On Demand Delivery Market Size

By RisingMax

November 03, 2023

On Demand Delivery Market Size

In this digital age, with smartphones constantly in our hands, there's a good chance you've used an on-demand delivery app at some point.  On-demand delivery apps have fixed many issues, like delivering food, medicines, groceries, and flowers to your doorstep. Entrepreneurs have noticed the potential of this industry and are now focusing on it.

On Demand Delivery Market Size

What do you believe contributes to the success of UberEats, Instacart, Practo, BlaBla, and TaskRabbit? The primary factor is the convenience these applications offer to users.

On-demand delivery apps offer round-the-clock access to a diverse range of services and goods, from food and clothing to household assistance and pet care, all just a click away.

Statistics To Prove The On Demand Trend And The Market Size

The market size of on-demand apps is growing every year, and to illustrate this, here are some statistics provided below.

  • The main reason behind this expansion is the widespread adoption of smartphones across all age groups. Currently, 6.92 billion (86%) of the global population uses smartphones, and this number is projected to increase to 7.33 billion by 2025.
  • Our research shows that 41% of consumers are willing to pay more for guaranteed next-day delivery. Additionally, same-day or next-day delivery is preferred by 24 percent of customers who are willing to pay a premium.
  • Experts estimate that consumers globally spend $57.6 billion annually on on-demand apps and continue to increase.
  • The on-demand market is projected to generate $335 billion in revenue by 2025.
  • More than 50% of on-demand service consumers fall within the age group of 18 to 34, which comprises the primary spenders.
  • Additionally, the second largest consumer group, accounting for 30% of on-demand app users, comprises individuals aged 35 to 54.

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Types of On-Demand Delivery Business Model

There are primarily three types of on-demand business models.

Business to Consumer (B2C)/Enterprise to Person (E2P)

This is one of the fundamental categories within the realm of on-demand delivery apps. In this specific category, services are delivered directly to consumers or end-users, typically with a fee or service charge. For instance, it involves delivering ready-to-eat meals to consumers by connecting them with various food outlets across the city.

Some of the game-changing on-demand delivery apps falling under the business-to-consumer (B2C) category include:

  • Easy Taxi
  • Uber Eats
  • Task Rabbit

According to 'Grand View Research,' the B2C market was valued at approximately $3.67 trillion in 2020, and it is expected to exhibit a compound annual growth rate (CAGR) of 9.7% between 2021 and 2028. Given the substantial potential in the B2C sector, it is a logical choice to develop an on-demand delivery app catering to the B2C market.

Business to Business (B2B)/Enterprise to Enterprise (E2E)

Business-to-business, or B2B, connects businesses by the fundamental economic principles of supply and demand. However, with the advent of cutting-edge modern technologies, B2B on-demand delivery apps have undergone significant transformation.

Here are some noteworthy B2B on-demand delivery apps:

  • Bolt
  • Metro Wholesale
  • Walmart Wholesale

According to estimates by Forrester, B2B marketplaces are anticipated to surpass $1.8 trillion by 2023, constituting 17% of all B2B sales. The market is ripe for new ideas and businesses, making it an opportune time to explore and capitalize on the boundless possibilities.

Consumer to Consumer(C2C)/Person to Person(P2P)

Consumer-to-consumer, often called person-to-person (P2P), on-demand delivery apps offer a sense of security and are highly popular among consumers.

Here are some prominent names in this category:

  • Local Guddy
  • Glocalzone

While the C2C segment may be smaller in scale than B2B and B2C, it still holds significant potential and business opportunities. Therefore, if you're considering entering this niche within the on-demand delivery app market, now is an excellent time.

Types of On-Demand Delivery Applications

Discover the diverse landscape of on-demand delivery apps, each tailored to meet unique consumer needs and preferences.

1. On-Demand Food Delivery Apps

Food delivery apps have established themselves as a mainstay in the tech sector, and there is no sign of slowing demand for them. These apps typically offer various dining establishments, allowing users to narrow their search based on price range, preferred cuisine, and other criteria. The app keeps users informed about the status of their orders and updates them regarding the estimated arrival time.

