On-demand delivery apps is a new area where the market is growing up in Asia. As e-commerce is growing all over the world, the need for a proper infrastructure is felt and the demand for the same is growing bigger. While it is a little different from taxi-booking app since it mainly involves B2B activity.
As far as the Singapore market is concerned, there are two app companies namely, GogoVan and EasyVan that serve through on-demand delivery app. The news is that if an individual delivery van owners are tied to a logistics company it does not allow them to work for other logistics company. Such is the strict rule that is being followed in Asian countries in general.
But the turnover is great – nearly 20000 bookings on a day but comparitively lesser than taxi-booking apps which earn more on average booking per day. But it also depends on the market diversity that is, how many cities a company had expanded itself to. The on-demand delivery van apps work in lesser number of cities than taxi-booking app companies.
Experts say that third-party apps is a positive signal to a crowded market like Asia, where an undeveloped transportation network will seek for a better delivery infrastructure and increase the demand for apps and its services.
At the same time, the bottlenecks to the app market might face hindrances if there are problems in transit of goods, poor communication among drivers and company management etc. Coming to terms on rates with the logistics companies for providing app development and services by the app providers is considerably gaining momentum and is on the positive side only.
The app providers’ companies have got reasonably more millions gained over the years from investment and bankers. When Uber also has set its foot on the HongKong market, there is bound to be strong competition in that market. Uber aims to lessen congestion and provide better services to cities.
Even for other app providers, the market is huge and opportunities galore since there is always something moving all the time, whether it is home purchases or official transportation of products.
Apart from the traditional market zone, there is also simultaneous growth seen in ecommerce market. Now, this is an area that will need to be tapped by the major market players and the app providers will automatically follow suit is not a great surprise!