum mini-guide is for every entrepreneur who is brave enough to start their business in a crowded market. A guide on how to start an on-demand business. 

Let us start by looking into the reasons that are driving entrepreneurs to enter the on demand business domain. 

Reasons Why On Demand Service App Development Is Witnessing A High Demand

While the constant innovations made by the on-demand startups have played a pivotal role in the rise of on-demand industry demand, the inscribed advantages like accuracy, timely delivery, and cost advantages etc. have made them a prominent category in the overcrowded mobile app industry. Here is a bulleted view of the reasons that have brought a rise in on demand app for startups and subsequently in on demand app development company.

Convenience 

People are generally more inclined towards services that they can conveniently book and avail for real-time usage. 

Nearby Service Availability 

Users find it attractive when the service they are seeking is being delivered on their doorstep or vicinity. This is the number one reason why on-demand remained the most profitable business model at the time of global COVID-19 lockdown.  

Cost efficiency 

The services offered by the on-demand companies are more often than not a lot more cost-effective than traditional services. 

Easy Payment 

Another factor that attracts users towards on-demand services is the fact that they offer a very easy mode of payment happening mostly over the app screen within a few clicks. 

Even though these four reasons are the main ones acting as the driving force of the on-demand economy’s demand, the one that has given the industry a major push is a changed consumer behavior that acts on ease and convenience. 

These reasons altogether have created an economy that is flourishing to great heights at a very lightning speed. A statement that can be validated by the fact that even after the fifties of on-demand companies on mobile, the industry is seeing no stoppage in terms of new app launches. 

On this note, let us look at the on-demand market before we move on to the factors that the on demand app builders swear on to help you succeed in the industry. 

The State of On demand App Solutions Market

While there are a number of statistics that prove the on-demand economy is flourishing, let us nevertheless look at the sector in terms of the potential of growth it shows, even when the industry is already crowded by a number of players. 

Disclaimer: *The insights mentioned here are the excerpts of the researched-backed writeup we did on the state of the on-demand market (linked above). 

Let us delve into the on-demand market from two fronts – A. On-demand Players and B. End Users. 

The benefit that the on-demand market has to offer to the players who are active in the industry can be estimated on two fronts – A. In terms of Revenue and B. In terms of Investors’ Interest. 

In terms of Revenue:

What was just an introductory trend has now become mainstream with increased revenue count. It is not just the domain that is witnessing great numbers in terms of revenue and profit, the growing revenue chart is making a regular appearance in the individual on-demand player’s Profit and Loss statement as well.

This growth in revenue can be attributed to a number of factors like the ease that users get at the back of every on-demand app experience or the fact that the on-demand industry has emerged as the ideal work economy for the millennials.

This growing revenue number that has now become prevalent in the on-demand mobile app startup industry is only going to strengthen further – a statement that has been validated by PwC. According to a PwC report, the on-demand economy revenue which was $14 Billion in 2014 will reach $335 Billion by the time we reach 2025.

In terms of Investors’ Attention:

Business models of on-demand startups such as Uber, Airbnb, and Bird e-Scooters, which form the on-demand economy, are famous for the fundings that they receive from angel investors to get them the resources they need to grow further.

The market that the on-demand industry has captured is the same which investors strive to take a share of. A match that has brought a rise in the funding to on-demand startups. There is a good percentage of investors who couldn’t be a part of the trend when the uber economy was getting incepted but are now prepared to book their share.

The investment rounds focused on funding to on-demand startups that started in 2014 with $74 Billion and reached $10,293 Billion in the last quarter of 2017. And if you look into the details of the funding rounds in the on-demand economy statistics, you will find that the major portion of the funding has been coming in from the seed or angel investors.

While these two were the driving force behind the growing attention of business people towards on demand mobile app development, what cannot be ignored is the unwavering demand from end users. 

According to the data collected by the National Technology Readiness Survey in the U.S., it was estimated that the total spending on on-demand mobile app services would increase from $48 Billion in 2016 to $75.7 billion in 2017 – an increase amounting to 58%.

The segments of the on-demand startup market, which have witnessed the maximum growth consist of – housing items –  from $5 billion in ‘16 to $10.6 billion in ‘17, transportation, which moved from $6.8 billion in ‘16 to $14.2 billion in ‘17, and lastly food delivery category, which shifted to $8.2 Billion in 2017 from $3.9 billion in 2016.

