An essential guide to On-demand App Development

On-demand apps came to the forefront during the pandemic era. The Covid-19 forced people and businesses to increasingly adopt digital means to get things done. The tough times of the pandemic, thus, led to the rapid development in the field of on-demand application development. 

Today, it’s hard to imagine a product or service we can not order using our phones. Consequently, a new paradigm of possibilities is shaping up, benefitting both consumers and startups (and established businesses). 

So, how do you build an on-demand service application that sticks with modern customers and simultaneously transforms into a profitable business avenue for entrepreneurs?  That’s what we will cover in this blog. Let’s start with what it takes to be called an on-demand app. 

What is an on-demand application?

On-demand apps are web or mobile apps that help you immediately access or get a product or service. Think ‘Uber and Ola for cab hailing,’ and ‘DoorDash and Uber Eats for instant food delivery.’ 

Oh, and let’s not forget Netflix and Amazon Prime, the kind of streaming apps that deliver ‘entertainment on demand.’ On-demand apps have risen to popularity in the past few years, thanks to rapid technological advancements and customers who increasingly hate the idea of ‘delayed gratification.’ 

Key features of on-demand apps

To be called an on-demand app, the software application should possess the following features: 

• Search and filter: Customers can easily search for products and services
• Push notifications: The app should be able to engage users with product launches, discounts, and deals, and help them track the status of their order or service
• Order tracking: The app should provide real-time location and progress information to keep customers up-to-date
• Reviews and ratings: The app should allow customers to make their feelings about the service provider known, and help service providers know how well they have been able to satisfy the customer
• Payment gateways: The on-demand application should also offer a variety of payment options, such as internet banking, digital wallets, and debit and credit cards, in a simple, secure, and fast way
• In-app chatting: This feature ensures that customer queries and questions are solved on priority. 
• Registration: The registration process needs to be short and simple so that service providers can easily sign up using either social media profiles or phone numbers. 

Examples of on-demand apps

A quick online research will help you get to know about hundreds of on-demand service apps. However, there are some apps that have grown massively and now users across geographies use them almost every day. Here are a few of those on-demand apps: 

• Ola: Ola connects passengers with reliable cab drivers across cities. The transportation service is hassle-free and pretty affordable. 
• Lyft: Lyft is another very popular ride sharing services app that helps passengers reach their destinations safely and timely. 
• Uber Eats: UberEats connects foodies with restaurants across cities and helps them savor the best dishes when they want, wherever they want. 
• Teleflora: It’s a flower delivery app that makes sending flowers to your near and dear ones a breeze. Birthdays, anniversaries, or festivities, you just need Teleflora to communicate your feelings to the other person. 
• Angi: Use this on-demand app for instant home makeover services at affordable prices. 

What are the top advantages of on-demand apps? 

The on-demand economy has not only reshaped consumer behavior but also given rise to new business models. Here are some of the key benefits: 

• Rapid expansion into new markets: On-demand applications allow companies to reach out to a larger customer base and thus multiply their profits. Uber, for example, has a presence in over 900 metropolitan areas worldwide, including major cities in North America, Europe, Asia, Africa, and Australia.
• Elevated customer engagement: The intuitive interface and secure payment options drive customer engagement as app users can complete their tasks whether it is to book an appointment with a doctor or order a bouquet of flowers for a friend. The improved customer engagement drives repeat business and overall customer lifetime value (CLV). 
• Impressive scalability: On-demand platforms allow businesses to rapidly scale their services and thus expand into new markets. Dropbox, for example, which is an on-demand cloud storage service, was able to expand its user base from 100,000 to over 4 million in a matter of 15 months, leveraging the rapid scalability of on-demand platforms.
• Real-time data & insights: In today’s marketplace, data-driven businesses are proven to outperform their competition. In the on-demand economy, apps like DoorDash empower restaurants with actionable data and insights on customers and their preferences. These kinds of real-time insights then empower these restaurants to optimize their menus and marketing campaigns and gain greater traction. 
• Increased operational efficiency: According to a Grand View Research article, on-demand platforms can help businesses achieve nearly 20% reduction in execution time for specific business tasks.

Although the on-demand economy is an attractive place to enter into and generate massive revenues, it’s not without its ever-expanding set of challenges. To begin with, the market for on-demand services has already matured and littered with too much competition. 

The market is already crowded and you have to be the best to win your customers’ hearts. You just can’t come up with less than the best and hope customers will stick with you. Here are some more challenges that you might face while entering the on-demand market. 

• High development costs: Quality app development can be expensive, especially if you lack the in-house expertise and outsource the project to a reliable on-demand app development company.
• Maintaining service quality: Consistency is key in the on-demand sector. 
• Payment integration and security: Security threats are becoming more prevalent as services become more digitized.

Some interesting stats for businesses with plans to enter the on-demand app marketplace 

The consumption pattern has changed dramatically over the last few years. Consumers are seeking more convenience and faster deliveries. And this massive need from the consumption side is propelling a lot of start-ups as well as established businesses to jump on the on-demand bandwagon. 

How to create an on-demand app?

