- What is an on-demand app?
- The main reasons why on-demand service mobile apps are popular
- Two main on-demand business models to consider
- Essential features of the on-demand service mobile app
- How do you create an on-demand app?
- How much does it cost to create an on-demand delivery app?
Are you thinking about creating an on-demand app? It is a promising idea since it fits the direction of the modern economy and the expectations of today’s users.
However, you should come up with an innovative idea, and get in touch with a good on-demand mobile app development company to make your solution user-friendly so it will be accepted by the market you are targeting. Here is our guide to on-demand app development that will help you shape your startup strategy.
What is an on-demand app?
An on-demand app is a web or mobile solution that allows users to immediately receive or schedule services, or instantly buy products from a specific company. It also might compare the deals available from several on-demand providers to help you choose the best one.
Uber is considered to be the top on-demand app that revolutionized the delivery of services. Uber's business model, which is to connect potential customers with the right provider without having any company assets besides the mobile and/or web platform, was the model other industries followed, and it led to Uber-like apps such as Zomato for food delivery or Airbnb for accommodations.
The main reasons why on-demand service mobile apps are popular
The boom in the gig economy was predicted back in 2016 and is one of the key reasons that on-demand apps are popular. Below are some other things that make them attractive to consumers.
- Instant satisfaction. The essence of apps on demand is clear from the name. Users turn to the application, and your business through it, when they need your products or services. Consumers expect immediate satisfaction, or at the very least, instant communication with the right company to receive the services needed. For example, using an on-demand food delivery, users expect to get their meals delivered soon after they place their order, or in the case of a doctor on-demand app, they usually schedule their consultation in advance.
- Better choices and better prices. On-demand service apps may either be tied to a specific business and developed for the company’s sole use, or they may come in the form of a marketplace where users can compare prices and offers from several vendors. An on-demand marketplace always has a rating for each company, so customers can make a fully-informed decision and choose the best possible option.
- A more ethical and sustainable business. On-demand apps are an essential part of the gig or sharing economy, which is more eco-friendly than the traditional economy. For example, ridesharing services meet core on-demand business characteristics and, at the same time, are a more sustainable solution compared to on-demand taxi apps.
- Suitable for a wide range of industries. Because of the rise of the gig economy, there is an opportunity to provide on-demand services for almost any industry. For example, there are beauty on-demand apps, demand TV apps, and even on-demand laundry and car wash applications. And there are not the only on-demand service app benefits.
Two main on-demand business models to consider
Before proceeding to on-demand app development, let’s determine which business model fits your needs.
- On-demand app for your own business. If you already have a business, there is an opportunity to turn it into an on-demand service or add on-demand features. For example, if you have a flower shop you may be considering the development of an on-demand delivery app that allows your customers to order bouquets and have them delivered. This approach is great if your customers want your service improved in this way, however, you should consider not only the on-demand app development cost but also the cost for vehicles to make the deliveries.
- On-demand marketplace. This model is easier to implement than one for a single business because you don’t need to manage the actual business delivering the goods or services. The only task is to create a web or mobile platform that will connect a segment of users with the right businesses or people. This is the way Uber, UpWork, Airbnb, and Redbox on-demand apps work. The uniqueness of your idea is essential since you need to determine user demand and find a way to satisfy it with the help of companies or individuals.
Essential features of the on-demand service mobile app
- User registration and profile. The specifics of this feature will depend on the business model for your on-demand delivery app. If you want to create an Android/iOS app for your business, you should provide the ability for consumers to register. However, if it is an on-demand marketplace, you need to create registration forms for users and companies.
- Map integration. With this feature, the users will be able to find the location of your business on a map or find the companies providing on-demand services near the customer location.
- Real-time tracking. With the help of this feature, your users will be able to find out where the courier is and what the predicted delivery time is.
- Filters and lists. This feature is necessary if your business offers more than one product or service, and it is essential for an on-demand marketplace. In the latter case, there should be more filters to find the company desired depending on the location, specifics of the goods or services (for example, the ability to filter only vegan food offers, payment methods, and other parameters.
- Vendor profile. This is a must-have feature for a multi-vendor, on-demand marketplace because it will help customers access the credibility of the business they want to order from and find out other essential details about the company.
- Shopping cart. There is no business-customer interaction without this feature as it allows the customer to move from research to the purchase of a service or product.
- Payment gateway. As for the payment gateway integration, you should be guided by the preferences of your customers. Payment with a credit or debit card online is a must-have feature, and the cash-on-delivery option is also worth considering because some new customers may want to pay this way when making an initial purchase.
- Ratings and reviews. In the case of an on-demand marketplace, it makes sense to develop a rating system for each vendor and provide the opportunity to write a review (e.g., Yelp is the perfect example of how this feature may work). In the case of an on-demand app for a business, you may opt for only user reviews since there will be no competition in the app.
- Push notifications. These are needed for user retention and news sharing.
How do you create an on-demand app?
The process for creating an on-demand solution is the same as the process for creating any other application, but this one incorporates the on-demand approach. On one hand, you are going to enter a fairly competitive market environment, but on the other hand, on-demand solutions are quite popular and new enough that there is room in the market for more development.
Here is what you need to do step by step when considering the development of an on-demand app:
- Define customer needs. To find out what the needs of your potential users are, think about Uber’s approach. What does a segment of customers want to access in an easier manner than what is currently available?
- Research existing solutions. The on-demand sphere is quite competitive, so you need to determine the specifics of applications that already exist for a particular market, find the gaps, and suggest ways of filling that need better than competitors.
- Choose a development partner. Consider companies with experience in your niche. For example, if you are looking for on-demand food delivery app development services, get in touch with the companies that have food apps in their portfolio.
- Prioritize features. The features we mentioned above are enough to get started with your app project, however, you should take the specifics of your solution into account. There may be a need for more features that can deliver a truly innovative experience.
- Create an MVP. Creating a minimum viable product is essential when entering a highly competitive environment since it will help you gain a competitive edge. After your MVP is launched, you will have an opportunity to gather feedback from your target audience and use those insights to continue product development and make improvements.
- Think about future updates. Following the Lean approach, you shouldn’t stop with just product improvements. You should always test and validate each new idea before proceeding to its technical realization.
How much does it cost to create an on-demand delivery app?
As for the cost to develop such a mobile solution, below is the price breakdown for iOS and Android app development.t The price is approximately what it will cost to create a cross-platform on-demand service app that will be compatible with iOS and Android.
|Components of the development process||Features||Team members||Hours||Price|
|1,112 - 1,598||$55,600 - 79,900|
Factors that influence the cost of making a mobile on-demand app
In the chart above, we have provided a rough estimate of the cost involved in on-demand mobile app development using cross-platform technologies. However, the final amount may vary depending on the following factors:
- The number of functions you want to create. The features that we have listed will be enough to launch the MVP, but the cost of the final product may be higher if you add functions.
- Design customization. The more customized design elements you need, the higher the price will be.
- Payment system integration. You pay an additional fee for each payment system you want to integrate, plus each of them has their fees per transaction and/or cost to use in your app.
- The location of your on-demand app development company. The final app development cost can vary greatly depending on the location of the vendor that creates it.
We have discussed the specifics of on-demand application development and estimated the approximate time it takes and the cost of creating such an app. You are welcome to get in touch with us for additional insights. If you have an idea that may fit the on-demand market, let’s discuss it and get it implemented. Drop us a line at firstname.lastname@example.org!