How to Develop On-Demand Delivery App like Lalamove or Lalamove Clone App?



Introduction:

Since technology has shown us how it can disrupt markets and create new Unicorns, we have seen a rise in numerous start-ups that have managed to reach unfathomable heights. Every service sector whether its financial services or hospitality have had to get their pace-up with the latest technologies in order to survive their competitors who by the way are also getting equipped with the latest tech. Here we’ll discuss Lalamove Clone App.

One such industry that has seen major disruptions is logistics. The advent of On-Demand services like Uber and the likes has changed the perception of how people ordered cabs or their food. A few clicks here and there and the service is at your doorstep.
A similar shift has been observed in the logistics industry. With a new player in the game that has redefined the courier delivery system, ‘Lalamove’ is raising eyebrows everywhere.
This blog offers you insights on how Lalamove has become Hong Kong’s first Unicorn company, how it functions on the ground, and how it’s expanding to other countries.

How does a Last-Minute Delivery App Work?

Applications such as Lalamove are also referred to as the Last-Minute Delivery apps. These apps allow its consumers to deliver anything ranging from a key they’ve forgotten to food, couriers, and other large home items or business goods. An on-demand logistic provider for all your logistic needs. The app acts as a bridge between individuals, businesses, and drivers. A perfect way to deliver your items quickly and safely.

History:

Lalamove has one of the most movie-like backstories. It was founded by Chow Shing – Yuk who worked as a management consultant at Bain & Company. Three years into it Chow developed an interest in poker and started playing it religiously. He invested 8 years into it and turned a professional earning 30 million USD in that period.
Chow founded EasyVan in December 2013, which was renamed as ‘Lalamove’ in 2014. The company received a great response and expanded to Thailand, Singapore, Taiwan, Latin America, and other cities and countries in Southeast Asia in the following years.
The company is headquartered in Hong Kong while its primary base is in China and goes by the name “Houlala”. The start-up became the first to be born out of Hong Kong. Lalamove is a Chinese word where ‘Lala’ means “to deliver”.
The On-demand logistic start-up has achieved some splendid figures over the years. Let’s have a look at a few.

On-Demand Delivery Business Statistical Analysis:

  • Lalamove generates an estimated 146.6 million USD annual revenue.
  • Its estimated per employee revenue is 145, 000 USD.
  • Lalamove has received a total funding of 462 million USD up till now.
  • The company has around 1011 employees with an employment growth rate of 84%.
  • It connects a whopping 15 million customers with its pool of 2 million drivers.
The numbers portray a promising future for the company. Having learned how Lalamove has flourished over the years let’s understand the business model of the same.

Benefits of an On-Demand Courier Delivery App like Lalamove or Lalamove Clone App:

Time-efficient Service: The on-demand delivery service offers you the option of ‘Same-day delivery.
Instant Booking: To book a delivery you just have to make a few clicks and professional delivery will be at your doorstep.
Transparent Pricing: You can learn the total pricing for your delivery as soon as you provide the required clerical information such as delivery destination, appropriate vehicle, delivery items, and the likes.
Real-Time Tracking: You can track your delivery anytime and from anywhere.
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On-Demand Delivery App Company Lalamove’s Business Model:

Lalamove follows a similar model to that of Uber but here you send out courier deliveries rather than calling a cab. The app allows users to order pick-up for their deliveries and gets them delivered to their desired locations on the same day. The company claims that it can deliver an order in the same city in a maximum time of “37 minutes”.
The platform charges the delivery amount depending on the distance and weight of the parcel. The deliveries can be made 24*7 and the parcel can be tracked in real-time.
The delivery process completes itself in about 4 steps. Let’s understand how the app functions.

1. Request Delivery:

This is the basic step to avail of any on-demand service. The user enters their current location and courier’s delivery location and requests a delivery.

2. Make Payment:

Depending on the distance to be covered, the weight of the parcel, and the vehicle required to make the drop, the app calculates the total cost and asks the user to make the necessary payment using the various payment options provided within the app.

3. Driver Allocation:

Based on your location and the availability of nearby drivers, they allocate a driver to you. The driver will reach out to you, make the necessary transactions, and your parcel will be on its way to its destination.

4. Order Tracking:

Lalamove has the feature where you can track exactly where the driver is before and during an ongoing delivery. This helps the user know the whereabouts of its delivered item.

The preceding steps are pretty straightforward and easy to follow. We learn that just in 4 steps you can deliver your desired items to your destined location. Let’s not focus on the exact methods through which Lalamove generates revenue.

Revenue Generation:

Your platform must find efficient ways to monetize your app from its launch. Assuming that you don’t have a great budget back-up, this money would keep funding the development wheel spinning for you.
Lalamove, being a logistics company doesn’t have too many areas of charging its users. But the two most esteemed ways of earning are:
  • Delivery Fee:

The delivery fee is the charge you pay that gets calculated based on the delivery parameters and the vehicle you choose for it.

  • Convenience Fee:

The user has to pay a convenience charge on every delivery they request. But it should be noted that the driver gets to keep 85% of each order value and the platform earns the least commission in the game.

It is a common prediction among tech industries that Lalamove will disrupt the conventional ways Logistics operated. The company itself observed such an unexpected response from people that they changed their tagline from “Everyone’s Private Driver” to “Where Lifestyle meets Logistics”.
Lalamove currently operates in Hong Kong, Taipei, Singapore, Kuala Lumpur, Manila, Cebu, Bangkok, Pattaya, Ho Chi Minh City, Hanoi, Jakarta, India, São Paulo, Rio de Janeiro, and Mexico City.
In 2019, Lalamove started operating in India. Let’s understand how Lalamove managed to spread its wings in the sub-continent.