Seeing this growing spending number, Rockbridge estimated that the number of on-demand mobile app startup consumers would reach 56 Million by the end of 2018 and 93 Million by the time we hit 2022.

From what you just read and what the industry is showing, it is clear that the on-demand industry is booming and has proved beneficial for everyone who is invested in the domain. It is now time for the sections where we take your intention to enter the booming on-demand industry and handhold you to become a success. 

While we have talked about the whole mobile app development process in detail in our extensive mobile application development guide, the whole process for on-demand is a little different. The ideation stage is a lot more extensive in case of on demand business app development compared to other forms of app types.

Here are the different on demand app development services that are proven to provide success to entrepreneurs.  

Which On-demand Service Should You Offer for Having a Better Shot at Success?

We have already touched bases on which on-demand models have proven to be the most profitable year after year in this article here – 10+ Industries Backing the Staggering Growth of On-demand Economy 

Now irrespective of which service you pick what helps in starting an on-demand business is identifying services that masses use on an everyday basis and then bring them to the on-demand space. Look at the pain-points of the masses, points that are not easily addressed through the mode of the internet. 

For example, you can look at the babysitting space where parents usually don’t trust people coming in through the advertisements or craigslist to take care of their child. You can think of a business model which provides babysitting services at the back of proper verification checks. 

The idea of finding a service that needs to come on the on-demand market is not to brainstorm around ideas that are yet to make an appearance in the industry but instead look at the existing services that could use some instantaneousness. 

Once you have settled on an idea and have the potential that it comes with, the next stage is to ensure that the zeal with which you ideated the on-demand app transmits to the end-users as well. And the one way to ensure that – one which is present in almost every on demand app development guide for startups – is knowing what pitfalls to avoid. 

Talking of pitfalls, what would be better than knowing what didn’t work for other businesses in the on-demand space, so that you don’t repeat the same mistakes. 

Let us look at some of the on-demand companies that failed and the reasons behind their failure so that you don’t follow the same ones, something that your partner who is offering startup business services should give you a heads-up of.

Why Do On Demand Mobile Applications For Startups Fail?

While there are a number of reasons why businesses fail at ruling the market, it is time we look into some real use cases of why some businesses which were on the top of their game in the on-demand space failed. 

1. Homejoy – Could not Retain Users

The problem Homejoy faced was that people only used the app until the time they were getting discounts and then they were abandoning the app to not return. What could have helped them is if they relied on other channels for customer acquisition as well, ones that were not restricted to giving freebies and offers but focused on creating a valuable image as well. 

2. Exec – Could not Keep up With the Demand

The idea behind Exec was that of an app that would offer service providers a number of different handy-works. So, while to start with, the cost of acquiring skilled employees for all the different services they offered was costly, it then became difficult for them to keep up with the demand that they were getting on weekends and holidays. They should have focused on a niche set of services before expanding into other segments. 

3. Dinnr – Giving Solution to a Problem that does not even Exist

The idea behind Dinnr was that people had to select a recipe on the app, following which the ingredients, in recipe specific quantities, and the instruction was delivered to them at home. Problem was that nobody needed this service, it was assumed that not knowing to cook but having a deep interest in the art, is a mass problem. Had they done proper research by getting in touch with an actual pool of end-users, they wouldn’t have faced this issue and ultimately shut down. 

4. 99Dresses – Co-Founders Backing Out

An app for trading, selling, and buying less worn clothes in return for fees corresponding to the value of the item was shut down after two out of three co-founders bailed out. It is very important for enthusiastic entrepreneurs to find like-minded people who are equally invested in the project and have a business model that the masses are actually interested in being a part of. 

While the reasons that you just read contributing to the failure of an on-demand business belonged to a number of different zones, there is one concurrent reason behind on-demand businesses shutting down – not thinking of the operation model. 

What Are the Key Questions Which Should be Addressed Before On Demand Mobile App Development For Startup Business 

Knowing and selecting the right business model helps in finalizing not just the operational process that you need to follow in your day-to-day business but also carries a huge impact on your profit model and the quotient of on-demand business success. 

Let us look at some of the most commonly asked questions of the on demand business models that you should ask from your partnered on demand software development company. 

