Uber, Airbnb, Uber Eats, and more – on-demand apps are securing significant real estate in our mobile devices. We live in the era of digitization, where almost every product and service is available online. What’s more noteworthy is the rise of mobile users, which have increased from 2.5 billion in 2016 to 3.5 billion in 2020.
In such an internet-centric, mobile-focused landscape, businesses need to find new ways to reach their customers. On-demand service apps turn out to be an ideal solution. These apps allow you to provide on-demand service to a large customer base, without engaging them in person.
So, what’s up with these on-demand apps? And can they add value to your business? Let’s find out.
What are On-demand apps?
An on-demand app is a platform that bridges the gap between a customer and a business. Due to increased digitization, customers prefer to avail all services from home – ordering food, booking a taxi, coaching, etc. However, most businesses are not yet equipped to fulfill the changing customer preferences and market dynamics.
On-demand apps work as a mediator between a customer and a business by allowing the customer to use a service from their smartphone. Similarly, it also allows the business to serve its customers and provide them with the best experience.
Uber, Airbnb, Rover, and TaskRabbit are some of the popular on-demand service apps.
A typical on-demand platform like Uber involves the following process:
- User places a request.
- App connects them to a service provider
- Provider accepts the request
- User selects the payment method
- Provider delivers the service
- User avails the service
- User makes the payment
Depending upon the type of service, the payment can be prepaid or postpaid.
On-demand apps market and industry
On-demand service apps are revolutionizing the way businesses serve customers. From getting a haircut to taking courses, people use on-demand apps to do almost everything. As a result, the on-demand mobile apps market is speculated to reach an all-time high of $335 billion by the year 2025. Besides, users spend an average of $57.6 billion annually on on-demand apps. Let’s break down this expenditure to give you a vivid idea of where on-demand users are spending their money.
This surge in usage and demand has also attracted investments. By the last quarter of 2017, on-demand app startups gained total funding of $10,293 billion. And with more and more users relying on mobile technology, it’s safe to assume that the demand for on-demand solutions will rise in the years to come.
The rise in demand for on-demand apps
As the above statistics suggest, the on-demand service industry is booming. But why are so many people switching from traditional services to on-demand apps? Let’s take a look at a few reasons.
Variety of products: The biggest hurdle customers encounter when they visit a shopping outlet is the limited choice of products. They have no choice but to choose from what’s available in the store. With on-demand apps, customers can browse multiple providers across the city or country and can select what they like.
Reasonable prices: Customers are always in search of discounts and competitive prices. On-demand apps allow them to compare the prices of various providers in their area in real-time. This installs transparency, and customers can freely choose the providers they feel offer the best value.
Convenience: Before Uber, you’d need to go out on a taxi stand and wait for a taxi to arrive. Now, you can just open the app, enter your location, and wait for the taxi to come to your doorstep. The same goes for apps like Uber Eats. You don’t need to sit and wait for your order in a restaurant anymore. All you need to do is place an order from the app and get hot and fresh food at your home. This increased convenience is one of the reasons why on-demand apps are in such high demand.
No time constraints: Most on-demand services are available 24/7. If you want to purchase a laptop, you can place an order from Amazon at any time of the day. Whether it’s 3 am or 11 pm, you can use the services of an on-demand app.
On-demand App Business Models
On-demand service apps are usually developed on one of the three business models.
Business to consumer (B2C)
In the B2C business model, the users of your on-demand apps are end-users. With such apps, you facilitate transactions of goods or services directly with the customers.
Take, for example, Starbucks. The Starbucks app allows its users to skip the line by paying in advance and receiving their coffee at their doorstep. Some other B2C on-demand apps are Dominos, Uber, and Booking.com.
Business to Business (B2B)
On-demand B2B apps are developed to connect businesses. These apps are often more powerful, feature-rich, and they support transactions globally.
For example, Eventio is a B2B app that allows both individuals and businesses to find venues for any level of events. Users can choose their favorite venue from options like security, catering, cleaning services, etc.
B2B apps can be further divided into:
- Vertical: Serving a single sector or industry
- Horizontal: Serving multiple industries or sectors
Consumer to Consumer (C2C)
These apps allow users to exchange their products and services. Some popular C2C apps are eBay, Etsy, and BlaBlaCar. Freelancing platforms like Fiverr and Upwork are also examples of C2C platforms.
