The Craze of On-Demand Apps: What Startups Need to Knowby@harjyotkaur
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The Craze of On-Demand Apps: What Startups Need to Know

by Harjyot KaurMarch 3rd, 2023
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On-demand delivery apps have become one of the most popular and used technologies of the 21st century. These apps are designed to provide users with an easy and convenient way to get the goods and services they need and when they need them. The on-demand service app market value is expected to reach $335 billion by 2025. Here are the top reasons why such apps can be found on everyone's phone.
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A successful business will only stay successful forever if it changes along with trends and customers' needs. The current trend is that users search for speed and fast services, whether for groceries, food, appointment booking, or a cab.

On-demand delivery apps have become one of the most popular and used technologies of the 21st century. These apps are designed to provide users with an easy and convenient way to get the goods and services they need and when they need them. Let's begin by discovering the popularity of on-demand apps.

The popularity of on-demand delivery apps

The demand and popularity of on-demand apps can be understood from the following stats.

The on-demand service app market value is expected to reach $335 billion by 2025. The studies also show that there will be a significant rise in businesses adapting on-demand service apps.

Image source

Image source

The US consumers are spending approximately $57.6 billion in the on-demand economy. This spending is expected to cater to 22.4 million users per year. The same situation can be noticed worldwide.

These studies prove that there is ample room for startups and small businesses that want to enter the on-demand industry.

4 reasons why people choose on-demand apps

We have discovered the craze for online apps above, but what are the reasons that have led to this? Here are the top reasons why such apps can be found on everyone's phone.

  1. Convenience

The on-demand market has made everything convenient for users. Everything has shifted online from ordering a meal to getting the house clean, booking the cab, consulting with the doctor, and ensuring regular medicine delivery. The user does not have to step out, get stuck in the traffic, and wait in line anymore to get this work done. Just a few taps and they will have it delivered to the doorstep. The quick deliveries have also led to better satisfaction, proving to be more convenient for every user.

  1. Personalization

Customers want companies to know them and what they prefer. The scope of personalization with on-demand apps is one of the most significant factors that has made it so famous. Furthermore, they can send personalized suggestions, discounts, and offers to attract and make them feel valued. Customized messages on birthdays and other occasions make the customer feel even better.

  1. Contactless delivery

Especially after the pandemic, contactless delivery has become a must-have feature for on-demand apps. During COVID-19, when everyone was prone to the virus, contactless delivery made a claim for its place, and people are enjoying it to date. In such a situation, the agent leaves the package outside the doorstep, and the buyer can collect it without contacting the delivery guy, ensuring safety. Giant on-demand apps like Uber Eats, Amazon, and much more are practicing this.

  1. Behavioral targeting

On-demand is all about keeping the users at the front. Behavioral targeting is one way to do that. As a website uses cookies, it helps analyze and understand the customer behavior of each visitor that comes to the site. It records data like gender, product bought, buying fashion, interests, etc. This information further allows companies to know their purchasers in and out and target them based on their preferences. Email campaigns and remarketing practices are all based on this.

Types of on-demand mobile apps

There are three types of on-demand mobile apps, and based on the business needs, products, and services, you can choose the model that fits well.

  1. B2C mobile apps

A B2C mobile app is a digital platform that facilitates the exchange of goods and services between businesses and individual consumers. These apps are designed to make it easy for consumers to browse, purchase and receive goods and services while enabling companies to market their products to a broad audience. B2C apps can include features such as product catalogs, online payments, order tracking, customer reviews, and more. The ultimate goal of a B2C app is to create a seamless, user-friendly experience for consumers, which can lead to increased brand loyalty and revenue for the business.

Example- Amazon

  1. B2B mobile apps

A B2B mobile app facilitates business-to-business transactions between companies, allowing them to collaborate, manage projects, and share information securely. B2B mobile apps typically offer a range of features, including inventory management, supply chain management, customer relationship management (CRM), and more. These apps focus on improving efficiency, productivity, and communication between businesses, enabling them to streamline operations and reduce costs.

Example- Cargomatic

  1. C2C mobile apps

A C2C (consumer-to-consumer) mobile app helps individuals to buy and sell products or services directly to other individuals. C2C apps typically provide a user-friendly interface that allows users to create profiles, post listings, communicate with potential buyers or sellers, and arrange payment and delivery. These apps can be used for a wide range of transactions, from selling secondhand goods to offering freelance services.

Example- eBay

On-demand app-building process

If you want to enter the on-demand apps market, it requires careful planning. Throughout the entire process, it's essential to keep the end user in mind and ensure that the app is designed and developed to meet their needs and provide a positive user experience.

  1. App idea generation and planning

The first step involves brainstorming ideas for the app and creating a plan for its development. It requires selecting a niche, whether you want to enter the food, grocery, taxi, pharmacy, or handyman industry.

  1. Cost estimation

Before you begin to develop the app, it is essential to know that it can cost you an average of $15,000 to $60,000. The amount can further vary on factors such as complexity, UI/UX, the time required, platforms it will be available on, and so on. Hence, you need to ensure that you have the proper funding with you for app development.

  1. Design and prototyping

The next step is to create a visual design for the app and a prototype that users can test. Remember that your design should differentiate from competitors, and you must discover the USPs of the solutions that you will provide through the app.

  1. Delivery app development

It is where the app is built and coded according to the plan and design by working with an on-demand delivery app development team that understands the business needs.

  1. Market the app

Now that your app is ready, you must follow the best marketing practices to reach the target audience. The strategies must highlight the services users will get, how the app stands out from the competition, and make it an ideal choice for the audience.

Top 3 industries to start your on-demand business

There are several business ideas to adopt for entering the online marketplace, but we will talk about the top 3 industries that can give your business a kick start.

  1. Online food delivery

Whether you own a restaurant or want to start an aggregator business, the food industry is one that never gets too congested. The entire food delivery app industry is expected to reach a $320 billion market size by 2029. It helps the users connect with local food outlets and get the order delivered to the desired location. An app like UberEats can give your business a boost in the food industry.

Top examples: UberEats and DoorDash

  1. Grocery delivery app

The trend for grocery shopping through an app is on the rise. 64% of US consumers purchase products via grocery delivery apps. It can be a great idea to invest in a grocery app, whether you are a startup or own a small business in the grocery industry. The app provides the comfort and speed that the users look for.

Top examples: Instacart and Walmart Grocery

  1. Healthcare app

The healthcare sector has got a new shape with the on-demand app ideas. Everything can be done through a single application, from booking appointments to consultation with the doctor, personalized health recommendations, storing health data, etc. This market is expected to reach USD 314.60 billion by 2028, making it another great investment idea.

Top examples: Teladoc and MyFitnessPal

Wrapping up

On-demand is an ever-growing industry that benefits customers, vendors, admin, and delivery agents. You must know that this industry provides excellent opportunities to earn money as it works on various revenue models like subscription, commission, in-app advertising, freemium, and so on. You can gain a competitive edge with the right idea and an easy-to-use app.