1. Instant Delivery vs Scheduled Delivery Model

One of the most crucial decisions that you will have to take in terms of offering a real-time product or service is deciding whether or not to offer it in an instantaneous model.

For example, you can offer ‘Book Cab for now’ or ‘Book Cab for Some other Date’ (The same option can apply irrespective of which kind of on demand delivery app development service you have invested in). 

No matter what you decide to start your on-demand business with, know that you always have the option to expand to the other. For example, if you have an instant on-demand business model you can always add a Schedule feature to it later. 

2. Own Delivery Agents or Partners’ 

The next business model is to make a decision in terms of whether you will be supporting the associated partners with a fleet or will you let them handle it themselves. 

An example of this can be seen in the case of the food delivery market. There are two ways to form a food delivery business model – A. Have own riders do pick and drop off food orders from restaurant to end-user or B. Rely on restaurant’s delivery persons to do this.  

3. Anonymity vs Choice

Let us explain this business model with an example. 

There is an app like UrbanClap which allows users to choose a service provider on the basis of ratings and reviews, and on the other hand, there is an app like Uber which while gives the end-users an option to choose a mode of transport and its class, doesn’t give them an option to choose the driver or the car model. 

Hope the examples explained what differentiates both the business offering type. While there is no clear answer to which of these two would be better for your business, it is safe to say that it would depend on the service you are planning to offer. 

Now that you know what are the different operational models and what separates them from each other, we would suggest you make a choice after aligning them with the feature set you are planning to offer in the market. 

With this, you have now seen all – the scope of the market you are going to enter, the way you can choose a service offering, the reasons why on-demand companies fail, and the business model you can choose from to gain maximum benefit.

And now comes the most important part of it all, getting started. Get in touch with our team of on-demand experts to get started with the development process of your app idea. 

The post On-Demand App Development Guide for Startups to Rule the Crowded App Market appeared first on Appinventiv.

This has not only made entrepreneurs and investors show an interest in on demand app development, but has also encouraged them to look into DoorDash business model.

The entrepreneurs are also interested in finding a quick answer to all the questions regarding revenue generation, such as “How does DoorDash make money?”, “How much does DoorDash charge?”, ‘’How does doordash pay?’’, “What is doordash business model”, and “How Does doordash work”, etc.

Assuming you to be one of those entrepreneurs, we will be revealing the doordash model for accelerating their business growth and revenue strategies in this article.

If you are thinking of how does doordash pay, how does doordash make money, or what is doordash business model, then you should know that DoorDash business model helps the company earn a hefty amount of money, whilst engaging and satisfying customers.

But before that, we will be focusing on the funding timeline of the food delivery startup. 

What is Door Dash?

DoorDash, Inc. manages an online food ordering and food delivery platform. It is situated in San Francisco and is the biggest food delivery company in the US with a 56% market share. It also has a 60% market share in the convenience delivery category.

DoorDash is a technology organization that associates local consumers and cafés/restaurants with delivery made possible by self-employed or independent contractors.

Facts and Funding Timeline of DoorDash

Year of Foundation: July 2013

Founders: Tony Xu, Stanley Tang, Evan Moore, Andy Fang

CEO: Tony Xu

Headquarters: Rialto Building, San Francisco, California, U.S.

DoorDash net worth: $717M

Total DoorDash valuation: $12.6 Bn

Number of employees: 7,549

Type of business: Privately held company

With this attended to, let’s take a glance into features and functionalities that backs the Doordash strategy and business plan, and adds to its revenue growth.

Top 5 Doordash Features

There are five app features that stand out for Doordash for business. Ones that are now being copied to a great extent to develop food delivery apps. 

1. Suggested List

Suggested List is one of the doordash features where the app makes use of AI to give a suggested list to the customers on the basis of the people’s choice.

2. Top Menu

To make the whole food ordering process a lot more customer-centric, they offer a top menu option in the app, wherein they show the top foods that have been ordered by customers in a specific restaurant. 

3. Dual Rating

Doordash gives you the option to give your rating two times – 

• To the food and delivery quality, and
• To the person delivering the food at your doorstep. 

4. Live Tracking

They give you the option to live track where your food has reached after you have ordered them online. They also send regular updates of where the food has reached on your device. 

5. Schedule Delivery

The application gives you the ease to schedule orders even a week in advance! Thus saving your time and peace when ordering in peak time or during festivals.

