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The Ultimate Guide to On-Demand App Development

Ajay Kumar By Ajay Kumar | December 20, 2019
on demand app development guide

As a kid, I used to sit at a place and dream about eating my favorite food and dishes. It was the most memorable time, especially when my father took me to get it. Those were the days!

However, today’s generation has an advantage over all of us. They can simply check on the food delivery apps and order from their favorite restaurant with just a single click. Isn’t this lucky for them? The best thing is that it is not limited to food but is spread out to cabs, commerce, grocery, and whatnot.

On-demand apps are the problem solver for the real-world that is saving a lot of time for people. They are the major aspects that can easily connect products or services with the customer solving issues that were unthought of before. 

We are a step ahead towards “uber-ization” with healthcare, beauty, e-commerce, and on-demand food apps.

Are you also planning to be a part of this propitious app world? Let’s get an insight on it before planning to hire an on-demand app developer.

What is an On-Demand Service?

On-Demand Apps are the ones that allow users to order or book any service instantly with a timeframe of delivery in a few hours. For instance, Uber is popular for cab booking, Swiggy for food ordering & delivery, and Airbnb for hotels. On-demand is one such platform that allows users to get any services in minimum time.

The only reason why people go for an On-demand application is for ease. As a matter of fact, on-demand is much more than a trending app. Technology world has slowly become our life (not just a part of it) knowingly or unknowingly. Mobile app development, software development, and web app development are embracing the latest technology such as Artificial Intelligence, the Internet of Things.

Technology is revamping the user experience while adding its own flavor to gear up the latest products and services. With a single click, we can book a cab, order food, purchase a beautiful dress, and order medicines. These on-demand apps are enhancing the customer experience with several options including same-day delivery. The application is a way for customers to get in touch with the service provider through a platform that is right for both parties.

On-demand apps have a brighter and better future in the market. The giants like Amazon are gaining popularity and a number of apps are launched in the on-demand category. It is predicted that by 2025 the overall revenue of such business will move up to $335 billion. Even now, 50 percent of users are actively using on-demand apps that are convenient for them. Undoubtedly, more than 60 percent of customers will willingly pay extra bucks to go for same-day delivery. This has leveled up the business world while taking the arena to a new height.

Why On-Demand Apps Are In Trend?

The on-demand app development idea is to ensure that customers can have mobility in a convenient manner. Hence, now all the limelight is on such mobile app development company or app developers that can offer solutions for real-life issues. The demand is spiked up with the success of Uber & Amazon-like apps and the business model in the customer-pleasing world. 

on demand market status

Even the investors are choosing the unique idea and fueling the overall growth of on-demand apps in the market. This has come up as a revolutionary factor in the app development world. From supply chain to food delivery, the newer technologies are influencing the manual work with technical options to help the vendors. The growth is surmounting with time in terms of categories and companies giving choices to the audience. This accelerated growth has a huge effect on consumer actions.

However, many are still confused about how on-demand will influence the government sector or jobs. The fact is that it already has earned a wide space in the enthusiasts and tech-savvy world. The contending phase for companies is over and fast-moving technology is altering the model. This has altered the existing infrastructure to give space to new technologies and advancement. 

How To Get Started With On-Demand App Development

To know more about “What is on demand app development?”, it is best to be prepared for it. Here are the major points that one must keep in mind while starting to work on On-demand app development.

#1 Identify The Issue

Smartphones are the lifeline for the majority of the population around the globe. It is a great opportunity for business owners to target such populations and gain popularity quickly. This can be done with the Uberfication trend that is a great way to move forward while the business model is still popular.

There are apps in the market that are targeting the services with real-time supply. This has added up several apps including Cannabis delivery, liquor delivery, hotel rooms, odd jobs, car repairs, medical equipment, and mobile recharge to the list of custom on-demand apps.

The fact is, there are problems that can be neglected easily and are not considered as real problems. It is best to validate the app idea with on-demand apps but with frequent problems. There is no point in targeting on-demand apps with the seasonal issue, for instance, car washing apps might not be used daily since it is considered a weekly task. 

This is the reason that makes apps like Uber much popular since the cab and taxi are extremely common to book for customers. The marketplace holds a lot of value for booking taxi apps since it falls under budget for the customers. Hence, it is best to make sure that specific problems and pain are addressed in the apps.

#2 Identify The Audience

The best thing to solve any issue is to know the audience. If the product or service offered to the client is narrated properly then it is easy to focus on the issue faced by the audience. This will give an insight into the ways to approach customers in a better and convenient way.

The target audience can be anyone including middle-class families, business owners, family guy or bachelors, and night owls. However, it is vital to make sure that the audience is facing the issue and is ready to find a solution to it. 

