On-Demand Delivery - Types, Process & Every In & Out

Uncover the benefits and steps of on-demand delivery and explore how TrackoMile can help your on-demand operations be less costly and more profitable by filling out the form.

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On-demand delivery has been a growing trend since the early 2000s, fulfilling customers’ immediate needs by offering quick & convenient deliveries of goods & services. On-demand delivery cropped up as a full-fledged delivery type ever since.

  • Customers have become impatient about receiving their goods and services (all thanks to those quick commerce brands).
  • Companies are adapting to the concept of delivering goods at a fast pace while reducing their operational expenses.
  • Delivery companies started earning great profit-earning opportunities, even in the shortest cycles.

Keys Takeaways

  • Learn what on-demand delivery is, how it works, and how it brings you more profit.
  • Popular on-demand delivery apps with market trends and stats that you can venture into earn great margins.
  • On-demand delivery solutions - what they are, how they simplify the delivery process, and the broad features they offer.

On-demand hyperlocal delivery whether done in hours or even minutes is not just restricted to delivery of grocery or food items. Traditional brands are selling every on-demand commodity that customers want, be it medicine, flowers, or utility items as basic as handkerchiefs.

On-demand delivery is time and cost-efficient only because brands are investing in on-demand delivery software that helps optimise resource utilisation, dispatch management, and delivery orchestration.

On-demand Delivery Meaning Defined

On-demand delivery is a process where e-commerce or delivery brands aim to provide delivery of products or parcels at a faster pace or customers’ preferred turnaround time.

End customers have the autonomy to set delivery preferences as per their specific needs. They can select the delivery date and time slot.

On-demand delivery logistics aims at keeping customer convenience at the forefront. This process is backed by modern automation-driven delivery scheduling and dispatching technology.

With TrackoMile, get a centralised platform to:

  • Effortlessly process urgent orders
  • Assign delivery agents in a few minutes
  • Keep a live watch on the delivery progress
  • Share ETA and get paperless POD
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On-Demand Delivery

On-Demand Delivery Process - How it Works?

Right from dispatching to final delivery — here’s how the entire on-demand hyperlocal delivery process unfolds.

  • Step- 1

    Order Placing Online

  • Step - 2

    Order Confirmation &
    Preparation by Retailer

  • Step 3

    Order Assignment to Riders

  • Step 4

    Dispatching & Delivery

  • Step 5

    Delivery Execution &

  • Step 6

    Successful Delivery and Customer
    Feedback Collection

Importance of On-demand Delivery Logistics for Enterprises

How does it benefit on-demand delivery businesses?

Here are the on-demand delivery benefits explaining why venturing into quick commerce is the next-best market for last-mile businesses to incentivize on.

  • Highly Competitive Edge

    Do you know that 3 out of 5 customers shop from brands that offer diverse delivery options? Modern customers prefer fast deliveries and expect every brand to offer delivery on-demand. It could be a competitive advantage for brands that want to scale and grow.

  • Large Customer Base

    In 2022 alone, over 3 bn people worldwide utilized online food delivery services. Among them, almost 1.2 bn individuals relied on grocery delivery platforms, while around 1.8 bn opted for meal delivery services. Thus, a great opportunity to win over customers' needs.

  • Less Infrastructure Cost

    On-demand delivery sales are done through online platforms. This further eliminates the need for investing in a physical store, making the associated daily operational costs for rent, electricity bills, and staff compensation – slim to none.

  • No Scope for Failed Deliveries

    It hurts and costs on-demand delivery businesses to re-attempt deliveries. On-demand deliveries reduce missed deliveries as customers are getting the flexibility to choose slots, edit locations, or reschedule delivery.

  • Self-service Delivery Model

    Customers love it when they get flexibility in choosing their delivery items and delivery slots. On-demand hyperlocal delivery platforms offer flexible, customer-centric platforms which are always a hit.

Types of On-Demand Local Delivery Apps (With Market Trends)

Almost 90% of online shoppers are millennials. Their need for quick, convenient (or impulse) deliveries has led to the rise of the following types of on-demand delivery solutions or apps.

  • Types of On-demand
    Hyperlocal Delivery Apps
    Market Size
    Leading Giants
  • 1. On-Demand Food
    Delivery Apps

    The market will grow by $266.05 billion between 2023 and 2027 at a compound annual growth rate (CAGR) of 24.64%.