What Makes DoorDash Stand Out?

Any business stands out because of the extraordinary things they provide to the customers. The products and services that they offer should be of the best quality and should fulfill the needs of the customers.

So, how does Doordash work? 

The On-demand service app development food delivery brand has some unique features that have made DoorDash growth strategy and business and revenue model stand out:

• Benefits each segment all at the same time.
• DoorDash has their own drivers whom they address as “Dashers”.
• The DoorDash delivery fee is between $5 to $8 for the users.
• DoorDash revenue comes from a 20% commission fee charged from the merchants.
• The Dashers make more than $600 in one year.
• DoorDash strategy has led to its operation in more than 4,000 cities and across 340,000 stores in the USA and Canada.

Many online food services like Zomato, Swiggy, Foodpanda, etc. have started serving in India after seeing business models like DoorDash succeed. The food service apps of these Indian companies not only lets customers order food but also find the perfect restaurant for the right occasion. If you are wondering how to build restaurant finder mobile apps just like Zomato, check the linked article.

Like any other startup, DoorDash has seen hurdles during the early days. Despite all the difficulties that this on demand food delivery service had to face, they have generated a healthy amount of funds for the business. All thanks to the DoorDash strategy and value proposition.

DoorDash Value Propositions

When you come to ask how does doordash work? Then you should know that the DoorDash business model is of Y structure. It focuses on all three segments and keeps them well connected for the smooth running of business.

This is done by connecting the drivers with restaurants and customers so that tracking the delivery time becomes easy and doordash valuation is monitored.

How DoorDash Works for Its Segments?

For users:

• Massive number of restaurants to choose from all over the city.
• Service available 24 hours a day, 7 days a week.
• A feature to track the delivery orders on the way.
• Simple cost effective solution to hunger.

For restaurants:

• An extended customer base.
• Provides their own delivery guy to deliver.
• An easy and cheap way of reaching customers across the city.
• Branding and marketing for restaurants.

For Dashers:

• A great source of income.
• Dashers can earn up to $600 in a year.
• Chances of tips from customers depending on service quality.

DoorDash Customer Segments

This on demand food delivery service targets the same customers that most of the eateries in the city do. But then how does doordash make money? The aim of the business is to fill the gaps that other eateries or service providers are creating.

The customer segments that DoorDash serves are:

Users:

• People cannot cook due to lack of time.
• Professionals who can’t go out during lunch because time is the constraint.
• Students who don’t have a kitchen facility.
• People who don’t know how to cook.

Restaurants:

• Food joints that have no delivery service.
• Restaurants with poor seating arrangements.
• New restaurants that need a huge customer base.
• Eateries looking for advertising and marketing.

Drivers:

• People looking for part time or full-time work.
• People looking for good income via salary and tips.

Customer Relationship

You must be wondering how does doordash pickup work on its strong customer relationship. To build a sturdy relationship with the target market audience, Doordash has taken amazing steps. They have used social media to a great extent to connect with their customers directly. Socials like Twitter, Instagram and Facebook are the most active place for the business. This way they are reaching a huge audience and also staying in touch with the regular ones.

Having a good customer relationship has helped the business grow and retain the existing audience. DoorDash pickup services for business also provide good online support to its users such as feedback, complaints, ratings and suggestions. These things help improve the business by taking hints of what customers need and also improves doordash marketing strategy.

Another way DoorDash is doing things right is by reaching customers via email to inform them about discounts, offers or any development in the business. This approach gives a personal touch to the process and keeps the customers reminded of the business. Customers are also given the facility of contacting someone from the company just in case they need to.

How Does DoorDash Work?

Now that we have learned what DoorDash is, let’s take a look at how does Doordash pickup work as a business and doordash marketing strategy. The following four steps is all you need to know to learn how to use DoorDash if you are a user, driver or a merchant:

Step 1: Choose what to order

The users can browse through a wide range of options for their choice of food. The search can be filtered as per the need of the customer and selections can be made. They are also given the facility to favorite frequently selected restaurants to make it easy to order the next time.

Step 2: Making payment

With the help of in-app payment integration, DoorDash growth strategy makes it easier for users to pay for their food from inside the app. In this process the restaurant and the delivery location has to be mentioned. The distance between the pickup and drop off points has always decided how much does DoorDash charge for delivery. Once the payment is made, the order is sent to the respective restaurants and the food is prepared.

