How Much Does It Cost to Develop an On-demand Service Application?

Looking for on-demand app development services? This is the only rule of thumb to double your business investments in a month! But How? Have a look at this blog and get your all answers in just a few minutes.

Image Source: Dribble by Mamta Singh

Can we call on-demand service app development solutions — the multi-billion future business idea for 2022?

Yes, Why not!

The way the on-demand economy is swiftly taken over the traditional business models by offering services tailored to the needs of modern customers, undoubtedly, on-demand service apps are offering a promising future to the businesses. The market that on-demand service apps have captured is progressively spreading and expected to exceptionally grow in near future.

According to the reports, 42% of the total US adult population that is 86.5 million Americans, have at least used services of one on-demand startup. And startups like Uber and Airbnb are the titans of this industry contributing a major role in shaping the on-demand economy of the US.

But wait, does it mean that accessing the on-demand market is easier?

Well, the simple way to get an entry ticket in this escalating market is to equip your business with on-demand service app development solutions!

But how much does it cost you to develop an on-demand service application for your business? While making a random search on the internet, a software development company can claim you to develop a dashboard management app at $10,000+ but coming to the real estimations it is far beyond this.

So to help you understand how the on-demand economy is moving and how you can benefit your business with these opportunities, real-life examples and more, we have drafted this blog with all the essential information that assists you in proceeding in the right direction.

Here are the key focused points of developing an on-demand service app:

• Catching Up The Market Trends of Yesterday, Today and Tomorrow
• How Start-ups Can Boost Their Business Growth With On-Demand Service App?
• Structure of Successful On-Demand Business App
• On-Demand Service App Development Cost Breakdown for Startups
• Getting Started With On-demand App: What You Want To Be?
• Tips For Growing Your 0n-Demand Business

Let’s get into the detail of each point:

1. Catching Up The Market Trends of Yesterday, Today and Tomorrow

Right from the scientific point of investors to the economic stage of on-demand service apps, we have gathered some market data that can help you understand the notion of the on-demand economy and how it has become a big bubble that is going to bust in near future.

After juggling with various studies and survey reports, we have figure out some facts and presenting them in a very sought manner:

On-Demand Economy Facts and Stats

• According to the Burson-Marsteller’s on-demand economy survey, 45 million Amercians have offered services in on-demand services.
• The market report said that 64% of people who have invested in on-demand services hope that their financial situation will improve in coming years.
• According to Intuit’s survey report, 70% of on-demand workers are satisfied with their work.
• 81% of workers in the on-demand economy plan to continue working with the same provider over the next year.
• 46% of people working in this economy say they prefer working in an on-demand economy due to its flexibility.
• According to the reports, the startups that started with on-demand services with the funding of $74 billion in 2014 have reached $10,293 billion in 2017.
• According to the PWC report, the market for on-demand mobile apps and websites are expected to reach a significant value of $335 billion by the year of 2025.

User’s Spending on on-demand Services

• US consumers are spending $57.6 billion in the on-demand economy.
• Reports say that 60% of the US users are ready to pay extra to get the material delivered to their place at the same time.

In the Nutshell: The entire scenario is portraying a pushing indication that businesses who are looking forward to investing in on-demand mobile app development services will easily make money if they are backed by mindfully developed on-demand service applications for their business.

2. How Start-ups Can Boost Their Business Growth With On-Demand Service App?

If you are relatable with these statistics, then you must be looking for ways that you can leverage this benefit for your startup.

Let’s capture briefly, what exactly is On-demand services, how it works and how it can tenfold your business growth…

• Understanding the Concept of On-demand Service App

If put simply, on-demand apps are designed by keeping in mind the comfort of the users. It allows users to order any product or services and deliver it over to their doorsteps. Whether it be food, drive, cleaning services, car fueling, washing, bar management, salon management, music streaming or anything that you may think of. In fact, any mobile app development company can explain to you and help you with app development solutions.

