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On-demand App Development: Types, Benefits, and Cost

According to statistics, the revenue of the on-demand industry was about $14 billion in the year 2014, but today due to increasing demand, it is expected to reach $335 billion by 2025. Find more about the on-demand app development industry, its business types, benefits, and cost here.

Jennifer Atkinson
13th Jun 2019
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On-demand App Development

Years ago, it was a daily task for people to head to shops to buy food, groceries, and other necessities. But today, the evolution of smartphones has distinctly changed our lives and has offered us various means to get our necessities in the comfort of our homes. The reason behind this comfort is the inception of the mobile application. It allows people to meet their needs with a few simple taps on the mobile.


Even slow-growing businesses started to generate more revenue within a short period due to apps. If you analyze what works behind modern marketing, you will certainly end up in on-demand business. On-demand applications are a benefit to entrepreneurs to start their business early at an affordable price along with customization options. It guarantees profit as well as leverages your organization’s standard among people.


Uber and Airbnb are a great example of successful startups as their ideas got sufficient investments and now they revolve as the most trusted apps among the people. Since the growth of on-demand is increasing, it creates a huge opportunity for new entrepreneurs to grab more investors.


Also, according to statistics, the revenue of the on-demand industry was about $14 billion in the year 2014, but today due to increasing demand, it is expected to reach $335 billion by 2025. So, investing in this business will never be a loss. It was also estimated that on-demand users spend an average of $57.6B annually.  

 

Now the question is where and how to create this on-demand application. First, you must understand the process behind that application and plan how you want to integrate it. Later, find a reliable partner to help you with development.


To enlighten you more, here, we will discuss the types, benefits, and costs required for creating an on-demand app for your business.


Types of on-demand business


Transportation


The on-demand business has been a great advantage for the transportation industry. It has helped revolutionize the cab business to unexpected levels. Unlike the traditional taxi business, the app helps transportation to be comfortable and quick. It enables the user to find and book taxis in their nearby locality to reach destinations. This same procedure can be followed in logistics too since it will be very helpful for clients to track their products in real-time.  


Also Read, White label solutions for transportation business [Complete Guide]


Hospitality


If you are running a restaurant, deliver food to your customer’s doorstep through an on-demand food delivery app. If you are an aggregator, use the app to collect orders from your user and share them to your restaurant partner to deliver the food. Take Swiggy as an example; they provide meals as per customer requests.


Housekeeping


There is a massive demand for housekeeping services now. You can utilize this scope to create a housekeeping app which can benefit people who are in need. Services include dishwashing, house cleaning, gardening, and other chores which are in high requirement. So creating this app can help people to find the right individuals to do chores daily.


Rental Properties and Lounging


Sellers who want to sell or rent their property can create a booking application. Individuals can easily find and book accommodations at their preferred location or city through apps.


Healthcare


Healthcare app is a growing business and investing in it can produce a high profit. This app allows users to book medical tests and get medications being at home. Also, the significant advantage of the app is that it enables the user to get a doctor on-demand.


Freelancers


The growth of people wishing to work from home is increasing nowadays. There are also portals through which people get hired for freelance jobs. Creating an app for freelance professionals will ease the process of hiring.


Creating an app for providing all types of on-demand services & delivery


Therefore, from the above points, we know that the application can be created for any customer-centric business, which makes people live more comfortably. If you have an idea to create a successful business model, you can try integrating it with the app.


Your business should not only focus on creating an application alone but also on making it user-friendly. To enable multiple on-demand service booking in your app for all the above services, you can try developing app like Gojek.


The app is considered user-friendly only when it works with seamless performance, flexibility, and possesses easy to use and navigable features. Make sure to build a scalable design since you will need to consistently review and add new features to enhance usability.


Benefits of On-demand Apps


Services offered through mobile apps are favorable for both customer and service provider since it enables them to get the required service on-time. On-demand apps provide the buyer and seller with two different platforms, where the seller will have the ability to provide service at the demanded time without any delay. This applies the same in the taxi industry when you start building an Uber-like app.

Let us breakdown the benefits of using on-demand applications for businesses here.


Push Notification


This is the most reliable feature in the application since it allows customers to know about new services or offers, acts as a reminder tool, and enables them to keep notified about their orders.  


Tracking Facility


This feature gives high leverage for the application. Integrating GPS in the application will be very helpful to see the progress of your orders, rides, parcels in actual time.  


Activity record


This allows users to quickly refer their orders, search results, and other information regarding the booking. This feature helps app users to view details regarding the order(present and previous orders) quickly.


Wishlist


Wishlist is another feature that lets users save the products which are currently out-of-stock or unable to buy at the present time. This feature is specially made for e-commerce business. So you can try integrating it into the app.  


Payment Facility


In-app payment facility is the mobile app’s most significant advantage as seen by people. So never fail to integrate a proper gateway in your app. Also, your app will be more acceptable if you implement enough payment options with safe transaction facility.


Cost for developing an Uber-like app


It is not possible to estimate the exact price that is required to build a taxi application. It differs based on the development companies and mainly on the time that takes for development and integration of the features. The pay for developers is purely based on the hourly rate, and this differs region wise. If you choose the US and UK, the charge will be over $160 per hour, and as of India, it will be around $25 per hour.


So to estimate as a whole, the cost to build an on-demand application will range from$10,000 to $45,000. So, choose the company cautiously. However with a ready-made solution, you can completely reduce the cost to a bare minimum.


Summary


Getting a customized on-demand taxi application like Uber clone is beneficial, and it can boost your business. Make sure to choose the best app partner to receive an efficient solution in a cost-competent way. Also, remember that spending money on developing an app is a one-time investment which may earn you millions in the long run. So, take time to research the market and hire the best on-demand app development company.

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