Step 3: Track the order

The Dasher picks up the packaged food from the food joint and sets out for delivery. For the convenience of customers, the DoorDash mobile app has the feature to track the order. This feature was specially built in the application for user convenience.

Step 4: Delivery

The Dashers reach the drop off points and deliver the food. The DoorDash delivery fee has already been paid during the payment process but the users can tip the Dashers if they wish to. However, this completely depends on the customer.

DoorDash Business and Pricing Model

DoorDash revenue model

The revenue generation model for any business be it a startup or a well-established business, should be quite strategic. This is where the cost of the business is paid and the doordash profit is generated. The DoorDash revenue model includes maintenance costs, sales cost, Dasher’s salary and retention of its personnel, and not to forget the on-demand delivery app development cost. 

DoorDash earns from the following sources:

• Commission – DoorDash pickup serves the customers by delivering the food from restaurants to the customers. They have become a huge platform and when a restaurant is chosen by any DoorDash user, it earns 20% commission from the restaurants on each order.
• Advertisement – Any restaurant that wishes to advertise themselves on the DoorDash app has to pay in order to be ranked in one of the top places. This is done to increase the visibility of the restaurants and earn more customers. For this placement, DoorDash charges.
• Delivery fee – The delivery fee is another source of income for DoorDash. The amount is decided during the payment process depending on the distance from the pickup to the delivery point. Usually, the delivery fee ranges from $5 to $8.
• Channels – DoorDash pickup operates through an online website www.doordash.com and most of its networking is done via website. This website also can be used to order food and track delivery packages.

With the increase in demand for mobile applications, DoorDash decided to have a mobile application for iOS first and used a reliable iPhone app development company for the same. Later, as the business grew they also got one for Android users.

The application has all the necessary features from ‘Search nearby restaurants’ to ‘How to use DoorDash app’ guide. DoorDash has a Person to Person type of on demand mobile app development company where one demands services from another person using the same app.

[Want to build an app like DoorDash? See How to Build a Successful On-Demand Delivery App?]

Dashers are the guys they use for the purpose of delivering in various areas of a city. 

Frequently Asked Questions 

Q. Can you actually make money with a DoorDash like app?

Yes, there are three ways you can earn money with an app if your application is based on the Doordash profit model – advertisements, commission, and delivery fees.

Q. Can DoorDash drivers see tips?

No. What they are able to see is the weekly accumulated money – the amount paid by Doordash and money they have received as tips. They are not able to see the tips individually. 

Q. Why is Doordash successful?

This on-demand app development services for food delivery business is turning out to be successful because it is bridging the gap between customers, restaurants, and drivers. On one side, it is giving customers an opportunity to get food delivered at their doorstep. While, on the other side, it enables local restaurants to come across drivers who could help them extend their services beyond their nearby areas and this way earn more.

Q. Is DoorDash a profitable company?

Ofcourse, it is. DoorDash, since its inception back in 2013, has acquired 4 startups and has raised a funding amount of $2. 1Bn in total, with the latest in Series G round.

Q. What is DoorDash and how does it work?

Doordash is a food delivery app. It contains a list of restaurants and their menu which the users can choose from. Once the user has made their choice and has selected a payment mode, it is made available to them by the door dashers – the delivery team of Doordash. 

Q. How much does doordash pay to door dashers?

For every order, the door dashers get $1. But when you make delivery at peak time and some other conditions that fall under their peak pay policy, you get to make extra dollars on the delivery. 

Q. Does the DoorDash delivery fee go to the driver?

No, the delivery fee goes to the business and not drivers. Drivers only get $1 per delivery charge and all the tips that they earn on top of it.

Q. How much does doordash cost in terms of delivery?

DoorDash delivery costs can differ from restaurant to restaurant. The charge usually ranges between $1.99 to $5.99.

The Future of DoorDash

DoorDash has acquired square’s food delivery service, Caviar. It has also sponsored a set of AR lenses that enables Snapchat users to immerse themselves in the virtual environment of the reputed restaurant chains, like Cheesecake Factory, Baskin Robbins, Chili’s and Outback Steakhouse, and more. 

Doordash pickup service is growing by looking ahead to introduce better features and innovative strategies in its business plan.

