On-Demand Apps- Why are they in demand?

Sahil Gupta
Published on Sep 18, 2019 in App Development
On-Demand Apps- Why are they in demand?

On-Demand apps, as the term itself suggests, are apps, built to cater to your immediate demands and needs exactly when you need them. In this age where everything is fast and time is no more a luxury when you cannot reach everything, on-demand apps bring everything to you. For this reason, the popularity of on-demand apps is spreading like wildfire. Nearly 6.6 million apps are present in the app store and a large and increasing share of this is taken by on-demand apps. On-demand apps economy market is picking pace and companies involved in this business are making a fortune out of them.

On-demand apps have become a necessity of consumers. So much so, that they have surpassed local traders, suppliers, and service providers, in some areas. They are handy, user-friendly, pocket-friendly, and techno-savvy.

According to Harvard Business Reports, the on-demand economy attracts 22.4 million consumers annually, who spend US$57.6 billion on them. These on-demand services, in addition to food delivery and taxi booking, including healthcare, travel and tourism, grocery and other hyper-local services, home care services, etc. 49% of on-demand users are millennial, remaining 30% are in the age group 35 to 54. This growth and activity should continue this year too.

Key features of any on-demand application

On-Demand Apps- Why are they in demand?

In this fast service sector, cut-throat competition has become the order of the day. From eating house to tending and jaunt supply, the services-related business has taken the competition without becoming upset. Fortunately, technological advancements stay helpful during this endeavour and in line with the mobile-driven trend, the on-demand apps are available in handy for entrepreneurs.

  1. User Account: The first thing the user looks for is where to register this as to maintain a list of all his activities all long the user uses the application. The user ought to have the choice of selecting to register through email or phone or the other social media handles. Plus, there should be a single-click registration option by linking the account with their pre-existing Facebook or Google account. One of the key reasons why users abandon the onboarding process is time-consuming forms requiring them to fill out too many details. So, keep the registration process simple and straightforward.
  2. Push-Notifications: Push-notification play a very important role in not only keeping the user updated with the services but also to increase your business online. Delight loyal users with special privileges and hand-picked items that match their taste and budgets. Make available a convenient link to reach the app, right from the notification.
  3. Booking Service: The user ought to be able to book the service in step with his convenience and at his location. Each location address is saved because it would be straightforward and time-saving for the user to book the service by a single click on an address. Also, provide a Choose your current location link that’s linked to Google Maps and make things even more quickly.
  4. Contact Service Provider: Once the booking is done, there needs to be an option for the user to contact the service provider. It would be useful for the supplier to succeed in the user quickly if they're in the grips. One of the major factors why old-time users are reluctant to use an app is they miss the friendly, human touch afforded by their neighborhood shopkeeper! So, keep an option to directly contact the service provider or customer care, if required.
  5. Cancellations: The option for cancellation of the service should be given because the user can feel like canceling the service before it starts or in the middle of the process. This is a key advantage that on-demand apps provide, as traditional sellers almost always refuse to refund or cancel placed orders.
  6. Ratings or Reviews: Users ought to be able to share their expertise relating to services within the style of rating or through giving feedback. This also helps in improving the business to meet the requirements of the user. Moreover, these reviews give confidence to users who are contemplating whether they should use a particular service or not.
  7. Payment: Online payment process should be possible through the app through many options like a debit card, credit card, paytm, etc. Another wondrous feature, go cashless! No need to haggle for exact change or negotiate endlessly to bring down prices.
  8. History: The user can have a list of all the services that are booked from his account and also the date and the details of the service are provided. This is useful for businesses to detect users’ buying patterns and send them timely push notifications and push up sales.
  9. Help and Support: In case users do not understand the usage of the app he can seek the required support and help. Apps work 24 by 7 and customer care staff is always around to help struggling users. Offer multiple options for communication- email, phone call, text messages, and others.