    • McDonald's
    • Deliveroo
    • Just Eat
    • Uber
    • DoorDash
    • Grubhub
  • 2. On-Demand Grocery
    Delivery Apps

    The market will reach $2,159 billion by the end of 2030, with a CAGR of approximately 26% between 2022 and 2030.

    • Amazon
    • Grab
    • BigBasket
    • InstaMart
    • Blinkit
  • 3. On-Demand Medicine

    The market will reach $80.5 billion by 2027, with a compound annual growth rate (CAGR) of 28%.

    • 1mg
    • PharmEasy
    • Netmeds
    • Apollo Pharmacy
  • 4. On-Demand Flower
    Delivery Apps

    In 2022, the online flower delivery market was valued at over $27 billion, and it's projected to reach $10.1 billion by 203.

    • FNP
    • IGP
    • UrbanStems
    • Uber For Flowers
  • 5. On-Demand Courier
    Delivery Apps

    The market will reach $658.3 billion by 2031. It is growing at a CAGR of 5.7%,

    • FedEx
    • DHL Express
    • Postmates
    • UPS
    • Shipt

Key Challenges of On-Demand Delivery

(On Demand Delivery Companies Must Address Before It’s Too Late!)

On-demand delivery processes (when managed through outdated or poor technological platforms) pose challenges that retailers have to bear. Here are some logistics challenges in the on-demand delivery process.

  • Poor Route Allocation

    Last-mile businesses usually don’t have access to cost-effective and time-efficient delivery routes for drivers.

  • Late Deliveries

    Delivering on time is a necessity for last-mile operators. It’s hard to predict traffic, weather, and unforeseen circumstances on the delivery route.

  • Unpredictable Demand

    Unpredictable demand during booming or peak seasons is often challenging to fulfill as most businesses are not prepared with an optimum workforce.

  • Shortage of Driver’s Availability

    Without on demand delivery solutions, it gets tough to manage the availability and scheduling of drivers as per fluctuating demand.

  • Heavy Operational Costs

    Operators often find it challenging to balance quick deliveries with cost-effectiveness.

  • Poor Communication Amongst Dispatch Teams

    In a fast-paced environment, it's tough to maintain communication between drivers, customers, and dispatch teams.

  • Poor Visibility on Delivery Phase

    Up-to-date tracking information is often missing. Customers often don’t receive accurate order status, progress, ETA, and tracking ID to locate delivery riders.

  • Reluctance to Technological Upgrade

    Lacking integration with advanced technologies like last mile delivery software that helps with efficient carrier and order matching and dispatch management.

Last-mile or on-demand delivery businesses are required to stay prepared for the dynamic market conditions and have solutions that help keep up the supply chain technological trends. The use of on demand delivery software is a must for businesses to fast-track deliveries.

Top On-demand Delivery Apps Offering Fast Delivery in the Blink of an Eye

Note - What's the commonality that makes all of them so great and renowned? They are backed by powerful, AI-driven last-mile delivery software that oils their engine for resource scheduling, dispatching, on-demand delivery tracking to fulfill on-time, first-attempt deliveries.

Top 8 Hyperlocal Delivery Companies - Redefining Last Mile!

Facts & Stats Backing Growth of On-Demand Delivery Solutions

Here are some figures suggesting how big the on-demand delivery market is (or is going to be). Explain how now is the best time for on-demand delivery platforms to crop up.

  • 41% of consumers are ready to pay extra if they are guaranteed for next-day delivery.
  • 24% of customers prefer next-day or same-day delivery and are ready to pay exorbitant shipping charges.
  • 6.92 billion (almost 86%) of the global population uses smartphones (in all age groups). By 2025, the number will reach 7.33 billion which is increasing interest or dependence towards on-demand delivery apps.
  • $335 billion in revenue is projected to be generated by the on-demand market.
  • $57.6 billion annually is the total spending by customers globally, which will continue to grow.
  • 50% of on-demand service consumers who are primary spenders are aged between 18 and 34 years.
  • 30% of on-demand app users, who are the second largest buying group, are aged between 35 and 54 years.

How TrackoMile Helps Optimise On-Demand Delivery Process for “Lightning Fast Deliveries”?

TrackoMile, as a last-mile, on demand delivery software, equips last-mile delivery businesses with the following features that let businesses optimise their delivery resources and operations to ensure on-time deliveries.

