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By: Sagar Sharma

On-demand service app development | How it drives economy in 2023?

The on-demand services app is picking up a huge increasing slot in the current market trend. On-demand apps are needed for businesses that can deliver quick service to customers being in line with their delivery expectations. Right from the selection of goods or services, the on-demand app benefits customers in an explicit manner.

In the latest report released by Price-water-Cooperhouse (PwC), on-demand services apps and websites is expected to reach a significant value of $335 billion by 2025, and the number of users prompted by the on-demand mobile app economy is more than 22.4 million users with an annual turnaround of $57.6 billion for availing door-step services with great trust.

List of industries incorporated on-demand service apps

Around five to six industrial sectors have opted for on-demand apps to push their business limit to the next level, which, in turn, helps them overcome existing and successive competitive markets.

1. Online food ordering and delivery:

This industry has given hope to emerging and newly-started restaurants by offering competitive pricing and tying up with a food delivery partner. Customers are benefited not only with offers or discounts provided by the restaurant but sometimes, also the delivery partner.

Such on-demand apps allow customers to give immediate or later feedback on food quality offered by the restaurant and the service quality offered by the on-demand app development company. To name a few on-demand service apps such as Swiggy, Zomato, Uber eats, etc. have seen success in the past 3 to 4 years.

2. Entertainment and media industry:

With the introduction of the on-demand mobile apps such as Netflix, Amazon Prime, etc., the entertainment industry has improved the number of audiences to engage by watching TV shows, serials, web series, movies, etc. anytime, anywhere through online streaming or offline. Similarly, several news channels have initiated live news watch on emergency or important situations when occurred in the city. Moreover, online movie tickets booking apps have been used by the public since it came into a boom.

3. Travel industry:

The best example for the travel industry seeing great success in the past 4 or 5 years is on-demand apps for booking taxis or cabs anytime from anywhere. Although the service was offered only to limited areas of the city initially, now these on-demand mobile app development companies are offering an extended service irrespective of any distance. Previously, there were no mid-night taxis available, but with the introduction of on-demand cab apps, you can take a cab anytime and track your ride that ensures your safety. To name a few on-demand taxi booking apps such as Ola cabs, Uber, etc. are still successful with high demand for cab booking.

4. Healthcare industry:

This particular industry has shown tremendous growth in the past 5 years. The on-demand doctor or patient appointment-based apps are designed and developed in such a way that even a layman can use it with one-time learning. On-demand apps for healthcare benefits both doctors and patients to plan and manage their appointments and revisits appropriately, along with providing facilities such as online medication, prescriptions, medical advice and more.

5. Fitness industry:

Depending on several surveys conducted at various medical research institutes, obesity has been traced as a major problem affecting the majority of people’s health. Fitness-based on-demand apps are introduced to perform work-outs from home and measure how much calories that a person has burnt for the day with an in-built tool developed by the on-demand app development company. These on-demand fitness apps help people to monitor their health and control it with live tracking feedback that the app provides.

6. Beauty industry:

This specific industry is slowly picking up the pace because of its cost by nature. Home beauty services are offered by many beauty salons with vast discounts only if availed online. Though this on-demand beauty app service is availed by the premium economy, it is slowly showing improvement on the upper-middle and middle economy groups as well.

Five best benefits of developing on-demand service app

  • Retention of customers: Having an on-demand service app impresses your existing customers, as you will be able to provide them a personalized touch of services with which you definitely get business from them regularly. For new customers, the on-demand service app adds value to their expectations and in the raging competition, it provides them clear and quick decision-making with whom to avail service from.
  • Increased conversion rates: Due to on-demand service apps allowing secure online payment and pay later option, depending on customers’ convenience, they will be able to make a payment or purchase order for sure. In this way, you can see good growth on your conversion rates if you compare your monthly, quarterly and half-yearly reports.
  • Provides security: Your app data remains secure because anyhow after building the app and launching it, your app developer would have installed all the required security and safety features to protect your app from potential threats and similarly, safeguarding your customers’ data as well.
  • Extended business opportunities: Having an on-demand service app creates numerous potential and in the pipeline users through an effective reference from users to their neighbors, relatives, and friends, provided if they are perfectly happy with your on-demand service app interface and the way you treat them.
  • Enhanced business–customer relationship: On-demand service app lets you observe your customers’ transaction style closely so that you can offer them personalized discounts upon their demand of preferring the particular service again or on repeated purchase.

What features should a successful on-demand service app contain?

  • App features for customers: The features that you create for customers should comprise notifications, review and rating options, multiple payment modes, order history, activity list, order or booking cancellation, wish list, order tracking facility, etc.
  • App features for admin: This area should contain admin dashboard, analytics, and reporting, managing service providers, managing customers, service tracking, delivery tracking, manage pricing and commissions, etc.

Main challenges of on-demand service app

  • Customer support: Several on-demand apps do not provide a clear interface for customers to approach or contact their support team in case of any queries with respect to their order or cancellation or any query. Representatives who handle chatbots should have extreme patience to answer all the queries posted by the customer. So the app that you develop should provide them such a facility.
  • Managing competition: Today’s world is filled with competition and the more the increase in the number of customers purchasing online, the more the emerging of on-demand service apps. Hence, based on customers’ browsing preferences, add more new categories on your app before your competitor keeps one-step ahead of you.
  • Complete knowledge: Certain hard core fields may not have the necessity to get into online selling, still without knowledge, they get in and may not find the scope of increase in business value. Online listing can help anybody but not online selling. So before you dive into an on-demand service app, have the proper knowledge and then step in.
  • Long-term investment: On-demand service app is a long-term success plan where you cannot attain success within months of launching it. Always have a primary plan to generate leads for your business or direct promotional ideas initially, before you start tasting success with your on-demand service app. Otherwise, you might face ups and downs or sometimes lose, in your business.


The on-demand service app is always a boon to businesses that have high demand among customers. Apart from the aforementioned industries, several other on-demand service app companies are meeting the common needs of customers such as electrical, plumbing, carpentry, painting, etc. emerged in the last 2 years. So decide your type of service and then take a firm decision which yields your success.

Frequently asked questions

1. Which on-demand app is best to kick-start?

Not every service will have a demand for providing online service. You should know where you are strong and what can you sell online so that it kick-starts well. First, question yourself what is making you start an on-demand app service and then do a SWOT analysis, which should help you figure out what you need.

2. How much should I have to invest to develop an on-demand service app?

It all depends on your app complexity and the number of features you are planning to add on to the app. There cannot be a minimum budget because it costs you high time for development and thus the cost can be. You can talk to your friends or friends of friends or who have already developed such an app of different categories and get an idea. You can also contact us to discuss your idea and our experts will tell you how to implement it successfully.

3. Will there be an issue with copyrights if I develop on-demand app like any other popular apps?

There won’t be any copyright issues, as our mobile app developers are not using the same code, layout or any other elements of famous apps.

4. How to be successful in the on-demand service app?

You should have your own business strategy on how you going to progress at least for the next three years if not a five-year plan. Competitor analysis and staying in tune with customers’ pulse make you understand what and when you should implement a strategy. Always be open and ready for offering frequent discounts to attract them but not losing your breakeven point.

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