It has also made entrepreneurs to look into ways to reduce the app development costs, and  relish higher profits from DoorDash-like business.

We hope this blog has given you answers to many questions like how much does doordash pay and how much does doordash cost.

So, in case you are also interested in going with the same idea, aka, building an application following the DoorDash business model, connect with our experts.

The post Doordash Business Model and Revenue Sources appeared first on Appinventiv.

As we all know Uber is an on-demand taxi booking service which is operated through an app. The term ‘Uber’ simply means ‘Above’ in German. Ever since it started Uber business model has focused on being at the top of the competition and so far they have been successful.

What is Uber and how does it work?

How does Uber business works and what is Uber’s business model – They partner with cab drivers to provide cab services which can be booked by customers using the Uber application. The Uber business model and plan started with one city in the USA and now has grown to be spread in 633 cities all over the world.

In this article we will discuss what is Uber, what is Uber’s business model, revenue model and how does it work, what industry is Uber in, Uber management structure, how long has Uber been in business, Uber industry analysis and Uber business strategy.

Facts and Numbers

Founders: Travis Kalanick and Garrett Camp

Valuation: $60 billion

Total employees: 12,000+

Uber users: 50 million riders

Uber drivers: 7 million

Total Uber rides: 5 billion

Market share: 77% (in USA)

Cities: 633 cities

Countries: 78 countries

What does Uber offer?

The main reason Uber became successful was that they offered services that no other company in the transportation industry was offering. But it doesn’t matter what industry is Uber in if the services are customer oriented they will reach the top.

Uber driver business plan offers some unique features to the riders as well as the drivers:

• A user can book a cab with just one tap on the Uber app.
• The drivers have the choice to accept or reject the ride.
• If a driver accepts the ride, the driver’s information is sent to the rider.
• Riders can track how many cabs are nearby or in a particular location.
• The payment process can be before the ride or after the ride.
• In some countries like India, cash payment option is also available.
• The rating, feedback and complain options are all available in the app.
• The riders or drivers can cancel the ride at any point if needed.

[Check out: how much does it cost to make an app like Uber?]

The Demand for Uber

It is always debated whether a service was demanded first or supplied first. In simple words, people are unable to decide whether the demand for a service resulted in the supply or the supply of a particular service created its demand.

For Uber, it was a clear picture. The Uber business strategy focused on keeping the supply chain fully ready for the time when demand hits. Many startups have taken this strategy for their business following Uber’s footsteps. Whenever Uber enters a city, it gathers drivers on the contract basis so that when the demand for rides come in, they are prepared.

Uber business model revolves around its customers. The priority is giving riders the best experience possible which includes polite drivers, hassle free ride and the ease of booking from anywhere. To do so, Uber has to hire drivers and the more the better. Since the Uber business model has light inventory and runs on commission, the only way to keep up with rising demand is having enough drivers to fulfill the demand.

[Also see:  Uber fires up its own traffic estimates to fuel demand beyond cars]

Customer Segments

Uber serves a massive customer segment which includes all ages and all types of customers. The types of customers Uber serves are:

• People who don’t own a car.
• People who can’t drive or don’t know how to drive.
• Tourists of the city.
• People who don’t want to drive to function themselves.
• Customers who choose luxury travel and VIP treatment.

Apart from these, Uber business model also has special services such as:

Uber for kids: Uber has come up with this Uber for kids for parents who want their kids to be dropped at home from school. Many parents do not prefer school bus services for personal reasons and Uber saw an opportunity in this case.

Uber for senior citizens: Another service Uber offers is Uber for the senior citizen. After learning that 30% of rides are taken by senior citizens of a city, Uber decided to launch a special service for them.

Uber for professionals: Many employees use Uber to travel to and fro work. It has also collaborated with many companies to provide cab services to the employees of the company.

You must be wondering how long has Uber been in business to offer so many services successfully. To answer that question, let’s first understand Uber business strategy to get its customers

After being in business for just 6 years, Uber started being recognized as a brand. When Uber enters a new city, they start working on customer acquisition. First, they add a general manager for the city in the Uber organizational structure who will lead the Uber there. Then they start gathering drivers as per their Uber driver business plan, especially professional drivers who already have a car.

After that, they provide the ride to media people and tie up with corporates to provide services to the employees. This way the public comes to know that Uber has come to their city. Now Uber has become a brand and people are probably waiting for it to open in their city.

