In the on-demand delivery industry rivalry is approximately equal to the services offered to consumers and, as competition grows, there are more advantages for customers. One such delivery business that works to support clients in towns and villages respectively is Rappi. Rappi was started in 2015: the company initially started their operations in food and groceries delivery service. But now the company aims to deliver everything on-demand such as from groceries, food, medicines, clothing, alcohol, to bile rental, travel and limited banking services like bill payment and cash delivery. Now Rappi runs in 55 cities across several Latin American countries including Brazil, Chile, Peru, Uruguay, Colombia, Mexico, Argentina and serves upwards of 13 million users.
If you want to develop an on-demand delivery app like Rappi, then this blog is for you. In this blog we’ll discuss following:
- Facts and numbers about Rappi.
- Why apps like Rappi are gaining popularity.
- Revenue model of Rappi.
- How to build an app like Rappi, their features, tech stack.
- How much does it cost to develop an on-demand app like Rappi?
So without further ado, let’s get started.
What is an on-demand app?
An on-demand delivery application is a service in which user’s places orders and, in return for some service fees, a specific vendor heads to confirm the order. Some of the most widely used on-demand apps are Rappi, Uber and many others. The service or product may be different, and nowadays the on-demand applications are available in about every industry. From taxis to alcohol, you can easily find any of these applications (yeah it’s true). Here are few of the key elements that shape an on-demand application’s key aspect:
- Mobile – Easy to use, users can place a request on the go. Rather than opening a laptop.
- Fast – Mostly, on-demand applications promise the delivery in 30 minutes.
- Cheap – Offer several benefits to users, whenever some discount or festive offer is going on these apps.
- Hassle-Free Payment – The payment mode is so easy. For quick checkout, users can make payments either with net banking or by paying cash at the time of delivery.
- Rating and reviews – After each successful order completion, the user can rate the delivery or service or both.
- Let’s move ahead and discuss some amazing facts and numbers about Rappi.
Amazing Facts and Numbers about Rappi
- By doing some study, we find these incredible bits that make this application truly outstanding.
- Working with 50K different businesses.
- Currently valued at 3.5 billion dollars and raised a funding of 1 billion dollars in its latest Series E funding led by Softbank.
- Employs more than 25K delivery persons that complete over 30 or more orders in a month.
- You can trust Rappi to withdraw cash from an ATM for your Bank account and get it delivered to you securely.
Why Apps like Rappi gaining popularity?
The success of Rappi is not solely technology based. The application steps out by providing its services at the right time to the right individual. Rappi has also been able to maintain a strong position in the industry with a beam-like emphasis on the customer experience. There is a ton of work in the context, from choosing the best technology partner to investing in the right kind of marketing campaigns, recognizing, and working on meaningful intelligence. Below are the reasons of Rappi’s success:
- Keeps Experimenting – Rappi has been focusing constantly on enhancing customer experience. They have been helped by experimentation and risk-taking efforts to attract new customers and maintain the existing ones.
- Data Analysis to enhance customer experience – To recognize how their product experience or service affects consumers, Rappi uses data-driven insights. Analyzing conversion metrics has helped them to better understand the discussion.
- Extra offering – To expand the number of orders and the width of the card, Rappi provides frequent discounts, offers, reward points, and exclusive offers.
- Targeting Regionally – Latin America is a market which is extremely diverse. In one field, what operates cannot function in another. Rappi operates in numerous countries and relies on languages and terminology unique to the field.
- Enhanced Conversion Rates – Rappi regularly optimizes its ROI techniques with the help of smart insights. For instance, they may harvest cohorts of new users dynamically on an hourly basis.
Now, let’s move forward and discuss how apps like Rappi earn?
Revenue Model of Rappi
- Commission – Rappi is a type of store that supplies items to clients. It partners with a range of shops, restaurants, and businesses to provide consumers with a variety of items. When the request is received, Rappi charges a small fee across each request for order from restaurants or store owners.
- Customers – Happy customers also offer tips to the delivery people for their amount of hard work due to the quick delivery or product availability on the Rappi Application. Here’s how the delivery persons earn from deliveries.
- Advertising – A consumer gets updates from different stores on the application for recommended items from which he can order. Rappi charges funds from the companies or stores for such ads to present their product to the client.
As of now, we hope that you are aware of Rappi’s revenue model, potential and everything. Let’s move forward and take a look at the steps to create an on-demand application like Rappi. So here we go.
1. Do a Market Research
In the app development sector, on-demand applications weren’t anything different. Well, in about a few years, the on-demand app development has triggered groundbreaking shifts. It has influenced conventional firms and is undermining the manner in which they do business. In order to create an application Rappi that disrupts the market, you need to do market research to identify the problem, which you are going to solve via your application. After that you have to find the best developer who develops your on-demand app to solve the identified problem.
2. Do Study on Rivals
Draw up a list of so many other famous or not-so-famous on-demand applications that are already playing in the market. If you really believe you can easily surpass famous on-demand applications with your unique app idea, and then let’s do it. Generally, though, it is easier to go for something that nobody else is attempting yet. This will help you get and keep more customers since you are the only one providing such services and establish a business monopoly before someone else steps in.
3. Decide Features and Functionality for your on-demand App like Rappi
While developing an app, it’s always better to go with MVP “Minimum Viable Product” then keep adding extra features in updates. Below are some features in the context of Customer, driver, merchant, and admin module that we suggest you add to your application.
- Customer Module – In this customer can order the listed services from various stores anytime as per their convenience.
- Login – The user’s very first interaction with an application is the registration page. Here users can sign-up or log-in the application using their email ids, phone numbers or by social media handles. Make sure that the app maintains the database with all security standards and confidentiality.
