On Demand Delivery: The 7 Key Ingredients to Success

by | Dec 15, 2022 | Blog, Routing & Dispatch

On-demand delivery is all the rage these days. It seems like every business, no matter what industry, is getting in on the action. Why? Because on-demand delivery is a great way to attract and retain customers. But what are the key ingredients to success when it comes to on-demand deliveries? In this blog post, we will discuss seven of the most important factors. Keep reading to learn more!

What is On-Demand Delivery?

On-demand delivery is a type of delivery service in which items are transported to customers almost immediately after they are ordered. This is in contrast to traditional delivery methods, in which customers often have to wait several days or even weeks for their orders to arrive.

On-demand delivery has been around for quite some time. In fact, the first on-demand delivery service was introduced all the way back in 1914 by a company called Pigeon Express. This early on-demand delivery service used homing pigeons to deliver messages and packages between New York City and Chicago.

However, it wasn’t until the advent of the internet and smartphones that on-demand delivery really took off. In 2009, a company called TaskRabbit was founded. This company allowed users to post tasks they needed to be completed, and then receive bids from people in their area who were willing to complete the task for a fee.

Since then, on-demand delivery services have become increasingly popular. In 2014, a company called Postmates was founded. This company allows users to order items from local stores and have them delivered to their doorsteps in a matter of minutes.

Why Has On-Demand Delivery Risen in Popularity?

On-demand delivery has seen a surge in popularity in recent years. According to a Statista report, the global internet food delivery sector is expected to be worth 130.2 billion US dollars in 2022. This sum was predicted to rise to 223.7 billion US dollars by 2027. Over the study period, the market was predicted to increase at a 11.44 percent CAGR. There are a number of reasons for this increase in popularity.

One reason for the popularity of on-demand delivery is the rise of mobile commerce. A recent study found that mobile commerce spending in the United States took up 36 percent of all digital spending in the fourth quarter of 2021, a record high since the fourth quarter of 2017, when mobile commerce only made up 24 percent of total digital spending in the country. With more people using their smartphones to shop, there is a need for delivery options that are designed for mobile users. On-demand delivery apps offer a seamless shopping experience that is perfect for mobile users.

The rise of social media has also played a role in the popularity of on-demand delivery. Social media platforms like Instagram and Facebook have made it easy for people to share photos and videos of their purchases. This has led to a desire for more immediate gratification, which on-demand delivery can provide.

The increase in popularity of on-demand delivery can also be attributed to the growth of the gig economy. The gig economy is made up of people who are working freelance or temporary jobs. This type of work is often done through an online platform, such as Uber or Airbnb. The gig economy is expected to reach 455.2 billion US dollars in 2023. As the gig economy grows, so does the demand for on-demand delivery.

The popularity of on-demand delivery is also due to the changing demographics of the workforce. The traditional 9-to-5 job is no longer the norm. More and more people are working remotely, which gives them more flexibility when it comes to when and where they work. This shift has led to a need for delivery options that can accommodate these changing schedules. On-demand delivery is the perfect solution for people who are working remotely or have unpredictable schedules.

More and more people are working long hours and have less time to cook meals or go shopping. According to a report from the Bureau of Labor Statistics, the average American worker works 8.8 hours per day. This leaves less time for cooking and shopping. On-demand delivery services provide a convenient way to get food and other items without having to leave work.

The rise in popularity of on-demand delivery can be attributed to a number of factors. The convenience and flexibility of on-demand delivery make it a perfect solution for today’s busy lifestyle. With the growth of the gig economy and the rise of social media, the demand for on-demand delivery is only going to continue to grow.

Types of On-Demand Delivery Apps

There are a number of different types of on-demand delivery apps.

Retail Apps

One type of a delivery app is a grocery delivery app. Grocery delivery apps, such as Instacart, allow workers to shop for users from local grocery stores and then personally deliver the goods to their doorsteps.

Food Delivery Apps

Next is a food delivery app. Food delivery apps allow users to order meals from local restaurants and have them delivered to their doorsteps. These apps are perfect for people who don’t have time to cook or who want to avoid the hassle of going out to eat. Some of the most popular food delivery apps include Uber Eats, DoorDash, and Asap.

Grocery Delivery Apps

The third type of on-demand delivery app is a retail app. Retail apps allow users to order items from local stores and have them delivered to their doorsteps. This goes beyond just grocery delivery, and can include clothing, appliances, and more. Like the other apps, these apps are perfect for people who don’t have time to go to the store or who want to avoid crowds.

Package Delivery Apps

The fourth type of on-demand delivery app is a package delivery app. Package delivery apps allow users to send packages to their friends and family. These apps are perfect for people who want to avoid the hassle of going to the post office.

On-demand delivery apps are becoming increasingly popular; they are convenient, flexible, and easy to use.

Key Factors for Successful On-Demand Deliveries

Consumers love the convenience of being able to order a product and have it delivered right to their door without having to leave home. But what factors are essential for creating a successful on-demand delivery business? In this section, we will discuss seven key factors that you need for success!

1. A User-Friendly Online Ordering System

The first and most important factor you need for successful on-demand deliveries is a user-friendly online ordering system. Your customers should be able to easily find and order the products they need with just a few clicks. If your website is difficult to navigate or if your ordering process is complicated, you will likely lose customers to your competitors.