Especially in terms of the combined issue, it holds a lot of value to know more about the customers. There are two ways in which the issue of customers can be solved. One of them is to offer customers online support through a customer service center to directly solve the issue. Another is to deliver the solution as per problems easily faced by the users.

#3 Market and Current Trends

With the evolution of mobile technology, there has been a huge alteration in trends. Nobody would have fathomed the evolution of the taxi booking apps 5 years ago and here we are living our lives smoothly with it 

As per the Source National Technology Readiness Survey, the on-demand mobile services are highly popular among the elderly population. Especially with the addition of healthcare apps in the on-demand list, it has gained popularity. 

Approximately 40 percent of the rural population, 35 percent of major cities, and 25 percent of suburbs area are working on the geometry of on-demand apps. This is eventually a great way to step forward and invest in the custom on-demand app development. 

population scenario of on demand

The fact is that the investor’s interest will be directly proportional to the on-demand app idea. It is vital to note that the on-demand app is a good idea only if the sellers and buyers can coordinate with each other easily. Even for startups, it is a great way to impress investors with a unique and innovative app idea. 

To be in a competitive market, it will be great to be a part of the on-demand app through different ideas such as grocery shopping. There are approximately 40 food startups, owned privately in the USA, that are into the grocery business with more than $5 million funding. However, Airbnb and Uber are still at the top of the chart, the rest are making their own way in the market.

#4 Convenience Psychology

One of the main reasons why people prefer cheeseburgers at McDonald’s over any other brand is not because of its affordable rates (even though it is an essential aspect). The customers depend on McDonald’s because it is a treat on their taste buds and is convenient. “Convenience” is the major reason that attracts an audience to on-demand apps. 

The time and distance is the major part that decides the convenient and non-convenient ratio of an app. Everyone hates to travel a lot to get their favorite burger and puff. The more activity a task will include, the more inconvenient the brand will be for the customer. 

So, to attract the audience, a driving force of convenience is a major factor to be in the market. As mentioned above, McDonald’s has a hub in every city and town. Hence, customers don’t have to travel a lot to get their favorite burgers.

Every brand is focusing on the convenience market to gain popularity while saving efforts and buying time for customers. Be it Uber or Amazon, the market is running with the convenience model to achieve success. 

The major factors that are added to the market include access, decision, benefits, transaction, and post-benefit convenience. This will add value to the application making it easy for the customers to rely on it. Apart from this, there are must-have features that on-demand app developer must take care off:

  • Live Tracking – Real-time tracking is a crucial aspect for customers. It is essential to give authority to the customer that allows them to track their orders easily. This helps in building trust and giving assurance to the audience to order service online. The real-time GPS trackers are extremely helpful with continuous updates in the long run.
  • Review and Rating – The customers check out the experience of others before ordering the product or service. In such a case, it is essential to focus on high-quality experience for online companies, marketplaces, and platforms.

Along with this, the customers choose the service provider or vendor as per the reviews that build trust in the market.

  • Payment Gateways – It is vital to keep the payment mode in mind while working on the frictionless gateways. When it comes to custom on-demand app development, payment holds a lot of importance which can be in the form of cash on delivery or via debit or credit cards. It is best to provide secure payment gateways to enhance the user experience. 

These are the major factors that can convince the customer to go for the purchase.

#5 Technology Integration

We are living in an era of technology that makes it vital for us to be a part of it. The on-demand mobile app includes technology in amazing ways for three distinct apps. One of them is at the customer end that will avail the services, second is for the admin side that works as intermediary whereas the third is on service provider end that delivers the service on the device. 

It is essential to integrate the several features of the host side across all application platforms. The major features to take in considerations for the development and design of an app are:

  • Real-Time Tracking – As mentioned above, real-time tracking is an extremely essential part of the app. This allows the customers to track their orders in real-time and know the expected time for delivery. It depends upon APIs based on the location integration with the app. 
  • Push Notifications – On-demand apps work on an integral part that allows them to be in the market such as push notifications. The service provider must send out notifications to draw the immediate attention of the user. However, the client-side must also have proper notification scenario to update them about the upcoming delivery

It is vital to make sure that apps are engaging and not too pushy. A single mistake is more than enough to tick off the customers due to annoyance. It is essential to strike the right balance among client end and user end.

  • Payment Integrations – It is essential to make sure that apps are secure, reliable, and fast in overall working. In addition to this, the payment gateway must be functional to not test the patience of the audience. The users will most probably quit the app if the payment gateway is not safe and secure. 

As a leading mobile app development company, we make sure that payment options integration is done accurately with mobile apps including payment gateway processors (Stripe and PayPal), Credit Cards, and Online Payment. It is possible to integrate the app with payment platform SDKs. 

