Everything you need to know about on-demand apps and services


An on-demand app is a digital marketplace that provides instant access to the goods and services that customers need. On-demand services are designed for instant gratification, and endeavor to give consumers what they want, when they want it. For eg: if a customer needs a ride, right this moment, from their downtown office to a meeting on the other side of the city, an on-demand platform will locate the closest available ride, connect the vehicle and customer digitally and offline, and optimize the route in real-time for fast arrival to the desired destination. 

The best part about on-demand services is that it mediates between all the relevant parties in a fast and efficient manner. Let’s understand the formation and the potential of the on-demand business.

What is on-demand economy

The on-demand economy is an economic flow created by business with the help of mobile app development companies for the instant gratification of the customer demand via the immediate provisioning of goods and services through mobile applications accessible from their smartphone devices.

In an on-demand economy, the supply chain is managed and driven through an efficient, intuitive digital solution i.e. a mobile application, layered on top of existing infrastructure networks within these businesses.

The on-demand economy is powered and fueled by digital marketplaces that provide instant access to goods and services. Businesses based on on-demand services connect an existing workforce, like delivery men, with customers in need of their service via an online platform or a mobile application.

The on-demand model can be traced back to the 1990s, and since then has tremendously evolved with each passing year. As technology advanced, better frameworks turned the on-demand economy into a disruptive force that it is now and after the emergence of the pandemic has turned out to be the most disruptive sector in the entire business fraternity.

New on-demand delivery platforms have revolutionized the on-demand industry by capitalizing on the ready-made workforce of delivery men by helping them in becoming the bridge between retail store and shop owners and the customers in need of goods. 

In the food industry, Doordash, Zomato and GrubHub help hungry customers gain speedy access to surrounding restaurants. In the eCommerce industry, platforms like Etsy, Amazon, Flipkart, and eBay enable artists and businesses reach customers worldwide.

In fact, during the pandemic lockdowns, the on-demand business tremendously helped people in staying safe from the disease by leveraging on the hyperlocal business model over the eCommerce model to provide the customers with their necessary goods and services. This role of the on-demand service sector cannot be forgotten. The credit needs to be given where it’s due. 

How does the on-demand economy function

The on-demand economy is rooted in immediate access to services through instant gratification. Its aim is to provide a speedy solution to a customer’s needs by connecting them with all the service providers in the chain of supply and demand. On-demand service providers build a technology-driven infrastructure around the cycle of consumption.

The Internet has changed the behavior of customers in a lot of ways, and convenience has become the most important factor in influencing an individual’s purchase decision. Using on-demand platforms, consumers can search for goods and services online to discover new providers, order or schedule, track, message, pay as well as review the goods or services availed.

Companies like Amazon are constantly innovating their eCommerce delivery options and trying out different business models based on geography and demography. For eg: Amazon’s  Prime services provides its customers with two-day and same-day shipping facilities as well as an OTT platform where viewers can watch new movies at the comfort of their home and when it comes to reading, their Kindle Unlimited gives readers access to books anytime, anywhere, even without an internet connection while helping authors expand their reader base.

On-demand marketplace platforms have become so useful in 2020 that they are providing a seamless experience for consumers and service providers alike by making the purchase and sales journey as easy, efficient, and smooth as possible.

Types of on-demand business 

Transportation 

The on-demand business has been a great advantage for the transportation industry. It has helped revolutionize the cab business to unexpected levels. Unlike the traditional taxi business, the app helps transportation to be comfortable and quick. It enables the user to find and book taxis in their nearby locality to reach destinations. This same procedure can be followed in logistics too since it will be very helpful for clients to track their products in real-time.  

Meanwhile one should also note that in the transportation business, the entire shipping and logistics business paradigms such as matching and route optimization, digital mapping for updating real-time road conditions, and dynamic pricing algorithms that adjust prices according to demand and supply, is fulfilled by backend mobility technologies.

This is why the on-demand business has been able to cater to the needs of customers who need to move their houses and belongings to different states or even parts of the world. 

