Mistakes To Avoid When Developing On-Demand Service Apps.
Mobile Apps are no longer just anti-social elements to poke into when you want to avoid real life by burying your face in your smartphone. In reality, there are many apps that making our life easier and saving you time!
So what are on demand service apps? To know about it, first you need to know what an on demand economy is. On-Demand Economy is defined as the economic activity created by technology companies that fulfil consumer demand via the immediate provisioning of goods and services. On demand service apps are applications that are based on the on demand economy business model and deliver your desired product or service to you.
On demand platforms/apps’ main purpose is to make your life easier. Lyft, Uber, WeWork, Rover, Laundrapp, Instacart, Airbnb and Netflix are few examples for some of the most well-known on-demand service apps. We don’t think we have to say more about the impact these apps have in our lives.
It’s clear that on-demand service apps are the new trend in the mobile app industry. So if you are thinking about developing a similar app for your business, here are few blunders you should avoid in order to make your app a success.
Failing to identify your industry
At the planning stage, you should try to find an industry or a market where you can have a competitive advantage. Focusing on one market at the initial launch would let you stay focused on a specific target audience and avoid competing with others and market leaders.You can do this by either targeting a niche market or trying to disrupt an existing market.
Creating an on-demand app for the sake of creating one.
Like we said, there are so many on-demand apps out in the market. So it’s your job to identify how your app will stand out among others. To do this you should ask yourself is whether your app idea solves a need that hasn’t already been met. This is also the golden rule in developing any product — BUILD SOMETHING USERS WANT.
Forgetting about the “convenience” factor.
The success of on-demand apps depends on convenience. So when developing your app should give your users a simple purchasing experience. To achieve this, you should implement features and technology that makes the app easier to use.Such as easy payment options, have a service progress screen and etc. To achieve this, your app should have an UI and UX design that is visually appealing and easily understood.
Trying to expand into other markets too fast.
It is said that “premature scaling” is the number one cause of death when it comes to startups. One aspect of this concept is putting too much money on customer acquisition before the product is ready. Start on a smaller scale, when you feel like you have enough capital to expand to larger market then go for it.
Failing to focus on unit economics.
A common mistake businesses make is that they spend too much to acquire a paying customer, and see minimal return on that investment. There are many companies that spend well over $200 to acquire a user, and only generate between $20 — $30 in revenue for that user. We have seen many companies raise upwards of $20 million, spending a massive amount of that capital on marketing to artificially boost user number, only to see the numbers decline because little thought was given to long-term engagements.
If you are planning on creating an on-demand app make sure you avoid these mistakes. Because mistakes like these could cost you your business. There were so many on-demand businesses with so much potential such as Homejoy, EXEC, Tutorspree and HelloParking failed and had to be shut down because of the common mistakes. So don’t follow their path, instead, aspire to be a success story with companies such as Uber and Airbnb.
