Breaking Down the Cost to Develop a Logistics App Like FedEx

Do you know the significant problems the logistics industry faces? Inadequate infrastructure, high-order intensity ratio, transport optimization, data management, and warehouse management are some significant challenges that can impede logistics operations and growth. In today’s fast-paced world, having the convenience of a user-friendly mobile app can make the whole difference by improving real-time logistics operations.

The global digital logistics market is projected to reach $77.52 billion by 2030, showcasing a CAGR of 17.54% from 2021 to 2030. On the other hand, the global logistics market is expected to reach $16,794.7 billion by 2032, with a CAGR of 5.6% from 2023 to 2032. Consequently, businesses investing in the logistics industry have a huge market potential. Since its launch, FedEx has been serving the customer across the globe with seamless on-demand logistics services. The popularity of this logistics app is so extensive that almost every business strives to achieve a similar user base.

Supply chain and logistics businesses are already losing billions of funds because of downtime and operational inefficiencies. Thus, considering all the factors that result in total logistics app development cost is crucial. Although investing in logistics app development is not a monumental financial outlay, but possesses the potential to yield significant revenue and optimize logistical operations.

Factors Influencing Logistics App Development Cost

Estimating the cost to build an app like FedEx would be easy by concisely defining your requirements. Moreover, you can calculate mobile app development costs by determining features, team location, engagement models, app complexity, etc.

• Must-Have Features

Deciding on key features to integrate into your logistics app like FedEx is a primary phase of the project lifecycle. Developing a Minimum Viable Product (MVP) is recommended to make your logistics mobile app development process more cost-effective. These features can be scaled to advanced functionality in a later development cycle. Additionally, having end-user feedback can lead to a higher customer satisfaction rate.

Following is the list of indispensable factors to incorporate into your logistics app. Our logistics app development guide will explain these compelling app features further.

• Bulk Cargo Management
• Real-Time Fleet Management
• Voyage Management
• Mapping and Navigation
• IoT Enabled Real-Time Alerts
• User Management
• Crew Management
• Automated Day-to-Day Reporting

• Required Team Structure

The team structure of a logistics app development agency defines the efficiency and effectiveness of the developed app. Team collaboration leads to more innovation, enhanced communication, and proliferated success.

A customer-focused logistics app development company’s team structure would look something like this:

App Development by Team Composition	Cost of Hiring Team Members($/Hour)
Project Manager	$35-$55
Business Analyst	$45-$75
UX/UI Designer	$35-$50
iOS/Android App Developer	$55-$80
Quality Assurance Engineer	$35-$65
DevOps	$45-$70

• Geographical Location

Factors like the availability of resources, transportation networks, and access to markets are greatly affected by the geographical location of the logistics app designing company. Also, the average cost of hiring app developers varies according to the place.

Selecting a suitable engagement model is crucial for transport and logistics app development costs as it directly affects your project’s timeline and total investment. The primary engagement models to hire mobile app developers are time and material, dedicated hiring, and building your team.

Average Cost of Hiring an App Developer

Region	Cost of Hiring an App Developer($/Hour)
North America	$100-$180
South America	$30-$80
India	$25-$60
Eastern Europe	$35-$90
Western Europe	$80-$150
Australia	$60-$125

• Platform and Technology Stack

Based on the type of platform you choose to deploy your logistics app like FedEx, you must select between native or cross-platform app development. Android is leading the mobile operating system market share with 70.8%, and iOS has a market share of 28.4%.

For iOS applications, programming languages like Swift or Objective-C are used, while Kotlin or Java are used for Android app development. Selecting the latest technology and advanced mechanisms can make you stay ahead of the competition.