Hospitality 

Most restaurants nowadays deliver food at their customer’s doorstep through an on-demand food delivery platform. With the help of an aggregator application, restaurants can easily collect orders from the app users and share them with the delivery men to deliver the food. Take Zomato as an example; they not only help the customers find great restaurants and cuisines nearby but also deliver meals to the customers as per their request. Also, building a successful on-demand food delivery app for restaurants and food startups has become easy as anyone can learn how to build a food delivery app.

For hotels, on-demand apps have become a blessing they have been yearning for. Managing their guests is a complex process for most hotels, especially during peak seasons. It involves a lot of processes like housekeeping, front desk, maintenance, reservations, and other departments that need to be managed simultaneously at different intervals, leaving plenty of opportunities for guests to fall between the cracks. On-demand apps provide the guests with a unified front by providing them the comfort of cross-department services in a single location.

On-demand staffing apps such as Instawork has been helping the hospitality industry tremendously by connecting thousands of staffing professionals and business partners with the hotels that need them every day.

There are so many on-demand apps for solving each and every unique pain of the hospitality industry.

Homecare 

According to a report by the New York Times, the value of on-demand home services sector in the US alone currently stands at a whopping $600 billion. Also, it is showing a steadfast growth during the forecast period and is projected a CAGR of almost 49% by 2021. Imagine the need for these services in other countries!

The present generation where the purchasing power has shifted from the hands of the older generation to millennials who by the way are the largest consumers of the internet is the primary reason for the rising on-demand services industry. This factor will further result in incredible market growth in the coming years.

There is a massive demand for home care services such as housekeeping now. You can utilize this scope to create a homecare app that provides services such as housekeeping, nursing, babysitting, etc which can benefit people who are in need. Customers can request service personnel for various services such as dishwashing, house cleaning, gardening, and other chores which are in high requirement. So creating this app can help people to find the right individuals to do chores daily.

You can get to know everything about this industry by reading the Complete Guide to Creating an On-Demand Services App.

Rental Services

The rise of the sharing economy has led to a change in the mindset of millennials. Millennials, who have always preferred to own rather than rent (be it homes, cars, or furniture), have opened up to the idea of renting what they need. 

With more and more people shifting towards the urban areas due to the easy access to common amenities such as markets, malls, hospitals, schools, banks, easy availability of local transport, including others, we are witnessing more of residential complexes and apartments of various sizes popping up everywhere in order to meet the demand while keeping the purchasing power of different classes.

On-demand home rental apps help tenants in finding a suitable home within their budget with ease, simplifies the paperwork formalities and other activities for them, easy payment of their rent through online portals, etc.

Sellers and landlords who want to sell or rent their property can simply register themselves with any on-demand home rental platforms and list the properties they want to sell or rent. Individuals can easily find and book accommodations at their preferred location or city through apps.

On-demand car rental apps aren’t new, but they are getting more and more traction for the past two-three years. This is because they provide a middle ground between ride-sharing services, where someone else drives you to your destination, and car subscriptions, which are services that allow you to keep a specific vehicle for an extended period. On-demand car rental services usually are the modified and short-term versions of traditional car rental services.

On-demand car rental services work in a similar way i.e. you reserve a bike, car, or SUV ahead of time using a mobile application for a specific (usually short) trip or journey, and then return it to the same parking spot later. Most on-demand car rental services provide insurance and even a gas card to refuel although it might vary in case of certain on-demand car rental apps.

On-demand furniture rental services rent out affordable and functional furniture and home appliances that are personally customized to meet the needs of their customers. 

On-demand furniture rental apps have been on such high demand because of the millennials, students, and young professionals who keep moving frequently in search of better job opportunities and for higher education and find shifting or buying of furniture difficult due to a tight budget and time limit. Even entrepreneurs who are setting up new offices aimed at showcasing their business model and work culture through their decor don’t want to risk investing too much money and end up incurring losses, have been opting for on-demand furniture rental services. 

Vinod Kothari Consultants provide detailed research and understanding of the on-demand furniture industry in their article Furniture rental startups: A financial perspective.

