A Complete Analysis of On Demand App Development Cost

On-demand service apps serve as an efficient mediator between businesses and customers. On-demand app services are now available in almost every field. Whether you want your groceries to be delivered or have a midnight craving for some delicacy, on-demand apps are here to the rescue. Numerous factors have contributed to the increase in on-demand app […]

Updated 20 September 2023

On-demand service apps serve as an efficient mediator between businesses and customers.

On-demand app services are now available in almost every field. Whether you want your groceries to be delivered or have a midnight craving for some delicacy, on-demand apps are here to the rescue. Numerous factors have contributed to the increase in on-demand app development, including the increased number of smartphone users as well as the efficiency of the apps in saving time and effort. 

The on-demand economy, or in other words, ‘access economy’ has appeared to satisfy the customer’s needs by supplying goods and services in the given time period. As per the reports, because of the usability of such apps, the on-demand food delivery market is projected to hit $1616.74 billion by 2023. While the market of on-demand mobile apps and websites is predicted to reach a value of $335 billion by 2025.

Before getting a grasp on what makes on-demand apps so widely popular among users, it is essential to understand the industry and the business basics. In the article below, we elaborate further on the fundamentals of such apps and what factors affect the on demand app development cost.

What is an On-Demand Service App & How it Works

On-demand service apps are the service platforms that connect customers with independent service providers or agents. These type of apps serves as a mediator between the business and the customer. It allows them to find each other and engage in a customer-provider relationship on mutually satisfactory terms. On-demand service apps have gained immense popularity because of their ability to meet demand along with quality service. 

The apps provide a much speedier and more convenient approach while also earning a few extra bucks. Some examples of the on-demand service app which are widely popular among customers are taxi booking apps like Uber and food delivery apps like Grubhub. 

Even though the prices of the on-demand services are levied as per the platforms, users on both sides may pay more depending on their requirements. 

How do the on-demand service apps work?

While using the on-demand service apps, customers are free to decide which services to use or subscribe to and how much they want to invest while using them. Everything is available at the swipe of a credit card or through an online payment system. 

The business model of on-demand service apps depends on the urgent delivery of goods. Users expect goods and services to be delivered immediately and the providers aim at delivering them in the promised time frame. 

Usually, an on-demand service app focuses on a single domain area such as Airbnb which helps its users find housing, GrubHub which allows ordering meals, or Lyft which provides transportation. These types of apps enable access to a larger pool of service providers and customers and aim at driving a better customer experience.

how does app development work

Types of On-Demand Service Apps

Even with the economic recession, various e-commerce businesses emerged successfully in the last few years. They have become preferred by customers because of their instant delivery practice and quality assurance. Before analyzing the on demand app development cost, it is important to understand the types of apps and how they work:

Business to Business (B2B)

The on-demand business-to-business model caters to the needs of the businesses. B2B clients expect a high level of customer satisfaction, and an on-demand mobile app is a great approach for providing a consistent experience. As per the reports, the B2B e-commerce sector in Europe is expected to be worth $1.8 trillion by 2025

Business to Customer (B2C)

Under this category, entrepreneurs develop the type of apps that serve directly the customers. Under this mode of business, the user directly approaches the provider for the product or the desired service. Some examples of the B2C model are Netflix, Uber Eats, or Booking.com. As per the reports, the worldwide B2C market is expected to reach $7,724.8 billion by 2025

Customer-to-Customer (C2C)

Customer-to-Customer (C2C) on-demand mobile apps mediate services between two individuals. BlaBlaCar, for example, assists users in finding co-travelers. Under this, the users can offer or find the ride by entering the details such as destination, dates, arrival point, and so on. When the user finds an ideal transport, they can book the seat and share their contact information with the drivers for further details. 

Business-to-Business-to-Consumer (B2B2C)

B2B2C on-demand mobile apps facilitate businesses in finding another business to purchase a product. They then act as a kind of third party and sell products to the consumer. Examples of B2B2C e-commerce are Amazon, Shopify, and food delivery apps. The delivery service app operator (B) sells its delivery services to both the restaurant (B) that makes pizza as well as the consumer (C ) who wants pizza home delivered.