The basic concept of launching an on-demand app is to analyse the user base, their needs and bridging a gap with an on-demand mobile application.

• Why On-Demand Service Apps Have Become a New Hue To The Market?

The Uber era has launched the tide of mobile-first experience to the startups and surprisingly it grew by 58% in 2017.

Some of the pushing reasons behind its increasing popularity are:

— Quick Access To Product and Services: Users can order any service or product virtually from anywhere with a few simple taps on the screen. All they need to have is a good internet connection.

— Better Control On Services: On-demand applications are integrated with an interactive map feature that allows customers to track the delivery of the product and services. The availability of maps, gives a better control and makes things more comfortable at the same time.

— In-App Payment Gateway: With an on-demand payment gateway, users are allowed to access multiple payment options with the additional security layers, so they feel safe to make instant payment.

• How Does On-Demand Service App Can Help Startups in Business Growth?

— While on-demand applications are available everywhere and smartphone users are spending 90% of their mobile time on applications, it makes sense to bring your idea into reality to quickly become a part of this thriving industry.

— On-demand applications are quick to launch by using existing app clones and allow you to target a larger segment of the market.

— You can become a dominator of your business and have better control over services, products and management with On-demand applications.

— Being an independent contractor, you can define your working hours and can easily work either part-time or full-time.

— Customer ratings and feedback on services that enable you to build trust among users.

Hopefully with this baseline, you have understood how they help you grow and why it is beneficial to get started with an on-demand app now. But only having a great knowledge of this content will not make you a dominating leader of this industry until or unless you don’t know the structure of developing a successful on-demand application for your business.

3. Structure of Successful On-Demand Business App

Before you proceed with the app development solution, it makes sense to define the on-demand app structure you wish to create and what audience you are trying to target…

Let’s take the example of a food delivery app. Your target audience will be office workers, bachelors, or old age people who may look for specific food items and are not able to cook on their own.

While developing an on-demand food delivery app like Instacart becomes far easier if you choose to hire a software developer. But, what if you are developing any other on-demand service or delivery app? Here are the few characteristics of the app that you need to keep in mind while structuring your on-demand application.

Important Characteristics of Developing a Successful On-Demand Delivery App

• Your product or services must be cheap in price and excellent in quality to beat the industry leaders of your domain.
• Make sure you choose to develop your on-demand application targeting both Android and iOS and inculcate cutting-edge technology in your application to stay ahead in the future. The leading cross-platform frameworks like Flutter or React Native can be considered as they are a product of Google and Facebook so they have a long way to go in future.
• Make sure that your service needs to be flexible and relevant to the user’s needs. It should be easy to adapt by the end-users.
• Your application is developed with a unique feature list and essential functionalities so that users find it useful, easy and comfortable to access.
• Rating, reviews and feedback are the important part of an on-demand application. It makes it easier for users to build trust for your brand.

There are many real-life examples of startups that have experienced tremendous success by simply following this rule of thumb. From both sides, it’s a win-win solution that allows startups to reach a wider market and the delivery service to grow their user base much faster.

So now you know what it is, how it helps in growing your business and the success mantra of on-demand business apps. Now, you must be eying up to know how much does it costs to develop an on-demand service app.

4. On-Demand Service App Development Cost Breakdown for Startups

Before you drill straight into the cost breakdown of the on-demand application, you need to know that cost estimations are broadly depending on the three panels of the app — Customer, Service provider and Admin. Or you can call it three major pillars of your on-demand service app.

So let’s take a closer look at these three major components of the on-demand service app before you consider hiring the mobile app developer. Here, we’ll focus on the set of features of Customer Panel, Admin Panel, or App Owner.

Customer Facing App Development Costs About $19,000+!

Here are the features and major elements that are a contribution to this customer-facing app development cost:

Cost To Develop Service Panel of the App $15,000+!

Many of you are wondering that this whole game revolves around a customer’s on-demand app. However the reality is, no on-demand service app works without having the service provider panel.

