It simplifies your delivery process from end to end, helping you provide faster and more reliable service to your customers.
Here, we’ll discuss everything you need to know about on-demand delivery software – its main benefits, top industries and use cases, key features, and more.
Let’s dive in!
Table of Contents
What is on-demand delivery software?
Let’s start with the basics – what is on-demand delivery software?
On-demand delivery software is a software product that helps you manage real-time ordering, dispatching, tracking, and delivery of products to users.
Think of it like the engine behind modern, instant logistics across a range of industries.
It’s a massive market, too.
Just the online food delivery market reached a value of over $1 trillion in 2023, with $630 million generated in grocery delivery and $390 million in meal delivery.
And there’s a very good reason for that – huge customer demand.
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This shift to convenience and immediate fulfillment means you need to invest in robust, scalable software solutions if you want to stay ahead of the competition.
And that’s where on-demand delivery software comes in.
Next, we’ll cover the main use cases and top industries that use it.
Top industries and use cases for on-demand delivery software
Here, we’ll cover the top industries and use cases for on-demand delivery software solutions.
Food delivery
Food delivery is one of the most visible use cases of on-demand delivery software.
And as we mentioned previously, it’s a massive market and customer demand is showing no signs of slowing down.
53% of consumers, including 67% of Millenials and 63% of Gen Z adults, say that ordering takeout from restaurants is an essential part of their lifestyle.
Let’s take a closer look at just one food delivery app, DoorDash. In 2023 alone, DoorDash processed 2.1 billion orders:
The biggest reason these apps are successful is the on-demand delivery software they use.
They use algorithms that match orders with the most appropriate delivery person based on distance and real-time data like traffic conditions and restaurant readiness.
This allows them to ensure delivery times are low, often under 30 minutes.
And that convenience is exactly what customers want.
Retail and e-commerce
In retail, the need for fast shipping has become the standard.
Companies like Amazon have set the bar with their same-day and one-hour delivery options, pushing other retailers to adopt on-demand delivery models.
But, it’s not just huge companies using on-demand delivery software in this market.
Even smaller e-commerce companies are using white-label on-demand delivery software to offer quicker delivery times, competing with major players.
Individual brands like Zara now offer same-day delivery options in major cities, using high-quality software that coordinates between local inventory and delivery partners.
This need to reduce delivery times has driven innovations like micro-fulfillment centers, strategically located warehouses stocked with high-demand products.
Grocery delivery
Grocery delivery is another booming industry for on-demand delivery software.
And these habits are here to stay, with 40% of consumers saying they order groceries online weekly.
So, how do these platforms work?
These platforms rely on real-time inventory updates and location-based software to ensure customers get their groceries as soon as possible.
Shoppers can see which items are in stock, add to their carts, and track the delivery in real time.
This convenience has made grocery delivery a staple for many households, particularly for working professionals and families.
Pharma delivery
In the healthcare sector, the stakes for timely delivery are much higher.
It’s also a massive market, with the pharmaceutical drug delivery market reaching a value of $1.9 trillion in 2023.
And on-demand delivery software can help take it to the next level, ensuring that critical medicines and supplies reach patients quickly.
Telemedicine companies, pharmacies, and even hospitals are using these platforms to offer faster service, with some of the top players in the market being:
As you can see, there’s a lot of moving parts here. Or, in other words, plenty of ways it can go wrong.
And that’s where on-demand delivery software comes in.
It automates key processes like:
Order management
Dispatching
Order tracking
This helps businesses minimize human error and reduce operational inefficiencies.
And that’s just the tip of the iceberg.
For example, high-quality on-demand delivery software can help you optimize your delivery routes using real-time traffic data and intelligent driver management.
Also, predictive analytics can help you anticipate peak demand times and optimize your supply chain accordingly.
And that’s key to improving your efficiency.
Better user experience (UX)
A seamless user experience is crucial if you want to keep your customers happy.
In fact, 85% of online shopperssay that a poor delivery experience would stop them from ordering from an online store – customers want to know where their order is and when it will arrive.
So, providing them with a great experience is essential.
And on-demand delivery software can help you do just that.
The key to a good UX are features like:
Real-time tracking
Live courier tracking
Timely notifications
Secure payment options
These features provide transparency and keep customers informed throughout the delivery process, helping you build trust.
And that’s key to a great experience.
Key features of on-demand delivery software
Next, we’ll cover the key features an on-demand delivery software solution should have.
Admin and management features
As an admin, you need full visibility over the delivery process to keep operations running smoothly.
The admin and management features help you efficiently manage everything from order tracking to inventory management.
Here are top admin and management features your on-demand delivery software should have:
Order management – Allows you to track, modify, and prioritize customer orders in real-time
Inventory tracking – Lets you keep tabs on available stock, so you avoid running out of items during high-demand periods
Payment integration – Secure payment gateways like Stripe that support multiple payment methods
Analytics and reporting – Insights into order volume, delivery times, customer satisfaction, and courier performance
Real-time notifications – Alerts for admins and managers when there are delays or issues with delivery, helping them respond promptly
CRM integration – Seamless integration with customer relationship management (CRM) systems for better customer service and loyalty programs
Next, we’ll cover the key courier features.