On Demand App Development Cost

Essential Features of an On-Demand Service App

Before diving into the plan of developing an app, it is important to understand what features to integrate into the app for the targeted customers. Check some of the essential features that should be part of the on-demand service app. 

User Profile and Registration

The specifics of this particular feature depend on the business model of the on-demand delivery app. If an iOS/Android app is being developed for the business, it is essential to provide the registration option to the consumers. However, if it is an on-demand marketplace, registration forms should be created for the companies and the users.

Secure Payment Portal

The integration of the payment portal must be as per the preferences of the customer. Apart from providing the payment option through Internet banking or credit or debit card, an option of cash on delivery should also be made available. 

Real-Time Tracking

For product delivery apps, real-time tracking is a must-have feature. It enables the customers in keeping track of and predicting the arrival time of their product. 

Vendor Profile & Dashboard

The availability of the vendor helps in providing credibility to their services. With the help of the profile, the customers can find out about the vendor’s product, delivery record, and other essential details of the product. 

Reviews and Ratings

It is significant to integrate an option of review and rating into the on-demand service app. Providing an opportunity for the customers to write a review for the service and product helps the business to improve. Reviews also help other customers before making a purchase of the product.

mobile app development features

How On-Demand Service Apps Benefit Businesses?

The latest increase in such apps can be credited to the growth of mobile users and the world becoming more digitally friendly with each passing day. Check how on-demand apps are benefitting businesses globally.

Suitable for all forms of businesses

One of the major benefits of an on-demand app is that they span across various industries. Their market is huge and in whatever field your business falls into, you will always have an option of hiring on-demand developers to get an app developed for the business. There is no doubt that on-demand apps have the power and capability of transforming startups and businesses. They not only help in scaling business but also offer diverse business opportunities. 

An affordable and long-term solution

The goal of every business is to provide its customer with great service along with assuring on demand app development cost benefits. By comparing the advantages of on-demand apps with the cost of developing one, it becomes clearly evident that it is a cost-effective solution. Custom on-demand apps have proved to be the most effective type of solution. It facilitates businesses to include the features of their choice to increase user engagement.

Expansion of the on-demand app market

Such apps saw a major boost in the last few years. From an on-demand pediatric app to home and cleaning service app, various types of on-demand apps saw extraordinary growth during the pandemic. As people started to prefer to shop from their comfort, more businesses realized that having an app for their service or product will only ensure longevity in the market. 

On Demand App Development Cost Breakdown

The on demand app development cost is affected by various factors. The price to design an on-demand app can fall anywhere between $30,000 to $1,20,000 or even more. For an affordable on demand app development cost, it is important to understand various factors including the features and app complexity.

Simpler demand applications

There are applications that have a basic set of functionality. Simple apps have a primitive user interface and are generally designed for only one platform. The mobile app development cost of this type of application ranges from around $30,000 to $1,20,000.

Medium complex on-demand app

For the development of a medium complex on-demand mobile app, more sophisticated functionality is included. The on-demand app development pricing model to create this form of the app varies between $1,20,000 and can reach around $2,00,000. 

Complex on-demand app

Custom On Demand App Development Cost is integrated with high-level advanced features as well as well-thought UI. These apps are primarily developed for profit-making as well as for optimizing regular business processes. The cost to build such apps varies from $2,00,000 to $3,00,000 and more. 

Types of Platforms

Different programming languages are used to create apps for Android and iOS. However, an app that works on both platforms will require more work and cost. In this case, the developers can use a cross-platform framework like React Native that offers a cost-effective substitute for creating the front end twice. The programmer will be able to develop code only once for both platforms cutting down the cost of the on-demand app development.

App Design

Design is a crucial step in developing an on-demand app. As more features and integrations are added, the time and cost required to develop an app also increase. The cost of developing an on-demand app is heavily influenced by:

Simple Design: An app with a minimalist design has three to four screens, limited functionalities, and no data storage. On few integrations ensure the functionality that is required.