Healthcare 

Since the outburst of the pandemic, people have started taking preventive measures to safeguard themselves from the coronavirus by monitoring & tracking their everyday physical activities such as steps walked, blood pressure level, sugar levels, heart rate, among other things. This new inclination of people is what has made the Healthcare industry (roughly) $2 trillion-worth which was already being an invaluable asset to the world in such tectonic times. The pandemic has come with a silver lining for business owners who have been fishing for creative and health-centric ideas for their target audience who wish to monitor their health as well as their well-being.

In the wake of the ongoing Pandemic, patients are looking for quick and convenient healthcare services. They need safer ways to reach out to healthcare providers and get solutions for their issues. A majority of the patients are willing to use digital platforms, like on-demand apps for scheduling an appointment with a doctor, for faster and safer service. 

With on-demand apps for scheduling an appointment with a doctor, patients can get care without even having to go to the hospital through online video calling facilities that come built within the app. Doctors and tech entrepreneurs who wish to know how to build an app for scheduling an appointment with a doctor can read this article to know more about it.

The availability of medicine is the most important thing during a pandemic outbreak. Frequent lockdowns and travel restrictions not only made it difficult and unsafe for the people in need to go to the pharmacy stores to get the required medicines and drugs but also brought a decline in the availability of medicines as people kept piling up their stock of essential medicines, masks, and sanitizers. 

This is when on-demand pharmacy apps took the pharma industry by storm as it provides the customers with doorstep delivery of all their essential medicines and drugs. Online pharmacy apps provide customers with a smartly categorized list of medicines for each and every issue; customers can browse through the list and select the ones that suit their needs and make a cashless secure payment online, ensuring a contactless delivery by the delivery men. 

You can know all about selling medicines and drugs online fast through pharmacy apps here.

Also, addressing people’s mental healthcare is as important as talking about their physical wellbeing. Long and irregular hours and heavy workloads along with social distancing and isolation have become the cause of stress, depression, anxiety, and other mental health issues, including burnout. It is during times like these that mental healthcare needs to be even more easily available for helping people cope with their cognitive and behavioral issues.

If a list can help you understand the importance and variety of mental healthcare apps being made and used, then go through a list of best app services for mental health for iOS and Android. On-demand mental health apps will be needed now more than ever since a lot of millennials are ready to accept their mental health issues and work towards bettering it compared to the previous generations.

Read about the Wysa app initiative where Cincinnati Children’s releases app to help cope with Covid-19.

Grocery (home essentials, vegetables and fruits)

The pandemic doesn’t seem to end too soon and as advised by WHO (World Health Organization) we need to learn to live with corona. Even with all the necessary precautions, the spread doesn’t seem to have a halt or slowdown due to which a lot of people are still terrified or cautious of going out and buying their list of vegetables and fruits regularly or their daily essentials like milk. In a lot of countries, shops are to be opened for a few hours only, which doesn’t fulfill the needs of a lot of people who are either left out or are unable to go out. So, people are primarily relying on on-demand grocery delivery apps for grocery shopping.

 In terms of the grocery delivery business scope, in June 2020, online grocery sales hit a record of $7.2 billion. As shoppers are buying more and more often, this trend is not expected to slow down any time soon. In fact, most mobile and eCommerce businesses are targeting the micro-delivery business model due to the exponential growth of local customers during the pandemic and the new delivery model is yielding great results for them at a substantially low budget. So, if you are planning to build an app for grocery delivery that targets grocery pick up too then this is the right time and the complete breakdown of creating an app for grocery delivery has been mentioned in the link.

Conclusion

Creating an app is easy and you do not even have to know how to code to do it on your own. You can learn how to make an app in 10 easy steps by following the step by step guide mentioned that has all the processes beginning with ideation to the launch and management of your app.

But creating a generic on-demand app isn’t going to help you topple the already cut-throat competition existing in the on-demand business. As an entrepreneur or a startup, you will need to partner with IT Resource providers who are experienced in the field and know what you intend to achieve. 

Archisys as an award-winning mobile app development company has had a lot of experience in helping various businesses set up their on-demand apps. We have always believed in discussing ideas firs and that’s why we provide the first two sessions of consultancy for free!

Contact us today and happy reading!


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A Complete Guide to Creating an On-Demand Services App