#6 On-Board Suppliers

It is impossible to have an on-demand app with no seller or service provider on board. Imagine, trying to order food at UberEats with no online restaurants. This will impact the business world on a whole different level, hence, it is essential that a human being must be trained to not only use the app but manage it to run seamlessly. There are two types of requirements of on-demand businesses – supply-side and consumer side.

The consumer side is a secondary part of the on-demand app since it is essential to find a supplier for the business. For instance, when it comes to Uber, imagine having no drivers, we will have no one to connect too in order to get the service. 

Yes, it is vital to cover the aspect of who will be providing the service to the customer. In order to get the suppliers on-board, there are different techniques that one must keep in mind.

  • Cold Calling – If you are a new company then it is essential to make cold calls and ask vendors or providers to register to the app. However, the truth is described by the Uber CEO Travis Kalanick. 

Out of the 10 calls, he was able to grab the interest of only 3 callers, a few listened for a few seconds, and three hung up without listening. However, it doesn’t mean that you will get the same response but it is best to be prepared.

  • Have Ground Rules – It is essential to have ground rules at the initial stage of the business or planning or an app. It is essential to have detailed guidelines for the business to have possible results. The ideal way is to add on all the business requirements and rules including the cancelation of product at the time of delivery.
  • Perks and Remuneration – One of the biggest apps – Uber – track the per hour earnings of every single driver. However, it includes additional charges such as vehicle and gas expenses. It is best to consider all the aspects beforehand while working on the development of the on-demand app. 

#7 Matching Algorithms

This just means to search for the service provider as per the customer requirement or request. The matching algorithm can easily determine the requirement and matches the best prospect or service. However, there is no work done manually during the matching time and it all works on the algorithm. 

The software can easily match the people as per their preference and technologies as per the two major algorithms mentioned below:

  • Automatic Matching – In this, the application code contains the main matching or assigning logic.
  • Manual Matching – In this, the customer will make a request and the admin will assign it to the service providers. 

The market prices have a lot of influence due to the ratio of demand and supply. For instance, Uber doesn’t follow any chart for its price and it is determined as per the market demand. The algorithms can help in achieving these major price factors. It is vital to keep major factors in mind while working on matching algorithms such as:

  • Build Trust with Technology – If you want more and more customers then make sure to target the trust factor. The best thing is that we are living in an era where technology can be used to enhance user trust easily. It can help to empower and build trust for meaningful connections. This will automatically lead to making customers share it over other platforms.
  • Local Audience – Before jumping to the international market, make sure to have a good brand image in the local market too. Start by targeting national-scale service with significant consumer demand. There are freelance suppliers or vendors that can sell their own products in an instant while meeting customer demand. Hence, it is best to start by creating local and small service and then emphasizing it till it reaches the stage of perfection. Once achieved, start expanding the business.
  • Active Jobs and Suppliers – The major aspect of having an on-demand app is to meet customer demand. This can be done easily with the help of organized supplies. With disorganized supplies, one can’t possibly meet the organized demand of customers. It is vital to maintain the suppliers via the cloud. Make sure that the backend services are up to the mark for customers and suppliers as per the information and data. 

What are the On-Demand App Models?

We have witnessed the evolution of the on-demand app in the span of a decade. The industry consists of end-users, product or service providers, and app developers or admin. These three aspects are related to each other in terms of service seekers, service providers, and platform. Let me explain to you the major aspect of on-demand apps.

  • P2P – Person to Person
  • B2B – Business to Business
  • B2P – Business to Person
on demand app models

What are the Industries of On-Demand Apps?

The models might have given you an insight into types of on-demand service apps. However, let us dive into the details to understand these apps in a better way.

#1 Food Delivery App

This is the best example of a B2P and P2P type of business market through which we can easily attract an audience. The food industry is a major part of the business world to attract an audience and be a part of the market. We can have two types of app models in the business world through which the food delivery app can be developed. 

One of them is specific to a particular business including McDonalds and Dominos. A customer can directly sign in to these food delivery apps and order their favorite food. However, these are specifically for a particular business that makes it industry-oriented. The major target audience for these B2P businesses is young generations due to its popularity among the age group of five.

Another type of food delivery is P2P in which an individual can directly order from different food outlets. For instance, Uber Eats and Zomato are the best examples of the food delivery app. The main idea behind such apps is to bring different food outlets in a single place, making it easy for customers to select the restaurant and order food. More than 80,000 restaurants are combined together over a single platform in over 1000+ cities. 

#2 Taxi Booking App

Another category that falls under the scope of B2P and P2P is taxi booking. Similar to food delivery apps, taxi booking apps or on-demand car services are also divided into two major forms in alike structuring as per the service. The applications like Lyft and Uber have altered the whole structure and game of the taxi booking app. 

