20 Sep Discover On-Demand Service Apps In 2019: Types, Trends, Opportunities & Business How Tos
With the current onslaught of a huge chunk of internet users seeking fast, convenient and cost-effective services online – on-demand service is becoming more of a buzzword nowadays. The utility of on-demand service apps is simply undeniable because of the quality services they ensure.
Quality and shorter delivery time are in fact the main reasons why some of the on-demand apps have gathered immense popularity across the globe.
If you’re looking to launch an on-demand application service app – right now is a better time! In this blog, we’ll get to explore the types; recent trends; evolving opportunities; the business how to approach; and the growing importance of on-demand application builder community.
What On-Demand Service Apps are?
It literally means a middle party software that acts as a source of connection between customers and service providers. On-demand services in simple words – facilitate communication – in audible, visual or textual forms – to get jobs done successfully.
Popular examples are Uber for taxis, Zomato for food, and Airbnb for hotels etc.
On-demand service platforms allow users to solve their daily problems. And in return, users are increasingly happy to pay for the services they get online. In this way, companies or on demand service providers grow their business reach and sales, and their customers find a convenient way of getting those services.
Why people use on demand delivery apps and what do they do on it:
Reason for the popularity of these apps is the ‘instant problem solving value’ users get. So how do on-demand services actually turn inconveniences into solutions in just a few taps?
- “Oh no! I’ll be late, as it’s gonna take long for me to reach the bus stop. How about calling an Uber taxi to my current location – that’ll save me the time and effort”.
- If I just order pizzas via Zomato app – I’ll be able to spend my full time with guests who have arrived already”.
- “Now my inflexible job hours won’t hinder me from getting my father a regular medical check-up with Doctor on Demand app”.
Above are just a few daily-life scenarios to quote.
Apart from getting the service, users also:
- Pay for services in the apps
- Get real time notifications of service provider’s GPS location, time required, and audible, textual or even video communication and vice versa.
- 70% of the users use on-demand platforms to search for hiring services online, while 62% of them use on-demand apps to check the live status of the service they’ve ordered.
Types and Nature of On-Demand Service Apps:
We can distinguish on-demand delivery apps into three forms depending on the nature of people involved:
- P2P (Person To Person): These on-demand service platforms allow individual users to exchange products with users.
- Examples: Olx and eBay
- B2B (Business To Business): These on-demand delivery apps are solely for supporting communication and service exchange between businesses.
- Examples: Cargomatic and Catalant
- B2P (Business To Person): B2P or B2C on-demand delivery apps facilitate services and products delivery from companies to customers. Meaning companies direct their employees to reach out and provide products and services to its customers and make money with it.
- Examples: Uber and Booking.com
How Do On-Demand Service Apps Work? General Steps:
1- User places a request.
2- A service provider sees the request.
3- Provider accepts or declines the request (depending on the situation).
4- System shows payment for authorization.
5- Provider delivers the service or product after payment authorization.
6- Customer confirms the service delivery.
7- Payment then gets deducted.
Some Real Life Examples of Highly Successful On-demand Delivery Platforms and How They’re Influencing Major Industries:
- Taxi Service
On UBER, people can now request rides from any location on their smartphones and track the nearest available rides to go anywhere.
- Food Delivery
Apps like Zomato have made ordering, real time tracking and delivery of food a matter of several minutes without the fatigue of actually going to a takeaway.
- Medical Services
With apps like Doctor On Demand, now there is less danger of not successfully tackling an emergency situation when any patient needs a doctor.
- Coaching Services
Specialized and expert tutors for diverse educational and training purposes are being hired anytime the learner finds convenient to arrange – on apps like Prosper.
UBER Freight is an ideal example of how shippers and carriers of bulk goods benefit.
- House and Window Cleaning Service
House cleaning on-demand services like Maidac have provided immense ease to cleaning service providers to find clients at their own pace rather than going from door to door to find a job asking whether anyone needs a cleaning service or not
Other big on-services industries include fitness, maintenance, laundry, beauty & Hair salon, pet care, and the list continues.
Notable Statistical Trends In the On-demand Economy:
- Annual Spending:
According to data collected by NTRS (National Technology Readiness Survey), the year 2017 saw an increase at a whopping 58% ($75.7) in total spending for on-demand (products and services) as compared to 2016.
These numbers are significantly growing for the market of on-demand apps in 2019 too – and are reported to reach a huge collective value of $335Billion by 2025 – according to PwC’s latest research.
- So are on-demand services gathering significant following?
The answer is a big YES. In America alone, around 7.6M Americans shall become providers of on-demand services.
Moreover, on-demand customers reached from 24.9 million in 2016 to 41.5 million in 2017. It’s surprising to see that more than 2 billion people used cellular devices to make a purchase worldwide – by the end of 2017.
- Who are using on-demand platforms?
Millennials form the lion’s share of on-demand service seekers at 49%, whereas people between the ages of 35 to 54 make up 30% of the consumer quota.
Booming Importance of On-Demand App Developing Community
So what really makes the role of an on-demand app and web development company to gain so much importance in the world of app development? Well arguably it’s their different or rather specialized skill-set that’s crucial for developing on-demand service and delivery apps.
On-demand App creation is harder than creating a regular mobile app.
The maxim “necessity is the mother of invention” holds perfectly with how the on-demand market is growing so fast – and how businesses are finding more ways to deliver on-demand services.
In this scenario, it’s expected that the demand of programmers that specialize in Uber-like app creation – shall continue to rise.
