On Demand Logistics App Development Cost — A Complete Guide

Want to enter the profitable logistics market with an app? Read the guide to know how to perform this action and get the cost for on-demand logistics app development.

6 min readOct 7, 2022

Technological innovations and their gradual integration within different sectors, particularly the transportation and logistics sector have gone on to provide them with a unique appearance altogether. Especially as a result of its digitization, the venture has gone on to achieve a competitive edge too.

This is due to the level of transparency it brings about in the minds of customers in terms of knowing the delivery status and the expected time of delivery both, side-by-side.

Hence, the popularity of these solutions has grown manifold. This is something I will discuss in detail here.

So let’s begin.

All about On-Demand Logistics App

The on-demand logistic app is a solution that connects drivers and customers upon the latter placing order for goods delivery.

Knowing about the app, let’s get knowledge of how it operates.

Operations of On Demand Logistics App — Know How It Works

The Uber for logistics app which has revolutionized how goods get transported from one part to the other in a convenient way by connecting drivers and customers to one another has extremely simple operations.

Customer places freight requests with information about the pickup location, the cost, the weight, the destination for delivery, etc.
The driver gets notified of the request and they accept it.
Upon accepting, they reach the customers’ location.
The driver picks freight up and gets going to make delivery.
The customer is notified of the delivery stages.
Upon final delivery; invoice generation takes place.

Statistics Depicting Popularity of Uber for Logistic App

When logistics setups want to embrace the app advantage by on-demand logistic app development services to get the Uber for logistics app, it is important undoubtedly to know app operations. However, it is equally vital you get a comparative idea of the statistics.

The value of the on-demand logistic app market was $9525.1 billion in 2021.
The revenues through the app are predicted to be $13326.3 billion by 2027.
As per the survey, the logistics and transportation industry contributes to around 8% of the US GDP and continues to grow with a CAGR of approx. 11%.

Take a look at the image below to also get an idea of the lucrative scope of the market.

Through these numbers, you can understand that for your logistics setup, embracing transportation app development services is certainly the right step for you.

Below, I have enlisted some popular apps in the market that have been also responsible for the prominence of the business growing manifold.

Top Market Players of Logistics and Transporation Business

Looking at the numbers that depict the overall profitable scope of building the Uber for logistics app, it is clear there are many such setups you will find in the marketplace.

DHL
Giggo
Uber Freight
UPS
Deutsche Post
FedEx
CSX Transportation
XPO Logistics

Now that you are aware of the popular on-demand logistic apps in the market globally, it is important you know the different subcategories into which they are divided too.

Different On-Demand Logistic App Types

When you embrace on demand logistics app development services to build an app for your transportation business, you need to be aware of the different subcategories into which the app is divided. This will come in handy when you get into the app-building mode.

Fleet management app to allow logistics managers to get knowledge of the fleet in real-time to boost their productivity and make decision-making flawless.
Logistics on-demand app to assist customers to book freight pickup and delivery respectively from the app.
Warehouse management apps make it easy for storing data related to products present within a warehouse.
Tracking and dispatching apps for allowing receipt of information related to shipments and tracking them side-by-side.
Supply chain management software for boosting and enhancing the visibility of different logistic-related activities so that control and management is a seamless task.

Knowing about the different app types into which the logistics solution is divided alongside having an idea of the popular apps in the market, you can understand why developing the solution is a necessity after all. To know how you can perform this action like a pro, follow these steps.

How to Develop Uber for Logistic App?

Want to make it big in the world of logistics with a fully-functional Uber for logistics app? You need to keep some important points handy during the development phase.

Research

Research extensively on the competitors and the customers before you even enter the competitive app development process. This will help you to formulate an appropriate design for your app so you can meet customer requirements seamlessly and deliver logistics flawlessly.

Ask yourself these questions:

Are my competitors addressing the customers’ concerns? Yes/no?
If not, what do I do to address them (concerns)?
What features should I include?

Make Revenue Model Choice Wisely

During the app development phase apart from research, you conduct on your competitors and customers. It is equally vital you choose the revenue model wisely.

Here are four ways through which you can generate profits:

Through paid app
By displaying ads in the free app version.
Placing a price for app download to customers.
By charging a particular amount for advanced features to the consumers.

Choose Relevant Features

A very vital step, you need to make use of relevant features in your app so user engagement remains to the maximum. As the main purpose of your logistic app is to streamline parcel deliveries, you need to have relevant constituents in the solution you develop so the same is easy to achieve.

Here are the features you should consider including in your logistics app:

Customer app features

Social media login
Vehicle selection
Book or schedule booking
Estimate fare charges
Multiple payment options
Push notifications
Tracking shipment
Access to history
Rating and reviews

Driver app features

Login/Register
Manage profile
Accept/reject requests
Freight or shipping details
Live location tracking of customer
Check earning
In-app call and chat
Access history

Admin panel features

Powerful dashboard
Fleet/Vehicle management
Driver management
Manage invoices and payments
Reports and Analytic

Use Robust Tech Stacks

It is important to make use of robust technology stacks to ensure the freight delivery services take place seamlessly through it.

Here are some you can particularly take advantage of:

Android: Java, Kotlin, Flutter, React Native
iOS: Swift, Objective C, Flutter, React Native
Backend & API: Node.JS/Express.JS
Front-end: React.JS
Database: MongoDB, HBase, Postgres
Push Notification: Twilio, Push.io
For Server: AWS
For Geolocation: Google Maps API
Payment Integration: Stripe, PayPal, Braintree

Estimated Cost to Develop On Demand Logistic App

When you are building a logistics app to give a transformation to your setup, apart from the focus you place on steps for developing the app, it is vital you also give equal emphasis on the budget.

If you go by company locations, here’s presenting the hourly charges for developers in different parts of the globe.

North America: $150 to $200
South America: $50 to $80
European countries: $50–$200
Australia: $100 to $150
Asian countries: $20 — $50

Here’s giving you an estimate of the cost to build a logistics app:

For a simple app with basic features, the estimated cost would be around $15,000 to $25,000.
For a medium or complex app, the cost would be around $30,000 to $50,000.

Wrapping Up

The logistics industry is experiencing a boom and has a bright future. Developing an application for your transportation business will be a worthy decision as it will assist you in smoothing out complex operations, and managing fleets and data. If you also want to build an on-demand app for your logistics business, then you can contact a reputed logistics app development company that has a team of expert developers.