The cost of on-demand app development also depends on the business model of your app. So, be sure to determine your business model clearly before investing in on-demand app development.
Types of on-demand apps
On-demand apps are not limited to e-commerce, taxi, or food delivery anymore. Thanks to the recent advancements in technology, you can develop an on-demand app for almost any purpose. Let’s briefly discuss some common types of on-demand apps.
Uber like App for Online Coaching
E-learning industry is booming as learners are looking to skip physical seminars and workshops. An on-demand online coaching app allows you to train your employees and trainees anytime and from anywhere. Additionally, these apps also provide in-built evaluation and progress tracking capabilities.
Uber like App for Online Tutoring
Online tutoring was already on the rise, but the sudden onset of the COVID-19 has led to the immense demand for online tutoring apps. If you are a school, college, or educational institute, an online tutoring app can help you teach your students online. These apps allow you to evaluate and grade student performances with ease.
On-demand Pickup & Delivery App
If you’re in the delivery business, an on-demand pickup and delivery app is all you need to streamline your operations. It allows you to automate your delivery dispatch, optimize routes, track delivery, and maximize profits. These apps also feature in-built analytics and proof of delivery features.
Uber-like App for Taxi Dispatch
An Uber-like taxi dispatch app can skyrocket your local taxi business. It allows your users to book your taxi services online. In addition, you can use this app to manage your fleet and driver performance.
On-demand Food Delivery App
The online food delivery industry is booming, and if you’re not already offering home food delivery, you’ll be soon left behind. The on-demand food delivery app helps you scale your restaurant business and serve customers across a large area.
On-Demand Medical Pharmacy App
People don’t want to wait in long queues at their local pharmacy anymore. They’re now buying meds online. An on-demand medical pharmacy app allows your customers to upload their prescriptions and order their medicine refills without visiting your pharmacy.
On-demand Grocery Delivery App
Online grocery delivery market is also on the rise. People prefer ordering groceries online, and if you’re still sticking to brick and mortar store, you might lose out on potential customers. A grocery delivery app allows you to sell your products online and provide your customers with a seamless experience.
Snow Plowing On Demand App
You can take your snow plowing business to new heights with an on-demand snow plow app. This app allows your customers to book your snow plowing services from the comfort of their homes. You can receive in-app payments as well.
Uber App for Home Services
Homeowners are always in search of help with their damaged garage door, broken windows, or yard problems. But most homeowners don’t know who to reach out to for such issues. An on-demand home services app allows you to reach more customers and can give your business a significant competitive edge.
Insurance Business App Development
Insurance companies like Trov, Cuvva, and Slice allow their customers to purchase as-needed insurance policies using a mobile app. Getting an insurance policy is no longer a complicated process, and you can further simplify it for your customers with an on-demand insurance app.
On-demand Flower Delivery App
Flowers are an eternal part of our life – dates, anniversaries, birthdays, and more. But most people struggle to get their hands on fresh, beautiful flowers when needed. If you are a flower business, a flower delivery app can allow you to connect with such potential customers and deliver the desired flowers on their doorstep.
Uber-like App for Beauty Services
Ladies prefer beauty services in their rooms now. If you are a beauty service provider, an on-demand app can help you expand your business. Your customers can book your services from the app without coming to your parlor or booking appointments.
On demand Cleaning Services App
Both homeowners or office owners need to get their place cleaned once in a while. An on-demand cleaning service app makes sure your customers reach out to you when they need a cleaning service.
Uber App for Car Wash Business
Has your car wash business surged? It doesn’t come as a surprise as most car owners prefer washing their cars at their homes. But that doesn’t mean they don’t need professional assistance. Having a car wash app for your business allows your customers to book your services easily.
On-demand Fleet Management App
On-demand apps are an integral part of the logistics business. If you are a fleet manager or logistics company owner, a fleet management app can come in very handy in managing your fleet, drivers, inventory, and profits.
Uber App for Roadside Assistance
Do you know the biggest nightmare of vehicle owners? A vehicle breakdown in a remote area with no garage or help nearby. If you’re a garage or a vehicle service provider, a roadside assistance app can help your customers find you no matter where they are.
On-demand Movers & Packers App
Whether someone’s moving heavy goods within their house or they’re shifting to a new place, they’ll need help from movers and packers. Moving and packing service providers can use an on-demand app to attract those in need of their services.
