Do you want your groceries, food, apparel, and pretty much everything delivered to your doorsteps? On-demand business models are working day and night to transform convenience into a reality. And that's why the on-demand sector has become a buzzword with an expected net worth of US$44.6 billion by the year 2027.
The already outshining on-demand delivery business model has expanded after the global pandemic. Yes, you've read it correctly. So, what's the takeaway here? These factors reveal that it's the best moment to launch an on-demand delivery business.
Are you wondering about the top on-demand delivery businessmodels to start your journey? This post is all you need if it’s a yes!
1. Direct-to-Consumer (D2C) On-Demand Delivery Business Model
As the name suggests, businesses directly sell products to end consumers through an online marketplace or eCommerce storefront without the involvement of wholesalers and retailers in the D2C delivery model. These brands rely on internal shipment services or partner with third-party logistics companies to deliver products to the customers.
Here’s why the D2C model is worth giving a shot!
- ● Brands opting for the D2C model can save costs in delivering products to the secondary miles (wholesalers and retailers).
- ● It ensures better customer-business relationships with faster, safer, and customized delivery options.
2. Hyperlocal On-Demand Delivery Business Model
The hyperlocal on-demand delivery business model refers to the ‘localized’ shipment of products. It’s primarily applicable for grocery, medicine, and home services like Urban Company, Grofers, etc.
Customers order a service through a digital interface. The aggregator informs the local business points and leverages a regional delivery executive to pick up the product from the store and deliver it to the consumer.
The benefits of the hyperlocal delivery business model are:
- ● It helps boost the sales of conventional brick-and-mortar-type stores.
- ● The hyperlocal model requires minimal effort from stores and aggregators.
3. Peer-to-Peer On-Demand Delivery Model
The peer-to-peer on-demand delivery model is one of the most straightforward business models out there. It's a plan where a logistics company delivers products from the sender to the receiver and charges a commission for the travel expenses.
Trending delivery brands like WunWun and WeDeliver operate on the same business model.
Reasons, why this model is a hit among businesses, are:
- ● Businesses can focus on their area of expertise without investing in other activities like logistics.
- ● Since intermediaries participate in the P2P business model, the risk load gets distributed.
4. Quick Commerce Delivery
Usually, eCommerce deliveries are time-consuming. It takes 3-4 business days for a shipment to reach consumers after placing an order.
The new-normal era has significantly hiked the popularity of quick commerce delivery. This business model centers around providing faster delivery services to consumers. Hence, they increase customer satisfaction and engagement with the business.
Zomato’s 10-minute food delivery is one of the models where quick commerce shipments are in action. The benefits of such a model are:
- ● It generates a higher buzz among the audiences, compelling them to use the service at least once.
- ● Faster delivery ensures higher customer satisfaction, engagement, and retention.
5. Three-Sided Marketplace Delivery Model
The most renowned on-demand delivery model is the three-sided marketplace plan. Top brands like Zomato, Swiggy, etc., leverage this model.
It involves three users, customers, business points, and delivery partners connected through a digital platform like a mobile app. Consumers can place an order from a physical store, and the delivery executive ships the parcel to their doorsteps.
So, why should you choose this model? The reasons are:
- ● It's straightforward with minimal confusion.
- ● Numerous case studies are available to replicate.
- ● The delivery partner takes up the massive burden freeing the app admin and businesses.
The on-demand delivery landscape will continue growing. Choose a delivery model and jump into the business at the earliest! Before that, also find a reliable delivery app development company who can build a successful business for you.