Front-end Technology	HTML, CSS, JavaScript, Bootstrap
Back-end Technology	Java, Ruby, Python, and .Net
Cloud Technology	AWS, Google Cloud, Microsoft Azure
Payment Integration	Stripe, Paypal, Netbanking, Braintree
Database	MongoDB, MySQL, SQLite, Firebase
Real-time Analytics	Cisco, Apache, IBM, BigData, Spark
Push Notifications	Twilio, Push.io
Utility	Heap, Amazon SNS

• App Complexity and Designing

The complexity of a logistics app is defined by the functionality and features integrated into the app. The more advanced features you incorporate into your logistics app, the more app complexity will increase. However, the logistics app with a basic design will cost comparatively low.

For instance, a simple app for a logistics delivery business like FedEx will cost between $30,000 and $80,000. In contrast, the logistics app development cost for a medium to high complexity can be anywhere from $100,000 to $150,000.

• Development Process

Integrating intelligent technologies like IoT, Blockchain, AI, AR/VR, etc., can increase the cost to develop a logistics app. The total time a project takes to complete can also influence the cost of development as the charges of developers & testers and scope keep increasing. Therefore, the more lengthy and complex the development process, the higher the logistics mobile app development cost.

Effective Monetization Models to Generate Revenue With a Logistics App Like FedEx

The logistics app you develop must bring value and growth to the organization. Selecting and integrating a revenue model will enhance customer experiences and grow your business. Since people spend more time on online platforms, logistics apps have multiple revenue sources to sustain profits.

• Paid Apps

User pays a fixed amount to acquire the licensing of such apps for lifetime use. These apps offer premium features and do not feature ads.

• In-app Advertisements

You can provide advertisements to users who are using a free version of the app. Ads allow you to earn revenue from ad clicks or impressions, making it a significant revenue source.

• Commissions

The commission-based model is one of logistics apps’ most common revenue-generating models. For instance, the logistics business owner can charge a fixed amount from drivers as commissions to get registered on the platform. This will guarantee a fixed income for the app owner and the drivers.

• Paymium Model

With the paymium model, you offer a combination of paid and freemium models. Here, users will pay to download your logistics application and get additional features & services via in-app purchases. However, your app should provide a powerful USP that could resolve user queries more effectively.

• Freemium Model

The freemium revenue model provides the basic model of the app for free without a time limit. However, users will have the option to access the additional features with some extra charges.

How Trending Technologies Influence the Logistics App Development Cost?

From manufacturing to reaching products at your home, technologies play a vital role in managing the flow of goods in the logistics industry. Technologies like GPS tracking, barcode scanning, payment gateway integration, and data analytics impact the logistics app development cost.

Considering the need to manage logistics mobile apps’ functionality and efficiency, estimating the additional cost of development resources and expertise is essential.

• Artificial Intelligence (AI)

With Artificial Intelligence (AI), you can have smart assistants to make better decisions. AI is becoming a game changer in the logistics industry by improving demand forecasting, inventory management, real-time tracking, and route optimization.

An innovation-driven mobile app development company utilizes the power of AI to automate the entire logistics operations, including picking, packing, dispatching, and shipping goods. AI-powered chatbots are transforming customer services in logistics industries by providing quick responses and seamless assistance to users.

AI-driven demand forecasting enables logistics companies to predict customer needs and optimize their warehouse accordingly. You can use AI algorithms to ensure real-time tracking and suggest better routers to drivers to avoid any delay.

• Internet of Things (IoT)

The Internet of Things (IoT), combining the power of analytics, cloud, mobile computing, and the Internet, is transforming the way how companies handle their logistics operations. IoT plays a crucial role in ensuring timely and safe delivery of goods.

Sensor trackers, Wi-Fi networks, and GPS tracking are some of the vital technology sets that should be calculated in the total cost to create a logistics app. These technologies make it easy to track products & deliveries, reduce downtime, manage inventories, and avoid stock shortages.

• Blockchain

In logistics operations, ensuring transparency and security is essential. Blockchain’s capability of decentralization, immutability, encryption, etc., makes it easier to trace and authenticate products. Moreover, smart contracts introduce automation, streamlining the logistics business processes, reducing human error, and quickly generating results.

