Quick summary: Customer retention is cheaper than new customer acquisition, which perfectly fits well in the subscription-based delivery business app context. Subscription models bring recurring revenue and a bunch of benefits, but they are realized only when it’s implemented correctly. A couple of tips are shared that help delivery businesses unlock the potential of subscription revenue. Explore the tips and skyrocket the app subscription revenue like no other.
The rising demand for convenience is shifting businesses towards online deliveries of products and services. Real-time tracking and transparent updates are accelerating the shift, and the delivery app market is projected to grow from $81.54 billion in 2025 to $203.90 billion by 2034 at a CAGR of 10.72% during the forecast period (2025 – 2034).
Another reason for the financial growth of delivery apps is driven subscription services due to user retention, increased lifetime value, data insights, personalization, reduced acquisition cost, and predictable cash flow. From product delivery apps like- DoorDash and Uber Eats to service delivery apps like- Netflix, Spotify, and Tinder are earning millions in transactions because of subscription services.
However, despite the benefits, subscription services do not equally bring revenue for the delivery businesses. According to research, just 20% of newly launched delivery apps reach $1,000 of monthly recurring revenue in their first two years, and only 5% reach $10,000. It indicates simply implementing subscription services doesn’t bring the expected results.
Instead, implementing the correct type of subscription services in the delivery apps based on their delivery model and target users’ preferences is essential. The blog will discuss the types of subscription services that can be integrated with delivery apps and the best practices that help boost subscription revenue in 2025 and the years ahead. Let’s explore!
Types of subscription services that delivery businesses can opt
Various types of subscription models are leveraged by businesses to increase recurring revenue. Here are the popular subscription models that are used at scale.
Membership subscription model
The membership subscription model facilitates access to products or services for users after paying a regular fee monthly/annually. Amazon and Apple, using this subscription type, are providing membership that offers special benefits to the users, such as access to exclusive content or special privileges.
SaaS subscription model
This SaaS model is well-known in the IT sector, wherein businesses looking to digitize the whole business or specific segment use software as a service offering. Clarro-like SaaS subscription model allows businesses to get software services for a regular fee with auto-updates facilitated. Also, businesses can scale up or down software services according to their needs.
Content subscription model
Streaming platforms like- Netflix or Spotify leverage the content subscription model, allowing users to access content such as movies, music, broadcast events, or shows. When users want an ad-free experience, the subscription plan price increases accordingly.
Subscription box model
The subscription box service model is a custom model that comprises delivering a package of food items, beauty products, or books to customers based on their recurring needs. Also, businesses can make the model appealing by sending relevant surprises along with package deliverables.
8 ways to increase subscription revenue for delivery businesses
The financial gains with subscription plans are ensured when they are implemented correctly with the existing delivery business model. Consider the tips to increase subscription revenue for delivery businesses.
Keep the subscription plan value-driven
Choosing a subscription type that syncs with target users is essential. For example, E-Commerce apps drive sales and increase revenue during festive seasons, and gaming apps generate maximum revenue through in-app purchases and PPC. After choosing the right subscription type, offering different subscription plans with distinct levels of access and features makes them best suited for various kinds of users with unique budget planning.
Meet the users’ diverse needs and budget requirements with different subscription tiers. The user retention is increased by providing discounts to long-term subscribers, which intensifies loyalty as well. Mainly, three subscription tiers are kept- basic, premium, and advanced, to make the subscription plan perfect for users with different needs.
Engage with a free trial and introductory offer.
The users who want to experience the product or service delivery apps need access to the app for free. With the free trial, they get a chance to browse the paid app and its’ features for a short time, which helps them understand the app and its benefits. Amazon Prime is the best example of a free trial within a subscription plan that offers a 30-day free trial period wherein users can explore the services and the streaming quality.
When a business doesn’t want to keep a free trial period, they can alternatively opt for an introductory offer. The introductory pricing includes a special offer for the first two or three months where the subscription plan is available at lower rates, and then the value of the paid plan is increased. It’s a good way to engage the users and then turn them into loyal customers.
Try to reduce the churn rate.
