On-Demand App Development: Guide for Aspiring Entrepreneurs

App Development

Last Updated on June 29, 2024 by Team Experts

One of the greatest quests in the world of business and marketing wants to find out who exactly needed a product or service. There have been multiple efforts to streamline marketing, so businesses can make their investments work efficiently. Every now and then, there have been breakthroughs that have made marketing and business better. The Internet boss was one of them, and it proliferated into various avenues like mobile apps. Within the mobile app realm, the on-demand business model can be considered one of the most important revolutions in the field of the services business.

A few impressive stats

There are about 86 million users who use on-demand services in the United States, and the revenue from the segment is estimated at a staggering $335 billion. About 55% of the on-demand app users are between the ages 25 and 44, and interestingly, 59% of on-demand mobile app users are males. The annual growth rate between now and 2023 is at about 6% across all the segments, and it is to be noted that there are a few segments considered not attractive to all the users. Considering this factor, 6% CAGR is a big number.

Why on-demand?

People will not change unless there is a considerable magnitude of advantage brought by a change. The on-demand business model brought in a lot of new things that made it impressive and attractive for the user and profitable and lucrative for the business owner!

The most obvious advantage for the user is the convenience that on-demand mobile apps bring. Are use or can avail of service as in when they want and in the comfort of their homes. They also do not have to struggle with cash payments as most on-demand mobile apps have a payment gateway integrated that can accept payments from a multitude of digital payment instruments. They are also provided with an element of choice not only to book services at their convenience but also to choose the service provider. Even if there is no choice of service providers, they can, at least, choose the segment of services that they want.

The on-demand business model has opened up, or rather, re-opened the goodness of shared economy or gig economy. This business model bridges the gap between people who are ready to offer a service but don’t find opportunities and people who want to avail of the service but don’t find providers. It provides additional earning opportunities not only for skilled workers but also for people who have basic driving skills. They can function as delivery executives, giving them an opportunity to earn.

It also does a lucrative business. Most on-demand apps are aggregators, and they can make their revenue by earning a commission from every gig or by hosting ads, or by charging a subscription fee from the users. Although these opportunities seem small, the sheer number of users makes it extremely lucrative and profitable. It is to be noted that a business that survives by earning smaller amounts from a larger number of people has lower chances of suffering losses.

How to get started?

Now that you are aware of the advantages and the profitability that lies in an on-demand app, it is natural that an entrepreneur in you would want to explore this business model. There are on-demand apps for almost every service. If you intend to establish a good business, there are a few simple-yet-crucial steps that you need to take.

Find out the exact pain points that your users experience. An on-demand app is not just a piece of technology but a solution that should be about solving problems faced by customers in an efficient and effective manner.

It is to be understood from a business perspective that although the “demand“ is constant, the waiting time will differ from industry to industry and from service to Service. A customer can possibly wait if it is a beauty service or something related to housekeeping. On the contrary, food and taxi bookings mandate a very short wait time. You should, therefore, consider the type of service you are providing if it will be an instant service or a scheduled service. It has to be decided using a combination of market factors and your serving capacity.

Since we are talking about serving capacities, it is important for you as a business owner to ensure a steady supply of services. You should, therefore, have a team of reliable staff and a network of service suppliers. Engaging in marketing for both customers and service providers and introducing referral programs is bound to bring better success in this arena.

Although the on-demand service model belongs predominantly to mobile devices, there are some brands that use web applications/technology. Depending on the service that you offer and the audience that you target, you should decide what platform to focus on.

The key features

If an on-demand mobile app has to execute the intended action, there need to be a few features in place. As you may have known, all on-demand apps have three distinct applications, one for the user, one for the service provider, and one for the administrator. There might be a separate app for delivery executives if they are involved in the ecosystem.

At the epicenter of the on-demand revolution lies convenience. The users should find it convenient to book their services, and the service providers should find it equally convenient to offer their services. The convenience should start right at the point of signing up. People should be able to sign up by using their email address or phone number, or legacy credentials like Google and Facebook. The signing up should immediately create a profile for them, so the information about them can be used to book their services in the shortest possible time.

Conveniences are also brought about by minimizing the uncertainties associated with the location of the user. The GPS, mapping, and navigation come into play at the juncture. Instead of going through frustrating phone calls to arrive at the location of the user, the service provider can simply use the GPS navigation combination to precisely reach the location without any difficulty. The same GPS will also help users in staying updated about their service requests in real-time. On a mapping interface, they can even see the moment of the service provider from someplace to their location.

The next step of convenience lies in terms of payments. Instead of searching for cash and waiting for the balance change, the user can make their payment by using digital payment instruments. For this purpose, the app should be integrated with a versatile payment service provider who can accept payments using credit cards, debit cards, and Internet banking. It would be great if your multi-services app like Gojek also has its own native wallet that people can use to quickly make payments and get their refunds processed.

The app should have a review and rating system in place as this serves as a democratic indicator of the quality of services. This will passively encourage service providers to give their best service as bad services, and bad ratings might impact the possibility of them getting offers to provide a service. It also helps in encouraging users to behave consciously and professionally when services are being offered. This two-way rating system makes the on-demand service model extremely safe and amicable for both parties.

A few examples

There are some on-demand apps that have not just set an example but have served as demonstrators for the magnitude of success and profitability that you can get from such applications.

The list has to obviously start with Uber, the harbinger of the on-demand revolution. With this simple mobile app, the realm and landscape of transportation had been changed forever. With apps like Uber, it becomes possible for people to get a cab right to where they are instead of randomly waving their hand at some taxi passing by.

Netflix changed the perception of television and cinema. By making quality video content available on-demand across multiple platforms like mobile, babe, and smart television, Netflix has shown to the world that even casual things like entertainment can embrace this business model.

UberEats, an offshoot of Uber, introduced the on-demand business model to the world of food delivery. Instead of just depending on two parties, this app introduces delivery executives into the equation. People could not order food from their favorite restaurants and have it delivered to their homes. While there are people who go to restaurants for the experience of dining, people who want food can now order using these apps. This app space has also given opportunities for cloud kitchens to proliferate and prosper.


There are many such apps that offer different services like housekeeping, handyman services, and even dating. It is established without an iota of doubt that the future is on-demand, and with the incorporation of technical elements like machine learning and artificial intelligence, the services are expected to get bigger and better.

If you would like to be a part of this profitable bandwagon, all you need to do is invest in on-demand services app development. Instead of building the app from scratch, you can give white label solutions a whirl. A white label solution simplifies the process of on-demand app development by having the skeletal structure intact. All that is required from you is to work on the elements of customization.

You can get in touch with the company that specializes in the development and customization of white label on-demand solutions. They will take care to understand your requirements and build the perfect on-demand app suited for your business!

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Anil is an enthusiastic, self-motivated, reliable person who is a Technology evangelist. He's always been fascinated at work especially at innovation that causes benefit to the students, working professionals or the companies. Being unique and thinking Innovative is what he loves the most, supporting his thoughts he will be ahead for any change valuing social responsibility with a reprising innovation. His interest in various fields and the urge to explore, led him to find places to put himself to work and design things than just learning. Follow him on LinkedIn

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