The Beginner’s Guide to On-Demand App Development: Everything You Need to Know

The digital revolution, especially the emergence of phones and comprehensive access to the Internet, has changed every aspect of our lives.

One area that has seen a massive transformation is on-demand apps that allow people to get everything at their doorsteps, including rides, groceries, food, and whatnot. Today, more and more people prefer to order products online, from essentials to luxury products, to fulfill their commuting needs simply because it’s comfortable and quick. 

This strong customer preference for on-demand apps has led to $57.6 billion in average spending in the last year. It predicted that more than 51% of users prefer to use on-demand apps over other standard apps, which should give you an idea of the growing role of on-demand apps in today’s digital world. 

Do these numbers motivate you as a startup or well-established business owner? 

Keep reading as we discuss on-demand apps, how they can benefit you, and how to develop a feature-rich one with the right development approach and marketing processes. 

Before we get into the on-demand app development process, let’s step back a bit to understand the meaning of the on-demand app in the first place. 

What is an On-demand App? 

On-demand apps stand for ordering or scheduling services or products immediately from a specific brand. It is for maintaining instant transactions through a digital medium like the app. However, the term usually refers to online ordering and booking of products or services. 

In short, on-demand apps are a digital ecosystem. This system allows local businesses to come online and maximize revenue and order volume. Not only ordering and scheduling but on-demand apps have more purposes. 

The on-demand industry has grown further, driven by tech development, globalization, and people’s desire for an extensive range of choices and instant gratification. 

Today’s digital market requires transforming offline businesses into a solid online presence. This is where on-demand app development comes in. 

Businesses invest in on-demand app development to expand their market reach, amplify sales, and enhance customer engagement. Features like real-time tracking, smart search, swift payment options, and push notifications to increase conversion and customer engagement. 

Here’s an example. 

A restaurant invests in an online food ordering app to broaden its market presence beyond its physical location. The app is tailored for online ordering and offers real-time tracking, a digital menu, exclusive discounts, and personalized notifications. This investment boosts order volume and creates a more streamlined food delivery experience for customers. 

Most-common On-demand Apps 

It is important to have an adequate knowledge of on-demand apps before you plunge to develop one. 

Knowing the types will help you develop on-demand apps. And this can meet your business requirements the way you imagine. 

If you have a clear idea about on-demand app development, you can make it well-strategized. 

Besides, you may want to develop your on-demand apps for mobile. In that case, getting familiar with its various types and the development of apps is essential. You can build both an app and a website.  Thus, you will make a sustainable business model more effective for your on-demand business. 

Let’s discuss the most common types of on-demand app development. While all popular on-demand apps look the same, they differ in features and functionality. 

Ride-hailing Apps 

Online ride-booking apps or on-demand cab booking services allow customers to book or schedule cabs within the app. Applications like Lyft and Uber have changed the structure and game of online taxi-booking apps. Moreover, Lyft’s business model encourages other entrepreneurs to enter the market with robust Lyft-like apps.

The idea behind such apps is to provide a robust platform for cab owners to contact online customers. On the customer’s end, it is easy to book or schedule a cab at their doorstep and drop it off at the desired location. 

On-demand ride-booking apps that are popular among us: 

• Uber
• Lyft
• DiDi
• Ola 
• in-Drive 

On-demand Food Delivery Apps 

The digital world has digitized the food and restaurant business. Now, we don’t need to step out of the home or office, download food delivery apps, browse restaurants, place an order, and have it delivered to our place. The global food delivery market is expected to grow at a CAGR of 18.7% from 2022 to 2030. 

Over the last few years, expanding delivery aggregators, such as UberEats, Zomato, Talabat, Doordash, and GrubHub, in the global food delivery market has further contributed to the industry’s growth. 

Apps that have gained popularity in the food delivery sector are: 

• UberEats
• Doordash
• Zomato
• Talabat 
• GrubHub

On-demand Grocery Delivery Apps 

Another category that falls under the scope is on-demand grocery delivery apps. Like food delivery apps, grocery delivery apps connect customers with local stores or supermarkets with delivery providers in real time. This is a great help to people who are busy and don’t want to stand in a long queue. To overcome such situations, grocery delivery apps allow users to order daily essentials and deliver them to their doorsteps. 

On-demand grocery delivery apps that are ruling this ecosystem 

• Instacart
• AmazonFresh
• BigBasket
• Rappi
• Shipt 

On-demand Home Service Apps 

On-demand service apps are widely popular as they help users browse professionals to complete regular tasks, such as cleaning, repairing, laundry, and more. The USP of the on-demand home service apps is simplifying finding a suitable professional. These apps offer a massive opportunity as users don’t need to roam around the streets, and these apps instantly allow them to call a handyman to get things done. 

