Package or Courier or Parcel Delivery On Demand Solution development

April 8, 2020
By Technource

“Nothing works better than just improving your product.”
Joel Spolsky, co-founder of Stack Overflow

In Today’s world there are many startups coming. Every startup has its own idea & vision. One of them is On Demand startups. On Demand based solutions are trending in the market. You can see Uber, Uber Eats, Zomato, Swiggy.

Do you have any startup ideas?
Do you see any pain points or needs of your nearby people ?
Do you see them as your customer?
Do you want to develop an on demand solution for them?
Lets first know what is On Demand Solution or App

On demand solution is where you have a mobile app or website on the customer side who need service or product to be delivered based on their demand and you have provider who will have a mobile app or website will provide that service or product to them as per their demand.

Let’s discuss this point with an example,On-Demand Courier Industry or in other words Package or Parcel delivery

We have many shipping companies when it comes to sending something from one location to another location but what if someone wants to send something as per his demand on the same day then here comes startups like Hatch

“How exactly does this type of On Demand solutions work ?”

Let’s first discuss what type of app module you should have in such an app for each user role module. (Service provider, Customer or Driver)

You can also start an on demand delivery service using this website.

You can use below modules/features in your on demand delivery service website.


Customer & Driver Account creation from Email


During Account creation verify Email & Mobile number

– You can verify email by sending system generated email and from their user can verify his/her email by clicking on verify email button

– You can verify mobile number by using SMS sending API ( Example Twilio link to can send verification code to user mobile number and ask them to enter that on your system.


You can also have Social media sign up functionality like facebook & Gmail


Customer Profile Setup with basic details


Driver Profile Setup, you should take ID Proof kind of document from provider and also in admin side you should have manual approval of provider first before that provider can login to your system.


Customers post his/her requirement and then nearby drivers get notified about it.


Whoever the nearest Driver will accept first will get this Job.


Driver will come to the customer pick up location , Take that parcel or package and delivery to customer’s drop off location.


Real Time location tracking should be for customer & driver


Review & Rating system once the job is done

“What about Delivery Charge calculation ?”
Now coming to cost calculation there can be 2 model
1. Formula based fixed price
2. Offer Based Price

In offer based pricing, the driver will place price as per customer job and it is upto customer which driver offers the customer accept.

Formula based fixed pricing, This is good to have. Admin side you need to have functionality to define the mode of transport and some formula constant & variable.

Let’s say we have this formula to calculate the cost

Constant + Distance X Price_per_km

Now there are 2 things that will come in admin side. Those admin will define Constant & price_per_km for each mode of transport.

Let’s take an example of mode of transport as “Bike or 2 Wheeler”

Admin defined Constant as 10 USD price for First 10 KM and then price per km as 1.5 USD.

Now customer posted job for vehicle mode Bike from location a to b and distance between these location is 20 Km so the price will

10 + 10X1.5 = 10 + 15 = 25 USD

Now this is a system generated price so it is upto the drive that he/she accept or decline that job.

How will the Admin or Owner of this business make Money ?

You can have commision in % from the Driver side. Let’s say the driver gets X amount paid from the customer then you can take your % from that part and then transfer the remaining to the driver account.

What are different payment options you can have in this system ?

It is preferred to have online payment only because if you will allow cash payment then taking admin fee will not be possible. You can have online payments like credit card, debit card etc

Technologies stack used for On-Demand Solution

Mobile App development

You can have in Native as well as hybrid or cross platform.

For hybrid you have options like React Native, Flutter, Ionic etc

For API you can use Laravel

Database cab be my sql or mongo db or dynamo db

How much does it cost ?

Costing depends on the modules or functionalities you want but developing this type of solution with MVP starts from 9000 USD.

Still have confusion or Questions ?

Technource has developed many “On Demand solutions”in various industries. We can help you to develop your startup idea.