Stopping a paid subscriber from churning is essential to increase the lifetime value. It’s achieved with user engagement automation that encourages the users to browse the app repetitively. The user engagement is nurtured by updating delivery app content, functionalities, and UI design. The personalized recommendations and in-app notifications, in addition to customer support, are a great way to keep the users satisfied and not churn.
The continuous user behavioural analysis and improvements ensure users are getting what they want, which, in turn, extends long-term subscriptions and minimizes churning. Recovering churned users with new launches or asking for their feedback is possible.
Strategically upsell and cross-sell
Businesses can increase recurring revenue with paid subscriptions using cross-sell or upsell strategies. It allows businesses to capitalize on existing userbase with intelligent decisions. For example, in gaming apps, when users are at a peak level of excitement and ready to pay more to unlock advanced levels or exclusive features, triggering the users in such a moment can make them pay more.
It requires detecting such hotspots in the app and analyzing user behaviour in real-time, which provides an opportunity to upsell or cross-sell that aligns with their preferences. It increases business ROI.
Ensure the subscription plan is transparent.
Delivery business reputation is more important than financial gains that require businesses to keep subscription plans transparent. In crystal clear subscription plans, everything is defined from well-defined links or buttons to subscribe or unsubscribe, which instils trust in the brand. The positive experience makes the delivery business subscription plan trustable and increases loyalty.
Make subscription offers irresistible.
When delivery business apps gain enough users without any subscription plan and now opting for a subscription plan, they need a great feature that they cannot refuse. Business apps should introduce such a feature that users cannot ignore and are likely to pay for the same. Broadcasting the message to existing users and then speaking personally to the users will bring the users into the list of paid subscribers.
Optimize tiered subscription plans.
Fixed subscription plans help users know what services they will get under specific subscription-tiered plans. However, it appeals to the users when each pricing level offers value to them and makes them feel it’s a significant upgrade. Flexibility to switch to payment terms- monthly, quarterly, or annually helps users subscribe for the long term. A/B testing with subscription plans helps optimize the plans to keep them optimal for users.
Significant user onboarding drives revenue.
The pushy subscription plans hardly convert the users; instead, they irritate them and make them uninstall the app. That’s why the onboarding experience must be engineered thoughtfully. For example, the apps want to turn users into paid subscribers, often display a message- ‘Pay to upgrade’ and then assist the users in understanding the benefits that they will receive after subscribing.
Clarro’s role in boosting app subscription revenue
Clarro- the subscription-based platform providing software as services to delivery businesses that helps them start selling and delivering products/services online. Our team of business analysts and technical consultants helps businesses to choose the right subscription plan so that their digital needs are covered. Additionally, with a discovery workshop, we help businesses further create subscription plans that are value-driven, engaging, transparent, strategically upsell, and enable great onboarding. So connect with our team of experts in Canada, helping delivery businesses get online and boost app subscription revenue.
Conclusion
The impressive growth of the delivery business app is driven by mobile app development and subscription-based revenue. The hyperlocal delivery businesses are booming, with a $2.64 billion market size in 2025. The growth in subscription-based revenue, along with delivery app market size, is expected when subscription plans are used and implemented intelligently. With different tips to fuel up subscription revenue, make more minor adjustments to increase conversion and retention and keep increasing the revenue by a large fraction.
FAQs
1) Why delivery business apps should focus on subscription-based revenue?
Delivery business apps should focus on subscription revenue because they bring predictable income with recurring revenue, reduce churning rate, and increase customer lifetime value.
2) Which subscription types fit well for delivery businesses?
Delivery apps use monthly membership subscriptions, tiered subscriptions, and pay-per-delivery subscription models to increase revenue.
3) What features make paid subscriptions irresistible for users?
Subscription plans become irresistible for users when they provide exclusive access to content, enable discounted/free deliveries, and offer priority support and bonus credit.
4) How can businesses optimize subscription plans?
Subscription plans can be made competitive by optimizing them with price testing, A/B testing, discounts on annual plans, and benchmarking rivals.
5) How can churning be reduced with subscription models?
Users’ churning rate is minimized by sending usage and saving reminders, with win-back campaigns, and offering pause options.
