On-demand service apps such as Uber, Netflix, Grubhub, and Instacart have seamlessly and sweepingly penetrated our daily lives. At one point, the new wave of iOS and Android on-demand service mobile apps signified a substantial shift in how businesses provide services to clients.
People are so preoccupied with their work and families that they have no time for mundane duties like grocery shopping, cooking, driving, or housekeeping. In recent years, various global socioeconomic shifts have increased the popularity of on-demand services.
We've gathered and evaluated recent statistical data and are ready to give an in-depth on-demand market landscape analysis and some basic rules for developing effective on-demand service apps. In this post, we'll also look at the following:
- What is an on-demand service platform?
- How does an on-demand business model work?
- Types of on-demand service apps
- Food distribution
- Transportation and logistics
- Service of housekeeping
- Service of cab hire
- Aesthetic services
- Professional handyman services
- Rental property service
- Medical assistance
- Educational and learning services
- Some examples of on-demand service apps
- What is the best way to create a successful on-demand service app?
- Pick a specialty
- Begin on a small scale
- Determine whom you want to reach
- Create a prices plan
- Define the functionality
- Essential features of on-demand service apps
Registration and permission of users
Search, filters, and listings for products and services
Integration with Google map and real-time delivery tracking
Shopping cart and order summary
Integration of payment methods
Reviews and ratings
What is an on-demand service app?
On-demand service apps are platforms that connect clients with independent service providers or agents that are looking for a quick fix. An app like this acts as a middleman between a company and a consumer, allowing them to find one other in the first place and establish a mutually beneficial customer-provider relationship.
These applications have grown in popularity due to their capacity to fit the needs of each individual. Furthermore, as the number of mobile users continues to expand, user expectations formed by this change have escalated to the point that users expect to be able to access what they need at almost any time simply tapping a few times on the screen.
We recommend looking at some recent statistics, trends, and data to understand the on-demand service market landscape better. The on-demand economy in the United States grew by 18% from 2018 to 2019, according to the National Technology Readiness Survey (NTRS).
How does an on-demand business model work?
Customers can choose which services to use or subscribe to and how much to invest in using them with on-demand self-service.
Others who want commodities (e.g., a restaurant meal) or services (e.g., video streaming) can connect with people who can offer what they want for a set price through companies like Uber or Netflix.
On-demand service apps, such as Airbnb, which helps people locate accommodation, Lyft, which provides transportation, and GrubHub, which allows users to order meals, usually focus on a specific domain area. Like Uber and Uber Eats being two separate applications, specialization leads to a single company starting and running many businesses in different domains. Consumers will find it reasonably straightforward to browse through a fragmented service marketplace in this manner. They always know which app to use when looking for anything specific, whether food, a taxi, housing, or entertainment.
An on-demand service business model is characterized by solid agent independence and high delay sensitivity. In another way, customers expect goods and services to be supplied. On the other hand, agents (service providers) function as independent contractors, deciding if and when to work and receiving remuneration from the platform for each job completed.
An on-demand model gives customers and service providers access to a broader pool of options, resulting in a better customer experience. As a result, on-demand service platforms are typically created as both mobile and web apps to allow users to access what they want quickly. These apps are then administered via the admin dashboard, which will enable you to keep track of all current and finished operations.
Types of on-demand service apps
Knowing what people want and how to acquire it most naturally and smoothly for them and the agent is crucial in the on-demand sector. In general, there are three choices. Customers and clients of a company can use services in a variety of ways, including business-to-customer (e.g., Netflix), business-to-business (e.g., Glovo's future B2B logistics unit), and customer-to-customer (e.g., Airbnb).
The services and goods supplied vary significantly within the on-demand business model framework. Whether it's a B2B, B2C, or C2C relationship, the receiving party will enjoy it if the platform connects them with the supplier, saves them time, and makes their lives easier. There are various categories in which such advances have become and consistently proven possible today.
These categories can be grouped to establish an online marketplace app group. These include:
1. Food distribution
These apps are responsible for allowing you to get your favorite food delivered to your door at a convenient time. You may have your food delivered with only a few finger taps with such apps. The user can score the restaurant and the food delivery executive based on the food quality and the overall experience.
2. Transportation and Logistics Services
The delivery service works the same way as any other on-demand courier service. This service is available to anyone; it is quick and inexpensive, and it may be used to deliver a variety of materials.
• Service of housekeeping
Cleaning the house, doing dishes, laundry, and other household duties may require assistance. If you don't have time yourself, you can hire someone to assist you. Apps for housekeeping make it easy to find someone to help you with such activities.
3. Service of cab hire
Everyone is aware of the popularity of on-demand apps in the taxi industry. If we have to mention a name, it has to be Uber. Uber has altered people's perceptions of public transit and reshaped it for the better. Such apps have made it simple for the average person to find a cab, get to their destination, and pay for it.
4. Aesthetic services
By scheduling an appointment with specialists using on-demand beauty apps, you can now enjoy various salon services at home, including pedicures, manicures, haircuts, and skincare. It has made it simple for consumers to obtain such services.
• Professional handyman services
What if you end up with a dripping faucet or a tripped breaker? Isn't it true that you'll need someone to fix things for you? You'll need a handyperson with the necessary tools and skills to get the task done. You can now find such professionals for the job by using some of the on-demand apps that such services provide.