The idea behind such apps is to give a platform to cab owners to get in touch with customers to increase their business. On the customer end, it is possible to book a cab at the doorstep and drop off at the destination. The ride request is the major part for cab owners and customers that makes communication run smoothly.

There are major features that one have to add in such apps including communication channel between the customer and drivers, GPS navigation to get an insight on nearby apps, and rating and reviewing. Even companies book the cabs to make their supply-chain streamlined and to run it smoothly. 

Uber is the master of such apps, but it is time to move forward. It is best to have a better filtering system and work on the validation of the driver’s profile. On top of that, the free-ride options in the complex payment capabilities can help in enhancing the authentication of drivers. This makes the platform flexible and scalable integrated with Stripe and GPS technology.

#3 Retail App

The eCommerce market has a huge influence on the on-demand economy. In the USA, more than 55 percent of citizens depend upon online platforms for retail shopping. Whereas when it comes to one-day delivery, 23 percent of citizens in the USA are enthusiastic about it. In some apps, customers pay extra for one-day delivery. 

The retail giant, Amazon, has the option of Prime that gives authentication to customers to get products delivered with no delivery charge. They offer extra benefits including Amazon Prime Video, Amazon Kindle, and Amazon Prime Music.

On the retail end, Amazon is the topmost logistics and on-demand app that is taking the percentage of overall development to the next level. The users can easily check on different categories to order the product as per their demand. Through this, customers can go through several options to avoid cluttering and have a short delivery time frame.

#4 Healthcare App

The best idea of an app is not to just order medicines online but to get in touch with doctors via apps. This is a great help to people that want to get in touch with their physicians during their busy schedules. Even doctors can recommend solutions or prescribe medicines for minor diseases.

However, there are limitations such as tests or advice on serious issues. It is still a great step to move forward for consultation services to cope up with less serious issues. There are a few apps in the market that have a successful run such as IsDocin, Pager, and Doctor on Demand.

#5 Courier Delivery App

Do you think that Amazon has hired delivery guys to get products delivered to the customers? No, Amazon has a link with courier companies (similar to retailers) that get the requirement of delivering products. They pick up the product from the outlet and deliver it to the destination. There are several companies in the courier business that are already in the market such as Shyp, Postmates, and Deliv. 

#6 Gifts and Flowers App

We are living in an era where our relatives and friends are in another city that doesn’t feel like far. However, in the busy schedule, it can be difficult to meet or plan a visit on special occasions. To overcome such situations, there are apps that book flowers, gifts, and cake and send it to the recipient. This has increased the growth rate in the market along with an increase in demand for users in different domains.

On top of that, such apps are popular due to large product availability, doorstep delivery, and arrange the delivery time. Hence, the basics are covered in the app to offer uninterrupted services to the customer. The gift and flower apps already in the market are UrbanStems, Giftagram, and Gyft.

#7 Household Chores App

There are several household chores that can be extremely hectic for individuals. There are instances when they just want someone to help them out. It can be to take the dog out for a walk or babysitting. These daily chores can be daunting to deal with. In such a case, an app can be a great way to get instant help.

For instance, you have a leakage problem, simply check out for the plumber in your area through an app and make a request. This platform can cover up major issues including home appliances, car wash carpentry, and babysitter. There are a few apps in the market related to this industry such as Merry Maids, TaskRabbit, Thumbtack.

#8 Grocery App

The digital world has digitized the grocery stores as well. Now, we don’t have to depend upon brick-and-mortar stores to purchase grocery or household elements. We can easily make a purchase from online stores and get groceries delivered at the doorstep.

Even Amazon is offering a grocery shopping category that has enhanced the sales ratio of the brand. Just order and pay online with no worry of standing in a queue. The groceries will be delivered to the doorsteps in a few hours. 

#9 Beauty App

The most exhausting thing that many girls feel is to go to the parlor and get makeover done. It can be daunting to take time out from a busy schedule to book an appointment and pamper yourself on the couch and hot chocolate waiting for you.

However, the best thing about the digital world is that we have apps in the market that bring parlor at home. There are on-demand beauty apps that have made it easy to book a stylist, beautician, and makeup artist with a click. 

Not only this, but there are on-demand beauty apps through which it is easy to order new makeup. It includes apps like Beautylish, Glamsquad, Nykaa, and Plum Perfect.

#10 Packers and Movers App

Shifting homes can be a frustrating process, especially when it comes to packing everything. It requires help from someone who has experienced the field. Hence, book packers and movers. The best thing is to target the packers & movers and bring them at a single platform to give service to customers as per their budget and area.

The fleet management plays a vital role in such situations that make it easy to track the items. It is an effective solution for the customer as well as packers that can get more leads. Even the task completion is extremely easy in such a situation since there will be someone to help people out. 

How does On-Demand Delivery Works?

