The previous decade has seen a worldwide rise in the food delivery segment. Hearing this, I know many examples are popping up in your mind. The list also includes Postmates. The delivery suite allows customers to request food from nearby stores through an app and deliver it right to their doorstep. An app like Postmates is an entrepreneur’s top pick to contribute and participate in the food delivery industry.
Postmates is one delivery giant in the US that has been booming since 2011. Although it delivers more than just food, it is popular for fast delivery services. Also, it offers some unique plans for its customers which avoid delivery costs. Reports allege that in the US, Postmates estimated a hike in the contribution to the food delivery market from 8 % in 2018 to 9% in 2022. The company operates in more than 100 metropolitan cities in the USA.
And that is why delivery platforms are widely adopted by businesses giving a top-notch potential for profitability. In so much competition, just a platform will not be enough to enter and stand longer. Even if you are a well-built restaurant or a startup, an app like Postmates is half the way to your goal, and for the rest, it has to be unique from all competitors adopting a new strategy.
So, here we are to share with you an appropriate process to build an app similar to Postmates.
Evaluate the Right Process for Creating an App Like Postmates
When you start right, you get right. You want to enter the food delivery business, and you decide to build a solution. Begin with research for the same. It includes how you make an app, how you monetize it, and also how to customize it to the user’s choice. Let’s dive into the series of processes to be followed.
Conduct a Business Analysis
As mentioned even before, the food delivery segment is vast. So it is better to understand the market first. And with that, I meant to understand that competitors are already acquiring a huge portion of the market. Then know your perspective to build the platform. Besides, analyze the audience and their evolution of behavior in the future.
Choose the Business Model
Next, choose the business model based on the customer’s behavior and business goal. Cut down the model with the various segments. Define business models with the customer relationships, customer segments, earning sources, etc. All of these would help understand the demand for delivery applications and the scope of the businesses. We have explained a few points of the business model.
A unique value proposition makes your app stand out from the competitors. Looking for the values that customers would fall for and the ones that are not existing in the market. It could be the lesser time for delivery, exciting offers and discounts, rewards, a wide range of stores, an appealing user interface, and anything other than this. Postmates’s value propositions were to offer ordering of anything from stores, charging nominal delivery fees, and the time for delivery is also less than 2 hours.
Everything is in vain when you can’t connect to the customers that are right to your business. Yes, I mean potential customers. Reach out to the customers to whom you can matter the most. The person who has a lack of time, who wants convenience, who is epicure. Based on your value proposition, target the customers. Also, for the merchants who are looking to expand their services from just dine-in to delivery services reaching wider audience ranges. And delivery providers who are looking for a part-time job.
Postmates has adopted multiple marketing strategies to acquire the customer in its initial days, and that too targets the potential customers. Strategies like online ads, social media promotion, and other marketing tools. Besides, they had built relationships with the customers through social media, customer support in the app, reviews and ratings from the customers, and taking charge of it. Consider some other relationship channels like offers, discounts, referral benefits, etc.
Define your unique approach to the business, which will lead to easy access to the huge customer base. Also, Postmates is adopting a brilliant business model that leverages the position where they are currently and also wider scope for the future. You can refer to its tactics and approaches and use them to draw down for your app like Postmates.
Stay Up to Date
Always stay up to date with the trends that your customers follow. It is about the features and functions they are likely to use in the app. For example, restaurant business trends like ordering methods, advertisements, and rewarding methods are widely adopted by the business. Also, opt for the best technology you can utilize for the development process. Ensure you build dedicated modules for customers, delivery providers, and stores for a smooth workflow personalization to use the platform.
Select From Multiple Business Models for Delivery Services
A business goal defines the delivery app, whether you are targeting local markets, international markets, or methods to offer ordering and delivery services. Down here are some common methods mentioned:
Order Only Model
Dinners allow their customers to order food online, increasing the footsteps. Customers will have to pay a small amount regardless of the order. Also, they could be charged set-up fees. Admin can list multiple stores in its apps and earn commission from them. Though a drawback of this model is they cannot ensure the quality of the items.
Order and Delivery Model
In this, the customers can order from their nearby store and also request delivery services. The main earning channel for the owner is a commission of order and share in delivery fees. They also have control over the time of the delivery services, and customers within the app.
In this model, the admin manages the production, orders, delivery, and prices for each. It allows them to control the food quality, timely deliveries, sales, etc. The customer retention and satisfaction rates are all under their control.
