How are startups redefining the on-demand economy with app development?

Updated On: March 30, 2023

Updated By: appsrhino


The other day I was late for the office, and even the thought of walking to the bus stand & waiting for the bus to come was getting me crazy! Without a second thought, I booked a cab from Uber!

And thankfully, an uber was outside my house in a few minutes. I reached the office almost on time. Have you also encountered the same situation & Uber has come to your rescue?

Well, Uber was the first startup to have revolutionized the on-demand economy into the mobile app development world. Soon after its inception, Uber became the first successful on-demand app and eventually a global brand.

Witnessing Uber’s fame, numerous mobile app development companies followed the bandwagon shortly and turned businesses into popular on-demand apps!

DoorDash, Airbnb, Urban Clap, Task Rabbits, BloomThat, etc., are some of the apps you have used daily. What’s common between them- they are the results of their owners adopting the on-demand app model.

Besides, we are not new to how on-demand apps have made our lives simpler & hassle-free. We have become so busy fulfilling responsibilities that sometimes doing a primary task becomes a hard-core job! But thanks to ‘on-demand apps’ that cater to our needs exactly when we need them!

Don’t you have time to do your laundry? Get your laundry done by an on-demand laundry service app. Easy, right?

The idea behind on-demand apps is to provide effortless services to the customers, and that’s why they always have a positive customer response. (Reflect on how many times you satisfied your food cravings with the help of such apps)

And that’s precisely why it is a favorite among startup owners who are taking the plunge and are investing in an on-demand economy.

While the on-demand economy was earlier only limited to a handful of transportation & food delivering apps but today, on-demand apps are becoming part of other sectors: on-demand healthcare services, on-demand home services apps, on-demand beauty & salon services, on-demand b2b services, on-demand educational services, & many more.

Why is on-demand service app development successful?

While the on-demand startups’ persistent, creative inventions have played an essential role in taking the on-demand economy to the next level, the possibilities and advantages on-demand apps offer added to the success of on-demand service app development.

Below are the points that have led to an upsurge of on-demand apps for startups and, eventually, On-Demand App development companies.


On-demand apps have led people to avail services easily whenever they want. It has become a convenient way to order/book & make use of services in real-time. Not in a mood to cook? Order food from UberEats.

Fast service availability

Customers fancy services quickly and at their doorstep, so on-demand apps facilitate that. This on-demand advantage attracts the users the most & that’s why on-demand app development is so successful & mostly was during the Covid-19 lockdown times!

Cost implied

On-demand services are cost-efficient both for users as well as business owners. Customers like it when it is more cost implied than traditional services. (Discounts, rewards, points make the users opt for on-demand services app more)

Easy payment integration

Another feature that drives on-demand apps on the top is easy payment integration. With few taps on the screen, payment can be carried out quickly, and users like it when services can avail themselves in a few clicks.

All the reasons mentioned above facilitate on-demand apps’ success. Most importantly, wide customer acceptance towards on-demand apps boosts the on-demand economy the most. And that is why on-demand apps are flourishing at such a high rate.

On this note, let’s look at how startups are redefining the on-demand economy with app development.

Mobile app experience

As mobile applications have replaced desktop searches, every startup needs to have a proper mobile application that would excel in app development and management.

This scenario has led Startups to provide highly satisfying app services to customers because the startup’s real success depends on optimizing it. In addition to this, you can also use a customer service chatbot to improve the customer experience on your app.

Undeniably, Startups have the power to transform the on-demand economy with unique & promising on-demand app development ideas.

Improving engagement rates with users

With the increase in on-demand apps, there seems to be a rise in engagement rates between the Startups & the end-users. Even on-demand apps have opened a new array for revenue in different sectors. Netflix, a popular on-demand streaming platform, generates handsome revenue.

Every startup ranging in the industry from – transportation to entertainment can take advantage of this and generate higher revenues. Essentially, on-demand startups can work parallelly.

E.g., Uber provides services to customers and avail of revenue. Still, in turn, Uber employs drivers to work for them, and they also get income from the service Uber provides. This way, startups can cover many forms of engagement with users and build a stable on-demand economy to enhance overall economy infrastructure.

Developing a long-lasting model

The whole idea behind this is to ensure that a large group of customers adopt this model so that startup owners can avail more significant revenue.

The way startups have tried to incorporate a unique way to provide services has significantly redefined app development and the on-demand economy.

Many mobile apps based startups are already powering various sectors in the on-demand economy. Like the food industry, which has completely revised the way consumers buy from them. And this has even led popular chains like Mcdonald’s or Dominos to introduce their on-demand mobile app. (well, you can do the same too instead of integrating your business with a third-party on-demand app) because the platform is mainly extending and is continuing to bring more opportunities for companies & startups.

To Conclude

The share of users on an on-demand app is 22.4 billion. The revenue those on-demand apps generate is even more significant- a whopping $57.6 billion. So, on-demand is extensively an enormous gateway for your success.

But more importantly, what will keep you covered is having an excellent mobile application for your on-demand idea! 

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