The whole working on the On-demand app is easy. Let me explain it with an example of an app like Amazon. There are different categories through which the customers can select the product. Once the product is chosen, it navigates to buy now category where the address and payment formalities (or cash on delivery) are completed.

After the order is placed, the vendor gets the request on the product along with customers’ details to streamline the whole process. The vendor will proceed forward with the request making it dispatch ready. If they have the delivery option then they will send out the item for delivery or the courier delivery company will pick up the item. Customers can track the item easily in real-time from the start until it reaches the destination. 

working of on demand app

Since the basic working of the on-demand app is cleared, let me take you through major steps:

  • Delivery Request – It is easy to understand this aspect since it contains making a request for a product from the customer end. The customer will place the order that is considered as a delivery request for the same. This will be dispatched to the service provider to deliver the product.
  • Pickup – The order or package will be picked up by the assigned delivery agent as per the source location. The location can be a warehouse, shop, or person that can hand over the package for further proceedings.
  • Tracking – Customers and vendors can check the real-time status of the ordered product. From the start of proceedings, till it reaches the destination, the tracking section contains all the information. There are apps that send push notifications to send all real-time information on the package. 
  • Delivery Proof – Just because a product was ordered and delivered doesn’t mean that the information will be lost. The apps must contain all the data in a single database to allow customers or vendors to access it anytime. On top of that, during the time of payment, it must be in the secure gateway. An OTP is sent out to the customers to ensure that no fraud is done for the customer. 
  • Feedbacks – One must keep in mind that review and rating hold a lot of importance. There are options at Google Play Store or Apple Store that gives permission to users to put up a negative review in case the app is not satisfactory. Similarly, the in-app features allow customers to review and rate a product to enhance other customer’s experience.

What are the Key Features of the On-Demand App?

It is essential to determine the features of the on-demand app as per its users. However, the user of an on-demand app is divided into three major categories such as – customer, service provider, and administration (admin). Let me brief you on the basics features of these three.

key features of on demand

What are MVP features for On-Demand App?

MVP or Minimum Viable Product is a technique that is used for development and is used for websites and products for early adopters with minimal features. Once the feedback is received from the user end then the app is updated with all the features set.

The catch of the MVP app is to launch an app with minimal features to be in the market before the competitors (anytime/even after the competitors). Once the app receives some response, reviews, rating, and feedback from users, it is updated with a complete set of features. This keeps any business in the market before their competitors to target the audience. 

The main characteristics of MVP on-demand app are:

  • It contains the main feature sets that can attract the customers and make them use the app.
  • Mobile developers can have feedback to work on features.
  • The early adopters can be targeted with basic features and benefits.

Launching an on-demand app with basic features or in MVP form is a great initiative to ensure overall popularity. However, MVP on-demand apps must have the basic features set to give an idea to users about the app. 

On-demand apps are divided into three major parties – user, admin, and service provider. Hence, the features of three parties must be defined clearly to have a certain idea about the app. Let me give you an insight into basic models/sites that are viable for the app. 

#1 Customer App for MVP

Customers depend upon the features that allow them to access categories and know the basic deals offered by the vendor. To cover it, there are several features on which the MVP on-demand app for customers will depend upon. 

  • Registration – The first time users must get the registration done. Hence, the requirement of phone number, email address, name, and password are common to focus upon. The options like Login via Facebook, Google, or Twitter account is a great add-on. 
  • Notification – A customer must be able to know the essential information instantly including order updates, payments, requests, and order delivery. This is a convenient way to send in updates and reminders about the app. This is a great way to keep customers in the loop and app visible.
  • Geolocation – The order tracking and finding the direction is the vital part of the on-demand app. With the geolocation option, it is possible to have real-time updates. This can be achieved with the help of Core Location Framework in iOS and Google Location APIs in Android
  • Help and Support – As mentioned above, this is a vital part of the users. Hence, it is essential to work on offering solutions to the customer and save the reputation of a company. 
  • Feedbacks – The review and rating helps to evaluate the experience of a customer for the product, brand, or company.
  • Payment – This is a major part of any application to have a safe and secure application. The major payment gateway offered to the users are – Wallet, Credit/Debit Card, and Cash on delivery.

#2 Service Provider for MVP

The service providers work on different features set as compared to customers. This will include:

  • Registration – Just like customers, service providers are required to complete the registration process. This will include the company’s or business’s details to give an insight to users. 
  • Earning – For a service provider, earning is extremely essential to focus on. The money made from the on-demand mobile services must be stored to track overall revenue.
  • Push notifications – Once an order is placed, the service providers must be aware of the details to proceed further. This can be achieved by having a push notification as soon as the order is placed. 
  • Reject and Accept – It is possible that the service provider is stocked up and won’t be able to manage more orders. In such a case, it is best to give the provider a choice to accept or reject the order. 
  • Offline and Online – There are instances when providers are not available to take orders then in such cases, they can show offline mode. The toggle of online and offline is a great way to ensure that the user doesn’t face any issues.