- Push notifications – This feature enables the application to relay details using push notification about the best deals, promotional discounts, coupons, or seasonal offers on a user’s mobile screen.
- E-wallet & payment options – E-wallet integration helps users to load cash in the app’s wallet which makes the checkout process real quick and seamless. Besides that payment options help users to choose the mode of payment like credit/debit card, net banking or COD during the checking out.
- Delivery option – This feature allows the customer to select a delivery time slot according to their convenience, and can determine whether to proceed with the order if that is not feasible in the expected time period.
- Order pick/drop location – In this feature, the customer could choose the pickup and drop-off place of the order inside the application depending on their location or through simply entering an address.
- Order History – This feature allows the user to make a repeat order or place an order from previous order history. This feature ensures smooth and seamless user experience.
- After sales – If the customer is not satisfied with the product delivered to them, then through this feature users can draft a complaint, a return, replacement, or refund process from the application.
- Customer support – Whenever users feel stuck or might face some problems then with this feature users can reach out to the support team in order to exit from the issue.
Other features Apart from above mentioned features you can add these features as well in your app:
- Favorites – In this user can save services offered by businesses that they choose the most.
- Rating & reviews – In this user can rate and review the service rendered to them.
- Location tracking – As soon the order is picked up by the delivery person, with the help of this feature user can check track their live location.
- ETA insights – This feature provides estimated time of arrival and cost to users before they place the order.
- Chat – This feature enables the user to chat with the store owner and delivery person directly within the app in case of any question.
Driver module – The driver module helps the providers to ensure the drop of location and several other services.
- Registration – In this delivery executives can register themselves with the application by filling a form which takes basic information like name, mobile number, email ID etc. Executives can also register with their social media profiles to onboard on app and start taking orders for delivery.
- Accept/Decline request – Through this feature, delivery executives can accept or decline the delivery request due to a reason. For instance: location is too far or for several other reasons.
- Geo-location – Geo-location integration is one of the best features an on-demand app can have. This feature helps delivery executives to position customer’s exact locations. If you wish you can add various GPS location providers such as Google Map, Apple Map, or any other provider.
- History – This feature provides detailed history to delivery executives about total trips done, total distance travelled, number of orders completed. Through this delivery person can check their progress and performances of any day.
- Track Earnings – This feature helps delivery executives to track their total earnings of a particular day as well as earnings of any specific date.
- Availability – Though toggle mode, delivery executives can turn off and on their availability. Trust us this feature is one of the most convenient features available in the app for drivers.
- Route optimization – GPS maps integrated in application shows customer’s location to the delivery person. However, this feature provides the best route to the delivery person so that they can reach the customer’s location on time.
Merchant Module – The merchant module allows shop owners to manage orders and the whole business.
- Request notification – As the customer places the order, the shop owner will receive the order details like order number, what customer wants, delivery address, customer contact number etc. Besides this merchant can also reject the order due to reasons like product unavailable, after hours etc.
- Add products – Through this feature merchant can add newly available products in the app in their product listing. Merchant can see the change in real-time, which means as the merchant adds the product it is available for order.
- Track payment – In order to get payments from app, customer, and from drivers merchants can add their account details to receive the payment. Also merchants can track pending and settled payments through this feature.
- Min/Max order limit – This feature helps merchants to set a minimum order limit for customers to shop for their desired product.
- Min/Max product limit – Through this feature merchants can set a particular limit that users can buy at any point of time.
- Settings – Most important feature of any application. Through this feature merchants can set or change the store opening and closing time along with other important settings.
- Order history – In this feature, all information regarding completed, cancelled, ongoing orders, or invoice reports will be displayed here.
4. Technology Stack
To integrate above mentioned features in your on-demand application, you’ll require a robust technology stack to provide top-notch experience to your users. Believe it or not Tech Stack matters a lot. Below we’ve mentioned the necessary tech stack for an ideal on-demand app. So have a look.
- Languages – Java, swift, Golang, kotlin, PHP.
- Frameworks – Ruby on Rails, Flutter, React Native, XP, spring.
- Payment – Paypal, Braintree, Google wallet, Square.
- Cloud – AWS, MS Azure, Google Cloud, cloud foundry.
- Push notifications – Twilio, Amazon SNS, MAP, AdpushUp, flink.
- Email Marketing – MailChimp, Mailgun, Mandrill, Zoho.
- Other tools – Google Fit SDK, Google Tag Manager etc.
5. Cost to develop an app like Rappi
The cost to build an application like Rappi depends on various factors such as:
- Your requirements.
- Tech stack you want to use.
- Features of application.
- Platform to be used.
Remember, the more features you integrate in your application, the more complex it becomes, as complex it becomes, the more it will cost you. So it’s better to go with MVP model as we discussed above.
If you go with basic features and functionality, then it will cost you around 20K to 30K dollars. But if you go with the feature as mentioned above then it will cost you around 35K to 45K dollars, If everything is prepared from scratch.
Expert tip – we all know feature’s matter a lot in an application’s success. So on a safer side go with best features and hire the best app development firm like us.
Well that’s it for now; we hope that we cleared up all your questions and doubts regarding on-demand app development like Rappi. The competition is getting tougher each passing day in on-demand applications. It’s tough but not impossible, if you have an app idea and best business/ revenue model then it won’t be that much difficult for you to enter and disrupt the market. You can also partner with companies and businesses to provide best products and services to your users.
We know that there would be challenges and barriers when you enter the arena. For that one, partnering with a right development firm like us will be a best option for you. We pretty much guarantee you that we will help you as much as we can. With our experience and expertise in the creation of on-demand apps, you won’t have to face all such.
For further information, visit our website www.matellio.com