Talking of the global market, the corona pandemic has highly influenced the on-demand services app market, shifting the perspective of businesses from brick&mortar to omnichannel trading.
The global on-demand app market is adding a trillion dollars to the world economy, where the U.S. alone is spending USD 57.6 billion for on-demand apps,
Increased startup investments and the higher inclination of consumers toward on-demand services apps are positively impacting the market growth. There were 2.14 billion global digital buyers in the year 2021 and the number is continuously multiplying.
So if you are planning to build an on-demand services app for startup or your business, you are taking the right decision. What you can learn from the key players already ruling the market is, how you can implement smart business strategies to upscale the business growth.
We are here with some interesting facts regarding on-demand services apps, some use cases, popular apps trending in the market, and how these apps are benefitting consumers and business growth. Let us start with a quick definition.
On-demand services apps are web and/or mobile-based service platforms designed to cater to waiting-time-sensitive user-generated demands by independent service providers/contractors.
On-demand models act as a mediator, giving businesses a platform to showcase their products/services and find lead customers; enabling the users to access a wide variety of deliverable products/services.
There are three models of on-demand services apps:
The web/mobile apps have digitized the food economy by simplifying the online purchase of ready-made meals and shelf products. Offering an excellent shopping experience and automatizing delivery orders, the online food delivery company financing is to garner USD 20 billion by 2025. Moreover, the global online food delivery market is expected to generate USD 130 billion in revenue, by 2025.
Every 10th person worldwide prefers to shop for groceries online. ‘Quick delivery at reasonable prices,’ is the key to increased online grocery sales. With the evolution of omnichannel retail, e-commerce sales are gaining traction and are very likely to remain popular in the coming years.
The Covid 19 pandemic has changed the definition of the gig economy. Salon & Beauty services are now not limited to brick & mortar. Home–beauty-on-demand applications are intended to offer professional beauty Salon & Spa services at a reasonable price. These are customer-centric apps designed to deliver services according to the customer’s comfort and convenience.
Advancement in technologies with AI/ML and automation has done wonders in the healthcare industry. The fact that doctors can treat patients remotely with the help of telecommunication, has leveraged medical facilities on a global level. The global Telemedicine market has gained momentum, especially during the corona pandemic, hiking up from USD 50 billion in 2019 to USD 460 billion in 2030. Along with this, the number of telemedicine users is to increase 20-fold in the coming years.
With an increasing inclination towards a healthy lifestyle, precisely customized on-demand health & fitness apps are highly trending. Personal trainers, personal dieticians, customized workout plans, and an option to choose from a variety of fitness activities; are all available with just a tap at the user’s convenience. On-demand, fitness apps are to score high due to flexibility, reliability, convenience and easy booking & payment options.
The global digital fitness market is to garner USD 81.67 billion by 2022 growing at a CAGR (Compound Annual Growth Rate) of 12.4% from 2022 to 2027.
The on-demand transport services cover both passenger transport and goods transport. Dial-a-ride with taxi e-hailing platforms is consistently upscaling owing to higher flexibility, agility, as well as broader reach.
Accelerating at a CAGR of 53%, on-demand home service apps are soaring high with increasing demand for services like house cleaning & repairs, babysitting, pet care, packing & moving, etc. With key players taking over the market, the major factor driving the growth of on-demand home services is proliferating startups.
Netflix, Hoot, Amazon Prime, Spotify and other on-demand entertainment services have changed the direction of entertainment. Emerging trends in OTT have eliminated the dependency on big screens. Audio & Video-on-demand services are entertaining their audience by offering tailored content in TV shows, podcasts, online music, documentaries, web series, movies, etc.
You can sell your products/services only when there is someone to buy them on the other end. So, let us unclose the hidden benefits of on-demand services apps from the user-end as well as from the provider-end.
You have a complete report of user activities: what users find attractive, what is distracting them from making a purchase, and what are their likes, dislikes, reviews or feedback? By thoroughly analyzing user behaviour you can draw out specific behavioural patterns. This data can prove extremely helpful while devising business strategies and marketing plans.
Moreover, using this data you can identify the most popular or not-so-popular products/services as per user choice and review. This helps in scaling your solutions accordingly.