#3 Admin App for MVP

Admin is an integral part of the application which makes it essential to add on essential features for the admin side. This includes:

  • Dashboard – This is a vital part of an Admins since they are responsible for managing and customizing the user & service provider side. Hence, it is best to add a dashboard to make the tracking of service providers and customers easily. 
  • Service Provider Management – The admin must keep an eye on the rates, performance, and review of the service provider. However, they must offer bonuses to motivate the service provider.
  • Customer Management – On the Admin dashboard for users, the admin should be able to access discounts, order details, cancellation, payments, and rewards. This gives an idea to users on solving issues rapidly and ensuring to offer a hitch-free experience.
  • Reporting – As mentioned above, this section includes the analytics details of the user or service provider. This includes information about order repetition, canceled, accepted, and other general data. 
  • Charges – Admin panel can access the rates of products and check on commission charges as well. When there is high demand then the Admin can increase the price.

What is the Cost of On-Demand App Development?

The major factor that determines the cost of app development is the total number of hours invested to develop an app. It is difficult to estimate the cost of any app since it depends on the features and time. However, a fair estimation can be done with the features and what common factors must be in the app. 

The fact is that in an app or web-based software, the frontend is made as per the backend process. The front or design of the app is just the front end whereas its working is processed in the backend. Owner works on the panel of the app or software that controls different modules to have a seamless experience. 

If you want to estimate the cost of on-demand app development then use the formula:

Estimated Development Hours * Developer’s Hourly Cost = Total Mobile App Development Cost

The app is also integrated with other third-party apps such as Payment gateways, and Google Maps as per the requirements. On top of that, there are different apps developed for end-users and service providers. There will be a total of four apps developed for two platforms (iOS and Android) and two prospects (User and service provider)

The overall data as per the hours and features will be as follows:

hours vs features

This will automatically move towards the rates in different countries. The cost is mainly the hourly cost for the developers. 

Average Rate (in USD) per hours VS. Country

As a matter of fact, it can be complex to estimate the cost of app development for the on-demand platform. It also includes some critical factors as mentioned below:

  • As mentioned above, the type of platforms has a huge impact on cost. Apart from the iOS and Android mobile app, many consider having a website or desktop-based app. The cost will be different as per the platforms.
  • Whether the app is just the MVP model or fully-fledged app holds a lot of weight on the cost estimation.
  • The features that one must integrate into an app.
  • Post-launch iterations to add in an app also holds a lot of importance. 

To understand the cost of the on-demand app, it is best to know more about different aspects that are used in the development. This will include:

#1 Geo Location

When it comes to on-demand app development, one of the major factors is to know the real-time location to place an order and get it delivered. Even the delivery guy has to deliver the product or package at the destination that requires easy route tracking. This must be added to the on-demand app to make it viable and prompt.

Every device has a different method through which components of geolocation are compiled. For iOS on-demand app development compilation with geolocation, Core Location Framework is extremely vital. Whereas when it comes to Android, there are Google Location APIs that can be availed for topmost results.

#2 In-App Communication

There are instances when it is vital for the customer and service provider to communicate with each other. It can be for the taxi booking app, or restaurant delivery app that require proper communication of provider with user to have smooth operations and service flow. It works as the connecting point for the user and service provider app offering assistance and support.

The communication can be different for each app. It can be to ask for directions to a destination, to place a query about a booking or order, cancel requests, and ratings and reviews. Apart from this, the communication can be over mobile data and Wi-Fi. 

To ensure that communication is in flow with any interruption, a traveling protocol must be included in it. However, as per the provider’s choice, it will be unencrypted or encrypted in nature. The data quality will depend upon the resources for data exchange and system support.

#3 Storage and Infrastructure

The communication and coordination of frontend with backend holds a lot of value in the app. It includes processing entities and functional factors to complete the storage resources and infrastructure. It is served with different facilities such as Virtual Machines Caching & Queuing, Routing & Service Discovery, Languages, and App Provisioning.

#4 Notifications

SMS, Push notifications, emails and alerts are the basics of on-demand apps. The frequent notifications enhance the visibility of the app and serve as a mode of communication. There are mainly two forms of communication in which the notifications are counted such as text notifications and push notifications.

Text notifications are the updates sent via SMS and email to the user to update about the offers or delivery. Whereas push notifications are the popups at the notification bar that are more appealing and noticeable by customers. Many customers avoid emails and messages from the providers but check out the push notifications.

