How Much Does It Cost to Develop an On-Demand Delivery App?

June 2021

On-demand delivery mobile applications have transformed the way we shop, making it easier than ever to discover new restaurants, stores, and more.

And because of this, demand for these types of apps is at an all-time high.

So, what does it cost to build your own on-demand delivery app?

Regardless of the final cost of your on-demand delivery app, it’s important to understand the development and business processes involved to determine the cost of your on-demand application adequately.

Read on to learn more about how much your next on-demand delivery app could cost.

What Are Your Business Needs?

Requiring an application in a shorter time frame will be more expensive to fund. Scarcity increases the value of applications, especially if you require bespoke developers who understand your business needs and application requirements.

Features also come into play. For every specific application need, expect the cost of developing and selling your application to rise. For every feature that you can generalize and reduce the complexity of, by contrast, expect the application costs to lower. The more flexibility you can provide your in-house or outsourced application development team, the better your financial bottom line.

In addition, you need to ask the right questions, such as:

  • Is this familiar application territory for your application team?
  • Has your team developed similar applications for your platform of choice, like iOS or Android?
  • Has your team developed similar content and implemented similar features in past applications?

The more accessible and more familiar the territory, the lower your costs will be.

What Are Your Customers Needs?

As a business, you must never lose sight of your customers' needs. They come first. If your customers wish for an application with specific features, you need to deliver such features. However, keep in mind that the more expensive your features are, the more expensive your app will be to develop.

Expenses for feature development can show in various ways. A feature can be expensive to implement if:

  • Implementing the feature requires paid services integration like a corporate AP
  • The feature is too complex or advanced for in-house developers to understand
  • Implementing the feature increases development time, which will increase project costs

Customer specifications need to be met before all else. After all, customers and clients will be the main users of your app.

What Will the Market Accept?

Beyond your company and the needs of your customers and clients, you need to consider what is marketable. If you have a great app that is not marketable, it may not be worth much beyond using it as an internal app for consumers already connected to your company. If you are building an app, it is ideal if your app can both help you and your customers, and appeal to prospective customers as well. If your app is the core of your business, the appeal and marketability of your app are essential. Research requirements need to be added to your budget.

What Is Your Marketing Strategy?

Once you build your dream app, how will you market it successfully? Apps cost money to develop and market, and you cannot make too many mistakes without compromising your budget. You need to use your app to increase your revenues. Will you create an ambassadorship program? Give away the app for free with in-app advertising or purchases?

Developing your marketing strategy, even during the planning stage of mobile app development, is essential, even if your timeline to deliver is slightly lengthened.

Your Platform Matters — A Lot

Choosing to develop for the Android or iOS market is an important decision that cannot be made lightly. Even if you choose both and develop for one platform first, your choice will significantly influence your mobile app development company's direction during the development process.

Choosing iOS app development, for example, is a more expensive endeavor than Android app development. However, it is well-known that Apple device users are more likely to pay for apps on their devices than Android users who enjoy in-app advertising and purchases instead of upfront costs.

iOS development, needing specific hardware and software for development, is also more expensive, yet the development process is shorter due to the need to develop apps for fewer screen resolutions. Android development is open-source, but screen fragmentation issues need to be addressable during development.

Platform matters. Even choosing both will influence your decisions during development. You may need to create customer profiles and research demographic data for your region, especially for delivery apps, as the location is essential to get right. Developing an app that your customers are willing to use and is available in your customers' app store of choice is crucial.

Ready to Build Your Next On-Demand Delivery App?

Are you looking to build an on-demand delivery app that can take your big idea to the next level? You now have a better idea of the key considerations that can make or break your app’s success.

If you’re ready to get started, get in touch with Techware Lab today. We offer custom software development for B2C and B2B companies, and we can help you get your on-demand delivery app built and launched in no time.