Mobile App or Website Which is Right For Your On-Demand Delivery Business Model

1. ON-DEMAND DELIVERY BUSINESS www.ondemandclone.com

2. In this age of smartphones, the mobile internet is here to stay for an On-Demand Delivery Business. However, the rise of apps over websites has been a topic of great debate for many entrepreneurs. In this blog, let’s understand this big picture in detail regarding mobile apps vs. websites in the context of the on-demand economy.

3. INTRODUCTION • Furthermore, social media has become an important tool for modern consumers to learn about different innovations happening around them. About a third of U.S. adults use smartphones to buy things online weekly. • For the past 2-3 years, consumer media habits have drastically shifted because of user experience and convenience. The average time spent on connected devices was 3 hours and 50 minutes per day in 2023. As a result, the on-demand delivery market is expected to generate around $335 billion in revenue by 2025. • However, from an On-Demand Delivery business perspective, it is important to cater to every user, both on the website and app. Let’s see which one should be prioritized over the other in terms of design and development.

4. THE IMPORTANCE OF CONVENIENCE FOR YOUR ON-DEMAND DELIVERY BUSINESS • Modern smartphone applications provide significant convenience advantages over websites for on-demand delivery platforms seeking to encourage repeat orders. The core workflow and navigation blend into frictionless user experiences that promote habitual use, such as one-click checkout. Additionally, biometric authentication via Face ID creates seamless re-ordering compared to repeated password entry on websites. • Moreover, push notifications remind customers what is currently going on, prompting timely re-orders. Even the developers have created algorithms that analyze histories to suggest replacement items proactively. However, the initial onboarding process of acquiring new users may be more convenient through a website.

5. DAILY USE AND THE CASE OF FOMO • Studies show mobile users spend over 85% of their 4+ hours of daily connected device time on apps rather than websites. Capturing this frequent daily engagement with an optimized app experience drives massive long-term business value. Without an app presence, a significant fear of missing out (FOMO) risk exists, which is also true for daily users as it forms the basis of not missing out on any offers or deals. • Thus, on-demand businesses must cater to these ingrained app-centric daily mobile habits. Meanwhile, a critical priority is pushing website visitors to install the app to benefit from daily use. This takes full advantage of the frequent mobile app engagement that defines modern digital habits.

6. PERSONALIZATION AND PUSH NOTIFICATIONS • Over the years, personalization has become increasingly crucial to modern shopping customers. Both websites and apps allow customization, but apps facilitate user preferences that are more adaptable as compared to websites. They also track engagement for content refinement. When an app asks for location permission, it’s mostly because of geo-targeted promotions. Meanwhile, websites collect user data yet lack flexibility in delivering personalized experiences. • Furthermore, push notifications represent a direct home screen advantage for customers, but their overuse irritates users. Apps require diligent support through continuous updates for relevance, unlike websites that are subtly tweaked as needed. That is why abandoned apps damage brands by remaining publicly accessible. Meanwhile, websites also need maintenance but are typically more affordable than apps.

7. WHICH ONE IS EASILY ACCESSIBLE? • Consider a potential new user finding your business for the first time. What action is more likely to be quicker - opening up their mobile browser to visit your website or searching through the app store to find your app, then patiently waiting as it downloads? • It’s clear that with a mobile-optimized website, there tend to be fewer barriers standing in the way. Most commonly, your customer’s first contact with a business occurs either through visiting the website directly or seeing posts on social media. This means having an effective and easy-to-use mobile website is the more practical option to attract new customers from the ground up. • However, once a customer has downloaded your app, your On-Demand Delivery business has largely overcome the main obstacles to engagement and access. With a mobile app, relevant data can be stored on the user's device rather than being retrieved from remote servers every time. Login and authentication processes can also be sped up through biometrics like fingerprint or face recognition compared to typing-in credentials. Above all, the app can be designed to be easily accessible on the user's home screen. • The choice between prioritizing a website experience over an app, or vice versa, depends significantly on the phase of the customer lifecycle. Meeting potential new customers where they are with a website is important at the start while providing existing customers with the best experience through an app they have already downloaded drives retention over the long term.

8. THE ON-DEMAND DELIVERY BUSINESS DEVELOPMENT COST COMPARISON • The initial development costs for mobile app development revolve around $50,000 to $250,000+ to design, code, and launch custom native iOS and Android apps. Moreover, it will require dedicated engineering teams to add features like order tracking, location services, push notifications, in-app messaging, and payments. Whereas, website development costs around $5,000 to $50,000 for responsive website design and development of core on-demand functionality, which can be done with smaller teams.

9. ONGOING MAINTENANCE AND SUPPORT • After the launch of the mobile app, monthly or annual costs of $5,000 or more are generally reserved for fixing bugs and complying with OS updates. Generally, these updates are done once every two to three weeks and can be extended for months. However, it is advisable to be attentive during the initial phase to enhance features, ensure performance, and resubmit updated versions to the app stores through arduous review processes. • Meanwhile, websites generally require less intensive resubmission and review procedures. It costs around $500-$2,000 through an agency that provides hosting, security, backups, updates, and speed optimization.

10. MARKETING COSTS • To drive more installs, most entrepreneurs often invest in paid user acquisition channels like social media and search ads. Still, ongoing costs are high at $5-$15+ per acquired customer. On websites, SEO is largely done for ranking purposes and for achieving higher ROI as well. Although SEO, an ongoing process, is done properly to improve brand visibility and organic website traffic quality over time at more reasonable CPM or monthly retainer rates. • Based on these key cost factors, developing and operating an On-Demand Delivery platform requires a substantially higher overall budget, specialized resources, and a longer-term commitment. The decision depends significantly on the delivery business model and monetization potential.

11. CONCLUSION • Websites provide easier initial access during the earlier parts of the customer journey before an individual has committed to fully engaging with the brand by downloading a dedicated app. On the other hand, tailored mobile apps provide superior accessibility and ease of use for existing customers who have already downloaded the app and are more deeply committed to consistently engaging with the brand through that platform.

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