How Much Does On-demand App Development Cost? [Guide 2023]

On-demand app development has observed a great rise in recent years. COVID-19 has amplified the demand for apps that can connect sellers and consumers directly on a digital platform. This connection helps both ways.

The sellers can get away to sell their products directly to the consumers without paying extra charges for transportation logistics, commissions for mediators, and much more monetary factors. Even the consumer gets a wide array of choices and compares for the best deal.

Entering into this vast industry of on-demand apps requires adept skills, knowledge, development, and design dexterity.

Before starting the journey with on-demand app development cost, it is important to understand the industry and business basics. Here’s is an informative guide on the fundamentals of On-demand app development cost and how much it costs.

Statistics

Before we go further with understanding on-demand apps and their cost, let’s understand their market position through the lens of surveys, research, and facts. These statistics will help you in understanding the market analytics of On-demand apps.

1. Because of its usability, the on-demand food delivery market is projected to hit $1616.74 billion by 2023.

2. According to a report by PwC, the market of on-demand mobile apps and websites is predicted to reach a value of $335 billion by 2025.

3. As suggested in the report by CBInsight of Global Unicorn club, 23 out of 310 private companies’ worth of $1 billion belonged to the on-demand industry in 2019. These on-demand unicorns include uber eats($72B), and Didi Chuxing ($56B).

4. Its value is widely realized by users globally because on-demand users are observed to spend an average of $57.6B annually.

5. Considering different stakeholders, 63% of Employees of on-demand platforms state that they are happy while working with an on-demand Economy.

What are On-demand apps?

On-demand apps are the service platforms that work as a bridge between potential customers and independent service or product providers. This bridge acts as a service platform where several businesses and its customer meet.

The two parties can find each other, engage potentially on mutually satisfactory terms. The reason for this platform’s popularity lies in its capability to cater to the demands of each particular individual.

The platform allows users to choose any type of service and get it ordered easily. The on-demand apps solve many problems of transportation, supply chain management, logistics, etc.

Types of On-Demand Service Apps

Here we have listed 8 types of on-demand service apps widely used and utilized by users. These types of apps are popular because of their capability to connect direct consumers to sellers through a digital platform.

1. Healthcare on-demand services

On-demand doctor’s appointments are recently introduced as a great alternative to the traditional way of booking appointments. On-demand for healthcare has gained a wide sense of popularity among users and doctors.

These apps also help with on-demand medicines for patients. Patients or their relatives don’t need to go out and shop for medicines, instead, they can order the medicine from the on-demand service available.

Popular on-demand healthcare services apps – Doctor on-demand, Amwell, 2nd.MD, 1mg, PharmEasy,  NowRX, and many more.

2. On-demand food delivery services

Restaurant or Food Delivery apps work as a mediator between various eateries and consumers. It keeps a buffet of choices before the consumer, and the user can choose the most suitable restaurant for them.

In the app, the restaurant provides all required information with a complete menu, so that the consumer can have a better understanding. Once the selection and placement of an order are done, the food delivery status can be tracked from the same app.

Popular on-demand food delivery apps – UberEATS, Zomato, GrubHub, DoorDash, Swiggy, Seamless, Postmates, etc.

3. Transportation services on-demand

Contemporary, on-demand logistics services are widely used. The reason for the popularity is on-demand transportation, real-time navigation, in-app messaging, easy payments, and transparent transactions.

The user can track the driver at every point without much effort for it.

Popular on-demand transportation apps- Uber Freight, Uber Deliver.

4. On-demand retail and grocery delivery

The on-demand retail delivery app enables customers to buy everything they need with a wide spectrum of options available. It allows the users to select from many options, and order in a short time.

Popular on-demand Retail and Grocery food delivery apps – Walmart, Amazon, Big Basket, Kroger, Grofers now Blinkit, Grocery Pal, and many more.

5. On-demand Gifts and Flowers

With the increase of rush in life, people are falling short of time for buying presents, but still want best ones for their loved ones. Here come on-demand gifts and flowers with a digital solution.

These on-demand platforms offered a wide range of products available, scheduled preferred delivery time slots, and door-to-door service.

Popular on-demand gifts and flowers service apps – Bloom & Wild, UrbanStems, Giftagram, and many more.

