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How Does An On Demand Delivery App Like Postmates Function In The Market?

391 Views | 7 min | July 2, 2021
app like postmates

People of today’s generation are very impatient with their online orders. This is one of the biggest reasons behind the growth of the on demand market. People like to order items in a few clicks, using their smartphones. On demand app like Postmates and others catering food delivery, grocery delivery, home services, courier delivery, etc. has helped people in delivering convenience at ease. 

On demand apps are making a huge effect on the marketplace by gaining customer traction. From ordering food at any time to booking a taxi at any place, we all use these apps every day. The demand for more apps is increasing, an app like Postmates being one of them. 

In this blog, you will get to know the development fundamentals of an on demand delivery app like Postmates and how can you make it successful in the marketplace.

What Is Postmates?

Postmates is a US-based on demand delivery platform famous for delivering food, grocery and alcohol, anywhere and anytime. It has an excellent courier delivery functionality that makes it different from all the other applications in the market. For example, if you have to purchase something from a store that does not deliver, you can find someone on the Postmates app who will deliver the item to your location. 

To develop an on demand delivery app like Postmates, there are a lot of steps you must keep in mind. There is no doubt that there are already a lot of apps that exist in the market with the same motive. You must make sure that you find the point that distinguishes your app from the others. 

The main reason why Postmates is so successful is because of its flexible working and its efficiency in fulfilling all the orders successfully. Another reason can be that Postmates functions on a partnership basis and connects the customers with local merchants.

app like postmates achievements

According to a report it was found that Postmates has delivered 35 million+ orders to its customers and has saved approximately 11 million hours for its customers. It has also generated a revenue of around $1.2 billion.

Essential Features For Your On Demand Delivery App Like Postmates

The features and functionalities that you include in your on demand delivery app like Postmates will determine how your app will function in the market. The app consists mainly of two models – Customer Application and Courier Application. The features of both these applications are as follows:

app like postmates features

Customer Application

  • Login & Registration: The feature to sign up in the application should be basic and simple. The app should not ask the user to fill in too much information. Also, users should be able to sign up using their social media accounts.
  • Order Details: Your on demand delivery app like Postmates should be able to should display the order details for a customer.
  • Tracking: The app should be integrated with GPS so that the customers can track their orders in real-time.
  • Location Services: The app should allow its customers to specify a delivery location after confirming their order to ensure precise delivery.
  • Payment Channels: The app should be integrated with a standard payment gateway so that users can make payments using any method they like. Users should be able to pay using online payments, net banking, plastic cards or cash on delivery.
  • Order History: Your app like Postmates should display previous orders to the customers, in case they want to repeat it. 
  • Ratings & Reviews: Users should be able to rate the services offered to them by the app and delivery agents and give feedback about them. 

Courier Application

  • Registration: The registration process for dispatchers should be as straightforward as feasible in your app like Postmates.
  • Order Booking: When a client places an order, the courier app should be able to view it.
  • Delivery Status: This permits the user to examine the delivery’s precise status.
  • Order History: This enables the courier to look up a customer’s previous orders.

Steps To Develop An App Like Postmates

The steps to develop an on demand delivery app like Postmates should be simple and transparent. The right development company will choose advanced technologies to build your app and make sure it is updated in the marketplace. 

Market Research

Find out whether comparable applications are available in the area after you’ve set up the focus. Participate in local communities, go around the PlayMarket, and speak with local business owners. Make certain you have responses to the following questions:

  • Is there a genuine need for your app, similar to Postmates?
  • Are there any more applications like this on the market?
  • What is the community’s opinion on them if there are any?
  • Would local eateries and grocery stores utilise your on-demand delivery services if there aren’t any?

Try out any prospective competitors’ applications if they have a substantial market share. Examine its UI/UX, as well as its strengths and flaws, then search for customer feedback in app stores or Facebook groups. Find a solution to release better software with a more appealing UI/UX design and additional features for consumers. You’ll never gain a share of the market if your app isn’t competitive.

Create Excellent Business Model

It’s been said that if you don’t prepare, you’ll prepare to fail. So, spend some time considering the 9 critical aspects of your business and build a business model canvas for your on demand delivery app like Postmates:

Key Partners

Without a solid relationship, no firm can flourish. Your primary partners in the case of a delivery app like Postmates would be:

  • Restaurants, grocery stores, and other stores depending on your needs.
  • Contractors or hired individuals are used as couriers.