Uber-like App for Transport Business
On-demand transport apps can turn out to be useful for any business with a transport-based revenue model. A transport app solution allows you to deliver your products and services anytime, anywhere, and to anyone.
Uber App for Pest Control Business
Pest control service providers can have a hard time finding clients. Having an on-demand pest control app for your business allows you to reach more customers. They can choose the service they need and a convenient time slot. You can then confirm the booking and provide your services.
On-demand Dog Walking App
Sad but true, dog owners don’t have time to walk their dogs. You can solve their problem with an on-demand dog walking app. This app allows dog owners to choose from a list of dog walkers available. A dog walking app can help ignite your business if you are a dog walking agency or service aggregator.
Real Estate App & Software Development
Gone are the days when people used to walk on the streets looking for properties. Now, they look for them online. If you’re a realtor struggling to generate leads, an on-demand real estate app can help. It allows you to list properties in your area and allow both sellers as well as buyers to contact you.
Healthcare & Fitness App Development
On-demand apps are revolutionizing the healthcare industry. Instead of going to the gyms, health enthusiasts are adopting home-based workouts. This also means they’re relying on digital means for training assistance. If you’re a personal trainer or gym owner, you can use on-demand apps to provide one-to-one or group training to your clients.
Uber like App for Logistics Business
On-demand logistics apps are similar to fleet management apps. They help you determine the real-time status of your orders, drivers, and vehicle. You can also use these apps to monitor driver behavior and vehicle maintenance schedules.
Uber like App for Construction Business
On-demand construction apps allow you to finish your construction projects quickly, smartly, and efficiently. These apps improve your material procurement process, along with helping you manage project deadlines and costs.
E-commerce & Retail
More than 63% of retail sales take place online, and you’re not selling online, you’ll soon be out of business. Thankfully, an on-demand eCommerce app is all you need to start your Amazon-like retail business. It allows you to accept orders from across the globe and scale your business exponentially.
Oil & Gas Management
Energy companies are always in search of improved efficiency and productivity. On-demand oil and gas management apps allow you to monitor your status, inventory, manpower, and assets anytime and from anywhere.
Uber for Laundry Business
The laundry business is also on the rise. From homeowners to hoteliers, everyone needs a reliable laundry partner. An on-demand laundry for your laundry business lets your customers choose your services and book an appointment comfortably.
Uber-like App for Courier Delivery
An on-demand app can help you scale your courier business with ease. Your customers would be able to place courier requests and make payments within the app. Moreover, they’ll be able to track their courier status to ensure it has reached the right place.
Property & Asset Management App
Managing real estate assets is one of the major challenges for property developers and investors. An on-demand property & asset management app allows you to stay on top of your assets and collect & analyze property data.
Uber-like App for Apparel Business
If you are an apparel brand, you should be selling online. People have started relying on online apparel stores instead of visiting offline outlets. An on-demand apparel app lets your customers select their favorite styles and sizes and place the order from your app.
On-Demand App for Books
Everyone reads books, and the recent boom in the ebook industry has further increased the number of book readers. If you’re a book publisher, book store, or even a library, an on-demand book app can help you sell or issue more books to your customers.
On-Demand Craft Marketplace App
If you’re good at crafting and creating handmade items, an on-demand craft marketplace can help you turn your passion into a business. You can use this app to list your crafts, and people can place on order from the app.
Uber-like App for Astrology Business
Astrologists never go out of business. If you have an astrology business, an on-demand astrology app can help you offer your services to clients from across the globe. You can also integrate features like text, audio, and video chat to provide your clients with an optimum experience.
On-Demand App for Equipment Business
On-demand equipment apps can help you grow your equipment business. You can list the items you sell and receive orders from your customers.
Property Business On-Demand App
Construction firms and property developers might find it difficult to sell their properties. An on-demand property app allows you to list your properties for sale, along with their features, benefits, and prices. Customers can directly interact with you via the app, making property selling easy and convenient.
On-demand App for Travel Business
On-demand travel apps are gaining wide popularity. If you’re a travel agency or a hotel chain, having an on-demand app for your business can help improve your customers’ experience. They can plan trips and book flights and hotels from the app.
Uber-like App for Online Dating
An on-demand online dating app allows you to bring hearts together. People searching for dates online often struggle to find genuine profiles. You can solve these problems by creating a unique, on-demand dating app.