Google Cloud Messaging is mainly used for Android users whereas Apple Push Notification Service is for iOS users. The function of both the aspects is the same but differ in one aspect. In Apple notification, the provider won’t get the delivery status of the message that makes Google notifications an ideal choice. 

The SMS notifications are popular among the giants such as Hulu, Netflix, Uber, and Lyft. Presently, Twilio is ruling the market followed by Sinach, Plivo, and Nexmo.

#5 Payments

Another significant part that holds a lot of value in the on-demand apps is Payment options. Cash on delivery was convenient for users. However, with digitalization taking the world to new heights, cash is converted to cashless. The cashless payment system is thriving in the on-demand world. 

When it comes to the cashless payment market segment, even the giants are ruling the market with topmost choices. Braintree is a leading segment with clients like Boast and Uber in the premium category. Apart from this, the prominent player in the payment services options is Stripe. 

These types of payment services include the features to pay and bill in a friendly manner. This service is included with the topmost extension as PayPal Card.io that has added great features set to the whole setup. The credit cards can be scanned easily with Card.io from Android or iOS users. 

How On-Demand App Development is Altering Business World?

The on-demand app has become a major platform through which it is simple to attract the audience. On top of that, it is a great way to have seamless performance for the business and earn some more bucks. This has the hidden value that will give a new way to business to boost ROI.

The basic benefits of on-demand app are:

on demand apps altering business world


How to Monetize On-Demand App?

Just developing an on-demand app is not enough to earn money. If you want to generate some revenue then it is vital to keep monetization of app methods in mind. Follow these ways to earn money via on-demand app development:

#1 Charges for Delivery

One of the most frustrating things that a restaurant face is to put the customers at the waiting list. In such a case, logistic partners are preferred by the restaurants to earn a few bucks in the form of a delivery app. There are two ways to work on the delivery charges – show with flat charges or keep it hidden in the bill.

There are so many hidden benefits of on-demand apps such as groceries, medicines, and food. Delivery charge is a vital feature that is helping apps in the market, to generate around 85% of the profit. There are apps in the market that are offering special discounts to attract users and bring in more engagement. 

#2 Extreme Hours

The best thing about on-demand apps is that it is fun to add in features and focus upon delivery apps. It is possible to limit the price, location, and service as per the peak hours. This helps in generating revenue as per the business model. On top of that, the users cannot opt for bargaining since it will be fixed. Hence, it is best to keep in mind to decide on the maximum demand prices for the portal.

#3 In-App Ads

There are apps that are generating revenue with features like in-app ads such as Zomato, UrbanClap, and 1mg. They use a great marketing tactic that is used to lure the user or customer easily. When it comes to marketing then ads are generally the topmost tactic to follow. It gives more exposure to the vendor/merchants as compared to the competitors on the same platform.

The ads allow vendors to be at the top of the advertising to enhance exposure in the targeted niche. This is changing the way business is done and tactics implementation to be a step forward than the competitors. 

#4 Merchants Interest

When it comes to on-demand apps, then it is vital to keep the merchant’s requirement and user demand in mind. There are several apps that have the potential to bring in different merchants or partners at a single platform such as food delivery apps, e-commerce, and cab/taxi booking. 

This is a great way to enhance the revenue of the company while focusing on these aspects. This will earn a good revenue with the help of billing done by merchants. There can be a percentage for service as an income source.

#5 Paid Features

There are two types of features models such as paid or freemium. In this, the user can purchase the plan in the app with special benefits. It can be combo packs, free delivery services, and even free servicing. Make sure to keep the business profit in mind while deciding the model and structuring the price to make it more relevant.

What are the characteristics of On-Demand Apps?

There are several characteristics in order to make an app successful. These includes:

#1 Convenient Price Point

As a matter of fact, the on-demand mobile services are successful where the options are a bit costly as per the rates but cheaper than the dominant suppliers. This holds the key in the marketplace to reach relative affordability in order to create additional delight factor. This factor is a convincing point for the company to attract the audience.

#2 Flexible Business

This is the factor that includes the market flexibility in mind to grow as per the services. If the customers are loyal and have trust in the app then flexibility can be a great way to move forward. For instance, there is no obligation for customers to use the app or service again but instead, they can simply check it as per their requirements.

The job posting and searching sites are a good example of flexibility. The fact is that on a daily basis around 70% of postings are done. A candidate can track the job in real-time and check the status as well. Even the providers can check the details of candidates. The real-time and space connection has added to the list of flexibility in business.

#3 Transparent Technology

It is extremely essential for on-demand businesses to focus upon the topnotch technology for reliability and smooth user experience. This can be to order or schedule a delivery time with the information of the user, communication between customers and service providers, and customer reviews.

This requires a proper technology stack that has a tendency to grow and thrive while keeping things in a  flow. The technology helps in keeping uniqueness intact to the app and make it customer-oriented easily. 

