Posted on: | Posted by: Ajay Sudhakar

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

How-much-does-it-cost-to-develop-an-on-demand-home-services-app
Are you hunting for gold pots on the internet? Then in this blog, lists a quick and easy solution for you. The solution is starting your on-demand business mobile app.Though getting your startup established is a very tedious and risk-taking job, there is no way back with an on-demand home service app. You would indeed dig out a gold pot.Back in the day, the idea of on-demand service apps was vaguely impractical. But with the penetration of the internet and leading companies such as Thumbtack, UrbanCompany, TaskRabbit, etc., with their ROI, every sector adopts the idea.Additionally, food delivery services are the primary users of these on-demand services apps in the courier industry. Notably, companies utilizing the on-demand home service apps are associated with various sectors; thus, it becomes essential to regulate the operations smoothly in a cost-effective way and improve the productivity of services provided to various clients.However, this article provides recommendations and refinement to your idea about these on-demand home service apps and cost estimations to develop one.
Summary:
With internet penetration, on-demand home service apps dominate the domain. As it is evident from the data, during the years 2021-2025, the CAGR of these on-demand services would be over 70 percent. The potential market is expected to grow by 4730.31 billion during the same period.The on-demand home service apps earn mainly through commission from service providers and lead generations for unlisted services.However, to develop an on-demand home service app, the cost ranges between $15k-$37k. And advanced features would increase the cost further to $45k-$91k. Anyway, the app must have some basic features, which are as follows:
  • Customer dashboard including user profile, chatbox, accounts, notifications of discounts and offers, feedback, etc.
  • Service providers and a smooth onboarding process, track earnings, route optimization, and real-time chat
  • Admins features such as analytics, adding or removing service providers, feedback monitoring, referral codes, or promotion management. 
Many sectors like departmental stores, industries, and delivery services use on-demand apps to reach new customers. Nevertheless, there is a bright future for on-demand home service

Overview of on-demand home service apps

Overview-of-on-demand-home-service-apps Starting from arranging professionals to getting your television up or to hiring a carpenter to build a treehouse. You get every service done using these on-demand home service apps, from laundry to the grocery to a home salon. These apps bridge the consumers and service providers. Nonetheless, they are currently doing great business. Be it Tasskrabbit, UrbanCompany, Thumbtack, zimmber, and so on.Now let us go through some figures before heading to our main topic on expenses in creating an on-demand home service app.According to the TechNavio market research reports, during the years 2021-2025, the CAGR of these on-demand services would be over 70 percent. The potential market is expected to grow by 4730.31 billion during the same period.These figures can potentially captivate investors and entrepreneurs. However, the Covid-19 pandemic became an unfavorable time for Uber, Lyft, Oyo, and Droom. But these on-demand service apps continue to grow this time. Like in the case of UrbanCompany, an on-demand service app in India, UAE, Australia, and Singapore. The company managed to grow by 13.3% in operating revenue in FY21 from FY20.

How do these on-demand home service apps make money?

How-do-these-on-demand-home-service-apps-make-moneyThumbtack is a San Fransisco-based on-demand home service provider. It started in a recession economy, but it is a unicorn at 3.2 billion dollars. On a similar note, another unicorn UrbanCompany is valued at 2.1 billion dollars.Anyhow their earnings are based on two models:

Acting as a middle man:

  These apps work as a middle man in connecting customers and service providers. These apps make significant revenue as the commission charged by the company on service providers on completion of orders. 

Lead generation:

These on-demand service apps charge on lead generation when a service is dropped from the apps. As per reports by Statistics, there are 22.4 million users annually who spend around $57.6 million on on-demand home service apps. In the US alone, 42 % of the adult population have once used on-demand home service apps. And 22% of adults have provided services. Among the service providers, around 50% have admitted that this has improved their finances.Although these companies are making millions of dollars, it is also improving the incomes of service providers. Hence it is evident that these on-demand businesses are in trend.

