On-demand services has become the most talked-about business term of the decade. It is more like a buzzword. We hear so many speculations about what On-demand mobile apps are, why they are so popular, and how they impact our world. 

In this article, we will discuss all of these things including some amazing use cases.

What On-Demand Means?

In simple words, It is a business model where you provide a service right at the moment when and where the client demands it. Business owners fulfill the customer’s demand by delivering immediate goods and services. 

One of the classic examples of an On-demand app is Uber. A simple ride-booking app, yet a goliath in its industry, valued at $46 billion as of 2020. 

You see Uber today as a taxi service giant, but really it started from a simple question. When Camp and Kalanick couldn’t find a cab one night and thought “What if you could request a ride from your phone?”. Read more about the history of Uber.

Telling you about Uber should clear out two things.

One, even the simplest of ideas can redefine the On-Demand market, and Two, (if you read the history) you don’t need much, to begin with. As long as you commit to your idea, ride out any storms that come your way, you can launch an amazing app for your business. 

Why would you want to do that?

Well, On-demand services come with numerous advantages such as convenience, easy payment, cost efficiency, and nearby service availability. Don’t take our word for it, see the stats for yourself.

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Stats and Facts about On-Demand Apps and Services

The On-demand economy is swiftly taking over the brick-and-mortar business models. The surveys show impressive statistics about the United States Market.

  • 86.5 million Americans, who make up 42% of the total adult American population, have used On-demand services.

  • 22% of the total US population has offered their services in a variety of On-demand niches.

  • The On-demand app market will grow to $335 billion by 2025.

  • 79% of existing On-demand users also work for the same industry part-time. 

on demand business model

What Made On-Demand Services So Popular?

Smartphones, one of the most prevalent devices of the 21st century, have given rise to this economy. Consumers only have to swipe their fingers to connect with businesses any time they want to. Providing services On-demand has never been this easier before.

Reports estimate that the number of smartphone users will hit 4.3 billion by 2023, and the expected global population by then will be eight billion. It means that 53.8 percent of the world’s population will be using smartphones. Every single one of them could be your customer. That is the golden egg of the On-demand industry, it connects businesses with a huge customer base, in an instant. 

And let’s not forget the other side of the coin, the consumer side of things. Almost every other smartphone user in the world is using these apps for a plethora of reasons.

The extraordinary ways of providing instant delivery of quality services and goods have made these apps the crowned jewel for most kinds of businesses. 

If you’d like, we have an impressive portfolio dedicated to On-Demand apps too. Take a look.

What is an On-Demand App?

On-demand mobile applications are interactive platforms developed for smartphones and mobile devices. They let users instantly access business services that any other individual, enterprise, or company provides. 

So simply put, these apps let you, a customer, get a service, right when you want it, where you want it, from any business, without having to physically go to any store.

It’s a win-win for everyone. Businesses get to expand their potential of reaching a maximum number of customers while the consumers get instant services with the touch of a screen. 

The use cases of On-Demand apps are limited to no industry and audience. Any industrial sector can have an app and that too for a worldwide audience reach.

Types of On-Demand Apps

Here are some of the most common uses of the On-demand model. 

  • Food Delivery

We are no strangers to food delivery apps. If it’s not FoodPanda, it’s UberEats. There’s no shame in admitting, most of us do not have time to cook. If it’s not that, it’s craving at 2 am.

With food delivery apps, you can order your favorite food from your favorite restaurant.

If you are a food vendor, hear this.

“Online food delivery market is expected to hit $161.74 billion by 2023, according to this survey. While the US is the second most favorable market for online food delivery, its compound annual growth rate is expected to be 11.7% over the forecast period.”

  • Grocery/Fruits & Vegetable

Instacart, the North American leader in delivering groceries, ties up with grocery giants like WholeFoods, and Costco. From Hot Dogs to Alcohol, they provide everything with same-day delivery.

Grocery stores are the place where we all waste a big proportion of our time. Grocery apps bring everything to your door and let you save more time on weekends for friends and family.

Let’s talk about Postmates. Founded in May 2011, they use GPS devices to match consumer requirements with nearby products and deliver them. They charge a nominal delivery fee and are available for 24 hours. They’ve even partnered with McDonald’s and Starbucks and are valued at almost US$1.85 billion.

Pretty cool, right?
Shipt is another famous grocery-delivery business. Their number of shoppers is more than 50,000 and annual revenue is as high as $120 million.

  • E-Commerce

Who doesn’t love shopping? It needs no occasion. This century is a ‘shop from my bed’ century and we don’t see that changing anytime soon.
As the world came to a halt in the Covid-19 pandemic, the On-demand industry kept things alive, especially for E-commerce. You may have noticed E-commerce merchants throwing different kinds of discounts and offers to attract more and more customers. Talking about E-commerce, one couldn’t miss Amazon – The E-commerce shopping giant.

The logo says everything from A to Z is available and the organization proves it. Amazon is spread across various countries and continents.

But what’s interesting is that Amazon has moved from just being a simple E-commerce store to an AI-powered E-commerce store.

Not just that, we also have Walmart doing something similar. They’ve even got an Intelligent Retail Lab, dedicated to redefining their shopping experience by using Artificial intelligence.