Mistakes to Avoid
Postmates’ way of business is inspiring, and that also has the characteristics to take charge of, as the mistakes are avoided. Though it is the ideal business, it also struggles with the issues of its model. There could be a bunch of reasons for the failure of the food delivery startups. Let’s have a look at some common troubles:
- Solving the issues of the user interface. The information or data you offer has to be organized and neat. For example, the menu of the items. It has to be accurate and comprehensive with the right information and description of them.
- Integrate payment methods that are secure and easily adopted by the consumers. Also, the methods have to be compatible with all devices and also in the various regions so as to retain expanding opportunities.
- The platform you develop has to be consistent for its access to the various device types. More importantly, when you are targeting the customers that have equal division of the device use like Android and iOS.
One of the best ways to learn is by avoiding the mistakes that others perform. And as you create an app like Postmates, you take charge of the pros and cons of its business model, and there you could be a step ahead already.
How Can You Choose the Revenues Routes?
Again, this is a factor that depends on the business model you adopt. It is an important decision for the business on how they can monetize their platform. Having a diverse revenue channel would ensure higher ROI. Some of the basic monetizing methods for an app like Postmates are:
Admin can seek shares from customers and delivery providers. The price varies based on the distance and region of the store.
Promotion of Stores
One idea is to promote the store on the platform. Admin can charge them for the space offered to them for the promotion, and that too is based on the time interval.
Admin can create advertisements for the stores for items, categories or discounts, and offers. This is again chargeable based on the time and space the store advertises.
Admin can charge stores, customers, and delivery providers for using the platform. They can charge yearly or monthly packages.
How Much Does it Cost to Create an App like Postmates?
So our last point of discussion today is cost. We have already discussed a lot about an app similar to Postmates about the factors it affects. It would require three separate apps, respective panels, a dashboard for admin, third-party integrations, payment processions, and a lot more. As the level and complexity of the app increase, the cost also increases.
Well, there is no such exact number to define the cost of the platform. It varies with the business dimension, segments, company for development, location of the company, customization, and maintenance cost.
Although, an approximate development cost of an app like Postmates is between $8000 to $15000. This is the most basic range that has lots of factors affecting it.
|iOS Development||10-12 Weeks||$5000- $10000|
|Android App Development||10-11 Weeks||$7000- $9000|
|Panel Development||10-12 Weeks||$7000-$8000|
Reasons to Choose an App Similar to Postmates
The delivery service business intends to provide convenience to its customers. Customers in their comfort zone can order and request delivery services. Although that is not the only benefit that a platform like this offers. Postmates, if we consider it, is not just about convenience. Some of the practices that it has become a giant delivery business are mentioned here:
- It doesn’t charge fees from the providers. One can register to the platform and earn using the platform.
- It is settling the payments within a week
- It has the top-rated restaurants and chef’s food listed down.
So these are the benefits a business could be benefited from. Next, we also are referring to the benefits the platform leverages for a business.
- A comprehensive menu a store and admin both can manage, like items, prices, tax, description, availability, etc.
- Admin can choose to keep charges for the delivery based on the zone or price per distance option.
- Businesses can connect a wide range of stores, even to most local areas and stores that do not offer this service.
A Few Words At The End!
We have come down to the conclusion that creating an app like Postmates includes factors like investment, approach, and risks over all other options available. We also referred to the right approach to build it and noted the cost factors and benefits of the platform. This much research is enough for starting the business. Isn’t it? Well, at least you can start with creating an app. And if you made up your mind and need no more convincing factors, partner with the Postmates clone app development, for a versatile and robust platform, which can also help you know more about the practical aspects of the business.
Frequently Asked Questions
What is the purpose of the Postmates clone?
Postmates clone built for the business that offers delivery services like food, grocery, alcohol, etc. It consists of dedicated modules for customers, stores, and delivery providers, connecting them together for the respective services.
Is it necessary to build separate apps for all the prospects?
Businesses that offer services similar to Postmates should offer an intuitive app for both customers, providers, and stores. Each has its own working flow and functions. A separate app will offer them a personalized way of working and connecting with each other efficiently.
Services similar to Postmates should think not only about their users but their employees too. The company built an assistant app for couriers. It allows couriers to accept and skip orders, informing clients when the order is taken and building the route to the destination point.
How long will it take to make an app like Postmates?
The average time to create an app like Postmates takes around 250+ hours or more. It depends on how complex you define your app; the team hired and its locations and a lot of other factors. Also, the time for the various stages of development is considered like design, backend, development, test, and launch.
What is the cost structure within the platform?
The cost structure is again a variable factor for the business. Analyzing the existing platform, mainly a delivery business’s cost structures, technical maintenance, employees (delivery providers, analysts, maintenance persons, sales, etc.), and marketing expenses.