Other on-demand service apps for household chores are: 

• Thumbtack
• TaskRabbit
• TaskEasy
• Amazon Home Services
• Urban Company 

Other Popular On-demand Apps 

Other on-demand apps, such as Healthcare, telemedicine, carpooling, traveling, dog-walking apps, snow removal apps, beauty apps, etc., have constantly risen since the pandemic. These apps have a huge customer base and allow people to access various services when needed with just one click from their smartphones. 

The key on-demand apps that benefit from on-demand apps include:

• Rover
• Nykaa
• Merry Maids
• Postmates
• 1mg 

How to Build an On-demand App? 7 Key Steps to Follow 

On-demand app development demands the following steps to emerge with a user-friendly, appealing, easy-to-navigate, and engaging application. Here, we have enlisted the steps to develop a high-performing on-demand app to attract downloads, retain users, and increase revenue. 

Identify the Niche 

The first step to developing an on-demand app is to choose a suitable niche. Your niche would incorporate assorted viewpoints, such as the product or service you want to offer customers. After all these things are considered, you may have to move to the extra pages for a taxi, food delivery, grocery delivery, multi-service app, etc. 

Another critical point in this step is what the users are concentrating on. The age, preferences, mobile usage, time spent on the app, purchasing power, etc. Do all these before you move to the next step. 

Choose the Right Technology Partner  

When you have chosen a niche, researched the market, and identified your business’s competitors, it’s time to proceed to the next step. Choosing a reputed on-demand app development company that can provide you with a professional team of developers and designers. The point that arises here is how to find an ideal technology partner. Here are some points that you can take into account: 

• Check the online marketplaces’ websites
• Compare the services of the well-known sites
• Look for positive reviews and a team of professionals 
• Choose an experienced partner for a fruitful collaboration 

Determining the Essential Features and Functionality 

While planning on-demand app development, there are certain features that you should consider, no matter what type of business model you choose. Usually, any on-demand app consists of a comprehensive set of panels and modules with specific features to keep all stakeholders connected. 

Notably, the features integrated into an on-demand app should be emerging and user-centric and must be able to fulfill customers’ basic requirements. Once you finish the features, it will also help you decide how much development time will take to develop an app. 

Create UX and UI Design

As mentioned above, the experience in on-demand apps must go beyond ordering, and an appealing user interface (UI) is the opportunity to stand tall in the market. Attractive layout and design should be your voice and business’s identity for the target customers. Color variants, fonts, eye-grabbing visuals, and smooth navigation from one page to another make a lasting impression on your customer. 

Design is one of the things that can either make or break your application. So, focus on this step and create the best design. 

Opt for an MVP (Minimal Viable Product)

Building an MVP involves developing a basic version of your on-demand app with only the most essential features. This approach lets you launch a product quickly and evaluate your app idea in the live market. 

For example, the MVP for a ride-hailing app may only include necessary features like scheduling or booking a cab and a simple checkout process. 

Collect Feedback 

When the MVP gets released, it’s time to collect customer feedback. It is how customers interact with your basic on-demand app, collecting reviews and finding possible enhancements. Gathering feedback is vital in on-demand app development as it helps you evaluate what works for your ideal audience and what they don’t like about the app. 

Improvise and Launch 

This is the very last step to perform. Once you are done with the necessary improvements in the MVP version, prepare for the final launch of an on-demand app. However, once the app gets launched, it should be updated daily. You should also keep an eye on the app downloads, collect user reviews, and add new features and functionality to your app because it will help you prosper in the dynamic on-demand app market. 

How Much Does It Cost to Build an On-demand App? 

Finally, we reached the last part of our blog – the cost of developing an on-demand app. It is an important stage for any entrepreneur since you must evaluate the total cost, plan the expenses, and determine the overall budget. 

However, giving you the precise figure about cost would be difficult as multiple factors influence the overall development cost, including: 

• Features and Functionality
• Development team’s location
• Experience technology partners have
• App’s complexity 
• Development platform

If you are a startup owner with a limited budget, using a readymade or white-label solution would be better. Because these white-label, on-demand apps come with all the necessary features and allow entrepreneurs to hit the market quickly without investing a hefty amount of capital. 

In addition to that, you also need to consider the ongoing maintenance and updates of the app, which can add to the total cost. Working with a reliable development team to build an on-demand app with the emerging tech stack is essential. You must share your budget and requirements to ensure that your on-demand app is developed successfully within your budget and resources. 

The Bottom Line

As modern customers find on-demand apps more comfortable, many local businesses are launching their on-demand apps to offer their products and services to customers. Flourishing in the on-demand domain, all you need is a unique idea that solves people’s problems and allows them to fulfill their daily chores without trouble. 

You can build a digital product that exceeds customer expectations in the modern on-demand world by aligning your app with user expectations, business goals, and industry trends.