How much does it cost to develop an on-demand home service app?

Posted On: May 11, 2022

Posted By: appsrhino

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Introduction

It's a sunny day. You don't want to step out and be under the sun, but you must get groceries from the store. Or Christmas is just ten days ahead, and you have to clean the entire house, but you don't want to do it alone. Or your car broke down, but you must reach the office on time. What would you do? You would just sit there and hope there was a magic solution to all your problems.

There is a solution to such problems, an on-demand home service app. An on-demand home service app is an excellent example of mobile application development technology. It demonstrates how a mobile app may assist households in receiving various services at their doorstep. These apps have completely transformed the traditional home services sector. Anyone using an on-demand home service app can request assistance from a grocery store, repair a home appliance, or hire house cleaning professionals regularly.

The on-demand home service app market is growing rapidly. Per a report from verified market research, the on-demand home service app market is expected to reach 1133.40 billion dollars by 2026. Going by the numbers, it wouldn't be wrong to say that the industry is flourishing, and it is the right time to set foot into it.

Summary

Anyone using an on-demand home service app can request assistance from a grocery store, repair a home appliance, or hire house cleaning professionals regularly. These apps have completely transformed the traditional home services sector. Per a report from verified market research, the on-demand home service app market is expected to reach 1133.40 billion dollars by 2026.

What is an on-demand home service app?

As the name suggests, an on-demand home service app assists users in anything they want, when they need it. The user must select the type of service they require, and the app will connect them to the nearest service provider.

Why are On-demand home service apps so popular?

An on-demand home service app helps people manage their work lives well. They don't have to take out time for the household chores; they can simply hire professionals to work for them.

  1. Comfort and Accessibility
  2. Increased Penetration
  3. Easy Payments
  4. Increased Lead Generation
  5. Urbanization

How does an On-demand Home Service app make money?

In general, these on-demand home services apps make money using one of two models:

  1. Commission-based
  2. Lead Generation

Factors Influencing the cost of an on-demand home service app

The average cost of developing a home service app with basic functionalities is between $25,000 and $40,000. If you want to launch your app with the most advanced features, the cost can reach $100,000.

  1. Features
  2. Type of App
  3. Platform
  4. App Design
  5. Third-party Inclusion
  6. Hiring Model
  7. Testing
  8. Safety

Worldwide mobile app revenue is projected to reach 935 billion dollars. If you intend to build your app, you must first assess the cost of on-demand home service app development. AppsRhino can help you with the entire process.

What is an On-demand Home Service App?

An on-demand home service app acts as a bridge between customers and vendors. What these apps do is that when a consumer needs a specific service, they can use the app to discover a service provider and order the service. The on-demand home service app then charges a modest fee for each order placed through the app.

How does an on-demand home service app work?

Though different apps have different interfaces and structures, users' basic steps remain mostly the same. Below are the steps following which an on-demand home service app is made and operated.

  1. A service provider uses a Vendor account to list their products/services
  2. A buyer submits a request with a thorough description of the service desired.
  3. A service provider responds to the buyer's request, allowing both parties to begin communication via the built-in messenger.
  4. The on-demand home service app is paid for by the buyer using a built-in payment method.
  5. A buyer can also leave a review and rate the service provider.

An on-demand home service app helps people manage their hectic lives. They allow users to get more done at home by hiring specialists to manage their household duties or booking a pleasant massage after a long day at work.

Consumer Comfort and Accessibility

The growing number of people who desire to use an on-demand home service app has increased the demand for these services. People value convenience, and these applications are very accessible. With a few clicks, the user can buy or request a service. It's the easier way out for them.

Smartphone penetration is increasing.

Smartphone availability and internet penetration have increased the use of on-demand home service apps. Businesses can benefit from the expansion in these sectors. Push alerts, real-time order tracking, numerous payment methods, and other features of an on-demand home service app contribute significantly to their popularity.

Easy Payments.

An on-demand home service app accepts a variety of payment methods. Users can pay with debit cards, credit cards, e-wallets, or cash at the delivery time. When it comes to payment options, different users have varied preferences and levels of confidence. It benefits businesses when they offer various payment options to their customers.

Increased Lead Generation.

Lead generation is one of the key factors motivating businesses to make an on-demand home service app. An on-demand home service app serves as a platform for businesses and consumers to connect. Companies can reach out to potential customers. And the consumers can find the best solution to all their needs.

Urbanization.

People's lifestyles have changed as a result of rapid urbanization. People are very busy with their work lives that they are okay with spending a bit more to have some comfort. They prefer to hire someone for activities such as house cleaning and maintenance. People like to book home services on their smartphones rather than waste their days off.