Custom Design: It includes more specific features and functionalities. The developer should be prepared for an increase in the cost of developing apps when using frameworks and libraries. 

App Features and Testing

The principal factor behind the development of mobile apps is to give services to users’ mobile devices. Thus the success factor of an on-demand app is its seamless rendering of services via its features. Besides testing the features, ensuring a hassle-free service is another hurdle that every application has to pass. The increase in the number and complexity of features directly impacts the cost of app development. 


User experience (UX) and User Interface (UI) are significant for making an on-demand app a success. It is difficult to create a simple yet unique UI/UX app design and not have an additional cost. A good design will make the users want to use an app more and not drift away from it in a long run. 

App Updates

On-demand mobile apps require periodic updates. Also, the developers need to supply adequate technical assistance for the smooth functioning of the applications. As the app platforms transform into advanced technologies, it extends the expenses even after launching the app. 

Strategies to Reduce On-Demand App Development Cost

There is no argument that app development can be expensive, considering the complex level and the quality features integrated into the app. Listed below are some of the strategies that will help reduce the cost of an on-demand app while maintaining its quality. 

Carefully finalizing the product requirements

Entrepreneurs always have a vision while planning to develop an app. However, once the app building begins, the outcome might seem to be a bit different and may end up with an increased cost and time. To avoid this, planning the app development using product requirement documents is important. It helps in keeping everyone on the same page regarding the budget and setting expectations at the outset. It must be ensured that the requirement document is specific, detailed, and understandable for everyone. 

Clickable Prototypes

Building a clickable prototype of the mobile app is also a recommended way to reduce the mobile app development cost. The prototype can be easily developed by the design team and can be further used to improve the user experience. It will help in determining whether the team is ready to start the app development. 

Use Existing Platforms

Instead of coming up with your own technology or platform, it is better to use a stable existing one. Third-parties libraries and the already existing on-demand service app providers can significantly reduce the cost and time of developing an app. However, before moving forward, it is advised to familiarize yourself with the guidelines to choose an on-demand service app provider

Creating cross-platform mobile apps

Creating native apps for just one platform will not be cost-effective and will also let you miss out on a large chunk of customers on other platforms. However, developing cross-platform apps for both Android and iOS can turn out to be the best way to reduce the On-Demand App Development Cost. Popular technologies for creating cross-platform apps include Unity 3D, React Native, and Flutter, among others. 

How Appventurez Can Help in Developing an Efficient On-Demand Service App?

On-demand service apps have become an easy and preferred solution in almost every market. The increased popularity of the apps among users is a sign that such apps are here to stay for a long time. On-demand apps are simple to use and provide various choices to their customers from the comfort of their homes. This is without any doubt that companies considering investing in on-demand app development cross-platform solutions must expect a bright future.

Appventurez, as an on-demand app development company is the right choice for the development of on-demand service apps. The team at Appventurez guides their clients through the procedure including selecting the field and targeting a suitable audience. So if you are looking for an efficient on-demand service app provider, free feel to contact us for on-demand app development API integration services. 

on-demand app development guide


Q. How much does it cost to hire an app development company?

The on-demand app development company pricing currently varies around $50 per hour. The US app development price cost for an app with a basic user interface and a set of basic features ranges from $16,000 to $32,000.

Q. What factors affect the cost of on demand app development cost?

The On Demand App Development Cost is affected by various factors including UI/UX, app design, platforms, level of app complexity, app complexity and updates, integration of relevant features, and testing, among others.

Q. What elements should be considered before planning a budget for an on-demand app?

Identifying the niche market and target audience, creating detailed documentation, hiring skilled engineers, and choosing between native or cross-platform should be considered for on-demand app development budget optimization.

Q. How to build an on-demand app?

On-demand app can be built by following these four simple steps:

  • Start with Research
  • Plant out Features
  • Choose Platforms 
  • Find Developers

Ajay Kumar
Ajay Kumar

CEO and Co-founder of Appventurez

Ajay Kumar has 15+ years of experience in entrepreneurship, project management, and team handling. He has technical expertise in software development and database management. He currently directs the company’s day-to-day functioning and administration.

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