Here are some key features of our on-demand delivery solution from a business POV:
  • Route Optimization

    The system runs on smart algorithms that factor variables like traffic, weather, delivery windows, etc to help plan the most cost and time-efficient routes.

    Silver lining - This further helps save operational costs as well.

  • Real-time Tracking

    The software helps track drivers and deliveries in real-time. It gives a 360-degree view of every moving phase of the delivery process. Plus, ETAs and order status are easily conveyed to the customer expecting the delivery.

    Silver lining - This helps look into any issues or last-minute changes proactively.

  • Carrier Management

    The software’s carrier management feature makes assigning orders to the right vehicles easy based on size, capacity, and load restraints. It even lets you set parameters such as a maximum number of items per vehicle, weight, and volume depending on the size of the vehicles. This helps optimise carrier utilisation.

  • Automated Dispatching

    The software knows the drill of how to auto-assign deliveries to drivers based on their proximity, availability, skillset, and 50+ factors.

    Silver lining - This helps remove the guesswork and speed up the dispatching process.

  • Analytical Reports

    With analytical dashboards and insightful reports around each delivery process and rider activities, it gets easy to gain insights about gaps or scope in the delivery performance.

    Silver lining - Dispatchers get insightful data to take corrective measures or build robust strategies.

  • Multiple Delivery Slots

    With multiple delivery slots, it’s easy for end-users to enjoy flexible and contactless deliveries at preferred drop-off locations.

  • Proof of Delivery & ETA Sharing

    The software makes it effortless to capture multiple ePOD formats such as digital signatures, barcode scans, picture clicks, custom notes, and more. The quick ePOD submission helps verify deliveries at assigned locations.

How Do Your Customers Benefit from On-demand Delivery Software?

Given how impulsive and curious on-demand shoppers are, customers on the receiving end get:
  • Live tracking of their ordered items in real-time with precise ETA telling when they will receive their products.

  • Customers receive real-time delivery notifications and updates or status through email, SMS, or push notifications.

  • Flexibility in choosing delivery slots. They get options to select the date, and time slot along with the location of delivery — with ease.

  • Option to communicate with the driver through chat or phone calls to get informed about delivery updates.

  • Options to manage returns and schedule pickups effortlessly directly through the platform.

Frequently Asked Question

Have some more looming doubts about On-Demand Hyperlocal Delivery? Here are your answers!

  • What is on-demand delivery?

    On-demand delivery is when any on-demand goods or services are delivered in a short period or as prescribed by end costumes. The process is facilitated via mobile apps or websites. Popular brands like Dunzo, BlinkIt, and Country Delight are a few Indian pioneers in the on-demand delivery segment.

  • What is an on-demand delivery service?

    Behind on-demand delivery services, there are experts responsible for optimising the last mile of delivery. They equip fast-paced hyperlocal businesses with on-demand delivery management software for efficient routing and real-time tracking that helps reduce the time and resources required to push goods from fulfillment centers to customers' doorsteps.

  • Why is investing in on-demand delivery apps important?

    Sources suggest that the on-demand food delivery market will soon hit $161.74 Billion by 2023. It’s a great time to invest in the on-demand delivery module as millions of mobile users are willing to spend extra just to enjoy fast and convenient at-door service. Investing in on-demand delivery apps is a great move as it’s profitable and sustainable.

  • Which industries benefit from on-demand delivery management software?

    Fast-paced hyperlocal businesses looming around grocery stores, pharmacies, milk booths, and florists benefit from the use of on demand delivery software.

  • How does on-demand delivery work?

    The process of on-demand delivery takes place through digital platforms, specifically mobile apps or web apps. The platform helps place orders, the same is assigned to nearby riders and the order is delivered according to the customer's prescribed delivery slot.

  • How to start an on-demand delivery business?

    To start an on-demand delivery business, maintain an inventory of goods you want to sell and onboard a last-mile delivery app that lets you:

    - Manage order requests and align them to the suitable rider and carrier.
    - Have real-time visibility on the dispatch and delivery operations.
    - Match orders with the riders and carriers based on each of these skills, proximity, capacity, and other 50+ conditions.
    - Plan efficient routes after factoring in variables like traffic, distance, priority, and other 120+ critical factors.
    - Effortlessly take proof of orders delivered via OTP, e-signature, bar code scans, and more.

  • How Much On-Demand Delivery Costs?

    On average, the cost of an on-demand delivery management app can vary according to the features, functionality, and level of customisation needed.

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