How Much Does On-demand Logistics App Development Costs?

Sudeep Srivastava August 26, 2022

Every year the supply chain and transportation industry loses more than $15 billion due to downtime and operational malfunctions. Moreover large-scale enterprises and private carriers struggle with freight loss since they cannot transport with sufficient load. All these factors result in increased prices and withdrawal of logistics businesses from the industry. This was the biggest challenge in the transport business landscape until logistics applications came along.

With logistics app development, the supply chain and associated businesses have come a long way. Logistics apps have brought a high level of transparency among freight forwarders and have eliminated all intermediaries to achieve a reliable supply chain process. Today the number of businesses switching to on-demand logistics app development have increased to an unbelievable amount leading to a logistics app market size of $25.22 billion.

As for the graph below, logistics app development is predicted to have a favorable impact with the rising demand for safe and sustainable transportation. 

Global Logistics Digital Market Overview

If you are also keen to know the whereabouts of logistics app development, this is the right place for you. This article provides you with a logistics market overview, working and benefits of on-demand logistics apps and factors associated with logistics app development cost.

Let’s back up to gain a little perspective on the current condition of the logistics app market and analyze how beneficial It is going to be for you if you blend in on-demand with logistics app development.

Transport and logistics industry market statistics

“It’s all about numbers”

The Logistics and transportation app domain possesses some promising numbers in the field.

As per a recent study, the global digital logistics market is estimated to reach $77.62 billion by 2030 with a CAGR of 17.54% during the forecast period of 2021-2030. This exponential growth is primarily driven by rise in digital e-commerce solutions, upgraded digital supply chain management, increased demand for quick and customized order delivery and adoption of modern technologies such as AI, Data analytics, Internet of Things (IoT), cloud computing and Blockchain. 

Logistics digital solutions in the US market

Moreover, upon analyzing the transport and logistics industry stats, we found that logistics/trucking holds the highest market share of 35% , something that paints the future of on-demand logistics app development in a positive light. 

Market share of main transport and logistic store

While these were the logistics market insights, it’s time to discover the on-demand logistics solutions available for businesses today.

Types of on-demand logistics app development for Businesses

You can opt for various transport and logistics apps based on your business objectives and requirements. Below are the key logistics app development example solutions prevailing in the digital market.

Types of Logistics App

1. Fleet Management

This type of logistics application development caters for recording the data and information related to vehicles and fleets. As a result, these apps for logistics help businesses in organizing, managing and coordinating vehicles from the central information system in order to keep the overall fleet operation hassle-free and running. 

Fleet management logistics app development is also known to reduce costs, boost performance while providing compliance with government regulations.

2. Logistics on-demand

Applications that fall under this category are all about goods delivery as per the users’ requirements. Transports and logistics apps like on-demand delivery apps, on-demand home services apps etc. not only fulfill users’ needs instantly but also help in building positive connections with the customers.  

3. Warehouse mobile apps

Warehouse logistics mobile apps can store a huge amount of data related to the products stored in the warehouse. It does it in such a simplified way as to make it easy to access any data any time.

4. Tracking and forwarding applications

Order tracking and forwarding applications target to deliver information related to real-time concerning routes and delivery of the goods and products. This means that it also displays drivers’ location which is a rather prominent feature for businesses worried about timely delivery of shipments. 

Apart from these solutions, here are a few key business areas where you can implement the on-demand logistics app development solutions. 

  • Order monitoring 
  • Freight forwarding
  • Routing 
  • Good and service delivery 
  • Warehouse and inventory 
  • Fleet management
  • Vehicle tracking 

In the continuously growing business of transport and logistics, here are a few well renowned names that have gained a strong market share in the supply chain and logistics industry. 

Market players of logistics and transport business

The above logistics businesses have implemented several features and innovations in their digital solutions to stand apart from the competition. Therefore, If you are willing to master logistic app development for your business, here is the list of must-have features for your logistic app. 

Must-have features of an app like DHL

There are three panels that need to be designed and developed in the logistics app development. Let’s look at each one of them while discussing the must-have logistics mobile app features.

Note: These three panels are essentially three applications, which when combined work as one whole product. Consequently, it is a prominent factor when it comes to calculating transportation and cost of logistics mobile app development.

1. User Panel

User panel

  • Customer registration 

Registration can be done in two ways – 

  1. By creating a new account altogether and 
  2. By registering with existing social media accounts. Giving this option to the users will impart a good impression on your business
  • Vehicle selection 

It is an important feature to integrate in your on-demand logistics app. This helps users in selecting the vehicle as per their requirements, be it a van, truck, trailer, container truck, and so on.

  • Scheduling and managing booking 

Here, users will be able to book a vehicle to avail of services immediately and can also pre-book by mentioning the date, time and location of pick-up.

  • Multiple payment gateways 

The more options you give in a transport and logistics app, the better experience you are likely to provide your users. This is also true in this instance of integrating payment gateways in your logistics app.  Providing users the choice to pay for the services via Credit/Debit card, online blockchain wallets, UPI etc. will encourage them to use your app more often.

