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Home»Blog»Development • Technology » Business benefits of On-Demand Apps
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Business benefits of On-Demand Apps

By Manish Barthwal
April 15, 2021. 6 min read
Last update on: April 15, 2021

On-demand apps are on the rise. It is one segment of the mobile app development industry that has shown exponential growth in the last few years and will continue to attract great deals in the future. People have been benefitted greatly ever since on-demand applications stepped into the app marketplace. Want food right at your doorstep? There’s an app for that. Heading out somewhere urgently and need to call a cab? There are apps that will pick you up from your location within a matter of minutes. Feeling sick and can’t visit a doctor? No worries, you can get the required medicines delivered to your place or even call the doctor at home- all possible in a few taps with on-demand mobile apps.

The convenience that on-demand applications add to people’s lives by providing them with instant services is what has led to their extreme popularity. Today’s consumers wish if they had an app for everything that could save their time and effort. This is one of the primary reasons why different industry verticals are investing in on-demand app development.

Stats revolving around different on-demand businesses

If stats are to be believed, the revenue of the online food delivery segment is projected to reach US$151,526m by this year, reports Statista. It also suggests that the revenue is expected to grow at a 6.36% CAGR (Compound Annual Growth Rate) and would likely result in a market volume of $182,327m by 2024.

MarketsandMarkets reports that the ride-sharing market is projected to reach a market size of USD 218 billion by 2025 from USD 61.3 billion in 2018– a CAGR of 19.87%.

The global on-demand home services market is likely to reach $1574.86 billion during the five-year period 2020-2024.

The usage of on-demand healthcare apps in the US took a drastic increase from 11% in 2019 to 49% in 2020, following the effects of COVID-19.

Benefits of On-demand apps for businesses

What’s the driving factor behind on-demand applications being so beneficial for businesses? Here are a few reasons why businesses look highly interested in on-demand app development.

1. Excellent Growth Opportunities

On-demand apps provide businesses with plenty of options to explore the demand of their end-users and constantly evolve to cater to their specific needs. For instance, due to the havoc created by Coronavirus last year that led to lockdown across countries and people were asked to stay indoors, the eCommerce giant Amazon turned itself into a grocery delivery business as the situation demanded so and experienced staggering growth in their revenue and customer base. Another example is how Uber, a ride-sharing platform also launched Uber Eats, an online food delivery platform. So, regardless of what business you are into, you can always look forward to providing more and different services to your customers.

2. Competitive Edge

Today, the competition is fierce in almost every business niche. Retaining customers has become quite a task for business owners as more and more similar companies mark their presence in the market. By having an on-demand app for your business, you can gain an advantage over your competitors who are yet to think about on-demand app development and also challenge the existing competitors.

On-demand apps are very customer-centric and offer your customers the services they need at their convenience. If you offer them a hassle-free way of booking services that serve their purpose beautifully, it will keep them engaged and they will likely stick to your business, no matter how many similar apps are available in the market. In fact, you will have more customers on board.

3. Increased Scalability

What makes on-demand apps so special for businesses is their efficiency to store and utilize user data to boost customer experience. As we mentioned in the beginning, on-demand apps are on the rise, nearly for half a decade, and are highly scalable due to their security, evolving features, and the rise of smartphones. Thus, businesses can achieve the same benefits for their customers and ultimately helps them scale their business, acquire more customers, and boost revenue.

4. Long-term solution

Businesses are leaving the conventional way behind and are always coming up with some new ideas and unique solutions to enhance their services and attract users to the application. Besides, businesses are also going affordable. With on-demand app development, you build a long-term solution that is also affordable.

So, hire a dedicated on-demand app development company and boost your business visibility in no time. It is also a cost-efficient approach. Providing your end-users with something new and useful that fulfills their expectations will encourage them to spend more on your products and services.

Get in touch with a company that will assist you with all the required features to get started with your on-demand app.

5. Ideal for almost every business

The current generation is such that people are busy to reach out for specific things and need services at their convenience. A well-executed business plan can help customers get those services without any hassle with the help of an on-demand business model that makes a user’s day-to-day tasks pretty easy. This is suitable for almost every kind of business, be it healthcare, food delivery, education, hospitality, ride-sharing, home services, grocery, etc.

In today’s time, having an online presence is vital for any business. By having an on-demand mobile app, you can increase your brand visibility, get more sales, and achieve a great ROI.

An on-demand app makes it easy for businesses to satisfy the needs of their end-users with ease. Such an app provides them with the opportunity to bridge the gap between service providers and the customers.

Different types of on-demand apps for diverse business sectors

From healthcare to education, you can witness on-demand mobile apps surging in almost every business sector. Let’s take a look at a few popular types of on-demand apps.

1. Food Delivery

This type of on-demand app connects restaurant or food business owners with app users. The customer browses the nearby restaurants in their area, looks for the food item they want to order, and then finally places the order. The restaurant owner receives the notification, accepts the order, and delivers it through the business delivery partners. Zomato and Swiggy are prime examples of on-demand food delivery apps.

2. Ride-sharing app

The ride-sharing on-demand apps such as Uber and Ola have made transportation way too simple and comfortable. Be it any time of the day, a user can book a ride instantly or schedule it for later as per their convenience. Gone are the days when people had to spend a lot of time waiting for a taxi and settling to a price. Now with ride-sharing apps, they are displayed the booking price up-front and then they can confirm the booking.

3. Grocery Delivery

One doesn’t need to head out to the local market or supermarkets to buy groceries. An on-demand grocery delivery app lets users select the groceries they want to purchase and get them delivered to their doorstep. The demand for these apps surged last year when Covid was at its peak. Due to heavy demand, customers had to select a preferred date and time from the available slots for the order delivery.

4. Home services

Home-service on-demand apps are the latest to join this trend, and provide repair, cleaning, grooming, or maintenance services to people. For instance, if you need a haircut at your home, want to repair some household appliances, or get your AC serviced, an on-demand home-services app will let you do all sorts of that stuff within a few mobile taps.

5. Telemedicine

A telemedicine app or an on-demand healthcare app allows customers to get medicines delivered to their home, or get medical consultation with a medical professional over a call or live chat. In fact, users can book an appointment for a doctor’s visit.

How on-demand apps make money?

One of the most common ways businesses having an on-demand app make money is through commissions. For every successful order that takes place through the app, the service provider has to offer some commission of the order value to the mediator. The other way to monetize your app is through in-app subscriptions, such as offering a pro membership to customers in which they are provided exclusive benefits. For instance, a food delivery app may offer free delivery in its pro membership.

The future of on-demand apps looks bright!

The stats that we mentioned earlier regarding the on-demand market size and the revenue it would make in the coming years clearly signifies that they have a great future in the mobile app development industry. Looking at the current market situation, it can be said that such services are going to remain for a long period and would probably get even more updated in the future. It’s just a matter of time that more and more businesses across industries launch their on-demand app.
Looking to build an on-demand app for your business? Get in touch with us here.


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