6. Home Requirement on-demand services

Requirements such as house cleaning, repairs, maintenance, and many more household chores can now be completed with just a touch. For those who need these tasks done professionally, on-demand home services are the best choice.

These services can help the consumers out with the best of the household services for chores and requirements.

Popular on-demand household chores apps – Merry Maids, TaskRabbit, Handy, Thumbtack, etc.

7. Beauty care on-demand services

For some people, beauty salon services at the comfort of their home are better than visiting a beauty salon because of many reasons. For this type of people, the beauty care on-demand services app creates a credible solution, where they can book a service with a single click.

On-demand beauty care services apps are popular because of easier appointments, guaranteed sanitization, and hygiene compared to the traditional parlor system.

Popular on-demand beauty care apps – StyleSeat, Glamsquad, Priv, Glamsquad, and many more with a wide location base.

These are just a glimpse of the wide variety of beauty care apps available in the on-demand app industry. Other types are also projected to be introduced in the coming future.

Benefits of an On-demand Services Application

You might be wondering what are the potential reasons to invest in developing on-demand apps. The apps have immense popularity in current consumer demands. COVID-19 has initiated a behavioral change in which people like the idea of having every service and product at their doorstep.

On-demand applications facilitate the users with simple, secure, and streamlined solutions for services on their demand. Here are the top benefits to prove the credibility of investing in developing an on-demand service application.

1. Quick and Convenient

Businesses can connect to the consumer quickly with the help of on-demand applications. It saves money from transportation and commissions. the on-demand model helps the consumer to ask for a service in a snap and lets’ business services in a very short while.

The level of convenience in on-demand applications is commendable and the fundamental reason for its popularity. Smart features like smart search, real-time tracking, in-app chat, secured payment, and smart delivery techniques make the apps of utmost convenience.

2. Suitable for nearly every business

The on-demand apps enhance businesses by making them available at their potential consumer’s fingertips. Which business owner would not want to have a superior market presence with excellent benefits of quick service?

Nearly every business can take the advantage of on-demand service apps to reach out to their consumers and serve them in the most convenient way possible. With secured and easier transactions, on-demand apps are a great choice for a business.

3. High Scalability

Through on-demand service apps, businesses can boost their scalability due to higher sales and profits. The cost-efficient business model of the on-demand apps helps businesses save money for other business requirements and create a better model of investment.

With money at the right and potential place, the businesses observe a hike up in sales, consumer retention, and thus profits. Due to the ability to scale up the business, on-demand apps are gaining popularity and awareness.

4. Scope for improving customer service

On-demand services app helps in understanding the consumers and their demands better. The apps help in tracking their orders, searches and let the admin show suggestions accordingly.

Even the business can understand their consumer’s behavior better through consumer analytics. The information of their purchases, reputation, and records helps in serving in a customized manner and builds better relations with consumers.

5. Chance to develop an online presence

We live in a world that is greatly impacted by the online world. People go searching into a digital platform for every little thing. This makes it essential for a business to develop its online presence for a rewarding business model.

With the help of on-demand applications, a business can have a good scope of developing their online presence without such focused digital marketing for that.

How to develop on-demand app?

Developing an on-demand services app requires a strategically planned method of development. Every phase matters and plays a significant role in the final version of the application. Here, we have drafted a step-by-step process of developing an on-demand services application.

1. Research and Analyses

Developing an on-demand app starts with descriptive research of consumers, competition, and the industry of the business niche. The research helps in a deeper understanding of the type and level of the app required.

A part of research is business analyses, where you have to apprehend what type of business you have or what type of you want to make it. Through segmentation, you can understand the target audience.

2. Planning the Procedure

It is essential to go with a plan because a plan helps in creating a path that leads to the desired destination. Without a clear plan, the on-demand app development will be quite vague.

On-Demand app development cost demands a huge chunk of investment, minimalizing the fallbacks with a strategic plan. Draft the timeline, features, desired objectives, and many more for a clear journey.

3. Select right features

After research and planning, analyze the app development cost you are willing to invest. These things will help in building a clear understanding of what to include in an app and what not to. Many smart features make the app rich with features, but not all are necessary.

