The demand to create pickup and delivery app services has skyrocketed in recent years. A report from Statista shows that the global online food delivery market alone is expected to reach over $200 billion by 2025.
This surge in demand isn't limited to food delivery; industries like e-commerce, groceries, and laundry services are also jumping on the bandwagon.
As a result, businesses are eager to build their own pickup and delivery apps to stay competitive.In this blog, we'll break down the cost to build a pickup and delivery app from a developer's perspective.
Whether you're a startup or an established business, understanding the costs involved will help you make informed decisions.
With years of experience in app development, our team has built successful delivery apps for various industries, so you can trust that the insights shared here are backed by real-world expertise.
Let's dive in and get a clear picture of what it takes to build your app.
Market Statistics of Pickup and Delivery App
The pickup and delivery app market has witnessed tremendous growth in recent years, driven by the increasing consumer demand for convenience, speed, and real-time service.
Whether it's food, groceries, packages, or retail products, on-demand delivery has become an integral part of urban lifestyles.
Global Market Size and Growth
According to a report by Statista, the global online food delivery market alone is expected to reach $1.45 trillion by 2027, growing at a CAGR of 10.3% from 2025 to 2027.
That means it's worthwhile investing in a food delivery app development. The broader on-demand logistics market, including package and grocery delivery, is projected to exceed $493 billion by 2032, reflecting an ongoing shift toward instant service models.
Leading Players in the Market
Here are some of the top-performing pickup and delivery apps:
- Uber Eats - Operating in 45+ countries with millions of active users.
- DoorDash - Dominates the US market with over 65% market share in the food delivery segment.
- Postmates - Known for multi-category delivery (food, alcohol, essentials).
- Dunzo (India) - Popular for hyperlocal deliveries ranging from groceries to packages.
- Instacart, Zomato, Swiggy, and Glovo are also major contributors to the global demand surge.
Why This is the Right Time to Invest
- Consumer expectations have shifted - users now prefer apps that offer instant delivery, live tracking, and digital payments.
- E-commerce growth is fueling the need for last-mile delivery solutions.
- The low entry barrier for niche delivery categories (e.g., pet food, medicine, alcohol) opens up new business opportunities.
- With tech advancements (AI-driven routing, real-time updates, etc.), building a high-performance app is now more affordable than ever.
Key Features of a Pickup and Delivery App
To build a successful pickup and delivery app, you need to focus on three major components: the user panel, delivery agent panel, and the admin panel.
Each panel offers distinct features tailored to its specific role in the ecosystem.
User Panel
User Registration & Login - Users can register using their email, phone number, or social accounts.
A secure and quick login process ensures easy access and improves app usability from the start.
Pickup & Drop Location Selection-Users can enter or auto-detect pickup and drop-off addresses, with integrated maps helping to pinpoint accurate locations for seamless pickups and deliveries, all thanks to efficient delivery app development.
Schedule Pickup or Book Now - Allows users to choose between instant or scheduled pickups based on their convenience.
This feature supports flexibility and improves service satisfaction.
Real-Time Tracking - It enables users to track delivery agents live through GPS, providing constant updates on the driver's location and estimated arrival time, a feature that is key when you create a pickup and delivery app.
In-App Payments - It offers secure payment options, including wallets, UPI, credit/debit cards, and cash on delivery, with users receiving instant payment confirmation after transactions, all made possible through advanced delivery app development.
Push Notifications - Notifies users about order confirmation, driver status, delivery updates, and promotions.
Keeps them informed without needing to open the app.
Rating & Feedback - After delivery, users can rate the service and leave feedback. This helps maintain quality and builds credibility for the platform.
Delivery Agent Panel Features
Driver Registration & Verification - Drivers sign up by uploading documents for background checks and approval.
This ensures only verified personnel deliver on your platform.
Accept/Reject Delivery Requests - Drivers can view nearby delivery tasks and choose to accept or decline based on location, schedule, and availability.
Route Optimization & Navigation - Built-in GPS and mapping help drivers take the most efficient route.
Reduces delays and boosts delivery speed and fuel efficiency.
Earnings & Order History - Drivers can check completed deliveries, view earnings, and track performance through a detailed dashboard, encouraging productivity and transparency.
In-App Chat or Call - Allows communication with users or support in case of delivery issues or address clarifications, improving customer satisfaction and operational flow.
Admin Panel Features
User & Driver Management - Admins can add, remove, or update users and drivers. This ensures platform integrity and handles any misuse or violations.
Order & Delivery Tracking - It provides admins with real-time insights into order progress, delivery status, and service delays, ensuring high operational efficiency, all enabled by robust delivery app development.
