Delivery App Development: Is It the Right Choice to Generate Revenue?

What Are the Common Types of Delivery Apps and Their Examples?

As mentioned above, although the food delivery app market is dominant, the development of the delivery app development industry is also fostered by other types of delivery niches. Instead of facing the undoubtedly fierce competition in the online food delivery market, you can invest in alternatives to thrive and succeed. What are the main types of delivery apps? Given below are some common ones and their examples.

• Food Delivery Apps: These types of applications allow users to quickly access online menus, order meals from restaurants, including local eateries and popular chains, and then enjoy the food right to their doorsteps. ShopeeFood, Uber Eats, DoorDash, Grubhub, and GrabFood are some notable examples.
• Grocery Delivery Apps: These apps act like virtual shopping carts that enable users to order groceries and have them delivered to their homes without going to the market or supermarket. Instacart is a prominent example in this category.
• Entertainment Delivery Apps: This category includes platforms that provide users access to multiple forms of digital entertainment content and experiences, such as streaming services, event tickets, or digital media. Examples include Netflix and Spotify.
• Package Delivery Apps: These apps are designed to offer both individuals and businesses the ability to send or receive parcels and goods around the world. Roadie, Uber Connect, and Veho are some typical examples you can refer to.
• Alcohol Delivery Apps: These types of delivery apps specialize in giving access to and delivering alcoholic beverages, including beer, wine, and spirits, directly to consumers’ doorsteps. Examples include Drizly and Saucey.
• Medicine Delivery Apps: These applications provide a convenient experience for those who may have difficulty accessing traditional rewards. By delivering required prescription medications and over-the-counter pharmaceutical products, medicine delivery apps get the right med at the right time for users in need. CVS Pharmacy, NowRx Pharmacy, and Netmeds are notable examples.

How to Create a Delivery App Like Industry Leaders

According to data from Statista, the value of food delivery app project funding worldwide reached a record-breaking 19.1 billion U.S. dollars in 2021, which is nearly double the previous year. The grocery and food delivery app development market is predicted to continue expanding in the coming years as market demand increases. It is never too late to bring your innovative ideas to life. However, big things start small. Make sure you have a solid grasp of how to create a food delivery app before actually entering the implementation stages.

Step 1: Market Research and Analysis

Market research is the initial phase that we cover in every software development guide, regardless of its category. Every playground has its rules. You cannot enter any market without understanding its characteristics. By conducting comprehensive market research, you can gain meaningful insights to inform a competitive delivery app’s strategic planning and development. However, this process is not simple as it includes many different steps, such as:

• Industry Analysis: Analyze industry reports and forecasts and pay attention to factors such as market size, regional trends, and growth projections to understand the current state of the delivery app development market.
• Consumer Preferences: Explore consumer preferences, behaviors, and demographic data to understand user needs and their pain points.
• Competitive Landscape: Study strengths, weaknesses, and strategies from competitors in the same segment, even industry leaders, to develop delivery app ideas to overcome gaps or unmet needs in the current offerings.
• Technological Innovations: Monitor and stay informed about technological advancements, including artificial intelligence, IoT, and big data, to improve operational efficiency.
• Regulatory Environment: Consider the licensing requirements, labor regulations, and any other laws and community standards to apply legal assurance and risk mitigation.

Step 2: Business Model Selection

The main purpose of this step is to clearly establish the framework that outlines how the delivery app will create value for both partners and target audiences while ensuring the app’s stable ROI software. In short, business models in types of delivery apps are ways in which an app can make money from business activities. You can use one of the five methods above to create and maintain revenue. However, the ideal way is to combine the two business models to establish a sustainable and diverse income stream.

Step 3: User Experience Design

UX design is the process where designers in the development team work closely together to create a delivery app interface that offers users the most pleasant and relevant experiences, thereby fostering positive engagement and satisfaction. Depending on the target user and types of delivery apps, UX design will have certain differences. Overall, it should encompass the entire journey of a user’s interaction with a company, its services, and its products.

To accomplish this step, you should focus on the following actions:

• Wireframing and Prototyping: Develop interactive prototypes and wireframes to visualize the layout and functionality of the app.
• Usability Testing: Gather user feedback through usability testing to identify any friction points in the user journey and make necessary improvements.
• Accessibility Considerations: Ensure that the app is designed to be accessible to audiences with diverse needs, including those with disabilities.

Step 4: Feature Set Development

There are countless features you can integrate into the app. While all delivery apps usually have some common features, such as push notifications, it is recommended that you unleash your creativity and tailor your app to fit your company model. Don’t try to develop too many food delivery app features simultaneously, as customer value delivery and compatibility with business goals are prerequisites.

At this stage, follow the actions below to execute this step effectively:

• Feature Prioritization: Identify and arrange features in priority order based on user needs, market demands, and the unique value proposition of your delivery app.
• Minimum Viable Product (MVP): Develop an MVP with only essential features to survey user reviews about the app.
• User Feedback Integration: Gather feedback from potential users and early adopters to understand their expectations.
• Iterative Development: Continuously iterate on the feature set based on user feedback, performance analytics, and evolving market trends.

Step 5: Payment Gateway and Logistics Integration

Don’t rush to launch your delivery app on the Google Play Store and Apple App Store without completing this step. Orders on the app cannot be completed without the payment processing systems and logistical infrastructure. Regarding payment gateway, you can consider options such as credit/debit cards, digital wallets, or online banking apps to diversify the user’s payment experience. Meanwhile, the issue of shipping is more straightforward when you can consider any shipping unit that is suitable for your business.

Here’s what to do in this step:

• Transaction Security: Ensure that the payment gateway integration meets all security requirements to protect users’ financial information and prevent fraudulent activities.
• Partner Communication: Create effective communication channels with partner restaurants and stores to ensure the accuracy of order details.
• Real-time Updates: Enable real-time notifications for users, such as order status, estimated delivery times, and any changes to the delivery process.
• Testing and Optimization: Thoroughly test the payment gateway and logistics integration to identify and address any operational efficiency issues.