The magic that mobile apps like Uber and Zomato created in a few years was just the beginning of the humongous on-demand economy. This concept of serving the customers instantly on-demand, at the location they desire, has made both- consumers and the business world go crazy. The on-demand economy is the talk of the town and there is a lot to say about it.
So, what exactly is the on-demand economy? What are the advantages of on-demand apps? How to go about on-demand app development? Are there any challenges too? All such questions will be answered here. So, keep reading ahead.
What is On-demand Economy and an On-demand App?
As the name suggests, the on-demand economy is the trend or the working model, in which the designed apps or services cater to the requirements of the target consumers, either instantly or as soon as possible, at their doorsteps or any other desired location. The goal of this trend is to offer instant products/services to the end-users.
The apps designed for this purpose have the necessary features like location tracking, profile creation, sending notifications, wish-listing the items, seamless search options, flexible payment options, etc., and they are referred to as on-demand applications.
Today, there are a plethora of on-demand apps available in the market which serve a diverse variety of end-users. To name a few popular on-demand applications- Netflix app in the entertainment industry, Airbnb in the hotel booking domain, TaskRabbit when it comes to carrying out household chores, Phlex65 for caregivers to provide day-to-day care services to older people, BloomThat to gift your loved ones with flowers, etc. Hundreds of such apps have been fabricated already, belonging to sectors like food and restaurant, grocery, travel and transportation, health and fitness, salon and beauty, home care services, and much more.
Why On-demand Apps are so Popular?
We all may have gone through such instances owing to our fast-moving busy lives. Thanks to the on-demand apps that we can rely on them for our daily needs and don’t need to spend several hours on them. This trend is commonly observed in the urban areas, however, they are gradually spreading to the rural areas too.
So what are the top reasons behind the popularity of on-demand services?
- Convenience of getting the services at home
- On-the-go services
- Advanced technology that millennials love
- Order tracking with real-time updates
- Easy ordering, re-ordering, cancellation of orders
- Saving of time and efforts
- Branded products at reasonable prices
- Ease of accessing the apps
- Availability of offers and discounts
- Wide range of products and services as compared to live stores
- No need to carry cash or stand in long queues
Why Businesses Prefer Services of On-demand App Development?
We now know why the consumers are so much into leveraging the on-demand app services. But why business entities are picking this on-demand business model? First, let’s look at some statistics.
- Well, as per a survey report by Burson-Marsteller, 51% of on-demand service providers said that after entering into this business trend, their financial condition has comparatively strengthened.
- Another estimation by Burson-Marsteller forecasts that almost 64% of the companies providing on-demand services say that they are expecting their financial profitability to improve sooner or later.
Besides, here are the key reasons why a large number of start-ups, small and large business entities, and even giants are choosing to build top-notch on-demand mobile applications.
- Countless business opportunities
- Suitable for diverse industry verticals
- One-time investment for a long-term solution
- Competitive benefit
- Cost-effective solution
- Improved online presence and brand awareness
There are a few other reasons why so many firms prefer this business model and why there is a rise in the number of on-demand companies worldwide. Please click here and read the post for a deeper insight into this.
How to go About On-demand App Development?
There isn’t any hidden formula to architect an out-of-the-box on-demand service app, however, you need to keep some vital tips in mind; they are given below:
- Your app idea or concept must be unique and different from those already existing in the market.
- You must ensure that you take the right guidance from expert professionals for making your project a success.
- Your team or your on-demand app development partner must possess appropriate in-depth industry knowledge and experience.
- You must design a practical and smart marketing strategy for improving the overall outcome.
Besides these tips, here is an extensive write-up on “How to Develop a Next-gen On-demand App?” for you. Do have a look.
Notable Challenges Affecting the On-demand Business Sector
The on-demand business model has a huge potential. But there are certain challenges that this industry is already facing and may face in the future.
Firstly, the overall revenue generation has been impacted owing to high consumer demand and related operational costs, especially during the Covid-19 pandemic.
Besides, a high rate of delivery agent turnover is one of the prime factors affecting this domain. The pay of the delivery agents is much higher.
Also, some other challenges that impact the on-demand business sector are product incompetence, high competition, inefficient resources, under/over-valuing of supply and demand, etc.
However, with an exceptional concept for your app, robust technological strategies and enhancements, a proper development plan, and apt guidance, these challenges can be overcome to a great extent.
If you are a startup and want to begin your app development journey with an on-demand app, then without any doubt, you must go with this idea. This is so because the on-demand economy is booming at a fast pace and there is a huge scope for on-demand app-based services altogether. Such apps and services have a large user-base and they can be designed at a budget-friendly price. So, it is high time to leverage this opportunity and see how your innovative on-demand app will take the world by storm.
Looking for a reliable on-demand mobile app development company to commence with your project? Reach out to us and our team will provide you all the detailed information and estimates for your project.