Key Activities

You must update your urgent and non-urgent tasks here. Your tasks can be:

  • For high-quality application development, forming a partnership with a skilled engineering team;
  • Reaching out to potential partners, such as restaurants or businesses, and forming a partnership with them;
  • Recruiting delivery personnel;
  • Getting the initial orders;
  • Developing an internet marketing campaign, and so forth.

Key Resources

This part contains your human and financial resources, as well as any intellectual or physical property you hold at the start. Define your first budget, engineering team details, and equipment list.

Value Proposition

There will be three types of users on your app: restaurants, couriers, and customers. What benefit would your software offer each of them? Here you may express your thoughts about your value proposition.

Customer Relationship

Describe how your app’s users will engage with one another.

  • Direct contact between users via chat
  • Automated order placement
  • Ratings and reviews
  • Customer service

Promotion Channels

When you start to develop an app like Postmates, you market your concept by:

  • Website and social media profiles of the company’s mobile app
  • Collaboration with other companies or influencers

User Segments

Create a buyer persona in this area. Consider the appearance of your target consumers, their age, their interests, and the apps they normally use. Buyer persona research and brainstorming will help you deliver a better, more customised experience than any other similar software.

Cost Structure

There are a few key items in which you should put your money:

  • Costs of software creation and maintenance; 
  • Salaries paid to workers or contractors with whom you operate, such as couriers, communication managers, and so on.

Revenue Streams

It might be one of the following, depending on the business plan you choose:

  • Advertising fees from restaurants or grocery businesses you advertise on your app; 
  • Fixed fee or percentage from each delivery

To boost your earnings, use various monetization strategies. Add gamification to engage users with in-app cash, and track the profitability of each stream.

Create Prototype

Create an app prototype or a drawing once you’ve learned about your target customer’s wants and preferences. Consult a seasoned business analyst about this project. This individual aids with the identification of the user’s pain points and methods for treating them using your app. A business analyst is also experienced with comparable apps and may be able to assist you in clarifying your vision for the ideal app design.

The work is then handed up to app designers who take your goals and requirements and translate them into a visual image on a laptop screen. They make the mock-up, construct the interface for each screen, and explain how the displays are connected.

MVP Development

You may start working on MVP using a ready-made app prototype. As previously said, your app like Postmates will consist of two key components:

  • A company website on which you define the problem and propose a cost-effective solution, market your app like Postmates, and share some business insights; 
  • A mobile app that caters to the demands of restaurants, couriers, and customers.

You have the option of using native, web, or hybrid development methods. We propose that you explore hybrid software development as a cost-effective and efficient option.

You may hire full-stack developers to handle both front-end and back-end development duties at the same time. This allows you to make the most of your resources and get the most out of the development process.

Monetization Strategies For Your On Demand Delivery App Like Postmates

There are various ways to make money from your on demand delivery app like Postmates. Some of the smartest methods are discussed below:

  • Delivery Fee: Depending on where the user purchases from, Postmates charges varying costs. It’s a reduced flat charge if the order comes from a partnered merchant. Postmates charges a higher variable cost if the merchant is not a partner. Postmates and the merchant split the delivery charge in a 4:1 ratio.
  • Service Fee: The service charge is a percentage-based fee paid to the purchase price of items ordered by a consumer. It ranges from 9% to 19.99%.
  • Small Cart Fee: Your app like Postmates can charge a modest cart fee if an order does not meet the minimum order requirement.
  • Surge Pricing: During busy hours, Postmates charges a higher delivery cost. You can keep this in mind while planning out the revenue model of your app.
  • Postmates Unlimited: This is a service that requires a monthly or annual membership. When the cart size exceeds a specific level, members enjoy free delivery from all merchants on your network.
  • Commissions: The commission is based on the entire product sold before taxes. Postmates and its merchant partners decide on the commission rate.
  • Public API: Postmates has launched a public API that allows companies to link their app with the on-demand delivery service. Postmates will be able to earn more money as a result of this. This can be implemented in your app like Postmates as well.

Conclusion

Is this the ideal moment to start offering on-demand delivery? Our response is a loud yes since the delivery industry continues to expand at a breakneck pace, and many locations across the world need such services. The cost of development of an on demand delivery app like Postmates is higher than others since it necessitates the development of at least two apps (for end-users & couriers). 

User acquisition and retention are two significant challenges for such a company. Only by having a big number of orders each day and couriers ready to deliver products promptly and precisely can the delivery company thrive. You must reach out to the best mobile app development company to get your app developed with the best technologies and features.

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