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

How-much-does-it-cost-to-develop-an-on-demand-home-service-app The costs to develop the on-demand home service app vary across regions, technology, features, etc. The average price to build a dashboard ranges between $15k-$37k. However, that majorly depends on the developers that developed the app. The rates for hiring developers vary, like in the US or the UK. It is around $150-200 per hour. Whereas in Asia or China it is about $80-130. If one wants to add advanced features, the cost shall elevate to $45k-$91k.  Other factors other than the cost of hiring developers include app dashboard, selected themes, content inclusion, features included, hosting, and maintenance. The additional creative team can make your app stand out from the competition and attract more users. This will, however, add to the cost to develop. The app should be compatible with tablets and smartphones. It should be supported across various operating systems like iOS, android or chrome, and many more.

Features to include in your on-demand home service app

Features-to-include-in-your-on-demand-home-service-app When estimating the cost to develop an on-demand service app, the features play an essential role. Anyhow, the app must include some basic features relevant to your company and its services. Regular updates on your app can help to eliminate most of the bugs and thus make it more user-friendly.  We now look at some essential features that your on-demand home service app must include. 

Customer dashboard

  • User profile:
It is one of the essential features that a host includes. The potential customers register themselves in these apps and upload their names, addresses, contact numbers, etc. The feature includes:
  • Registration through email id or social media
  • Access to service provider’s profile
  • Notifications and inviting friends via links or coupon codes
  • Ability to customize preferences 
 
  • Chat Box: 

Developing such apps must include a chat SDK or software development kit. That enables the users to interact with service providers directly. The chats can consist of a basic chatbox and group chat features.
  • Cart:

It is a section where users can view, check, edit, confirm or cancel their order details. The users should be able to update their preferences and location whenever required. The feature must include:
  • Order summary and mode of payments
  • Editable address book and preferences
  • Cancel option
  • Addable coupons
 
  •  Account:

The account section includes past order history, details, review, and ratings of acquired services. Users should be able to leave reviews to the companies they have worked with. To sum up, the features:
  • Update personal information- username, password,contact information,etc
  • Order history and details
  • Rating and review
  • Adding credit cards or other modes of payment
  • Payment gateway: you need to integrate a merchant service provider to authorize cards or direct payments for your app.
 

Service provider dashboard

Service-provider-dashboard The service provider dashboard is somewhat different from the customer dashboard due to the mentioned features:
  • Registration: easy registration process can attract service providers. However, the onboarding process should be smooth and quick to start providing service as early as possible.
  • Chatbox: As mentioned, the app must include a chat SDK to enable service providers to interact with potential clients.
  • Mapping or beeline: This feature is a must include as it enables service providers to provide the service to their clients quickly. Most on-demand delivery apps currently use route optimization. And hence it becomes cost-efficient 
  • Track earnings and ratings: To monitor and track the monthly or weekly payments and their rating. As a result, they can be recommended more frequently for new works.
 

Admin dashboard

Admin-dashboard
  • The admin or the business owner should be able to track and monitor their business. This includes promotion campaigns via regular discounts and offers.
  • Replace or add any number of service providers. Regulate service charges, taxes, service fees, etc.
  • Feedback monitoring and management: Customer feedback is a top priority in business models. In your on-demand home service app, you can assure quality service from top-rated service providers. Or else you can warn negatively reviewed, service providers.
  • Analytics: This feature comes in handy while studying the progress of your would-be unicorn. And you get a nous of your registered customers, popular services, the status of orders and more.
  • ROI improvement: the more engaged customers are, the better your return on investment (ROI). The ability to create discount coupons, promo codes, referral codes, etc., helps your app to grow.
 

Conclusion

As the internet becomes increasingly accessible and cities more urbanized, the demand for on-demand home service apps would skyrocket. Besides features, it becomes increasingly important to update, regulate and monitor the app. The admins and management would be crucial for your successful business.     If you also want to build an on-demand mobile app at reasonable prices with high quality then AppRhino can help you. We expertise in developing on-demand home service apps and have delivered more than a hundred projects already. Our team of experts can customize as per your requirements. So get started with your ‘million dollar idea’ at AppRhino