Data analytics gives you a clear understanding of your audience, ongoing market trends, and your current channels. Based on this you can devise market-driven strategies, make smart assumptions, or opt for personalized marketing. You can also strategize bonuses, rewards, discounts, offers, loyalty points, or cashback offers by using the inbuilt recommendation engine of your app.
Be it large-scale businesses or SMEs, on-demand services apps cater requirements of all types of businesses. On-demand, apps are dynamic and highly scalable. Initially, you can start by building an app to suit your business goals. In future, you can host your platform and invite other businesses to market their products/services on your app by charging commission fees in exchange. By doing this you can multiply the revenue generation through your app as well as increase its popularity.
With one tap you can confirm bookings and orders or schedule appointments with your clients. On-demand services apps help you overcome your traditional working systems where data regarding schedules, appointments, or orders were maintained manually on paper.
Users have to register with on-demand services apps before they start using them. These apps hold user-sensitive data that have a high chance of misuse. The safety and security of on-demand apps become crucial. Strict authorization, authentication, and password confidentiality can help in building high-security walls across the database.
Consumers are ready to spend on online products/services. All you need is an excellently designed app, a great marketing strategy, a clear CTA, and a well-managed consumer support system. By this, you can expect over 30% conversion rates to boost the potential growth of your business.
Moreover, agility, flexibility, scalability, and user data analytics can help in retaining customers, encourage repeated orders, and increase consumer satisfaction, leading to increased business opportunities.
Users now prefer online communications rather than making calls for consumer support services. Integrating a user-friendly chatbot can easily solve this problem. The chatbots can carry out seamless communications to provide customer support and carry forward the conversation to a human representative in case of serious issues. This can help you save costs, energy, resources, and time.
Users can post reviews, feedback, and testimonials depending on their experience with your brand. Positive feedback can help you fetch more customer leads and negative feedback can help you identify & improve the weak areas. Anyway, it is a win-win situation.
It is expensive and time-consuming to build, develop, and deploy fully functional apps as compared to on-demand apps. Building an on-demand app can be a great idea as it caters to user demands cost-effectively.
Especially for startups, investors are ready to invest in promising startup businesses opting for on-demand services apps, because ROI (Return on Investment) is guaranteed.
On-demand apps are user-friendly and customer oriented. Users can stream through a wide pool of options, choose selective products/services, and even ask for customization. With one tap they can place an order or schedule an appointment, at their convenience.
In case there is a change of mind, they can easily cancel orders and reschedule appointments with one click. Subscribing or unsubscribing is also as easy as that.
After placing an order or scheduling an appointment, users can check the status of whether it is approved, rejected, scheduled, arriving, or cancelled. This eliminates the need for two-party communication, saving time and resources.
Also, on-demand, apps are integrated with the GPS navigation system. Users can easily and accurately track the live location of their orders.
On-demand apps are integrated with expanded payment options for enabling purchases through credit, debit, or visa cards. Besides, modern payment methods like mobile wallets and cryptocurrencies make it a pro.
A major benefit of on-demand services apps on the consumer front is that users can avail No cost EMIs in a few clicks and pay for their purchase in interest-free instalments.
It is completely a consumer’s choice whether to receive updates on upcoming offers, discounts, rewards, etc. via push notifications or switch to DND (Do Not Disturb) mode.
We know by now that you are all tempted to kick in an app for your business. However, to enjoy these benefits and to allow your customers to get these benefits, you need to build a robust app that stands tall amidst tough competition in the market.
For this, you have to strictly abide by the on-demand app development process which includes steps like:
Moreover, for on-demand services app development, you need to decide on the right platform to build the app (Android, iOS, or cross-platform).
We at Whitelotus Corporation are one of the top mobile app development company offering excellent mobile app solutions for a decade. We deliver robust mobile app solutions with 100% accountability, 24*7 of 365 days of customer support, superior quality app architecture, as well as customized and scalable solutions.
We can help you build a unique on-demand service app that suits your business goals. We can start from small and then slowly expand your service platform to a marketplace.
So what are you waiting for? Call us for a FREE consultation! Let us connect right away!