Table of Contents
1. Introduction: On-Demand Delivery Apps
“If there is anyone who demands convenience of the greatest possible degree, it is the contemporary consumer; and if there is anything under the sun that helps satisfy this demand in present times, it is an on-demand delivery application.”
Today’s world is a global village where people’s lifestyle is changing at an unprecedented pace. With technology at the helm of business conduct, technologically sophisticated companies all over the world are going gaga over their ways of doing business. To this evolution, the on-demand delivery app industry capable of offering online delivery app solutions can be considered no sweet exception.
The online/on-demand delivery apps have become an indispensable part of our lifestyle. They have been around us for over a decade now. Ever since then, they have been changing the way business is done. Be it buying groceries or availing a spa massage or getting food, medicines, stationary or other commodities delivered at your doorstep, the on-demand delivery apps have made our lives way easier and they have inarguably become a fad in modern times. Consumers, regardless of geography or demography are by and large seeking online delivery app solutions.
As found by a report published in Harvard business review (HBR) in the year 2016, the on-demand economy has expanded across the global frontiers. According to crowd companies- a firm that studies on-demand platform businesses, more than 280 companies provide on-demand delivery, including goods or services of various types, across 16 industries today. Surprisingly, this number is up from mere 76 companies operating in just 6 industries roughly two years ago.
As and by days are passing since the last couple of years and technology is taking over the previous business practices, many of the trending business names like Swiggy, Grubhub and Blinkit, UberEats, etc. have come to be known as prominent players in the online delivery industry providing exceptional on-demand delivery solutions and services; and there are more in the list.
Given the growing ambit of such online delivery apps, it would not be wrong or far-fetched to state that online delivery apps have simplified human lives by transforming traditional business ways into more user-friendly processes. This is usually done by fulfilling the consumers’ demands more effectively by providing them online delivery app solutions.
Continuing technological innovations coupled with a sedentary lifestyle are prompting people around the globe to use technology from the comfort of their homes and relish it. They are preferring convenience over and above everything, even if it comes at a slightly higher price.
Somewhere in between these continuing business innovations through technology and the global consumers’ need to choose ‘convenience’ over other things, on-demand delivery apps and the need for online delivery solutions was born; and it is here to stay if industry statistics are anything to go by. We shall be seeing some of these statistics shortly.
In fact, it is held that it is the ever-evolving demand for ‘convenience’ which is the major reason behind the success stories of on-demand delivery apps. For instance, the convenience of going through an assorted list of food items of various restaurants and being able to order and get it delivered is primarily an important growth factor for many leading food delivery companies.
Though it might come as a surprise to not-so-aware businesses, but such pressing is the need for online delivery app solutions these days, that right from daily essentials to once-in-a-while products, there is an on-demand delivery app for almost everything. To put it across in other words, on-demand delivery apps and the services they provide have taken the world by storm and they are the utmost form of convenience consumers can get.
2. Social Media And On-Demand Delivery: Standing Together
Putting across simply, social media has revolutionized the way we see online products as a consumer, explore the available alternatives, seek word of mouth and then buy it. As found mentioned in one of the articles on the importance of delivery experience for online businesses- platforms such as Pinterest and Instagram profoundly impact the online delivery experience of the users. They highly influence user’s buying decisions with inspirational, highly visual products. In fact, 72% of Instagram users said that they made fashion, beauty or style related purchases after seeing the product on Instagram and a staggering 90% of Pinterest users revealed that the platform influences their purchase behavior
3. Is Your Business Ready And Waiting? Then It's Time To Jump On The Bandwagon
Despite all the resources being available at your disposal, why should your business wait? As beneficial as the local marketplace apps are, so is its growing acceptance among businesses. The growing size of the on-demand economy highlights that consumer, by and large, are attracted by user experience, added convenience and other benefits the delivery apps provide.
But prior to exploring the data on online delivery apps and the services they provide therein; it becomes pertinent for businesses to know about the defining role of product delivery in a customer’s life cycle.
Product delivery is an important touchpoint in the overall customer experience. In fact, it is one of the most telling ways to create value for the customers. Customer satisfaction in modern times is less about the first look of the product they see online, and more about the end experience or delivery experience- which includes the unboxing experience, their thoughts, feelings and first impressions of the delivered product, etc. A pleasing delivery and an unboxing experience worth remembering have the potential to lure customers for buying from you again.
Businesses aware of this fact commit themselves to improving the overall delivery experience of their customers. And if you think, they do it without the help of an on-demand delivery app, you are highly mistaken. So, is your business ready to go that extra mile by providing a delightful delivery experience to its users?
4. The Growth Of On-Demand Delivery Apps And Rise On Its Spending
The data to follow gives a fair deal of idea into the growth of on-demand delivery apps and why businesses of today must not overlook its growing importance.
Below are some figures that will provide a deep insight as to how much of a furor on-demand delivery apps are and how large the on-demand economy is.
The on-demand economy is big, and it is just getting bigger by the day. According to new data from the national technological readiness survey (NTRS)- ‘economic activities centered around online platforms, where independent sellers can offer goods or services to customers, are attracting significant consumer attention and spending.’