Analytics & Reports - Generates detailed reports on revenue, delivery times, user behavior, and driver performance to support data-driven decision-making.
Commission & Payout Control - Admins can set commission rates for drivers and automate payouts.
Ensures accurate and timely earnings distribution for service providers.
Promotions & Discounts Management - Allows admins to create coupon codes, discounts, or loyalty programs to attract and retain users through strategic marketing.
Read More: How to Build a B2B Mobile App
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Factors Affecting the App Development Cost
Understanding what drives the cost of a pickup and delivery app is essential for planning your budget. From platform choices to design and post-launch support, each element plays a role.Here are the key factors that influence overall development costs:
App Features and Functionality -The more features your app includes, the higher the cost.
Basic functionality is affordable, but adding advanced features like live tracking, in-app messaging, or automated dispatch increases both development time and total budget significantly. Each new feature adds complexity that requires extra coding and testing.
Platform ChoiceChoosing to build your app for Android, iOS, or both affects your budget.
Native apps for each platform cost more, while using cross-platform tools like Flutter or React Native can reduce costs by reusing code across platforms. Your platform decision should align with your target audience's mobile usage.
UI/UX Design ComplexityCustom designs with interactive visuals, animations, and unique branding take more time and effort to create.
A simple and clean user interface costs less, while complex design elements can increase the overall development expense. A good UI/UX boosts user engagement and overall satisfaction with the app.
App Maintenance and UpdatesOngoing app maintenance is necessary for long-term success.
Costs cover bug fixes, updates, new features, and performance improvements. Typically, yearly maintenance ranges from 15% to 20% of the initial app development cost. Regular updates also ensure your app stays compatible with new OS versions.
Cost to Build a Pickup and Delivery App
The cost to build a pickup and delivery app can range from $25,000 to $120,000 or more, depending on several key factors.
These include the app's complexity, design, number of features, platform (iOS, Android, or both), and the location of your development team.
Basic App Development
A basic pickup and delivery app includes core functionalities like user registration, address input, pickup request, driver assignment, and payment integration.
This type of app is ideal for small businesses or startups launching a Minimum Viable Product (MVP), especially when considering the app development cost.
- Estimated cost: $25,000 - $40,000
- Development time: 2-4 months
Mid-Level App DevelopmentA mid-range app includes all basic features plus advanced options like real-time tracking, multi-location support, in-app chat, rating and review system, and a functional admin panel.
This is suitable for businesses aiming to expand their delivery services, considering the cost to build a pickup and delivery app.
- Estimated cost: $50,000 - $75,000
- Development time: 4-6 months
Advanced App DevelopmentAdvanced delivery apps are highly scalable and support custom workflows, analytics dashboards, route optimization, dynamic pricing, and multi-platform support.
These are typically built for enterprise-level logistics and delivery operations, with the app development cost reflecting the scale and complexity of the project.
- Estimated cost: $90,000 - $120,000+
- Development time: 6+ months
Example Scenario - Suppose you want to build a pickup and delivery app similar to Dunzo. It would require: A customer app , a delivery agent app, an admin panel , payment and map API integration , real-time notifications
The estimated development cost for this would be around $70,000 - $80,000, assuming standard UI/UX design and moderate customization.
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A pickup and delivery app operates through three main components: the user interface, the delivery partner module, and the admin dashboard.
This is ideal for businesses looking to expand their delivery services, taking into account the cost to build a pickup and delivery app.
Sign Up & Set LocationUsers begin by creating an account through email, phone number, or social login.
After signing up, they set the pickup and drop-off locations, which the app uses to calculate distance, estimate delivery time, and provide service availability.
Schedule a PickupOnce the locations are entered, users select the type of item for pickup (documents, parcels, groceries, etc.) and schedule a convenient time.
The app may offer immediate pickup or allow users to choose a later time slot.
Driver Assignment & PickupThe app automatically assigns a nearby delivery partner based on location and availability.
The driver receives the job request, accepts it, and proceeds to the pickup point to collect the item for delivery, following app-provided instructions.
Real-Time TrackingAfter the pickup is confirmed, users can track the driver's live location through GPS-enabled real-time tracking.
This ensures transparency, enhances trust and provides users with up-to-date information on estimated delivery time and driver movement.
Payment & Delivery ConfirmationOnce the delivery is complete, the user receives a notification.
Payments are processed through in-app options like UPI, wallets, cards, or cash. Users can confirm receipt and provide ratings or feedback to ensure service quality.
How to Monetize Your Pickup and Delivery App?