2.A Robust Delivery Infrastructure

In order to ensure that your on-demand deliveries are successful, you need to have a robust delivery infrastructure in place. Customers want to receive their orders quickly and without any issues. Be sure to map out a delivery route that is quick and easy for your drivers to follow. Having enough vehicles and drivers to meet customer demand, as well as a GPS tracking system so that you can keep track of your deliveries in real time, is important in ensuring each delivery is on time.

3. A Commitment to Customer Service

Providing excellent customer service is essential for any business, but it’s especially important for on-demand delivery services. Customers will have questions and concerns, so you need to be available to address them in a timely and efficient manner. Customers should be able to contact the business easily if they have any questions or concerns. If you can provide excellent customer service, you’ll build a loyal customer base that will keep coming back.

4.Convenience and Reliability

On-demand delivery services need to be convenient for both the customer and the business. The customer should be able to order what they need when they need it, and the business should be able to deliver the order in a timely manner. On-demand delivery services need to be reliable. Customers should be able to trust that their orders will be delivered on time and as promised.

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5. Flexibility

Flexibility is also important for on-demand delivery businesses. You should be able to accommodate customer requests, such as deliveries outside of your normal delivery area or rush orders. Customers should be able to choose from a variety of delivery options, such as same-day delivery or next-day delivery. If you are not flexible, you will likely lose customers to your competitors.

6. Competitive Pricing

On-demand delivery apps need to be affordable for users. They should be priced competitively and offer discounts or coupons when possible. Many users are hesitant to use on-demand delivery services because they perceive them to be expensive. If you can offer competitive pricing, you will likely attract more customers.

7. Security

Finally, on-demand delivery businesses need to be secure. Customers need to trust that their personal and financial information is safe when they use your app or website. Be sure to have a secure payment gateway in place as well as a privacy policy that protects the customer’s information. On-demand delivery apps should use SSL encryption to protect user data. If you can provide a secure and safe experience for your customers, you will build trust and credibility.

Don’t Have the Resources for Delivering on Demand? Don’t Let That Stop You!

If you don’t have the resources to deliver on-demand, there’s no need to worry. A delivery network can help you complete on-demand deliveries. A delivery network is a group of delivery companies that provide on-demand delivery services. When you partner with a delivery network, you’ll have access to a fleet of drivers and vehicles, as well as a robust delivery infrastructure.

Joining a delivery network is a great way to get started with on-demand delivery without having to make a large investment. You can use a delivery network to supplement your in-house delivery fleet or to outsource your entire delivery operation. For example, if you’re a restaurant that wants to offer on-demand delivery but don’t have the resources to do it yourself, you can partner with a delivery network. The delivery network will handle the pick-up and delivery of your orders, so you can focus on running your business.

Conclusion

Research released by Lending Tree in 2021 shows that more than 196 million Americans, or more than 77% of the population, used an on-demand delivery service by 2020. Furthermore, Seven out of ten (70%) Americans are prepared to part with extra cash to save time and effort. The on-demand economy is booming, and it shows no signs of slowing down. According to an EduMe survey, about half of all Americans now rely on food delivery services: 60% are spending more money on food delivery than they were before the pandemic. This, according to Bloomberg Second Measure has been boosted by third-party delivery services like DoorDash and Uber Eats. What’s more, the on-demand economy is no longer just for food delivery. A wide range of businesses, from grocery stores to florists to dry cleaners, now offer on-demand delivery services. If you’re not already offering on-demand delivery, now is the time to start. Provide your customers with the convenience they crave.

Do you need help getting started? Elite EXTRA can help. Elite EXTRA’s third-party delivery network is a fast and simple way to get launch on-demand delivery without having to make a large investment. You can use Elite EXTRA’s network to supplement your in-house delivery fleet or to outsource your entire delivery operation.

With Elite EXTRA’s Delivery Network You Can:

  1. Get access to a fleet of drivers and vehicles, as well as a robust delivery infrastructure.
  2. Compare the prices and turnaround times of your chosen delivery providers and find the solution that suits you best by comparing price and time!
  3. Compare delivery network drivers with those in your internal fleet using Elite EXTRA Routing & Dispatch, which you can integrate with the delivery network.
  4. Get delivery status updates from third party delivery companies to communicate with your clients and to keep your staff updated.
  5. Pay using the Network system to avoid having to deal with each third-party provider.
  6. Analyze your favorite providers’ performance statistics to make informed business decisions.

To get started with Elite EXTRA’s third-party delivery network, request a free demo today.

Sources

https://www.lendingtree.com/credit-cards/study/americans-spend-on-delivery-services/

https://www.statista.com/statistics/1170631/

https://www.statista.com/statistics/252621/

https://www.cnbc.com/2017/05/03/how-the-8-hour-workday-changed-how-americans-work.html

https://www.edume.com/news/half-of-americans-reliant-on-food-delivery-services

Ben Halverson

Ben Halverson

Author

Ben is the Marketing Director at Elite EXTRA. Over the past 15 years, Ben has experienced an array of business jobs, tasks and experience. One of his guilty passions is buying and selling businesses. In his free time, Ben enjoys spending time on the lake, in a hockey arena or gym and playing golf.

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