Delivery Service App Development: 3 Lessons You Could Learn From Postmates (Recently Valued $2.4B) Before Developing On-demand App

delivery service app

Are you an on-demand delivery services startup looking forward to investing in delivery service app development? This is a demanding field in itself and needs a complete understanding of how things work. We here tried to make the process easier for you. We sat down to have a chat with our on-demand app development consultant, having an experience of developing 40 on-demand apps of various categories.
The result? This blog.
The consultant took an example of the Postmates app (recently raised $225 m fund and is getting ready for IPO) and explained to us 3 lessons that you as an on-demand startup or a business going online should learn from it.

People are spoilt.

Too bored to cook and go out to eat? Order in. Too busy to go for weekly shopping? Get it delivered to your home. Out of booze? No need to step out anymore.

Just 10 years back, no one could have imagined that on-demand apps would become an inseparable part of everyday life. There are not many things that you can’t get by just tapping on the five-inch screen you carry in your pockets.

The trend of delivery service app development is growing, it is yet to reach its peak. And, there is no looking back now. Online food delivery apps and taxi apps are at the forefront of this on-demand app chain. They are immediately followed by on-demand grocery delivery and alcohol delivery apps.

There is one app that covers 3 out of these top 4 on-demand services, Postamtes app. If you want an on-demand delivery service app development, you should take a few lessons from this app before hiring an Android or iPhone app development company.

Before we jump onto these lessons, let’s get to know a little about the Postmates app.

Postmates – Top On-demand Delivery Service App

  • Postmates was launched in 2011 and is the pioneering company that has made on-demand food delivery a daily luxury.
  • It is considered the original Uber for food delivery app launched in 2014, bringing more fame to the company.
  • In January 2019, as reported by TechCrunch, this Uber-like app for food delivery raised $100 million investment which brought its valuation to $1.85 billion.
  • In September 2019, it prepped up for IPO by raising $225 million, making its valuation reach $2.4 billion.

How does Postmates do it? Well mate, here are the 3 lessons that will put some light on it. 

3 Lessons To Learn From Postmates Startups Can Consider While Delivery Service App Development

#1. Diversifying services

The only thing that is constant is change

You can’t keep doing just one thing for your entire life, can you? It will get boring at some point in time. Postmates started out as an on-demand delivery app only for food. It made its mark in the food delivery service marketplace but didn’t stop there.

This app diversified its services and has an official alcohol category in the app. To keep the customers hooked, it offers free delivery for all orders above $30. If someone is an unlimited subscriber, he gets free delivery no matter what the total amount is.

Why not spread your wings to the fullest of their potential? Not restricted to food and booze, Postmates also offers an online grocery delivery service as well. This is called Postmates Fresh for groceries.

There is a smart strategy behind this expansion. Any user would prefer to have options. Any user would rather have one delivery service app for three different services rather than have one for each.

Lesson: First lay out a strong foundation in one service that you can provide. Get greedy and branch out! The sky’s the limit. Do make sure you don’t bite off more than you can chew but keep making progress.

#2. Keep the customer in the loop

There is a lot of competition in the market. It is very important that you keep the users and customers aware of your existence. Try different coupons and offers that can make your app more appealing.

Once you get the users, it is important to retain them as well. These discounts and offers should not be discontinued as soon as they become your users. Give them a buffer period after they install and use your delivery service app.

Provide them with your best service and after they start using your app frequently, you can withdraw these discounts to start making money. In order to make money, make sure they have top-notch user-experience.

The users should be able to search for the item they are looking for very easily. They should be able to search by the item name, brand, location, reviews, and other advanced search filters. The process of ordering should also be quick.

Here comes the tricky part, the users want everything in real-time. They need to be in the loop of the delivery process as well. They should be able to track the delivery status of their order on the mobile delivery app.

Lesson: The customer is king. Create the best user experience for them. Let them track their delivery and make sure they are aware of your services and offers.

#3. Integrate features that are unique and useful

Postmates app lets the user decide whether they want to get their order delivered or pick it up themselves. Even you can integrate such a feature. How is this useful? Well, the pick-up option is a little more affordable than the delivery option as no delivery charges are applied.

What about you? You will save on the labor needed to do the delivery and also save on the fuel, employee and delivery management. Win-win for both parties.

Postmates has also introduced Postmates Plus and Postmates Party features. In Postmates Plus is a fixed-price monthly subscription package. If a user has this membership, he doesn’t need to pay for any delivery charges whatsoever.

delivery service app development

Image Credit: Postmates

Postmates Party is like Uber Pool for delivery. Customers can get the food delivered for free, eliminating the delivery charge if they pool their orders with their neighbors. This is one of a kind feature that reduces the delivery charge for the users and labor work for your company.

Lesson: It is now time to think differently. You can take inspiration from Postmates but you should have your own touch in your on-demand delivery app development. Integrate features that will help your app to cut through the noise other delivery service apps are making. 

Parting Thoughts

So, these were 3 lessons that you should keep in mind while developing your own on-demand app. It doesn’t matter whether you deliver food, packages, groceries, medicine, booze, or anything else if you are an online delivery startup, these lessons are for all on demand solutions.

If you have any queries or doubts regarding on-demand mobile app development or how to hire on-demand app developers, or what are the mobile app development process steps we follow, feel free to contact us. 

We are an eminent Android and iPhone app development company having an experience of developing over 3500 mobile apps that run seamlessly on these platforms. Among these, 40 are on-demand apps in various categories.

You can also avail of a consultation with our expert, free of charge. Just drop your email in the Contact Us form in the footer and one of our sales representatives will contact you within 48 hours.

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