After studying Uber business model analysis and customer segments, let’s move on to Uber value propositions.

Uber Value Propositions

The value proposition shows how Uber is providing benefits to the segments its serving in. The two segments that Uber serves are Customers and Drives and this is the Uber value proposition for them:

Customers:

• No waiting time to get a taxi.
• Personal driver means travel in style.
• Heavy discounts and occasional free rides.
• Fare comparatively lower than taxi.
• Fixed fares for certain places like airport, etc.

Drivers:

• A great source of income.
• Flexibility in schedule.
• Uber pays drivers for being online.
• Use your car to earn a little extra.
• Payment process is easy.

[Extra: Uber Data Breach: How to prevent your app from incidents like these]

Uber Financial Analysis

To begin with the funds, in 2009 the founders of Uber invested $200,000 as seed money. Uber raised $1.25 million by 2010 and by 2011, it raised $44.5 million. A report on Uber financial analysis shows that with the recent funding Uber has reached a valuation of $68 billion (US).

Uber Revenue Model

Now we know what is Uber’s business model, let’s discuss its revenue model. Any cab ride ends with the rider giving cash to the driver which is the source of revenue and Uber is no different. The Uber revenue model has the same source of income as of now. But then you must be wondering about the big numbers we talked about in the Uber financial analysis section just now? The thing that separates Uber’s revenue from traditional taxi’s is the number of rides.

On an average Uber gets 1 million rides in one single day. Now that is enough for you to guess why those big numbers. Uber also has other sources through which Uber pricing model is decided. Let’s have a look:

• Uber business plan has added various car models to the fleet: The Uber pricing model for each car depends on the size and level of luxury of the car. From ‘mini rides’ to ‘special SUV rides’, Uber has to offer all at different price ranges.
• Uber applies price surge technology: When the demand for rides increases, the fare automatically increases. This variation helps Uber in attracting more drivers and generating huge revenues.
• Other Uber rides: Uber business plan and company structure consists of people who are constantly adding new features into the business. The latest rides they have added are boats, helicopters, ice-cream truck delivery, and delivery services. Of course, these are just restricted to geographies for the reason that Uber want to explore as much as it can.

How Uber Works?

The Uber application was first built by Garrett Camp and some of his friends. Later the application was developed in order to fulfill the purpose. Back then application development was quite a task but now many mobile app development companies build apps within weeks.

[See: Why Do Great Product Companies Release Software To Production Multiple Times A Day]

Uber works in these easy steps:

Step 1: Request a cab

The customer needs to open the app and request a ride. This is where the car size is selected (mini, medium or luxury).

Step 2: Driver notified

One the user sends the request, every rider in the range is notified and once a driver accepts the ride, the driver information is sent to the user.

Step 3: Ride

The user can track the route with the mobile app and also see the ETA. The meter starts as soon as the ride starts and is stopped after reaching the destination.

Step 4: Payment

Once the ride is over the rider has to pay the amount billed to them. The app calculates the prices as per the distance and base fare.

How Uber became so Successful?

If you’re wondering why is uber so successful, well, there are many factors that contribute to Uber’s success. This entire article will be incomplete if we don’t conclude by discussing Uber company structure, reasons for success and Uber industry analysis.

[Must see: How to ride the uprising Uber for X Wave]

Uber’s success encouraged many entrepreneurs to copy the Uber organizational structure, business and revenue model. One of the things that contributed the most to Uber’s rise was the dedicated team that was proud of the work they were doing. In every country, a customized Uber management structure was followed.

Many businesses built an app just like Uber using location based services which have become like an immediate need in the app development world. Location-based services are going to have a bright future. Making such efforts to come to a level where Uber has reached shows how successful it has become.

Uber saw the need and immediately acted upon it, giving no room for others to think. The Uber industry analysis showed that Uber came in the transportation and delivery industry. Uber’s variation in cab services earned them the word of mouth which is said to be one of the best advertising a business can get.

We hope our blog on ‘Uber business model explained’ was helpful in understanding what is Uber’s business model, what kind of business is Uber, and why is Uber so successful. In case you want to learn more about the business model of Uber and Uber business plan, you can contact us. 

The post How Uber Works? Breaking down the Uber Business and Revenue Model appeared first on Appinventiv.