On-demand apps can help businesses improve customer retention and grow by connecting customers with service providers as soon as possible. They can also provide users with unparalleled comfort by allowing them to access products or services on their smartphones with a few clicks. 

Here are some steps you can take to develop an on-demand app:

• Define customer needs: Understand your customers and their needs.
• Research existing solutions: Consider what other apps are already available in the market that offer similar services.
• Choose your niche: Select a specific industry or area to focus on.
• Identify key features: Make a rough estimate of the features you want to include in your app.
• Select a development partner: Choose a reliable partner to help you develop your app.
• Create a Minimum Viable Product (MVP): Once you know your target audience and criteria, you can quickly create a prototype of your app.
• Gather user feedback: Get feedback from your users to help you improve your app.
• Scale and provide ongoing support: As your app grows, make sure you continue to provide support and evaluate different aspects of it.

Other things to consider when developing an on-demand application include:

• Ensuring a world-class user experience: Your app should be very user-friendly and easy to use, with a good look and feel, navigation and functionality.
• Payments integration: This is a critical step in the successful development of an on-demand app. The app has to allow customers to seamlessly place orders and pay for the services. 
• Analytics: Embed advanced data analytics tools early into the app development process so that data teams can gain access to real-time analytics to empower decision makers and gain a deeper understanding of the customers. 
• CMS: A content management system (CMS) is another digital component that needs to be considered in the development of an on-demand app. A well-designed CMS helps developers and content creators manage the content of their apps. It can help streamline the app development process by allowing developers to quickly make content changes without manually editing the app's source code. 

A CMS can help with:

• Content creation: Allows users to easily create and format content
• Content storage: Stores content in one place, in a consistent fashion
• Workflows: Assigns permissions for managing content based on roles such as authors, editors, and admins
• Presentation: Supplies directives for building the look and feel of the content, for example, supplying HTML directly

Also read: How to create an app in 2024?

How much does it cost to build an on-demand app?

It might disappoint you a bit but the truth is there is no one concrete answer to how much you need to develop an on-demand application. It actually depends on a lot of factors such as the scope of the work, whether you need a simple add, an app with medium complexity, or a highly advanced application, whether you want to target just one platform or want to target multiple platforms, the choice of tech stack, the expertise and location of the on-demand app development company. 

To come to a rough estimate, you first need to gain a deep understanding of your app requirements. You need to research the competition (If there are already apps like the one you want to build). You need to see whether you have some in-house expertise or you would have to outsource everything to the development company. 

Here is a ballpark estimate of the price that will incur during on-demand mobile app development in different countries: 

• India: $25 – $45 per hour
• USA and Canada: $100 to $250 per hour
• Australia: $100 – $150 per hour
• The UK:  $65 to $170 per hour
• Central and Eastern Europe: $30 to $65 per hour

However, please note that these are just estimates and that your development cost can vary massively. 

For more in-depth information on mobile app development cost and the factors that can reduce or increase this cost,  you can read our read our detailed blog post on how much does mobile app development cost in 2024?

For a quick consultation regarding your app development project and how much it will cost, it’s even better to connect with the experts. Connect with Team Kellton for more information! 

Wrapping up 

The on-demand economy is thriving. The advancements in technology and customer preferences for more personalized and faster delivery of products, services, and experiences. 

This presents a new land of opportunities for businesses of every shape and size. It really does not matter much. Of course, the more streamlined you are, the more budget you have, the more expertise you have access to, the greater are your chances of success. 

Kellton is one of the frontrunners in the space of On-demand App Development. You can tap into our global talent pool to strategize and accelerate the entire project, right from the discovery and conceptualization phase to design, development, and post deployment maintenance. Whether the idea is to build an on-demand app for a specific audience (such as iOS customers) or an app that caters to audiences across platforms, Kellton can help. 

FAQs on On-demand app development:

1. How to build a successful on-demand app?

Building a successful on-demand application requires a clear vision (of what it is that you want to build and how it alleviates your customers’ pain points), the choice of an on-demand application development company (This is a very critical factor), and how you market the app. Last, but not the least, a very important step in building a successful app is how well you maintain and monitor the app's permanence post-launch. 

2. What are the key features of a basic on-demand app?

Live tracking, push notifications, ratings and reviews, payments, analytics, and customer service are some of the essential features of a basic on-demand application. Other features that an on-demand app can have include map integration, shopping cart, and order summary. Based on the specific project requirements, a few other features can also be embedded within the app. 

3. Which app development approach should I choose - native, hybrid, or cross-platform?

Each development approach - such as native development, hybrid development and cross-platform app development - has its pros and cons. You would like to consider factors like your app performance, development budget, user experience, app security, and target platforms while deciding on the best app development approach for your project. Consulting a reliable app development company can further clear your doubts regarding the development methodology. 

4. How scalable is an on-demand app?

On-demand apps have to be scalable and future-ready to support your business as it grows. Here are some ways to build a scalable mobile app: First, identify your scalability requirements, then choose the right tech stack, select the right infrastructure, use caching, scale databases, and use mobile content delivery networks (CDNs).