On Demand Food Delivery Market Size

Experts forecast that the online on-demand food delivery services market will grow by $266.05 billion between 2023 and 2027, at a compound annual growth rate (CAGR) of 24.64%.

This growth is mainly propelled by the widespread adoption of cloud kitchens. Cloud kitchens or ghost kitchens are appealing because they require less upfront investment and result in ongoing cost savings, like reduced expenses for staff, equipment, utilities, and insurance. Because of this, many restaurants are considering the option of using cloud kitchens to stay competitive and up-to-date.

Some prominent players in the global online food delivery market are:

  • DoorDash
  • Grubhub
  • McDonald's
  • Deliveroo
  • Just Eat
  • Uber

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2. On Demand Grocery Delivery Apps

On-demand grocery apps operate much like food delivery apps, but they cater to different needs. Users can use these apps to order everyday essentials and have them delivered to their addresses. However, the advantages of these apps extend beyond convenience. Users can access discounts, earn loyalty points, check product quality, return items they're not satisfied with, and more. This eliminates the need for them to visit various grocery stores to find the necessary items.

On Demand Grocery Delivery Market Size

The global online grocery delivery services market was valued at $286 billion in 2021 and is projected to reach $2,159 billion by the end of 2030, with a compound annual growth rate (CAGR) of approximately 26% between 2022 and 2030.

Some prominent players in the global online grocery delivery market are:

  • Tesco.com
  • BigBasket
  • InstaMart
  • Amazon
  • Grab

3. On Demand Medicine Delivery

On-demand medicine delivery apps have become a saviour for businesses in streamlining their business processes. Everything from order processing to tracking delivery and inventory management is effectively managed while mitigating errors. These apps come with numerous features like customized CRM integration, POS Software, and a multi-lingual platform that offers amazing rewards and discounts to users, leading to enhanced client relationships.

On Demand Medicine Delivery Market Size

The global virtual healthcare delivery market is expected to reach a value of $80.5 billion by 2027, with a compound annual growth rate (CAGR) of 28%.

Some prominent players in the global on demand medicine delivery market are:

  • Novartis International AG
  • F.Hoffmann-La Roche AG
  • Pfizer Inc.
  • Becton Dickinson & Company

4. On Demand Liquor Delivery

Liquor delivery apps help customers find liquor stores that are near their location and order liquor of their choice. There are different varieties of brands, including beer, wine, whiskey, gin, vodka, etc. Similarly, businesses can manage their online store much more effectively without much hassle. With liquor delivery, a considerable amount of time is saved, followed by fast ordering and contactless orders.

On-Demand Liquor Delivery Market Size

By 2025, the alcohal delivery app business is estimated at around $42bn. Also, by 2031, the alcohol ecommerce market is predicted to reach $173.81bn.

Some prominent players in the global on demand liquor delivery market are:

  • Drizly
  • Saucey
  • Minibar
  • Tavour
  • DoorDash
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5. On Demand Cannabis Delivery Apps

An on demand cannabis delivery app lets users order cannabis from a licensed dispensary online. With an on demand cannabis delivery app, business owners can effectively reach their target audience and generate high profits by applying different revenue models. Such applications are rich with top-tier features like schedule delivery, re-orders, feedback & rating, and multiple payment gateways, which attract customers, resulting in high profits for businesses.

On-Demand Cannabis Delivery Market Size

The revenue growth in the cannabis market is estimated to reach $51.27 billion before the end of 2023. As it is growing at a CAGR of 14.95%, the financial growth in cannabis delivery is monitored to reach $102.90 billion by 2027.

Some prominent players in the global on demand cannabis delivery market are:

  • Eaze
  • Leafly
  • Weedmaps
  • Blackbird

6. On Demand Courier/Product/Goods Delivery Apps

An on demand courier delivery app lets customers send their parcels without any hustle. Customers can easily hand over their parcel to the delivery personnel and track the status with the help of the app. It includes some essential services like packaging options, 24/7 support, set delivery preferences and tracking shipments, which help businesses serve many customers. As courier or product delivery applications offer flexibility to customers, it increases the likelihood for the customer to use your app every time they want.