Four Key Features of On-Demand Apps

While there are numerous on-demand apps floating in the market today, not all are making a mark with audiences. Makers sometimes forget the need to make their apps scalable and so, they are unable to handle large user volumes. Many times, the interface looks cluttered and puts off users right from the first go. So, here we have identified the four features are absolutely essential in every on-demand application:

  • User-friendly: On one end of on-demands apps are service providers and on the other end are consumers. The most crucial requirement that on-demand apps should is to be easy to use, by both service providers and the users. From registration to booking to delivery, every process should be presented in an easy-to-understand form.
  • Attractive and Flawless: ‘The first impression is the last impression’ and this goes even for on-demand apps. Expectations have increased due to high competition from an app to have an interface that is both attractive and easy to understand. Besides that, it is expected from on-demand apps to be bug-free, fast and safe.
  • Flexibility: Your approach while building an app should be user-centric. The focus should be on the consumers and their needs, demands, and interests rather than yours. Your app should be flexible enough for both parties. It is better to give more options to the app users to make your app’s success certain.
  • Scalability: Your app should be able to handle the traffic that comes on it well and you need to prepare it for days when the rush increases even more so that its operations remain unaffected by user volumes.

Benefits of On-Demand Apps

On-Demand apps may be thought-about as a linking layer between customers and different businesses. On-Demand apps cover numerous sectors and customers use them to induce their hands on multiple products or services that they want to buy. Before the advent of on-demand apps, people had to hunt for suppliers or service providers, contact them, and compare their quotes. Now, on-demand ordering and delivery apps have brought drastic changes in this traditional approach.

  1. Helps your business grow exponentially: The number of mobile users is increasing at an unprecedented rate. As per Statista, the number of mobile phone users is said to increase by 4.68 billion from 2015 - 2020. In such a scenario, the best way to grow your business is by making it reach the screens of consumers’ mobile devices. More and more businesses are now investing in on-demand apps to make the best out of the opportunity.
  2. Satisfied employee; efficient employee: The key to achieving great results lies in keeping your employees happy and satisfied with their work. On-demand apps are designed while keeping the employees and their issues in mind. An app that is productive and does not create more issues for the employees results in more efficiency in their work.
  3. Security First: Securing its data and maintaining confidentiality is the main concern of all businesses. On-demand mobile solutions help these companies secure their user data and keep it confidential.
  4. On-Demand apps are scalable: On-demand apps are great with handling the flow of customers. On-demand apps are developed with scalability as a priority. After all, you would not want your app to surrender when the numbers increase. Users more likely tend to leave an app the time it becomes slow or unresponsive, a major reason for which is the traffic that fluctuates from time to time.
  5. Helps business obtain Big Data: On-demand apps are the key to extract huge volumes of user data. You have everything from a user’s name to his/her age and gender, to an email address, preferences and whatever you wish to know. Such huge amount of data can work wonders for your business to grow bigger and better.

    Such a large amount of varied data can let you do many things including:

    1. Use the data for analysis and, based on that, improve business practices
    2. Invite the audience to upcoming sales or offers
    3. Choose direct email marketing to market your products
    4. Retain your customers with a personal touch
    5. Have a direct connection with customers and offer round-the-clock support
    6. Build ‘business-customer’ relationship
    7. Boost your conversion rates to otherwise unattainable levels.
  6. Tracking facilities: Customers of on-demand apps have all the information they need about their product. These apps come with the added advantage where you can track a product’s location and get to know the exact or estimated time and date of delivery. This facility, though might look basic, is an essential feature of on-demand apps.
  7. Multiple payment options: There are various payment options available to us now. From net banking, debit and credit cards and cash on delivery, the options are many and convenient. On-demand apps too come with these payment options were paying in hand cash or going cashless both are available to users making lives so easy.
  8. You can always rate and review: Reviews and ratings are a great tool in the hands of customers, using which they decide the fate of an app and its services. However, this feature helps businesses too, who with positive ratings and reviews, can attract more audiences to their apps.

