How to Determine Cost for Logistics App Development?

logistics app development
  • Ankit Patel Ankit Patel
  • June 17, 2022
  • 6 min read

In case you are operating a business as diverse as the logistics, or freight forwarding one, you can understand the struggle related to managing the different intermediaries of the business- logistics business owner, the transport companies, to name a few. Living in a competitive and evolving world where technological innovations allow enterprises to automate their service delivery procedure, the logistics app will help it function effectively. This is followed by making operations streamlined, and so on. Therefore, it becomes vital to use the solution if you are setting up the base for the first time in the world of freight.

However, the process of on-demand logistics app development should be such that the end solution is robust. This is followed by getting the ability to render efficient logistic delivery offerings and giving the capability to drive value for the industry (freight).

As you read this article, you will get knowledge of all these areas. This, in the end, will support you in your endeavor to create an app that helps your logistics venture obtain maximum revenue.

So let us begin.

◉ Why Are Freight Industries Embracing Transportation App Development Services?

With the straightforward operations of the logistics app and the support it provides in linking the shipper and delivery driver, it has become easy to ensure a quick logistics shipment delivery and allow customers to remain aware of its different stages. This keeps transparency intact for the shippers.

This is followed by the overall fruitful and profitable nature of the app. Look at the graph below to gain insight into the global market outreach that the app has allowed the industry to gain among customers.

logistics industry stats

Image source:

Through the graph, you can gain insight into the popularity that the freight industry has been able to make with the support of the on-demand logistics app.

This is due to the reasons below-

  • Provides customers with real-time updates on shipments.
  • Allows different partners like logistics companies, transport companies, etc., to seamlessly connect and ensure that performance is of paramount quality and delivery is done quickly and on time.
  • Tasks like maintaining records, performing dispatch operations, and inspections become easy to do.

Thanks to these factors, major industries are taking advantage of these solutions. However, it so happens that if the development process gets performed incorrectly, it may cause disastrous business results. This may include something like the venture sinking into oblivion.

Here are some of the different kinds of logistics and transportation apps that have especially made the freight industry automated in nature.

◉ Different Kinds of Logistics and Transportation Apps

logistics app types
  1. Fleet management app for allowing seamless fleet operations and reducing costs, boosting performance, and ensuring compliance as per government regulations become easy to perform.
  2. Warehouse apps for data storage purposes of products within the warehouse.
  3. Tracking apps to provide real-time information about routes, and delivery of goods and products.

Knowing now the different forms of these solutions, let us now take a glimpse into the statistical figures to analyze the profitable nature of these apps.

  • Transparency Market Research has predicted the logistics industry to have a value close to around 15.5 trillion dollars by 2023.
  • The presence of the on-demand logistics app has allowed the freight venture to hold the highest percentage of market share that is 35%.
  • The logistics market size in the USA was around US$ 220420 million in 2019 and since then has observed exponential growth. It is predicted to observe a growth of around US$ 334055 million by the end of 2026 at a CAGR of 6.34% between the fiscal years 2021 to 2026.

Through these statistical figures, you can identify why an on-demand logistics app is worth including in the freight industry.

It demands adherence to a few techniques while performing logistics app development.

◉ How to Build On-Demand Logistics App?

Know the Tech Stack for Easy Operations

Technology is the lifeline of any business existing today. This helps them to build a robust customer base. Therefore, if you are working towards developing a logistics app, know the tech stack that will stimulate the creation seamlessly and conveniently for you.

FunctionsTechnology Stack
Frontend Development (App)Swift, Java, Kotlin, Flutter, React Native
Backend DevelopmentNodeJS, Express.js, ReactJS, JavaScript, Python, Ruby
Payment GatewaysPayPal, Braintree, EWallets, Stripe
Push NotificationsTwilio or
Real-Time AnalyticsApache, IBM, Cisco, BigData, Spark
DatabaseMongoDB, Postgress, Hbase
Cloud Platform SolutionAWS, Google, or Azure
Credential Authentication LoginTwilio or Nexmo

The table above depicts the different technology stacks that will allow you during the buildup of the logistic app so that seamless logistic delivery services through it become easy to offer to the customer.

Remain Aware of Features for Seamless Logistic Delivery

To ensure that consumers and delivery drivers can operate the app seamlessly and ensure logistic delivery is a seamless process, you must also include some unique features. The ones that would particularly add value to the app are as follows.