On-Demand Courier Delivery Market Size

The market volume in the courier delivery business is projected to reach $658.3 billion by 2031. It is growing at a CAGR of 5.7%, which indicates that investing in an on demand courier delivery app is quite profitable.

Some prominent players in the global on demand courier delivery market are:

  • DHL Express 
  • FedEx
  • UPS
  • Postmates
  • Shipt

7. On-Demand Meat Delivery Apps

An on-demand meat delivery app is a convenient digital platform that allows users to order a wide variety of fresh meat products and have them delivered to their doorstep. These apps typically offer a user-friendly interface where customers browse through a selection of meats, including beef, chicken, pork, and more. Payment is made through the app, and the orders are processed swiftly, with delivery options often including same-day or scheduled deliveries. This service not only saves time but also offers a more controlled and hygienic way to source meat products, catering to the demands of modern, busy lifestyles.

Also Read: Mobile App Development Companies In Dubai

On Demand Meat Delivery Market Size

In 2022, the global online meat delivery market was estimated to be worth approximately $20.5 billion, and it's expected to continue expanding in the coming years.

Some prominent players in the global online meat delivery market are: 

  • MeatMaster
  • Carnivore Express
  • MeatEazy
  • Prime Cuts

8. On-Demand Flower Delivery Apps

Flower delivery services provide a convenient way for individuals to send fresh floral arrangements to loved ones or celebrate special occasions. Users can select from a wide range of flowers and bouquets through a website or mobile app. They often have options for customizing arrangements, adding personal messages, and choosing delivery dates. Flower delivery services makes it easy to brighten someone's day or mark significant moments with the beauty and fragrance of fresh blooms.

On Demand Flower Delivery Market Size

The global flower and gifting market is substantial, with consistent growth. In 2022, the online flower delivery market was valued at over $27 billion, and it's projected to experience further growth in the years to come.

Some prominent players in the global online flower delivery market are: 

  • UrbanStems
  • BloomNation
  • The Bouqs
  • Uber For Flowers
On Demand Delivery Market Size

9. On-Demand Multi Delivery Apps

A multi-delivery app welcomes different businesses to sell their products to customers on one platform. Be it clothes, medicines, apparel, stationery, crockeries, electronics, home appliances, and more. Multi-delivery app has space for every business, from prominent brands to local store owners.

On Demand Multi Delivery Market Size

One of the leading multi-delivery apps, Amazon, has potentially over 310 million customers worldwide.

Some prominent players in the global online Multi delivery market are:

  • Walmart
  • Amazon
  • Taobao
  • Rakuten
  • Pinduoduo
  • Alibaba

10. On Demand Last Mile Delivery Apps

Last-mile delivery solutions allow retailers and business owners to provide consumers the convenience of getting their ordered items at their doors quicker. The delivery begins at the retailer's local distribution center, increasing delivery times.

On Demand Last Mile Delivery Market Size

As last-mile deliveries help businesses streamline their operations by decreasing the resources and time needed for delivery, the market is expected to boost at a CAGR of 8.1% during 2022 and 2032.

Some prominent players in the global online last mile delivery market are: 

  • UPS
  • FedEx
  • OnTrac
  • Kiwibot
  • Starship Technologies
  • Zipline

Conclusion

The demand for convenience and quick access to goods and services is driving an unprecedented boom in the market for on-demand delivery apps. The market for on-demand delivery and other applications has grown dramatically in recent years, and this trend looks certain to continue.

With people depending more than ever on these applications for necessities, groceries, meals, and various services, the COVID-19 pandemic only served to accelerate this rise. Nowadays, this market is a worldwide phenomenon that caters to a wide range of industries and meets the demands of both businesses and consumers.

Being a part of the on-demand delivery revolution is thrilling right now because the market is expected to grow much more in the years to come. There are many chances in this field, and businesses may take advantage of them by investing in the correct tactics and products and providing outstanding customer service. Contact the prominent on-demand delivery app development company to take your business to new heights and enjoy hassle-free success.

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