  • Tracking shipment 

Rather a crucial feature, tracking facility is something your users are already expecting from your transport and logistics app. So, make sure to implement it in your end product.

  • Drop-off location 

Always allow users to enter the drop-off location of their parcel either manually or with the help of geolocation features.

  • Real-time alerts 

Push notifications are a great way to inform users about useful and important information while engaging them on your application.

  • Estimate fare charges 

It is important for users to know beforehand the value they are expected to pay for the services. In this case, employing an in-build fare calculator will prove immensely useful. It will calculate the cost of services based on the size and weight of the package.

  • Access to History 

This feature will allow users to revisit their previous transactions and invoices to keep everything on track and record.

  • Ratings and reviews 

It would help customers if they find this feature in your app. This way, users can rate and review the services and give feedback that can help other users.

2. Driver/Dispatcher Panel

This panel focuses on delivery logistics app development and the features you can integrate under this panel are:

Dispatcher Panel

  • Login/Register 

Like users, drivers can also sign up using existing email IDs or social media accounts.

  • Manage requests 

This feature allows drivers/dispatchers to accept or reject any request or order based on their preferences.

  • Make available or busy 

Just like a DND feature, this will help the drivers or dispatchers show their availability/ unavailability for services using many options like marking self-availability, etc.

  • Consignment details 

Getting insights of the consignment to be delivered is a crucial element that would help your app become popular if you employ it.

  • Manage profile 

Probably one of the most basic features is to enable the drivers to update the information on their profiles.

  • Navigation 

This is a crucial feature for the driver/distributor side of the logistic application. It gives information regarding the best route to the customers’ addresses to facilitate on-time delivery.

  • Mark delivery 

Allowing the dispatcher this feature will enable them to send alerts to both the parties (customer and admin) regarding the delivery of the parcel.

  • Freight/shipping details 

All the details related to freight (weight of goods, fuel consumption, distance covered, toll charges) and shipping (name, address, contact number, destination) all can be accessed by the dispatcher/driver via this feature easily.

  • Access to history 

It would be best to offer this feature since it will help them revisit past transactions and invoices.

3. Admin Panel

admin panel

  • Dashboard 

It displays every critical information related to the users and drivers. The admin is able to also see pending and completed orders with real-time data.

  • Fleet/Vehicle management 

With this feature, it will become possible for the admin to introduce new vehicles for the shipment and even update the existing ones with images, etc.

  • Manage invoices and payments 

With this invoice management feature, the admin will be able to generate and update invoices.  Moreover, admin can also manage payments, i.e, approve the payments received by the drivers and analyze other similar transactions.

  • Drivers monitoring 

This feature helps in managing and assigning tasks to the drivers/dispatchers and monitor their on-road time, activities, and pending requests.

  • MS features 

Under this feature, all the user queries related to the services or drivers, and any improvements required by the users are recorded and handled by the admin.

Additional logistics mobile app features

  • Get a quote 

According to the available deals and services, customers can request a quote from the service provider in order to get an idea for the cost and time of the services. 

  • In-app Chat 

This might be an additional feature but it is a crucial one as well. This will facilitate your users since they will not have to seek another resort for the purpose of contacting the service provider.

  • Chat support 

Chatbots now play a huge role in the B2B and B2C sectors. Most of the applications providing any kind of service or products are equipped with chatbot app development. This is something an experienced logistics app development company will highly recommend.

[You can also read “How Much Does it Cost to Develop A Chatbot“]

  • Multilingual Support 

Popularly known as a practice related to the localization of mobile applications, providing multilingual support can boost the popularity of your application globally.

  • Link and upload documents 

For dispatchers, this feature will be a big hit since they will be able to upload important documents related to shipping such as insurance documents, etc. 

Note: All these additional features incur in higher logistics app development costs

Read more

Now that we are done with getting familiarized with crucial aspects surrounding the logistics industry and logistics app development, let’s get down to business – getting the answer to the logistics app development cost.

How much does the Logistics app development cost?

As had mentioned above, the ultimate cost of app development relies on the factors related to the on-demand mobile app development process of your logistics application.

An average cost of creating an on-demand app depends on its development types. For instance, 

  • Cost of logistic mobile app demand development for a simple on-demand app would be around $30,000 to $120,000
  • A logistics app development cost for a medium complex on-demand app would be around $120,000 to $200,000
  • And logistics app development cost for a full fledged complex on-demand app would range from $200,000 to as far as you wish it to be depending on other factors such as logistics mobile app design, logistics mobile app features etc. 

Along with an answer in digits, let us encounter the factors contributing to the final cost of logistics mobile app development in detail.

1. Backend and frontend development

The choices you make for Backend and frontend development will play a pivotal role in determining the cost of your logistics application. To be more specific, it all depends on your choice of logistics app design, frameworks, tools, and technologies.