Monetizing your pickup and delivery app is key to generating revenue and sustaining your business. Several strategies can be implemented to maximize earnings while ensuring a seamless experience for users and service providers.
Here are some effective ways to monetize your app.
Delivery Charges From Customers
You can charge users a delivery fee based on factors like distance, package size, or urgency. Implementing surge pricing during peak times, such as holidays or rush hours, can further increase revenue.
Offering transparent pricing models can help build customer trust and loyalty, encouraging them to use the service repeatedly.
Commission From Drivers
A percentage-based commission on each completed delivery is a common and efficient revenue model, ensuring the app earns continuously from driver activity, which is an effective strategy when you create a pickup and delivery app.
By offering incentives for top-performing drivers or incorporating bonus systems, you can motivate them to complete more deliveries, improving platform efficiency and user satisfaction.
Subscription Plans for Businesses
Local businesses can subscribe to monthly or annual plans offering premium features like faster deliveries, priority listings, and access to in-depth analytics.
These plans create a stable revenue stream for your platform, and businesses benefit from enhanced visibility and improved customer service, increasing their chances of repeat business and long-term partnerships.
In-App Advertising
In-app ads from third-party companies or local brands can provide a passive revenue stream. Advertisements can be strategically placed on user dashboards, order confirmation screens, or during checkout.
With a growing user base, these ads can become a valuable source of income, all while keeping the app free for customers to use and ensuring they aren't overwhelmed by excessive ads.
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Conclusion
A pickup and delivery app simplifies the entire process from placing an order to getting it delivered by managing everything in the background.
It schedules pickups, maps the best routes, and keeps customers updated in real time. This smooth coordination helps businesses operate more efficiently, gives drivers consistent earning opportunities, and ensures customers receive their items quickly and reliably.
As on-demand services continue to grow, having the right app can give your business a real edge in meeting customer expectations.
Whether you're planning a food delivery service, package courier, or grocery app, success starts with the right tech partner. Ready to build your delivery app? Consult with Coders.dev today and turn your idea into a high-performance, revenue-driving solution.
Frequently Asked Questions (FAQs)
What technologies are commonly used to build a pickup and delivery app?
Popular tech stacks include React Native or Flutter for cross-platform apps, Node.js or Laravel for the backend, MongoDB or MySQL for databases, and Google Maps API or Mapbox for real-time tracking.
How long does it take to develop a pickup and delivery app?
Depending on complexity, it typically takes 3 to 6 months. Basic MVPs may be completed in under 3 months, while fully featured apps with admin dashboards and analytics can take longer.
Can I launch the app in multiple cities or countries?
Yes. With the right multi-location and multi-currency support, your app can be scaled regionally or globally.
Apps like Dunzo and Glovo started locally and expanded across countries.
How do I manage delivery agents within the app?
A separate driver dashboard helps manage delivery agents, including onboarding, task assignments, route tracking, and performance monitoring.
Features like in-app chat and push notifications boost efficiency.
Is it possible to integrate third-party logistics (3PL) services?
Absolutely. Many businesses integrate with 3PL APIs like Shiprocket, Delhivery, or FedEx, which can handle fulfillment, tracking, and last-mile delivery through external providers.
How can I monetize a pickup and delivery app?
Common monetization models include delivery charges, subscription plans, service fees, ads, and partner commissions.
Apps like Zomato use a blend of these for multiple revenue streams.
What is the best way to test the app before launch?
Use beta testing with real users, simulate orders, and test across devices. Tools like Firebase, TestFlight, and manual QA are essential to ensure the app is stable and user-friendly.
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Build Your Pickup & Delivery App with Coders.dev
Looking to create a powerful pickup and delivery app? At Coders.dev, our expert developers specialize in building scalable, feature-rich apps designed for real-time tracking, smooth logistics, and seamless user experiences.
Whether it's food, packages, or groceries, we develop solutions that boost efficiency for businesses, empower drivers, and delight customers. Let's build an app that delivers on every front, fast, reliable, and future-ready.Consult with Coders.dev and get started today
Paul is a highly skilled Full Stack Developer with a solid educational background that includes a Bachelor's degree in Computer Science and a Master's degree in Software Engineering, as well as a decade of hands-on experience. Certifications such as AWS Certified Solutions Architect, and Agile Scrum Master bolster his knowledge. Paul's excellent contributions to the software development industry have garnered him a slew of prizes and accolades, cementing his status as a top-tier professional. Aside from coding, he finds relief in her interests, which include hiking through beautiful landscapes, finding creative outlets through painting, and giving back to the community by participating in local tech education programmer.
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