On-Demand Economy Statistics

Global mobile apps revenue 2015, 2016 and 2020 in billion US Dollars

On-Demand Apps- Why are they in demand?

The market that the on-demand industry has captured is growing progressively. The investors who couldn’t be a part of the trend when the Uber economy was getting incepted are now prepared to book their share. In the year 2014, 74 Billion USD were invested in the on-demand app market, and in the year 2017, the amount invested reached 10,293 Billion USD.

As the number of investors is increasing, the on-demand apps economy is also increasing. As per a report generated by BIA/Kelsey, the on-demand apps economy revenue was $22 billion in 2015, and it will reach $57 billion by the end of this year. According to the latest PwC report, the market for On-demand mobile apps and websites will reach a significant value of US$335 billion by the year 2025. In line with the data collected by the National Technology Readiness Survey in the U.S., it was predicted that the sum total spending on the on-demand mobile app services would rise from $48billion in 2016 to $75.7 billion in 2017. Used by 86.5 million US citizens, or 42% of the country’s population, on-demand services are here to stay.

The future upholds a substantial impact on the On-demand mobile app economy. On one side, it is helping in introducing the concept of real-time and on-demand in different business verticals and fostering investment in On-demand app development, on the other hand, it is reflecting a change in the paradigm of the existing On-demand processes and business models.

The cost of building an on-demand app:

The on-demand business model is dynamical, tracing shopping for patterns of individuals globally. No matter what business section you belong to, the likelihood is that somebody in your business would be wondering finance within the on-demand market.

On-Demand Apps- Why are they in demand?

It costs an average of USD 91,000 (approx.) to build an on-demand app platform.

  • Consumer on-demand app: USD 37,000
  • Provider on-demand app: USD 30,000
  • Web Dashboard: USD 24,000

The cost to build an on-demand app will depend on:

  • The complexity of your app
  • Number of advanced features you want to add to the app
  • Technologies you are going to use
  • Developers hiring: an in-house team of developers or a freelancer on-demand app developer
  • Mode of development: custom app development or clone app

Here, we provide a detailed insight into how much does it cost to build an On-Demand app like Uber.

Three Major Industries Using On-Demand Apps

There are a few sectors of our economy that are making the most out of on-demand apps. Among these, perhaps the three main sectors who have benefitted the most are as follows:

  1. Transport Industry: For all those who used public transport all their lives, getting a taxi was always a challenge, especially when facing a time crunch or attending an event. This is where Uber came in the picture and revolutionized the entire sector paving way for more companies.
  2. Food Industry: Food ordering and delivery had a major breakthrough with on-demand apps. Consumers can now sit comfortably on the sofa, browse an app to choose from hundreds and thousands of restaurants and food items. On-demand apps have brought a boom in the food industry.
  3. Home Services Industry: With the integration of home services and on-demand apps, the face of the entire sector changed completely. There are millions of users around the world who now prefer to book appointments to call services in their homes instead of going out to get one.

Some Popular On-Demand Apps:

  1. Uber: Earlier known as UberCab, Uber established in 2009 can be considered as the pioneer of on-demand apps. With the aim of disturbing the transport services, Uber is a disruptive business and has absolutely played havoc with the taxi industry in the major cities around the world by tearing up the rulebook. Ever since it is in action, the Uber business model has concentrated on being at the top of the competition and so far they have been successful. Want to know how much does it cost to build an app like Uber? Read our blog to explore more!
  2. Netflix: Netflix is the leader in entertainment on-demand applications. It offers on-demand streaming media to subscribers. With Netflix, you can watch any video- at any time, at any place on your smartphone/tablet without any restriction in the amount of time being watched. Every user has their own personal option to watch videos, series or movies. Netflix removed the barrier of TV sets and brought television on your palms.
  3. Airbnb: Airbnb is the leading on-demand service application in the online marketplace. It offers you hospitality service for people to book a room or rent a room that resolves their lodging requirements from hostels to hotels. The number of adults using Airbnb in the U.S. is expected to reach 86.5 million by the year 2021 which was 44.8 million in 2016.
  4. UrbanClap: Established in 2014 by Raghav Chandra, Varun Khaitan, and Abhiraj Bhal, UrbanClap brings you a number of home and beauty services. You can rent their service for home cleaning, interior designing and even get beauty services sitting right at your home. Now they are expanding their area by incorporating new sectors like wedding photography etc.