Cost to Develop the Admin Panel of On-Demand Service App is About $15,000+!

Despite having a separate customer and service provider panel, you need a super admin that monitors all the hierarchy of the application and makes sure that it works smoothly. All you need is to hire a cross-platform app development company that helps you build a super flexible admin panel to track everything. Right from managing the customers, service providers, deliveries, payment integration and more, this admin panel of the application adds the additional monitoring layer on your app.

The estimated cost to develop the admin-face of the on-demand application will cost you about $20,000+!

5. Getting Started With On-demand App: What You Want To Be?

Now you know the basic structure of developing an on-demand application, what features are essential to integrate and how much it costs to develop. But what all these mean for you if you’re not sure what type of application you want for your business.

Here are the few on-demand service app development ideas that you can consider developing in 2022:

On-demand App Development Ideas for Automobile Industry

People who are looking for the new business opportunities to take their transportation business to the new heights can look at these brilliant app development ideas:

• On-Demand Fuel Delivery App
• Car Cleaning and Maintaining App
• Car Servicing App
• On-Location Car Repairing App
• On-Demand Car Washing App
• On-demand Car Booking or Rental App
• On-demand Car-Hailing App
• On-Demand Cab Booking Service app

On-Demand Food and Restaurant App Development Ideas for 2022

• On-demand Food delivery app
• On-demand Restaurant and Bar management app
• On-demand Table Booking App For Restaurant
• On-demand Food Delivery and Booking App
• Custom Food Delivery App
• On-Demand Bar Management App
• Diet Food Delivery App

App Ideas for Medical Industry in 2022

• On-demand Medicine Delivery App
• On-Demand Marijuana Delivery App
• Advance Doctor Appointment Booking app
• Online Doctor Consultation App
• In-app Health and Fitness Tracking App

On-Demand App Ideas for Beauty and Salon Industry

• Salon management app
• Salon booking and customer management app
• An app for Hairdresser
• An app for beauticians
• On-demand Application for Salon inventory management

While there are various other app ideas that can be easily transformed into a business growth solution, make sure you outsource the best software development company that has the skills and resources to make it practically done without errors.

6. Tips For Growing Your 0n-Demand Business

You must be wondering, what exactly is the success mantra behind the progressive growth of on-demand applications. Why are their customers so loyal to their brand? How companies are able to keep their customers satisfied and comfortable by delivery specific services to their needs.

Here are the few insights that help them retain their customers longer for their app:

• Providing Excellent Customer Support

With the availability of millions of applications and thousands of options in the market, the first thing customers look for is super quick and friendly responses to their queries and complaints. Make sure your app has AI-based chatbots that provide seamless support to the customers 24*7.

• Treat Your Customers Special With Exclusive Offers

Customers prefer to use your app again if they get any special deal, discount, gifts or voucher on your app. These special offers can be implemented via loyalty programs that further call them for the next shopping on your app.

• Ensuring Seamless User Experience

To attract the attention of the users and keep them engaged with your app longer, usually, startups prefer to hire cross-platform app developers to customize the app with excellent UI.

• Add Tips for Navigation

Different types of users will use cargo delivery apps, so it makes sense to provide navigation for an easy shopping experience.

Conclusion

Developing an on-demand service app has become a new trend among organizations but you need to adopt a balanced approach to succeed in the competitive market. Taking into account all the growing figures of this industry, the success of your on-demand delivery app is guaranteed.

And if summing up the overall cost of the on-demand service app development then it can be somewhere $40,000 to $50,000+ and can go beyond this depending upon the features and functionalities you choose to integrate into it. However, startups can begin with MVP as well and gradually scale up the business as their user base grows.

Rest, for final cost estimations, you can hire a mobile app development company as they have a team of experts that analyse your business idea and accordingly provide you with the estimations. Also, if you release any app idea mentioned in the blog, then you can drop a query for the estimations. I hope this article has presented you with a clear picture of what factors are contributing to the overall development cost of the on-demand applications.