On-demand apps have reached its tipping point. The first on-demand apps were started pretty reluctantly, not being sure about its success, or about how it is going fare among the end users. Today, it has grown to a full scale, impacting several businesses, creating a massive cultural shift among mobile app users.

Unlike people who entered the on-demand app business some years ago – with no guiding light to begin with – today’s businesses are blessed with several anecdotes and guidelines to circumvent pitfalls and build a successful on-demand app.

Building on-demand apps are not as complicated as they seem. The complication arises only when you are not aware of crucial elements that goes into building one.

In this article, we’ll look into market statistics of on-demand app, and then explore the seven essential elements you need to consider before you start building your first on-demand mobile application.


General Statistics of On-Demand Apps


What began as simple ride sharing app has given birth to a number of different segments like food, healthcare, pet, home decoration etc., the scope and variety of these segments are expanding at an alarming rate.

According to PWC, the total investment rounds in on-demand mobile app revenue from all on- demand segments, starting at $74 Billion in 2014, is expected to reach a staggering $335 Billion by 2025.

According to National Technology Readiness Survey (US), the amount users spending for the ordering/booking on the on-demand service apps have increased from $48 billion (in 2016) to $75.7 Billion in 2017 – a 58% increase.


7 Essentials to Consider before building your on-demand app



1. Ask yourself if on-demand apps are a right fit for you

Entrepreneurs fall into two broad categories – one who knows exactly what their vision is and what they would like to get, and other who focus only on cash results. It is important for any business person to define their goals clearly before planning about reaping moolah.

If you are really convinced that on-demand apps falls in the line of your vision and offers enough differentiating scope to serve the target audience, then go for it. Don’t forget to ask if it is the right fit for your business.



2. Who will be using your app

If you are building the app that appeals largely to the millennials (people aged between 18 and 34), you are likely to win users. This does not mean older people do not opt for on-demand services. Current surveys states that majority of millennials use smartphones and they devote more time and money in services that are quick and convenient.

If you are building an app, with a specific segment that appeals more to the older generation, you could also add elements that could attract millenials as well. In that way, you won’t lose out on those ‘young, on-demand service-savvy’ lot. As an upshot, your app has better chances in reaching out to a wider audience.



3. Target locations

If you are launching your app in the region that you are not so familiar with, you might have to do a lot of research on target locations before you begin the development process. If you are familiar with the target location, you’ll have pretty decent idea about where your app would fare well.

A popular conception is that majority of on-demand app users live in cosmopolitan or developed cities, and potential users are less in rural areas. Well, actually that depends on the country or state you live in. Because, in some countries/states the rural population is more open in exploring latest mobile service innovations, while in some they don’t. So, target you location carefully by studying their behaviour and reactions of on-demand apps. Research and surveys are the best places to begin tracking these insights.



4. Your app solve an actual problem.

The ultimate goal of a mobile app, be it on-demand or any other, should solve a particular problem of the user. Consider the number of on-demand apps floating in the market. How many of them do you think succeed? Unfortunately, not many. So, when it comes to conceptualizing or building an on-demand apps, it is very important to be more assertive in standing apart from your competitors.

Ensure that your app actually solves a problem in an efficient and differentiating way. Let your app have a distinctive touch, and let that touch be the USP of your app. Remember, you need to make the app work for you, not the other way round.



5. Offer realistic prices

Among other factors, pricing is one of the most important in deciding the fate of customer retention. Keep the competition in mind and offer a realistic price structure for your end customers.

Do not attempt to cash in on customers right from the start, as it could militate the purpose than serve. Instead, consider the average price for the same services by regular providers.

When you start providing best quality at a lesser or reasonable price, chances are high that your product could work in your favor in bringing in more new registrations. You’ve got wait till the tree grows in order to reap the benefits of fruits. Customers tend to opt for apps that deliver more value than their actual price.



6. Have a robust geolocation

The psychology behind on-demand apps is convenience. For instance, people use ride sharing services not because they love those cabs, its because they are convenient. Geolocation works as a backbone to offer that convenience to the end users. It is hard to image an on-demand app without geolocation technology.

There are several features you may have to keep in mind before plunging into on-demand service business, such as service providers should be located geographically close, provide a way to offer services to customers in the shortest time, efficient transportation and delivery services and so on. All these features are spearheaded with the power of geolocations.

Remember, flawless geolocation is a cornerstone for any on-demand app. Ensure you have a robust geolocation plan in place before you plunge into the development process.



7. Have a plan to develop your customer base

If you think customer base development is done after the launch of the app, you are mighty mistaken. Your Customer development plan should be chalked out before the start of your project and it should in stage where it is ready to be set it motion. Another reason why planning customer development plan in advance is that it also helps in improvising the product and service.
And here are a few tips to develop good customer base.

Allow live tracking: Allowing customers to live track their orders enables them to gain trust and gives them a sense of control.

Start with a limited geographical area: If you are new to the market it is always better to start with a small geographical area with good population. This way, you are investing less and it becomes easier to manage the operations.

Easy payments: Customers love friction-less payments. Plan out a flexible payment method, with all, or top payment options that are widely used today.



On-demand apps are reshaping service and delivery industry. They have become become an ultimate ‘go to’ solution for variety of customer needs. Uber for X is a great living example. On the other hand investments in on-demand service is soaring and on-demand apps are multiplying. If you are mulling at leveraging on-demand apps for your business, this might be the right time. And you have to do it before it reaches a saturation point.




Ideaplunge offers a variety of mobile app solutions to help modern business grow and sustain. Looking for the right expertise to develop a solid on-demand app? Our expert developers at ideaplunge can help you build a powerful, customized on-demand application for your business.

Have any queries about on-demand apps? Please write to us at talktous@ideaplunge.com

We are ready to help your business grow.

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