5. Rental property service
People can utilize the property rental service app to list their entire house or even a single room for rent. People looking for a new place to stay can use the app to discover one quickly. The location can be reserved for as little as a few hours or several months.
6. Medical assistance
Healthcare is at the top of the list for any service you can request. Medical facilities are easily accessible through healthcare applications, and treatment can be provided as soon as possible. Using such an app, you may quickly locate a doctor, arrange an appointment, and even have prescription medications delivered to your home.
7. Educational and learning services
When you try to learn something new on your own, it can be challenging. You may now quickly end this problem with the correct educational apps. You will be able to locate a qualified teacher that can assist you with your studies.
Some examples of on-demand service apps
Consumer goods : Etsy, eBay, and Poshmark, are three sites that sell consumer items.
Crowdfunding: Kickstarter, Patreon, and Gofundme are examples of crowdfunding sites.
Education: Udemy is a platform for learning.
Recruiting: Glassdoor is a great place to look for job openings . Delivery: Instacart and Postmates are two options for delivery
Food: Seamless, Doordash, and OpenTable are some food delivery services available.
Transportation: Uber, BlaBlaCar, and Lyft are some of the most popular modes of transportation.
What is the best way to create a successful on-demand service app?
On-demand service apps are incredibly diverse. We keep our expectations low when using a ride-hailing service. The service quality can be deemed reasonable if the driver arrives on time, does not get lost, and has a clean car. More complex services, such as babysitting, medical advice, a facial, or a haircut, necessitate a higher level of competence. Then having a random individual turn up to accomplish any of those things won't suffice. We expect to be looked for by a specialist in their field.
There are still unique core concepts that all on-demand service apps for Android and iOS are created following. To design your own, we recommend that you follow these five steps.
1. Pick a specialty
Your untapped growth potential may extend beyond the categories listed above. There's a lot more to learn about on-demand services. So, keep your options open and don't limit yourself to areas where other businesses have achieved success. Find your niche, but keep in mind that filling it isn't enough. This market must be filled with a product that people will enjoy and improve their lives. Ensure that the final product is dependable, user-friendly, and always available.
2. Begin on a small scale
They say, "Start small, think large." It is precisely the situation in which you should listen to the council. Before you fully commit to a firm, it's usually a good idea to investigate and investigate. When there isn't much at stake, it's better to address defects and take your time tying up loose ends. You'll be more likely to keep things under control if you operate locally, whether recruiting new contractors, logistical management, professional training, marketing, or app updates.
3. Determine whom you want to reach
Knowing who your service will benefit is critical to your company's success. These users would eventually be your customers and keeping them engaged on the app increases the presence of your app in the Online space. Hence it must be convincing to your viewers. Always keep the end-user in mind when creating a product. And you only have a limited number of opportunities to show a potential user how effective your on-demand service app is. Undertake rigorous market research, conduct beta testing, and don't forget to read our post on marketing campaign pitfalls to avoid.
4. Create a price plan
Any for-profit company's primary objective is to figure out the best pricing plan. The right Pricing resolves two major issues for the App i.e. Ignition of the app during the initial stage and scaling the business model of the app. Hence, it is advisable to keep the pricing strategy on a two prone stage (start low to attract users) and then have a gradual increment in the prices. Pricing also creates a sense of worth among the users for the services provided, so the strategy also becomes important. Platform owners can choose to have a bundled pricing strategy (combined fees for all services), or A-la-carte pricing (pay per use) strategy. The Platform provider determines the price for some on-demand service apps; however, vendors establish their expenses in a standard on-demand marketplace, and you can only charge a service fee.
5. Decide the functionality
True, the functionality of a beauty-on-demand app will be different from that of a telemedicine app. Aside from that, you'll very certainly need to construct a client app, a service provider app, and an admin panel, all of which require different functionalities. Nonetheless, any on-demand service app would be incomplete without a few essential functionalities.
Essential functions of on-demand service apps
1. Registration and permission of users
Users of the app should be able to create and customize their profiles. It will offer you critical behavioral data and allow clients to examine detailed profiles of registered agents. **
2. Search, filters, and listings for products and services
Filters, lists, and catalogs make it easier for users to traverse the app and save time looking for the right specialist.
3. Integration with Google Maps and real-time delivery tracking
Customers will be able to check each other's whereabouts and determine the projected arrival time using geolocation services.
4. Shopping cart and order summary
During an appointment with a doctor or stylist, going out for lunch, or a ride, customers would be able to review their order, modify it, cancel it, and confirm the details.
5. Integration of payment methods
Any on-demand service app must have numerous secure payment mechanisms. Ensure that paying for services via the app is fast and straightforward and that agents have no trouble receiving funds.
6. Reviews and ratings
This functionality is required for any app to connect service providers and service receivers. Customers may make an informed decision and have a more fulfilling experience by reviewing reviews and ratings.
On-demand service apps have been some of the most groundbreaking digital goods developed recently. Fortunately, there's still plenty of opportunity for newcomers and niches for on-demand service apps to occupy. Delivering services directly to those who need them can make a significant difference in people's lives.
If you want to enter the business of creating on-demand service apps but don't know where to start, AppsRhino's team of app designers and developers can help you make it a reality. Get in touch with us right away, and let's start talking about it!