On-demand Logistics App Development: A Useful Guide

Logistics and transportation are essential components of the modern business world, with many companies relying on getting their products to their customers quickly and cost-effectively. This means that mobile logistics and transportation apps have taken off in popularity and use, making it more critical to consider how much these programs cost to develop.

These days, logistics and transportation companies have been searching for ways to streamline the processes of their day-to-day operations. Mobile applications, in particular, are an effective way to simplify these processes, but what does it cost to develop a logistics and transportation mobile app?

We’ll break down all the significant factors that affect the price of developing a logistics and transportation mobile app so you can see if it’s worth your time and money.

Before that, let’s glance at the market statistics of the transport and logistics industry.

As per MarketWatch, the global logistics industry is predicted to grow by $287.1 million between 2020 to 2024, which is equivalent to the increasing CAGR of 5%.

In addition, logistics/trucking holds the highest market share in the logistics and transportation industry, which is 35%.

What are the Different Types of Logistics Apps

There are thousands of different logistics apps or freight broker apps, but not all work for every business or industry sector. How do you know which app(s) are right for your business? Let’s look at some of the most common logistics apps and find out what they offer to help you figure out which ones might be best for your industry and business model.

Fleet Management

Because managing a fleet of vehicles is challenging, the software has been created to automate most aspects. There’s an app, whether you need a mileage tracker or a full-on maintenance management system. The benefits include less paperwork and more efficiency for your drivers and vehicle owners. Plus, you can get alerts about unexpected problems before they occur. These apps come with mobile capabilities so drivers can access information on their smartphones.

Logistics on-demand

These apps allow you to order something when you need it. Uber, for example, is essentially a logistics on-demand company. By calling a car with just a few taps, Uber simplifies your life by making it possible to get from point A to point B without owning a car or scheduling a ride in advance. There’s also Instacart, which offers an app-based service that lets users shop online and have groceries delivered to their door in under an hour.

Warehouse mobile apps

It is vital to know where your inventory is in today’s business environment. This means you will need a mobile app that allows you to view live data on shipments and whether or not an order has been completed. You may also want to develop an app for service providers in your logistics field (e.g., UPS delivery drivers) to make it easier to record their deliveries.

Tracking and forwarding applications

These apps allow you to track your shipments and get information about when a shipment will arrive, where it is at any given time, and what is inside each package. These applications can also update customers with information and help you determine if they’ve received their packages.

The top features of a logistic app

The logistic app industry has seen rapid growth over the last decade, and it’s not showing any signs of slowing down anytime soon. With that in mind, there are several features that every new logistic app should consider before its release to market. This section will go over some of the most important ones you shouldn’t miss while getting your app developed by a mobile app development company.

Customer registration

To use any logistic app, you must first register as a customer. This is an essential step in making sure that we protect your information and provide you with relevant updates, news, and product releases. The process should take no more than five minutes to complete. Once registered, you’ll be able to access your account dashboard at any time to download apps for multiple platforms, create custom projects and manage overall payment details, subscription settings, and billing status.

Vehicle selection

Logistic apps provide an easy way to connect drivers in your area with nearby delivery opportunities. With vehicle selection, you can be sure that you’re getting only truckers and vans on your platform who are legally allowed to carry freight.

Scheduling and managing booking

If you will be booking or scheduling events, people, and shipments or deliveries, an excellent place to start is by mapping out all your elements (the people/items/etc. that are in play) and then scheduling time slots. Make sure you set reminders for yourself so that you don’t forget about it later.

Multiple payment gateways

Paying by card is fast and convenient but often comes with high transaction fees. By working with third-party companies that offer multiple payment gateways, you can reduce costs for customers and increase the profitability of your business. Some examples include Dwolla, Stripe, PayPal, and WePay.

Tracking shipment

If you have ever used a delivery service like FedEx or UPS, then you know that they provide online tracking information to follow your shipment’s progress. This feature is helpful when you are shipping expensive goods and want to make sure that your package will arrive at its destination. Most warehouse apps also include some tracking features. This can be extremely useful for ensuring that products stay on schedule, which can help increase efficiency in your warehouse and save money by avoiding extra trips to pick up and deliver items.