Some essential features of on-demand service apps
On-demand apps can vary depending upon your business model and requirements. But there are a few essential features common to every on-demand service app. These include:
- Authentication and Security
- Live Tracking
- In-app notifications
- Multiple, in-app payment options
- Seamless interface
- Customer care
- Rating and review options
Benefits of On-demand apps
The benefits of on-demand apps are quite apparent. They help you reach more customers, serve them better, and increase your profits. Let’s discuss why you should have an on-demand app for your business.
Leverage the potential of mobile
There are more than 5 billion mobile users in the world. Thus, not finding a way to reach your mobile customers would be a detrimental mistake. Having an on-demand mobile app allows you to target your mobile customers, provide them with a better experience, and boost profits for your business.
Improved customer satisfaction
This goes without saying, your customers will appreciate you if you provide them a seamless mobile experience. Using a mobile app, they’ll be able to avail your product your services with ease, which will increase customer satisfaction.
Increased employee satisfaction
Having an on-demand mobile app for your business also makes it easy for your employees to serve your customers. This leads to increased employee satisfaction, which translates to better ROI and profits. And happy employees create happy customers.
When you develop an on-demand app for your business, you own the code and other licenses. Thus, no one but you can interfere with the data you store in your app. As far as data security is concerned, on-demand apps are developed using the best security practices to ensure your business and customer information stays safe and secure.
On-demand apps are scalable. You can create an app for all the popular platforms, like Android, iOS, Blackberry. This allows you to reach a wide customer base. In addition, there’s no limit to customers who can use your business app. Even if you have a million customers waiting for your service, you can serve them with ease using an on-demand mobile app.
Know your customers better
Having an on-demand app allows you to get critical information about your customers, such as their address, phone numbers, email addresses, and more. Besides, you can also collect behavioral information like their interests, preferences, problems, etc.
This allows you to get into the head of your customers and understanding exactly what they’re looking for. You can then use this information to personalize your advertising and marketing campaigns.
On-demand apps don’t cost much, and you can develop one for your business even if you are low on operational costs. The costs are variable and can vary depending upon your feature and functionality requirements. Moreover, on-demand apps offer almost instant ROI, so you don’t need to wait for years to see if your investments have paid off.
Benefits for customers
Lastly, customers love on-demand apps. Here are some benefits of on-demand apps for customers.
- Ease of selecting the provider
- Tracking facility
- Cashless payment facility
- Review and rating option
On-demand App Trends
With user demands and modern technology constantly evolving, the landscape of on-demand apps is expected to change.
Here are a few future trends to look out for in the on-demand service mobile app market.
- There will be steady growth in the number of workers entering the on-demand app economy.
- More businesses will adopt on-demand service apps, especially in industries like food delivery and transportation.
- The need for background checks for personnel delivering services will increase.
- Increased adoption of on-demand apps will increase the demand for high-skilled workers in industries like medicine and healthcare.
- There’ll be great opportunities for on-demand mobile app developers.
- The number of on-demand app users will increase as more customers will shift to digital channels.
How much does it cost to develop an on-demand app
On-demand apps are complex and highly variable projects. Sometimes, a simple on-demand app can cost less than $2,000, whereas some advanced solutions might cost as much as $70k. Therefore, it entirely depends on your requirements and the features you’re looking for.
Here are a few factors that might affect the cost of an on-demand mobile app.
- Platforms and operating systems
- Native vs. hybrid
- Features and functionalities
- UI and UX designs
- Prototyping and design
- App publishing
- Development rates of the agency
Esferasoft for on-demand service app development
Are you looking for a technology partner that successfully caters to your on-demand app development needs?
Esferasoft can help.
Technology is constantly evolving, and keeping up with the latest trends can be challenging. Furthermore, on-demand app development can stress your budget and surge your operational costs.
Esferasoft offers pre-built, customizable, and flexible on-demand app solutions that help you save time and money. Here are some highlights of our on-demand service applications.
- White-label solution
- Native Android and iOS apps
- Powerful admin panel
- Powerful and scalable
- Secure cloud-hosted architecture
- Mobile-first user experience
- Multi-language and currency support
- License-based source code
Click here to know more about Esferasoft’s on-demand app development solutions.
With the continuous rise of mobile users and the reliance on the internet, it’s safe to speculate that on-demands will only become more popular. Customers will shift to digital solutions, and businesses that are resisting the change will soon be left behind.
Regardless of the type of model of your business, an on-demand app can help you better engage your customers, provide better customer experience, and increase your revenue.