You can either go with Monolithic or Microservices. However, let’s put it out there that the cost of frameworks for microservices tends to be higher than monolithic. Nevertheless, it is all worth it since it is more efficacious in providing highly scalable logistics applications.

2. Choice of the tech stack

You might already know that the tech stack you choose for logistics app development is going to affect the cost. Speaking of programming languages, hiring developers for some languages like Swift, Golang, and R is quite expensive. Similarly, those languages that are new will have fewer libraries and frameworks, adding to the overall tasks of the development.

Let’s shed light on an ideal technology stack for on-demand logistics app development:

Must-have features Technology Stack
Frontend development CSS, BootStrap, JAVA, Swift
Backend development Ruby, Python, Angular, Javascript
Push notifications Twilio or Push.io
DevOps Chef
Payment Gateways PayPal. Braintree, e-wallets
Applications and Data Angular, Amazon Elasticache, BootStrap, Amazon RDS
Database requirements Cassandra, Postgres, MongoDB
Real time analytics Apache, BigData, Spark, Cisco
Credential log-in Nexmo or Twilio
Cloud platform solutions AWS, Google Cloud, IBM, Oracle, Microsoft Azure etc.

Explore our solutions

3. Type of application

Since it is an on-demand application, the logistics app development cost for it also tends to be higher than any other category, say social media, m-commerce, etc. It is because this single application consists of three whole separate panels, which require a number of resources equal to three applications. So, evidently an on-demand logistics app is going to cost more than other non-on-demand applications.

4. Platform (Android or iOS)

The choice of platform you choose would fall either for Android or iOS. Strictly speaking, developing for the Android platform can be a little more costly as compared to iOS due to the amount of fragmentation Android is subjected to. 

There is a third option available for logistics app development – cross-platform app development. By choosing cross-platform logistics app development, your application will be able to work incredibly on both the platforms rendering performance falling no shorter than a native app. Plus, it is cost-effective as compared to developing the app separately for both platforms.

[You may also like to read about “Best 10 Cross-Platform App Frameworks to Consider in 2020”]

5. Development Team Size

There is no need to tell you that the cost of logistic mobile app development will be lower when you outsource, reliable and experienced on demand app development company. This is because on-demand app development companies have an edge over freelance developers – the assurance of the prolific quality of mobility and digital solutions. 

6. Location of the company

The location plays a pivotal role in deciding the ultimate cost of logistics app development. It is an established fact that the hourly rates of development tend to get higher when moving from east to west.

App Development Hourly Rates Worldwide

The above mentioned factors straight away impact your logistics app development cost, however, you can always customize your on-demand transport and logistics app based on your needs and customer demand.

Talk to us

Finally we are done with the logistics app development cost and associated factors that impact your development budget. Now that you have an idea of your logistic app expenses, how about we also overview the revenue models for your app? 

How does a Logistics mobile app Generate revenue?

Due to the high demand for digitized logistics app solutions, customers have full time access to online platforms. Hence, logistics and supply chain businesses have multiple revenue sources to grow and sustain with increased profits.

Revenue sources for logistics apps

Following are the primary ways to earn revenue through your on-demand logistics application: 

  • Paid app- Here, the app generates revenue when the user pays a fixed amount to get the license to avail the app for lifetime. 
  • Advertisements- if you customers are using the free version of your logistics apps, advertising is a great revenue generator for your business. You can display various ads between multiple time intervals to revoke money. 
  • Paymium model- If your logistics app displays a strong USP, you can generate a decent amount by putting a price on app download. 
  • Freemium model-  You can also offer a basic set of features in your app for free and advanced set of features at a certain price. For instance,  allow offline access to your app on a paid version. 

Future of Logistics app development

All the current statistics and predictions on logistics app development only paint a positive picture of the future of on-demand logistics app development. Since the advent of mobile app development in the logistics industry, things have become smooth-sailing and processes have become streamlined. 

In fact, the current big factor for this industry is the extension of AI and other modern technologies in logistics, as per the technology trends. We can expect AI-induced logistics applications that will further facilitate the logistics and warehouse management while being equally helpful in transportation. Another next-gen tech that will disrupt the logistics domain is none other than IoT.

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How can Appinventiv help you with on-demand logistics app development?

Going forward, the emergence of numerous types of on-demand logistics applications will eventually make the logistics industry prosperous due to the several benefits of logistics apps. If there was ever the right time to invest in the logistics app development services, it is Now. 

Appinventiv is a leading on-demand app development company that has crafted some of the most intuitive instantaneous logistics solutions. Our team of on-demand app developers excels in development and integration of features that can convert an ordinary app into a top-ranked app. Our suite of services for on-demand app development include: 

  • Social media integration
  • In-app payment integration
  • Instant alerts 
  • Geo-IP location 
  • Big data analytics
  • Cloud services etc.

Talk to our on-demand experts to get started now.

THE AUTHOR
Sudeep Srivastava
Co-Founder and Director
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