For Customer App:

  • Social media login
  • Profile creation
  • Book now or schedule
  • Fare estimation
  • Multiple payment options
  • Push notifications
  • Booking cancellation
  • Contact driver
  • Save delivery address
  • View past history
  • Rate driver

For Driver App:

  • Freight/Shipping details
  • Mark delivery status – to be picked, picked, being delivered, and delivered
  • Schedule availability as available or busy
  • Keep track of past tasks and invoices, apart from earnings
  • View rate card
  • View earning report
  • In-app calling
  • Set route and use navigation

For Admin Panel:

  • Powerful dashboard
  • Manage drivers
  • Manage dispatchers
  • Fleet/Vehicle Management
  • Manage bills and invoices
  • Generate reports for revenue tracking, and user acquisition statistical purposes
  • Offer discounts
  • Manage and track deliveries

With all these features, your logistics app will be easy to operate and support the customer and driver to perform different tasks on the app and remain aware of the different stages until delivery gets done. This will also aid your logistics venture to operate effectively, remain aware of profits, and also be able to create a strong foundation and get the capability to make maximum ROI.

Take Cognizance of Ways to Maximize Revenues

As you may be aware, mobile apps are extremely useful in building a robust online presence for any business. You also must be conscious of the profits the logistics industry is currently making and has made in the past. This includes having awareness of predictions related to the revenue-generating capability of the logistics industry with the aid of an app.

Therefore, when you embrace logistics and transportation app development services, make sure you remain aware of the techniques by which you will be able to generate maximum revenue through the end solution.

If we list out the main ones, they include-

  • A paid app for businesses to earn profits based on the finances users incur when using premium features within the app.
  • By displaying advertisements, it becomes possible for the business to earn a good percentage of revenues and profits.
  • Charge commissions from the drivers. This includes the driver delivering logistic delivery service and earning a particular sum. The business next charges a percentage from that amount as commission so that they can make profits.

Hence, remain aware of revenue models first, know the ultimate goal it wants to accomplish, and the strategies you wish to use to ensure logistic deliveries bring profits. This, in the end, will allow you to select an ideal technique that will help you to maximize revenues for your freight set up through the app.

Cost to Develop a Logistics and Transport App

After you gain knowledge of features, tech stack, and revenue models that would help drive significant value for your logistics app, the cost factor should get importance. In other words, you must estimate the cost to develop the solution.

Areas to focus on to evaluate cost to develop logistics app:

  • Based on the platform you choose (Android, iOS, or both). Cross-platform app development will ensure that you save considerably as one code will take care of the development.
  • The complexity of design and features you add.
  • Based on the framework, tool, and tech stack choice you make for backend and frontend development.
  • The geographical location of the company you choose.

Today, USA and Arab countries are embracing on demand logistics app development services from India to build a strong online presence for the freight industry.

Courtesy of this, the industry promises to remain a really flourishing one, expecting its CAGR to become 6.84% by 2026.

Look at the image below to take a peek at these numbers.

uae logistics market

Image source:

Through the image, you can gain clarity on this aspect better.

The cost of development is dependent upon a large number of factors. One most prominent among them is the location one chooses for app development. The expenditure may vary based on the location where the business decides to take these services.

There are three main places where businesses usually take aid for mobile app development, namely, Europe, the USA, and Asia.

In Europe and USA, the mobile app development cost is extremely high. In Europe most particularly, the cost is between $70 to $150+ per hour. On the other hand, in Asian countries, the overall expenditure is between $35 to $60 per hour.

Hence, to make the ideal choice, it is important to check the budget first. This will ultimately support to give an idea of the finances you need to keep aside for logistics and transportation app development. The cost of the simple app with basic features may be around $15,000 – $25,000 and can go as high as $40,000 – $60,000 depending on the advanced features you want to include.

Connect with a Logistics and Transportation App Development Company

Once you know what your app will look like and the features you wish to include, connect with a reliable app development company next. Implementing the best set of industry practices during logistics app development, they will develop an app that serves the following purposes-

  • Allows seamless logistic delivery services.
  • Helps logistic business manage operations well.
  • Build a good level of transparency concerning the different stages of logistic order until delivery is complete.

◉ Wrapping Up

Logistics apps offer immense help to the freight industry in providing seamless and convenient logistic delivery services to the end customers. This is followed by giving support to reduce the dependency on paperwork and automate how they operate. It demands that you perform the process of logistics app development in a way the final app helps you achieve these aspects mentioned above. So, if you are aiming to build a similar solution to make it big in the world of logistics business, connect with us today. Understanding your requirements, our team of developers will bring forward an app that helps you to obtain maximum ROI.

About: Ankit Patel

Ankit Patel is a Sales/Marketing Manager at XongoLab Technologies LLP and PeppyOcean, A leading mobile app development companies. As a hobby, He loves to write articles about technology, marketing, business, web, and mobile. His articles featured on Datafloq, JaxEnter, TechTarget, eLearninggAdobe, DesignWebKit, InstantShift and many more.

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