Makes you think, of an On-demand app that packs an Artificial Intelligence punch. How amazing would that be?

  • Salon Services

Every business is going online at a swift pace. The food industry and the general eCommerce industry were already dominating this realm, but you’ll be surprised to see the new types of businesses that have joined the delivery service bandwagon.

Salon owners have also started to offer services on demand. They display the available time slots and customers book to get their hair or makeup done accordingly.
So instead of you going to beauty salons, you could have them come to you.
Examples include,

  1. Bella on Demand
  2. Glamsquad
  3. The Ritualist
  • Fuel-Delivery Apps

Many industry verticals can step out of their traditional ways now. The fuel industry is one of them, surprisingly. Many fuel delivery startups have emerged across the world. Customers just have to make a few taps on the phone to refill their vehicles.

These startups have gained remarkable fame, specifically across urban areas. Users can re-fill their vehicle anywhere. Also, they can avoid the pain of infinite queues at the fuel stations. Some popular startups are Booster, Yoshi, and Filld.

  • Professional Services

“Back in 2018, the home services market valued at $281.65 billion. Expectations are that it will jump to USD 1,133.40 Billion by 2026.”

This sector has undergone a massive transformation due to the On-demand economy. The sector is tremendously beneficial for end users because of its versatility. Users have found them extremely comfortable.

There are so many apps that allow people to get professional services in a variety of creative ways. You can book a cleaner, a maid, or even a plumber to come to your house and help around. Yes, we know, people could still do things like these by calling business owners and getting service at home.

But there are dedicated apps now. Connecting a community of service providers and service takers. It has brought immense ease, comfort, and actual financial benefits for everyone involved.

What is the Business Value of On-Demand Apps?

If you didn’t skim through and read the whole article, you would be convinced and excited to know that any business in the world can have an On-demand mobile app.

Many businesses consider partnering with mobile app development companies to build such apps that help win target customers faster. There is no platform restriction. You could have an iOS, Android, or web app for your business. It depends on how much you want to spend and where your audience mostly lives. Before you decide that, we suggest a consultation with our On-demand mobile app development experts.

Future Growth Trends of On-Demand Services

So where is all this going? What new trends will rise with this flooding of new apps? What changing consumer behaviors and business models can we expect in years to come?

Here are the nine inevitable changes that will reshape the industries in 2021.

  • The Sudden Surge in the Workforce of On-demand Industry: A steady increase has been observed in the On-demand industry. It is not going away anytime soon. As more and more businesses jump in, new opportunities for workers will also surface.

    A lot of the workforce is already there since the industry promises a regular and reliable income stream.

    “According to a recent Forbes report, 15.5 million Americans are working in the On-demand industry.”

    As the range of services offered in the industry grows, the businesses will be ready to accommodate more and more people in their staff.

  • Highly-Qualified Public Will Enter in the Game: Most of the services provided in this industry do not require any special training. Some examples are Uber, food delivery, and cleaning, etc.

    But the On-demand industry is now gradually also penetrating industries as sensitive as health care. So in the near future, people with high qualifications and certifications, and technical backgrounds will also join the On-demand market. Consumers would hire a nurse for medical assistance and even receive a consultation from a specialist from doctor on-demand apps. Giving an extra earning hand to the more qualified population.

  • Importance of Business Intelligence & Analytics Will Be More Than Ever: Businesses will not be able to thrive without Data Mining & Business Analytics. They will help enterprises find out the demographics of their users. They will also get valuable insights into the services that are in demand. Business analytics enables businesses to figure out whether their marketing strategies are performing well or not, given an On-demand business model, these insights will be extremely valuable.

  • Large Enterprises Using On-Demand Platform: Amazon performed better in hindsight and recognized the importance of trends way before others. You will soon see other giant to medium businesses following in the same footsteps.

  • Increase in the Need for On-demand App Developers: Definitely, the growing popularity will increase their demand. The market will need more and more software and app developing companies that specialize in On-demand app development.

    Given our intensive experience in developing On-Demand apps, we know it requires dedicated skills and knowledge to develop such applications. Even bringing a simple idea to life there are many complex systems and concepts involved, that need to work seamlessly and give a flawless user experience.
    So trust us when we tell you developers who specialize in creating On-demand apps will be highly sought after.

  • Integration of Drones: Are drones capable enough to transfer edibles or other packages? It is one of the hottest topics these days. Well, drones have been used to transfer medical equipment to remote areas successfully. Still an infant niche. How well will they perform in the On-demand industry?. Would you dare to experiment?
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Putting It All Together

Looking at the statistics and the range of On-demand services, it is evident that the trend will stay for a very long time. Entrepreneurs will boost their startups with easy-to-use On-demand apps. Business giants will be dominating a larger chunk of the market than they already are.

Organizations from all niches would have to rethink their business models and processes. Yes, consumer behaviors keep changing, but On-demand mobile apps will not lose their charm.

While businesses need to think about investment at the right time, individuals also have to keep abreast of the changing On-demand trends. The choice is yours. Do you want to be the ‘NOKIA’ of On-demand apps or follow in the footsteps of other tech giants?