    The app of UrbanClap was launched in 2017 and since then their profit has raised manifolds. It has become one of the fastest-growing home services startups in India and raised 63 Crore INR in funding from Accel India and SAW Partners.

  5. Grubhub: Grubhub is a food delivery app, available in more than 900 cities in the United States. All you need to do is to simply enter your location and Grubhub will show you all the restaurants in your area. You can search by cuisine (Italian) or by a specific menu item (cheeseburger), making it easy to find your next meal. You can also save delivery locations, such as work or home, to speed up the process.
  6. Housejoy: Established by Sunil Goel and Arjun Kumar in 2015, the company was received favorably by the Indian population who make around 4,000 orders per day resulting in 30 to 40% weekly growth of the company. Housejoy’s home services include Interiors/Renovation/Construction Services, Home Cleaning, Painting, Beauty Services at Home, Appliance Repairs, Pest Control, Plumbing/Electrical/Carpentry services & a lot more. Their services are available in Bangalore, Hyderabad, Chennai, Delhi, Mumbai, Gurgaon, Pune, Coimbatore, Vijayawada, Surat, Baroda, and Ahmedabad.

    The app of Housejoy is available both on iOS and Android.

  7. Zomato: Zomato is the most comprehensive restaurant search and food delivery app that there is in India. It was established in July 2008 by two IIT Delhi alumnus, Deepinder Goyal, and Pankaj Chaddah. Zomato is among the top start-ups in India and operates in about 23 countries including India, Australia, and the USA. In 2016, Zomato was valued at USD 1 billion.
  8. Booking.com: The company was established in Amsterdam in the year 1996. You can now use the app in more than 200 countries around the world. Booking.com has more than eight million photos of lodging areas and more than 30M impartial honest guest reviews. The app has been downloaded more than 1,393,006 times by users all over the world.
  9. BloomThat: The service called BloomThat is among other on-demand app examples. This is an indispensable tool if you need to congratulate someone, make a pleasant surprise or just express your sympathy. You can send flowers and cakes to all your loved once with just a click.
  10. Swiggy: Swiggy was founded in the year 2014, delivering food to a few neighborhoods in Bengaluru, India. Working in 8 cities, Swiggy has more than 9000 restaurants on its platform. Swiggy has 2,990,199 monthly app downloads and has $62.4M in estimated revenue annually.

Concluding Remarks

On-demand apps offer to provide solutions to the immediate demands of consumers, making the most sought after apps. Businesses are accepting the fact that these apps are too big an opportunity to miss, thus more and more new firms and investors are taking an interest in them. Those who have already shifted to on-demand apps certainly have an edge over those who either haven’t thought of coming up with an app of their own or are in the process of the shift. These apps are making the lives of users so much easier than before, that it’s almost impossible to do without them anymore. The services that were earlier limited or difficult to get are now just an app away. Users can now access everything that they want from their mobile phones in a short span of time be it a taxi, groceries or even food.

Though what must be a concern here is the fact that building a great on-demand app is a tough job and requires effort. Managing cost while building an app, being unique with your idea or spreading the word among the users, everything requires a lot of hard work. Building on-demand apps are challenging and require an experienced team, such as Parangat Technologies. We have crafted on-demand apps on shoestring budgets and with ground-breaking ideas. Visit our portfolio or get a free quote for your next on-demand app now.

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About the author
Sahil GuptaCEO at Parangat Technologies

With roll up the sleeves, dive in and get the job done approach, it was year in the year 2010 when Sahil started Parangat Technologies. Emphasizing on a healthy work culture and technology driven company, he has successfully created a workplace where...

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