Understanding the type of business, consumer demands, and competitor’s status, helps you draft which features are necessary and will enhance your on-demand service’s app. Some features might seem attractive but not suitable for your business needs.

4. Choose the platform

You can choose from two different platforms of Android or IOS. The platform choice depends on the investment, consumer group, and competition of the similar apps in the app store of that particular OS.

You can also go with hybrid app development that employs app development which is for both operating systems.

5. Search for the right professionals

After you are done with every phase mentioned above, search for the professionals. These professionals are not only developers but also include business analysts, app designers, and marketers.

The spectrum of professionals helps you in developing an app with complete process and functionality. You can either hire an on-demand app development agency or a freelancer. An on-demand application development company has every professional working under them but demands a higher cost, whereas a freelancer will work with cheaper rates but increased risks for your business.

Basic features and its cost for on-demand services application

After understanding the basics of on-demand app development cost, let’s now come to the cost of development and incurring certain features. The budget template of an on-demand services app development depends a lot on several factors such as level of development, business model, and spectrum of features.

Usually, the cost is calculated based on hours incurred in developing the app. Even though we cannot determine the perfect cost for your on-demand app development without consultation, we have gathered some information that will help you in understanding the cost and their factors.

Cost of developing an on-demand app for consumers

This end of the application is used by the consumers it is important to draft a perfect spectrum of features, as it will directly affect your business. Let’s take a tentative estimate of consumer app development to be around $30,000.

Features like user profile, map integration, chat feature, search options, seller details, cart and order process, track orders, order navigation, and even more features for adding to the User Experience of the app.

These features are determining factors for the price.

Cost of developing an on-demand app for Service Provider

This end of the application is used by the service providers and makes it easier for them to work efficiently with proper communication. The service providers can analyze the consumer profiles and serve accordingly. The rough estimate of service provider app development is $11,000.

The cost depends on factors such as features of Profile creation, managing orders, messaging features, daily analytics, simple payment methods, order history, and even more features that make providing services easier for the company.

Cost of developing an on-demand app for Admin

The admin panel matters a lot, as it is used to manage your on-demand service application and make required modifications. The admin has complete control over the functioning of the app and assures the glitch-free app working. The cost of this app development is lesser than other factors.

Certain features to be included in on-demand app development for Admin determines the cost. The features are Dashboard, handling service provider company, managing end-users, determining commissions for partners, analytics, and much more for better app monitoring.

How Auxano Global Services can help with on-demand app development?

Auxano Global Services is the top bespoke on-demand app development company with a record of creating credible on-demand service solutions for various businesses. We have worked extensively in this field and have fine knowledge of its techniques.

On-demand services app development is different from the ordinary app development process. The objective and conduct should be different to have varied results. The objective of an on-demand service app is a lot different from other types of apps.

The different objective demands different procedure, research techniques, development logic, and launch marketing. With this understanding, we have a group of experts that work with each phase briefly and give rewarding outcomes.

The experts we have are experienced in their field and have excellent industry knowledge aligned with practical skills. The professionals know here how to integrate with clients and deliver what the client desires.

We emphasize understanding your business requirements and your perception of on-demand app development cost. This helps in developing an app that suits your business and enhances its model. Our professionals keep themselves updated with the latest technological trends and use them in work.

Conclusion

On-demand service apps are a great way to cater to modern-user demands. People prefer getting services and products at their doorstep with a single touch. With a busy lifestyle, the consumers don’t prefer to commute for some service or product.

The delivery and on-demand apps are fine solutions for these problems. Even due to COVID-19, the market observed a behavioral change towards digital media and prefer services and products delivered directly to their doorstep.

It is a good time to enter into this industry of on-demand service providers. As the competition will increase with time, you have some period to establish your brand before it. More demand will help you in creating your brand quickly and easily.

Auxano Global Services is one of the Best on-demand application development agency with every type of professional available under a single roof. Our experts are chosen as thin filters of professionalism, practical skills, development dexterity, and communication skill. Our professionals work extensively for their specialization rather than focusing on every task and phase of the app development. Each expert has clear goals and responsibilities in the agency.

If you want to develop a rewarding on-demand service application, then contact us now.