Drop-off location

If you are dropping off or picking up an item, it is best to use an easy place for customers to find. You can use landmarks and street names in your address if you like, but try to make sure you have clear directions from major roads if at all possible. This makes things easier for customers as well as for drivers. Try not to use places that are very far away because it may make your service less convenient.

Real-time alerts

One of our favourite features is real-time alerts. Logistics apps need to be flexible and adaptable, so you always want one that can keep up with your needs, whether that’s by sending out push notifications or email reminders when things change. If you’re going to use a logistics app for work, getting details as they develop—even if it means having them come in through your phone—is critical.

Estimate fare charges

Be sure to consider how much it will cost to use your app. Also, consider offering coupons and partnering with companies with fleets on the road, such as delivery services or taxi cab companies. Those partnerships could help defray costs for both parties and make usage even cheaper for customers.

Access to history

When you’re in transit, you’ll be able to check on your shipment and gain real-time visibility of everything happening to it. This kind of access means less stressful deliveries because you know exactly where things are and when they arrive at their destination. Moreover, using a logistics app also means instant access to past delivery history, making tasks like monitoring costs much more accessible.

Ratings and reviews

Because ratings and reviews can significantly impact whether someone downloads your app, consider adding a screen at launch that asks users to give you feedback. And once they’ve used your app, follow up with them and ask if they’d be willing to write an honest review.

Manage invoices and payments

Many logistics applications can help you manage invoices and payments by creating customisable invoice templates, enabling digital signatures, and sending out status reports. You’ll have detailed records of your invoices and expenses, so you’ll always know where you stand with all your vendors. And if cash flow is an issue, most apps enable real-time payment tracking that shows you who has paid and who hasn’t—so you can take action on late payers before they become lost customers.

Chat support

One of the most convenient and accessible ways to get in touch with support is via an online chat. Logistic apps are great for small businesses and freelancers. Being able to reach out quickly by chat can help you reduce costs, avoid extra expenses on products or supplies, and make your clients or customers feel like they have someone who cares about them at their disposal 24/7. A well-trained and proactive chat support feature can be more effective than traditional methods.

Multilingual Support

International support is an essential feature in any software app, and logistics is no different. More than 80% of countries have multiple languages, so making sure your software can support them is critical. You don’t want to make it impossible for anyone to use your app because they speak another language.

How does Logistics Mobile App Generate Revenue?

Here are some ways logistic apps generate revenue:

Paid Apps

To generate revenue, many logistics mobile apps are available with in-app purchases. Companies can sell various items in their apps, from additional services (such as extended warranty plans on products) to specific products themselves.

For example, an app for ordering pizza may include a paid component for placing an order ahead of time. Depending on how many people buy these extras, it could significantly contribute to overall revenue generation.

Charging users

The primary revenue stream for a mobile logistics app is charging users. People who use your app will be asked to sign up, and you’ll set them a subscription fee for using it. Generally, people are willing to pay more if they get more features, so it’s possible you could offer some of these for free in exchange for selling advertising on your platform (i.e., look of sale at our truck going from A to B).

Commission

Logistics mobile apps are often sold on a commission basis, meaning your revenue can be directly tied to your success. However, you’ll want to carefully define a transparent sales process for each logistics app you sell.

Paymium Model

Paymium offers a Revenue Run service, allowing truck drivers to generate income by delivering high-priority shipments. While Paymium does not charge a commission, they do charge a per-mile rate and other fees charged by third-party logistics companies. Paymium can offer its services at no cost and still make money through its other revenue streams.

Freemium Model

Freemium applications are free to download and use and include premium features that can be unlocked by paying a one-time fee or recurring subscription. Building a freemium model into your mobile app is probably your best bet if you’re looking for an app with a revenue stream.