How does an On-demand Home Service App make money?

Let's look at an example: Urban Company, a popular on-demand home service app. This platform, formerly known as UrbanClap, debuted in 2014. By 2019, the company had grown by 150 percent, and revenue increased by another 103 percent in 2020.

In general, these on-demand home services apps make money using one of two models:

Commission-based:

The company serves as a go-between between the service provider and the clients. When the clients finish the order, the service provider must pay a set commission to the company.

Lead Generation:

Some requirements may not be specified on the app, and what if clients require these services for an extended period of time? In this example, the on-demand home service app gives expert leads to their clients while charging them both for lead generating.

The number of customers actively hunting for effective services like these has increased dramatically in the business.

Factors Influencing the cost of On-demand home Service App Development

Various elements influence the cost of designing an on-demand home service app, but before we get there, let's start with the basics. The average cost of developing a home service app with basic functionalities is between $25,000 and $40,000.

If you want to launch your app with the most advanced features, the cost can reach $100,000. These costing suggestions are for full-time project development. You can also engage on-demand app developers on an hourly basis, which can range between $20 and $150 per hour, depending on the intricacy of the program.

Let's look at the aspects influencing the cost of developing an on-demand home service app.

Features

The features of an on-demand home service app are the most crucial aspect. If you only require simple features, the cost will be minimal; but, if the features are sophisticated, complex, and in greater number, the cost will be more. The concept is simple: more advanced features require more money. This is because developing complex software requires time, planning, and technology, all of which cost money. It impacts the overall cost of developing an on-demand home service app.

Type of App

The majority of organizations rely on three sorts of apps. These are Native apps, cross-platform apps, and progressive web apps. You can select the type you want to invest in based on your budget. The expense of creating these apps, such as -

  1. Cost of cross-platform app development varies between $20,000 and $35,000
  2. The cost of developing a native app ranges between $50,000 and $100,000.
  3. The cost of developing a progressive web app ranges between $10,000 and $20,000.

Each type of app has its advantage. A cross-platform app can function on all mobile platforms, and native apps are best for targeting platform users such as Android or iOS. On the other hand, progressive web apps are platform-independent because people can only view them through a web browser.

Platform

In addition to the factors mentioned above, the platform determines the cost of developing an on-demand home service app. Android and iOS are the two most popular platforms used by people worldwide. Although Android users constitute a sizable portion of smartphone owners, iPhone users have their fan group. There is a significant cost gap between Android and iOS app development. So, whichever platform you choose, you must pay for it.

App Design

Design is another constraint that significantly impacts the cost of developing an on-demand home service app. Graphic design, UI/UX component inclusion, easy navigation from screen to screen, landing page design, and many other visual features are all part of the design. It necessitates knowledge and suitable instruments. This has a direct impact on the price.

Third-Party Inclusion

You can leverage third-party API connectivity when you wish to add more functionality to your on-demand home service app. Push alerts, SMS API, payment transfer, and other particular APIs are included. Some APIs are free to use; however, if you require a premium version, the cost of in-home service app development will be included.

Model for Hiring

There are three sorts of hiring models: full-time hiring, part-time hiring, and hourly employment of developers. The cost is determined by how you recruit the developers. Furthermore, the cost of hiring is determined by the number of developers you intend to hire.

Testing

The cost of developing an n-demand home service app includes a testing component. Testing is an essential step in ensuring the app's quality. App launch without testing is pointless since flaws can affect the entire user experience and expose the app to cyber threats.

Safety

Millions of people use an on-demand home service app. They share their details, which can be used for harmful purposes if they get into the wrong hands. As a result, adopting a security mechanism is essential to protect all critical data from cyber-attacks or information theft. It is one of the cost-influencing aspects, but it is the most crucial for the app and its customers.

Conclusion

Worldwide mobile app revenue is projected to reach 935 billion dollars. An on-demand home service app is one of the simplest methods to take your business online; it increases revenue by attracting more users. People will always need to get things done, and with the current pace of life, on-demand services may soon, if not already, become a full-fledged on-demand economy.

Many users are utilizing these applications to obtain home services such as home appliance repair, house cleaning, home remodeling, and others. If you intend to build your app, you must first assess the cost of on-demand home service app development. It will assist you in finalizing your concept and developing it into the best on-demand home service app on the market.

When you're ready to launch your on-demand home services app, make sure you have the right IT partner on your side. Choosing a reputable app development company, such as AppsRhino, can assist you in navigating your next steps. We at AppsRhino deal in all three types of hiring models. We can help you as a team or provide you with individual developers the way you want. Contact us today!