As per a report published in Harvard Business Review (HBR)- “the on-demand economy is attracting more than 22.4 million consumers annually and $57.6 billion in spending. In the same report it was observed and stated that- the largest category of on-demand spending is online marketplaces (for e.g., eBay, Etsy) with 16.3 million consumers each month spending almost $36 billion annually. Transportation (for e.g., Uber, Lyft) comes in second with 7.3 million monthly consumers and $5.6 billion in annual spending, followed by food/grocery delivery (for e.g., Instacart) at 5.5 million monthly consumers and $4.6 billion annual spending.
Other on-demand services including home services (for e.g., TaskRabbit, etc), freelancer services (for e.g., Elance, etc) and health and beauty services (for e.g., StyleSeat) account for $8.1 billion in spending each year, and all other on-demand activity comes in at $3.8 billion.
This report further mentions that almost half (49%) of on-demand consumers are millennials aged between 18 to 34 years. Roughly 30 % are between the age of 35-54 years, and 22 % are aged 55 years or older.
Reflecting in the backdrop of this data and emphasizing on the fact that around 2 billion or approximately 27 % of the world’s population is the millennial generation (according to demographers at Pew Research Center) and people aged above 35 years are also substantial in number, doesn’t that provide businesses with enough evidence that the online delivery services are getting bigger with each passing day and can be very advantageous for businesses which are firmly placed on the online marketspace forefront? It certainly does.
Just that, prudent businesses learn to make hay while the sun shines. Thinking businesses seldom act. Which category does your business belong to- the former or latter one? If you belong to the former category, then there are reasons galore for you to read on the benefits your business can get.
5. Benefits Of An On-Demand Delivery App For Your Business
a. Increased customer reach
Ever since on-demand delivery apps have come into existence, they have undoubtedly touched many a consumer lives. Such apps offer great outreach and mobility to your business by reaching out to a large number of customers. The access to online delivery apps is not confined to a particular geographical area and hence they can be accessed online by consumers anywhere around the world; thereby leading to increased customer reach.
b. Improves the visibility of product & service portfolio
An on-demand delivery app lends the perfect platform to a business to showcase its diversified portfolio of products and services. Since such apps have a wide outreach, businesses can show all of their offerings online to customers in any part of the world, thereby resulting in increased visibility of their business.
c. Boost sales and profits
Statistics reveal that businesses who have partnered with online delivery app companies have given many leading businesses a serious run for their money. Can it be possible without improving upon your sales figures? Perhaps, its possibility is very bleak. Such an app, by virtue of its outreach to a large number of customers, naturally results in increased sales and helps build profits for the business.
d. Builds your business’s image
If your business partners with a smart and robust on-demand delivery app capable of offering online delivery app solutions, the likelihood is high that it is going to do a decent business following which it can command a good amount of market standing in the industry. Perhaps that’s how businesses get recognized; by associating themselves with leading on-demand delivery app companies. A long-term association naturally means better market reputation and image for the business.
e. Bunch of more loyal customers
On-demand delivery services that provide online delivery app solutions have put a lot of power in the hands of businesses. They have helped improve the overall delivery experience of customers thereby leading to more loyal customers for the business.
f. Improved customer experience
Customer experience is everything for a business. Through a feature-packed online delivery app, businesses can provide its users an enriching shopping experience. A customer who has had a great experience with a particular online delivery app is highly likely to come over time and again.
g. Helps gain a competitive advantage
At a time when on-demand delivery apps are dictating the rules of conducting a business, having one and not being able to compete in the industry is a big misfortune for any business. A business having a robust online delivery app, which by virtue of its wide online presence and delivery efficiencies, can help gain an edge over other players in the industry. This competitive edge leads to a business’s competitive advantage.
h. Saves a lot of time
Feasible online delivery app solutions save a lot of time for businesses by achieving efficiencies along the delivery channel. Informative real-time update on the distribution system is a handy enough feature that saves a lot of time. Businesses do also save time by effectively managing driver and order updates.
i. Cost effective
On-demand delivery apps greatly reduce the dependency of businesses on human resources by introducing innovative and automated processes into the system. It saves a lot of money as operational costs.
j. Helps establish a long-term relationship
By offering exceptional ordering and delivery services, on-demand delivery apps help businesses establish long-term mutual relationships with a wide customer base by offering great customer care facilities at their fingertips.
And last but not the least, an on-demand delivery app is your business’s perfect caretaker. Right from offering marketing services and receiving orders and from tracking parcels to answering consumer queries, an online delivery app takes care of every critical process that is a part of your business.
6. Is The Time To Ripe Act? Certainly, It Is.
So, without further ado, there would come no better time to invest in an on-demand delivery app regardless of your business model and industry sector. Businesses should remember that in a hyper competitive industry as of today’s, it is imperative for them to learn about what to do with the time that is given. The time that passes on never returns. Futuristic businesses must learn to use it with intention and purpose.
In fact, it is the most valuable resource aspiring businesses can have. How you utilize your time today says a lot about how well you prioritize the organization’s vital resources. Using technology as the business pivot and partnering with on-demand delivery service providers for continuing innovation and automation in processes, your business can certainly make a name for itself no matter how tough the competition gets.
Given the fact that since on-demand delivery apps and services are in vogue and are an ideal way to rethink, rearrange and mobilize your businesses’ workings, streamline turnaround time, and ameliorate customer service and experience, is your business going to make hay while the sun is shining? Or is it going to risk a few more important years and other valuable resources that could be really defining in achieving its goals?
