Market innovators, for example, handover, have greatly changed the way delivery operations work. With the help of on-demand delivery apps, customers get their orders quickly.

In cities, customers expect products to be delivered in an hour these days, making on-demand delivery a part of everyone’s life. And in the coming days, the majority of retailers intend to offer same-day delivery.

For doing so, retailers must hire delivery service providers. So that their different products reach their customers as quickly as possible. 

In this article, we will talk about on-demand delivery and the future of the companies who provide such services.

What is On-demand Delivery?

On-demand delivery is the process by which delivery service providers deliver orders quickly. The two factors – digital drive as a result of COVID-19 and the popularity of the on-demand delivery app – have contributed to the rise in demand for on-demand delivery services.

Worldwide statistics firmly support the widespread adoption of on-demand delivery. Surprisingly, over three billion people worldwide used online food delivery services in 2022 alone. Among them, 1.2 billion used grocery delivery platforms, and 1.8 billion used meal delivery services to conveniently order their desired food online.

How Does the On-demand Delivery System Operate?

People demand for on-demand delivery services using online platforms. Both websites and mobile apps allow order booking. Apps also allow retailers to track customers’ locations easily without any problem. When customers place the order online, the delivery service provider is informed of the delivery shipment and where it is to be delivered. These service providers hire dedicated delivery executives for this task. After receiving the orders, these executives would pick up the ordered item from a retail store, restaurant, grocery store, or other stores. Using the navigation features, these executives will reach the customer’s place.

The delivery service provider uses an app-integrated navigation system to find the most effective route to the customer’s location. This system also considers traffic conditions and other time-constraining factors.

Thus, the delivery provider or driver delivers the products or services to the customers’ locations. Real-time tracking enables businesses to find the exact location of the delivery executive at a given point of time.

When the delivery executive arrives at the client’s area, the concerned individual hands over the products to customers as promised. After receiving the products or services, customers need to confirm the delivery either with a written or digital signature. After the delivery, customers can give feedback and rate their experience of such services. This feedback helps maintain quality and enhance future delivery operations.

What are the Benefits of On-demand Delivery Services?

On-demand delivery service is typically utilised when the requirement is urgent or scheduled. Customers that get on-demand service have more control over their time and schedule. So, scheduling is the concern in same-day or following-day delivery. However, on-demand delivery services don’t have such issues. A customer may not be certain of the exact delivery time when ordering same-day or next-day services. As a result, the client could lose time waiting for the products or services to reach them.

In the following situations, on-demand delivery is generally preferred over other delivery options.

  • When an urgent shipment needs to be sent or received.
  • The shipment includes food, medicine, or different items that should be delivered hot, cold, or fastly.
  • At the point, when the shipment is time-sensitive and requires the service of a dedicated dispatch.
  • When the shipment’s security is critical, you want it to be delivered directly to the expected recipient.

The Future of On-demand Delivery Service Providers

The demand for on-demand delivery service providers will continue to remain buoyant in the upcoming years. As per the market report published by Prescient & Strategic Intelligent, the global on-demand logistics market is likely to be over $75 billion by 2030, growing at an impressive CAGR of 21.1% between 2020-2030. Of which, the Asia-pacific region, including India and China, to grow the most. The growing disposable income in developing countries like India will be a major factor driving the on-demand delivery service market. Technology will continue to reshape the logistics market globally. To maintain pace and efficiency, on-demand delivery service providers will use the power of AI technologies. Hyperlocal delivery will become more prominent as customers will demand deliveries in say 1-3 hours. So, maintaining touch points locally will hold the key for delivery service providers. The one with more people for deliveries on a local level will surely capture more market than the ones with a wide national presence but not so strong on a local level. Logistic companies will need to invest in local talents for fast, seamless and cost-efficient deliveries, benefiting the entire value chain. 

The success of on-demand delivery service providers seems even more assured in the face of rapid digital drive in India post the COVID pandemic. The future sounds good. But there will be serious competition among the logistic players in times to come. Low pricing alone will not be sufficient. It has to be supported with efficient technologies that enable a seamless experience for businesses and their customers.

Conclusion 

On-demand delivery services will continue to gain more ground. Entrepreneurs from all around the world have entered this sector to raise their growth. They are hiring competent people for seamless deliveries. It has to do with the rising customer expectations. Nowadays customers have more expectations from retailers other than just receiving delivery on time. They want to trace the delivery provider’s exact location also. If you want to deliver your products swiftly to your customer, handover is ready to help you. Contact Now!