Factors that Determine the Cost of a Logistic App

How much does it cost to hire an app developer? It depends on the factors that determine the cost of an app. You’ve probably heard all sorts of numbers thrown around by friends and peers, but what exactly determines how much an app costs to build? In this guide, we’ll go over all the different factors that influence the cost of an app, so you can better decide whether or not you should move forward with your idea or look into other options.

Platform

Before developing your logistic app, it’s essential to consider which platform you want to build for. Each central platform has unique features and requirements and a built-in user base, which could impact how much your app costs.

Complexity

Logistic Apps can be simple or complex. If you’re designing a relatively simple app that doesn’t do much more than display some information, show videos, allow social sharing, and so on, you can expect to pay a one-time fee of $5,000-$20,000.

Development Tools

In addition to time and cost, developers have their own unique set of factors they need to weigh when creating apps. Apple’s iOS platforms run on three different hardware devices—iPhone, iPad, and iPod Touch—and Google’s Android runs on multiple devices. To account for these differences, developers must purchase different tools depending on whether they’re coding for iOS or Android.

Device Compatibility

Depending on how many devices you want your logistic app to be able to run on determines what level of compatibility you need. The lower, or more essential, your device compatibility requirements are, the cheaper it will be to develop for those devices. For example, suppose you only want to create a logistic app for Android and iOS platforms (phones and tablets). In that case, the price will come down compared to developing for Windows phones and other desktop systems such as Mac OS X.

Offline Functionality

One factor to consider when determining how much you should charge for your app is whether or not it will include any offline functionality. Online apps rely on cellular and wifi connectivity, while offline apps store data locally and sync once connectivity is reestablished.

Who Are The Members Of A Logistic App Development Team?

A logistic app development team consists of members with different skill sets, and depending on the specific project; this team may be relatively small or quite extensive. Here are some of the typical team members you might expect to find an app development team.

Designer

This is someone who will be responsible for laying out how your app should look, what icons and fonts you will use, and even for creating screenshots of your final product. They have to be able to take your ideas and turn them into reality using Adobe Illustrator or Photoshop. Once they’ve completed their work, they can present a mockup of your app that you can share with other team members.

Frontend Developer

A front-end developer’s primary job is to write code for your app’s front end. These developers ensure that your app looks great and functions perfectly. If you want to be more technical, they might also be referred to as a software engineer. They may specialise in a particular programming language such as JavaScript or HTML5. As part of their role, they will: Work closely with other developers on an app project.

Logistic App Architect

This person is responsible for ensuring that your app meets and exceeds all industry standards for app development. Much time, effort, and money create an excellent mobile app. So, it’s essential to ensure that your mobile app architect has an excellent knowledge of software architecture and can make a solid foundation from which your entire mobile app team can work. This person must be comfortable working with various technologies, including HTML5, CSS3, and other programming languages.

Backend Developer

A backend developer is responsible for building up an app’s infrastructure to communicate with a database, store files and run smoothly. A well-built back end holds everything together, so finding a great developer who knows how to do that effectively is one of the most critical steps in creating an app.

Project Manager

App development teams need a project manager. A project manager’s job is to ensure everything is completed on time. Often, a developer or tech-savvy person can keep everyone in check. It’s not uncommon for app development teams to have more than one project manager on their team.

QA Engineer

Quality assurance engineers are responsible for ensuring that every aspect of an app works as intended. This includes checking code and testing applications on multiple devices, operating systems, and networks. QA engineers have an in-depth knowledge of testing tools and processes. They can assess apps in terms of stability, efficiency, usability, performance, interoperability, and more – they look at everything from end-to-end experiences to pixel-level elements to ensure nothing falls through the cracks.

Final Thoughts

As you might have guessed, there is no standard pricing for creating an app; costs vary by project. The complexity of your logistics-based mobile app plays a significant role in determining how much time, money, and resources you’ll need.

An essential cost to create a logistic transportation app with minimal functionality will generally cost less than something more elaborate. Most businesses can expect to spend anywhere from $10,000 to $300,000 (and possibly even more).

It is always advisable to find the best app developer who knows your industry and provides the best solutions per your specific requirements. If you have any queries, you can ask in the comment box.