How to make an on-demand delivery app successful?

The on-demand apps have a competitive edge in the market irrespective of its niche that offers affordable, reliable, and fast service. The on-demand app works well if proper growth strategies are followed up.

how to make on demand app successful


Why invest in On-Demand App Development?

As per the statistics, the on-demand businesses has gone to a new level in the span of a few years. The on-demand business has a lot of potential that makes customers run for the business and opt for on-demand delivery apps. Even in the coming years, as per the predictions, the on-demand apps are going to increase at an exponential rate with enhancing total revenue. 

Customers are preferring on-demand applications due to the instant gratification in demand. On top of that, it helps in saving inventory management costs with a platform that has several benefits. The on-demand apps also allow businesses to cater to the requirement of customers with the help of extensive mobility. These apps can accommodate the demand of the customer easily with reliable solutions. 

Apart from this, there are a number of reasons that make on-demand apps a necessity for any business world. Let me explain the major On-demand app benefits to give better insight.

#1 Attracts Investors

There are mainly two famous companies in terms of on-demand apps – Airbnb and Uber. Initially, it was a bit difficult for owners to get attention from investors and giants faced a lot of issues. However, now major companies want to invest in the on-demand apps promising startups due to its user-friendliness and efficiency. It is extremely easy to attract users now due to robust business plans. This will strengthen the application footprint in the market due to crowdfunding.

#2 Opportunities

It is possible that many people ignore it but on-demand is actually a boom for the technological world. It is easy to enable the services while targeting the specific audience and niche market. This makes it easy to assist the service to the audience while facilitating several features. It is a customer-oriented and enhanced form of services at the doorstep of the audience to grow business.

#3 Benefits to Business

The on-demand applications are popular among the services due to their ability to address business requirements as per the size and scale. On top of that, it is not vital to have a well-established business just to develop an on-demand app. A small-scale business can also be part of an on-demand race due to its user-friendliness and rich features. The fact is that it helps in attracting the high audience that can easily advertise the brand. This can be achieved with the help of customized apps as well.

#4 Competitive Edge

The on-demand apps are extremely popular in the market that can easily connect with new customers. On top of that, customer-friendliness can help in expanding the borders of a business and enhance the customer base. If you are in the market before your competitors then it will help in giving an edge. 

#5 Meet Expectations

The major reason that makes the on-demand app a necessity is that it can meet user expectations easily. It has a tendency to work on the business processes that can automate customer requirements. The whole idea of the app is to enhance the comfort level of customers and offer then solutions instantly. They are also scalable to work around which makes them a necessity for the future.

Roll The Ball

There has been an exponential increase in the market of on-demand mobile services. This is making companies jump in the on-demand apps to attract potential customers and engage with them easily. 

Companies are taking leverage of such major advancement benefits to offer value in the market. The services are not going on to the next level to contribute to the ever-changing market stats while analyzing the market challenges.

It is not just an idea but the passion to work on the right expertise and technology. So, make sure to hire the right on-demand mobile app development company. 

Trending Questions

1 – What attracts the audience to go for the on-demand app?

The on-demand world is reaching a new level with the evolution of time and the addition of the latest technology to the traditional business. This has managed to alter the way we use to attract the audience to the on-demand delivery service. It is vital for mobile app developers to stick the following:

  • There is no hit and trial method.
  • Follow the strategized funnel.
  • Make sure to build the authority of the app.
  • Follow the advertising if the app with a prime focus on local customers.
  • Never forget to go for research and surveys before jumping to the development of the app.

2 – Which market can be a better option? – housecleaning, laundry

As a matter of fact, the service type app has a lot of scope to grow with laundry and house cleaning. There are apps that consider laundry as a part of housecleaning. However, it is best to add up both the type of apps in a single app to offer services of housecleaning. 

3 – How to attract investors with the idea of the on-demand app?

One of the major aspects that can help in getting funding or attracting investors is the app idea. This can be done easily if the app idea is to the point and as per the opportunity for new business.

For instance, there are so many apps similar to Uber but there is something that Uber is offering and not other apps. This makes Uber a huge success in the market instead of others.

4 – Can we have an on-demand app for enterprise?

It completely depends on the type of enterprise. Any commercial based service like food ordering or cab booking business can run smoothly with the on-demand app. Nevertheless, it doesn’t mean that other types of enterprise can’t consider having an app similar to on-demand. 

Ajay Kumar
Ajay Kumar

A young entrepreneurial technocrat who is the Co-Founder & CEO at Appventurez Mobitech. After completion of his masters in Computer Application, he dived into the world of technology as an iOS developer. As a CEO, he firmly believes teamwork and collaboration are the essential tools for any company’s success.

⚡️ by Appventurez

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