Lalamove’s Expansion Strategies:

Let’s understand how Lalamove plans its expansion in different countries through its recent business stretch in India.
  • Lalamove made its way to the Indian Logistics market in February 2019. The company holds a strong belief that logistics is one of the most unorganized business industries.
  • When examining the Indian logistic market, Lalamove observed that the driver fraternity of India was highly undervalued and the system presented many gaps that could be bridged through the advent of technology.
  • Lalamove planned a perfect market fit to solve their problem, where drivers had to go through many adversities to earn their living. Their studies helped them confirm that logistics could be the largest of employments by 2022.
  • Lalamove noticed that India had too many established logistics companies but none were motivated to make same-day or one-hour deliveries. And the few that did were not that well known all over the country. Hence, Lalamove put its invading India campaign into motion.
  • Since February 2019, Lalamove has marked its presence in Ahmedabad, Bengaluru, Hyderabad, Pune, Delhi, Chennai, and Mumbai. The driver fraternity in India is eventually acquainting themselves to use technology to earn their bread.
  • The capital-light model of Lalamove allows them to expand at a rapid pace. Their USP lies in maintaining an efficient app that connects its drivers with its clients.
  • The drivers that enroll also undergo a personal training session to learn the best customer engagement and retention practices.
  • Lalamove’s niche is the urban crowd who seek rapid deliveries. Spotting its target crowd Lalamove has managed to capture numerous cities with more than 10, 000 registered drivers.
Now, that you’ve got a basic idea of how a logistics company can capture a new market, let’s have a glance at the methods Lalamove used to reach their respective niche.

Future Prospects:

  • The company was launched in Hong Kong in 2013 and currently operates in 352 cities in mainland China. It also provides its service in Taiwan, Vietnam, Indonesia, Malaysia, the Philippines, Thailand, & Singapore.
  • Since its launch, the company has grown in providing enterprise logistics, freight services, moving, and vehicle rental.
  • Lalamove entered the US market in December 2013 and claims to have 480, 000 drivers and 7.2 million monthly users.
  • At the start of 2020, the company experienced a 93% drop in shipment volume due to the COVID-19 crisis. But has observed an 82% year-over-year rebound in order volume.
  • The company had announced its last funding round in February 2019. A time when they made the Unicorn list by grabbing their Series D funding of 300 million USD.
  • Lalamove had announced its Series E funding round to enter the 4th & 5th tier Chinese cities. It managed to raise a whopping 515 million USD in the Series E funding round at an 8 billion USD valuation.

The funding was led by Sequoia Capital, China. It also received healthy participation from Shunwei Capital and Hillhouse Capital, all of them being returning investors. The company has received a total funding of 977 million USD up till now.

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Capturing your Niche:

Helping your targeted niche grow aware of your services is an important and challenging task for any new business. Your promotions should define what your services are and how it’s better than the services they’re currently using in the simplest of ways. Some of the ways of doing the preceding tasks are:
  • Digital Marketing:

Consumers nowadays prefer educating themselves about the services they use. Digital marketing is the most conventional form of marketing. We promote businesses through ads, newsletters, blogs, and increase like through digital marketing.

  • Offline Advertisements:

The offline advertisements make use of our media and make people aware of the upcoming services or products through catalogs, billboards, radio, television, magazines, brochures, and much more.

  • Social Media Promotion:

As social media has become the go-to thing for almost everyone in their spare time, your business can get its required limelight on them. Apps like Instagram, Facebook, etc are perfect places for making the masses aware of a new service in town.

  • Web Promotion:

Web promotion can be done in a myriad of ways but the foremost way that comes to mind is using a website. A website can offer all the detailed information about all your services and how to avail of them. Users can also learn a lot through FAQs or other forms of content like videos and blogs. Also having a dedicated website builds a higher level of trust among your potential users.

  • Freemium App Versions:

Nobody likes to pay! At least not until your users get comfortable with your services and see what value your app adds to their lives. So, offering a freemium version of your app could boost up your consumer base. It also gives the users a chance to get acquainted with your services and help them learn what additional services can be availed of in the premium versions.

  • Search Engine Optimization:

Search Engine Optimization makes sure your services are the first on the suggestion list on search engines when searched using related keywords. Though search engine optimization or SEO is an evident part of digital marketing, you must allocate dedicated resources to it from the start.

How to Develop Your own Lalamove Clone app or On-Demand Delivery App like Lalamove with us?

Technource, a top mobile app development company is a renowned name in the professional IT service sector. We can provide you the perfect assistance in transforming your dream On-demand courier delivery idea into reality as we’ve already done so in the past.
We’ve created an On-demand delivery app named ‘Just Errands’ that facilitates quick delivery of goods and paid services. We’ve also had the opportunity to work on an On-demand package delivery app named Hatch’.
Our experienced team of developers and designers who’ve already worked on similar projects have cultivated expertise in creating on-demand applications. Plus, it’s always an added benefit of working with a team that knows what they’re doing or in other words are experienced enough.
The competition in the on-demand business world is increasing at a rapid pace. So, if you have an on-demand logistic app idea that is giving you sleepless nights then you’re reading the right blog. As we share the same enthusiasm as yours. We await your call. Let’s connect at the earliest.

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Mr. Sanjay Singh Rajpurohit, An early-aged entrepreneur who always leads his team from the front and achieved success. As the founder & CEO of Technource, a top AngularJS development company, he made a global presence in a short time by offering custom software development, premium mobile apps and website development services.

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