Blockchain greatly enhances transparency & security and automates the process of fraud detection in supply chain transaction processes. The digital ledger recording every translation cannot be edited or tempered, making the payment system more secure. Hence, blockchain technology is transforming the logistics industry by improving supply chain efficiency, preventing fraud, and increasing transparency of transactions.

• Robotics and Autonomous Vehicles

Connecting robots and autonomous vehicles with software systems can significantly sort your tasks with automation. It includes managing tasks like picking, loading, unloading, packing, etc., that can reduce your labor costs, minimize human error, and enhance productivity. Moreover, you can track the status of your inventory and get it restocked before it is vacant.

• Big Data & Data Analytics

Integrating big data and data analytics in logistics apps can improve decision-making and risk management capability. Hence, logistics businesses can get more control over inventory and other operations.

There are various benefits of big data analytics and logistics analytics in the supply chain that can dramatically improve its operations and maximize ROI. Real-time analytics enables marketers to predict future states, identify potential risks, find target audiences, and generate sales opportunities.

You can adjust your logistics operations and take preventive measures based on predictive analysis. It will help you deliver results as per customer requirements, enhancing customer satisfaction and loyalty.

• Cloud Computing

A lot of data is stored and managed in executing Logistics operations. Therefore, cloud computing maximizes agility and enhances logistics scalability, adding to the overall logistics app development cost.

Cloud storage facilitates many benefits, such as providing a holistic view of the supply chain, predicting market changes, faster execution, and an integrated and collaborative platform. It allows you to store extensive data, including inventory, customer information, and transportation details.

Hence, cloud computing offers flexibility and scalability in the logistics business, ensuring optimal performance and cost-effectiveness.

Design a Robust Logistics Delivery App Like FedEx With SparxIT

SparxIT is at the forefront of implementing emerging trends and technologies in logistics, such as artificial intelligence, blockchain, virtual & augmented reality, and more. These intelligent technologies are poised to revolutionize on-demand app development services. For instance, AI-powered chatbots, greater security and transparency with blockchain, and VR/AR enhance the overall customer experience.

With 15+ years of industry experience, our developers are well-versed in using advanced tools and technologies. By utilizing their expertise and knowledge, they offer more efficient and reliable logistics app development solutions.

Partnering with SparxIT allows you to focus on core competencies and tailored solutions, including automated warehousing, big data analytics, IoT tracking, and more.

Frequently Asked Questions

Q-1 What is the total cost of building a logistics app like FedEx?

A- We have discussed many factors that affect the cost of building an app like FedEx in this blog, such as team structure, geographical location, technology stack, feature complexity, etc. Considering such parameters, a simple logistics app can cost somewhere between $10,000 and $35,000. Moreover, if you want to develop a Minimum Viable Product (MVP) of a Logistics app, it can range from $5,000 to $50,000.

Q-2 How long does it take to develop a logistics app like FedEx?

A- Many factors are needed to be considered to determine the total time taken for transport and logistics app development. This includes the development process, requirement analysis, planning, and prioritizing features. Consequently, it can take anywhere between 1 month to 3 months to build a simple logistics app.

However, the time frame for developing logistic mobile apps changes as per the varied complexity of the app.

App Type	Estimated Time
Simple App	2-3 months
Average App	4-6 months
Complex App	7-12 months

Q-3 What is a fleet management system?

A- Fleet management includes systems, processes, and tools working collaboratively to manage and coordinate the delivery vehicles. This also consists of monitoring and recording couriers and respective delivery personnel.

In the logistics business, it ensures the overall cost of transportation, resource allocation & utilization, and optimized fleet regulatory compliance. Hence, the practice of fleet management is essential to achieve optimum efficiency of logistics operations.

Q-4 How are mobile apps transforming the logistics industry?

A- Logistic apps have transformed how business perform their supply chain operations in various ways. It incorporates real-time vehicle tracking, automated dispatching, route optimization, and enhanced inventory management.

The perks of logistics apps are numerous, including increased efficiency, transparency, accessibility, and speed. Mobile apps make it easy to keep track of goods and curtail delays.