Courier features
For couriers, efficiency and ease of use are crucial.
Couriers rely on the on-demand delivery software to know which deliveries to prioritize, the best routes to take, and how to communicate with customers.
This helps them make fast, accurate deliveries with minimal errors.
Here are the top courier features your on-demand delivery software should have:
Route optimization – Automatically calculates the best possible route based on traffic, distance, and number of stops, reducing delivery time
Real-time GPS tracking – Guides drivers to their destinations and helps managers track their progress in real time.
Task management – Allows couriers to see and prioritize their deliveries for the day, ensuring they follow the most efficient sequence
Digital proof of delivery – Options for customers to sign digitally upon delivery, confirming they received their goods
Communication tools – In-app chat or call features so couriers can communicate with both customers and dispatchers
Order history – Allows couriers to see their past deliveries, helping them learn from previous trips and improve their performance
Finally, we’ll go over the key user features.
User features
The end-user experience is one of the most important aspects of on-demand delivery software.
Customers want intuitive, hassle-free interaction with the platform.
Here are the top user features you should include in your on-demand delivery software:
Easy-to-use ordering interface– A user-friendly interface that allows customers to quickly place orders with minimal fuss
Real-time order tracking – Provides customers with live updates on the status of their delivery, from preparation to when it’s out for delivery
Push notifications – Instant notifications for order status updates, promotions, and special offers
Multiple payment options – Supporting different payment methods, including credit cards, mobile wallets, and cash-on-delivery
Ratings and reviews – Lets customers give feedback on both the product and the delivery experience, helping with quality control
Order history and reordering – Saves previous orders, making it easy for customers to reorder their favorite items
Custom delivery instructions – Allows customers to give exact delivery instructions, like “leave package at the back door”
Choosing the right features is key if you want to build a successful delivery platform.
But, there’s an even bigger question – should you build a custom software solution or go with white-label on-demand delivery software?
Let’s explore that in more detail.
Custom vs. white-label on-demand delivery software: a comparison
Once you choose to include delivery in your business, another dilemma comes into play – should you go for a custom solution or a white-label platform?
And you need to make the right choice.
So, here’s an overview of the key differences between custom and white-label on-demand delivery software:
Custom vs. white-label on demand delivery software: overview
Category
Custom on-demand delivery software
White-label on-demand delivery software
Cost
$100,000+
$30,000-$50,000
Time to market
6+ months
Ready to deploy immediately
Scalability
Needs extensive planning and resources
Built-in scalability
Flexibility
Limited by technical complexity
Fully customizable and extensible
Maintenance
Requires a dedicated team for ongoing, long-term support
Ongoing support available
Ownership
Full ownership, but with significant investments
Full ownership, lower upfront costs
Custom on-demand delivery software is specifically tailored for your business and you can design every feature and interface to meet your exact needs.
But, that comes at a cost – it takes much longer to build and comes with higher upfront and ongoing costs.
White-label software, on the other hand, is significantly cheaper and can be deployed immediately.
It’s the perfect fit for small and medium businesses and startups building an MVP that need to get to market quickly.
On-demand delivery software: FAQs
Yes, on-demand delivery software is designed with scalability in mind, i.e. it’s able to handle large data volumes without compromising performance.
Both custom-built and white-label platforms offer scalability, but custom solutions provide more flexibility for larger expansions.
The cost of on-demand delivery software can vary wildly, depending on complexity and features you want.
Custom-built solutions can easily cost over $100,000 to build – and that’s just the initial development cost.
White-label software is significantly cheaper, coming in at $30,000-$50,000, and you get a ready-made product you can deploy immediately.
Just like the cost, the time it takes to build on-demand delivery software depends on its complexity and included features.
A fully custom-built solution can take 6+ months, or even up to a full year, to build if it’s complex and feature-rich.
But, a white-label solution can be deployed in a matter of days or weeks, depending on your level of customization.
Need on-demand delivery software?
Do you need an on-demand delivery solution? And you need it quickly?
Well, you’re in the right place.
We offer a pre-made, white-label solution you can fully customize to meet all of your business needs.
And that can save you $100,000+ compared to building a custom platform from scratch.
If you want to learn more, feel free to reach out and our team will set up a quick call to discuss your needs in more detail.
Ante is a true expert. Another graduate from the Faculty of Electrical Engineering and Computing, he’s been a DECODEr from the very beginning. Ante is an experienced software engineer with an admirably wide knowledge of tech. But his superpower lies in iOS development, having gained valuable experience on projects in the fintech and telco industries.
Ante is a man of many hobbies, but his top three are fishing, hunting, and again, fishing. He is also the state champ in curling, and represents Croatia on the national team. Impressive, right?