How On-Demand Apps Benefit Different Groups:
The young generation is realizing how on-demand services provenly save a lot of time – while leaving ample room for getting other important things done – that ultimately have a direct effect on the quality of their lives. This on-demand trend is now seen by a lot of users as a way of uplifting their economic status.
Businessmen / App Service Providers:
51% of on-demand app providers shared that their financial situation has improved as compared to the last year 2018 (Burson Marsteller Survey) – while 64% expect the same – for the next year 2020.
There has been a steady growth in the number of workers entering the stream of on-demand economy – every year. As of 2017 – up to 5.4 million employees were working in the on-demand market on record. This upward trend will absolutely hold strong in future.
There’s going to be a high trend of more high skilled positions in the on-demand apps services. Take the health and medicine industry for example – the on-demand nursing app named FRND developed to facilitate services of a certified nurse at home – who handles a wide range of specialized healthcare needs, is one example of a skill oriented on-demand job. So in the near future – as the on-demand economy enters more diverse industries – highly skilled positions will be in vogue.
Is the On-demand Service Platform Worth Investing In:
Absolutely yes! Reason being is that on-demand service is a game of providing the “value of convenience” to a population. Uber and Airbnb are superb examples of how these problem-solving on-demand service apps made things convenient for people – and speedily joined amongst the most widely used apps internationally.
Investment rounds focused on funding on-demand startups that started in 2014 ended with a figure of $74 billion and $102 Billion in the last quarter of 2017. Given the popularity, we can expect those numbers to keep growing significantly in 2019 and beyond.
Previously shared statistics speak volumes of the profit potential that the on-demand economy has. It only requires the research to understand the routine needs of people that can conveniently be fulfilled through an on-demand platform. And then of course – a team of professional developers from a creative agency along with investments to back the program.
Now If You’ve Decided To Make an On-demand App – See These Must Consider Prerequisite Steps You Can’t Afford to Miss:
Do a Market Research
Collect data and try to understand the various strategies that your competitors have applied in their business. Look out for all the weaknesses and mistakes your rivals made in their journey – so that you’re not doing any of that.
You can then come up with better strategies to avoid any grave losses and grow your business fast.
Understand Your Target Audience:
Your app’s success purely depends on this factor. Survey your audience and see how their behavior patterns revolve around how they would like an on-demand app to be like. What is it that they don’t find attractive or questions like what incentivizes them to happily use an on-demand service?
Analyze their real pain points and question them on what they really want. By doing this, you’ll be able to devise clear goals and strategies accordingly.
All this will help you to know what is popular and what is not. So then you can take a good decision about what kind of app and what service you’d seek to provide.
Choose the Optimal Features:
If you’re launching a new app and want to know its viability as early as possible – then go for an MVP (Minimum Viable Product) to just add the most important features and have a safe start.
Some not to be missed out features include:
- Convenient Registration Method:
Registration is necessary for user profiles, ratings, personalized journey experience etc. It’s thus imperative to add an easy and straightforward registration login method – with any social media account or email address.
- Tracking / Geolocation
The geographical closeness of a service provider on the map is essential for saving both the parties some valuable time. Especially in delivery and transportation services it’s a necessity to specify pickup locations and destinations. Watching your taxi coming on a screen map is a very interactive experience and the customers simply love it.
Push notices play a great role in customer experience. Notify the users regarding payments, ratings, and other essential things that sum up to a complete customer journey.
- Reliable and Easy Payments
People tend to super conscious when there is anything that involves their money or identity. So your payment system should be transparent and as secure as you can make it – to develop trust in your services. The best way is to use online financial payment services that are already reputable – like paypal.
- Feed back
This is simply the rates and reviews of your customers about your service. This also develops an understanding in your customers – about the fact that you care.
- Help & Support
Who can ever leave this portion when they are providing real time on-demand services online. This feature assists customers in case of any queries. This in turn, adds to the company’s reputation.
Wisely Choose Technologies To Be Used:
On-demand service app creation requires parcels of innovations, depending on the choices of technology platforms. Moreover, choosing a technology stage to construct an app for is the foremost crucial part because it straightforwardly relates to customers’ media experience. In this way, you must launch the app on platforms that are popular among your target audience and keep close consideration to tech-related details. Generally, there are three sorts of platforms you need to check-out:
- Web Platform (runs in a web browser)
- Native Platform (iOS / Android)
- Cross-Platform Technology (a cost-effective way for both iOS & Android Apps)
Your service providers are the lifeline around which your whole business revolves. You can go with either of the two options in selecting your tech developer team:
1- In-house Teams:
- They can cater long-term projects with 24/7 support
- It’s a more expensive option (you’ll be dealing with insurance, taxes, salaries, sick leaves and even vacations).
2- Offshore Developers:
- A good choice for both long and short-term projects
- Relatively economic (you’ll only pay against the amount of work done)
- These teams are readily willing to sign a contract for the safety of both the parties
Buzz Interactive: Experts in Building On-Demand Businesses
On-Demand service app provision economy is highly lucrative and profit making from a business point of view. But this endeavor is a complex one at the same time, as it needs detailed research, lots of testing in technology selection process and working with target audience to make sure the MVP features are good enough to get your app started. At our creative agency, it’s our routine job to turn your business illustrations into reality. Our professional developers from various domains work together to do all the required research and devise optimal solutions for your app making needs.
We’ve worked with many on-demand businesses and know many of the business and tech linked pitfalls that cause newly built on-demand startups to sink. So with us, you’re in safe hands! Let’s talk about your on-demand business idea and see how we can help you – and create your success story.