On-demand apps aim to target customers who need fast and easy access to services. In order to meet this demand you need to create the perfect buying environment.
Uber, Instacart, Netflix, and Grubhub – on-demand service apps have smoothly and sweepingly entered our daily lives. At one point, the fresh wave of on-demand service mobile applications for iOS and Android marked a sharp reversal in how businesses provide their services to customers. Not only is it that everyone is so busy with their careers and families that there is no time left on routine tasks like shopping, cooking, driving, or housekeeping. There have been a number of global societal changes in the recent past that resulted in the growing popularity of on-demand services.
These useful mobile apps aim to target customers who need fast and easy access to services. In response, the market meets this demand creating the perfect buying environment where people can be sure about the quality, convenience, and trustworthiness of the service delivery process.
On-demand service apps are service platforms that connect waiting-time-sensitive customers with independent service providers or agents. Such an app serves as a mediator between a business and a customer, allowing them to find each other in the first place and engage in a customer-provider relationship on mutually satisfactory terms. These transactions are different from those in a traditional employer-employee relationship. The mediation of these relationships doesn’t fit any conventional model of cooperation either. Instead, it is a large-scale rethinking of labor laws that is still ongoing.
These applications have gained their popularity due to their ability to meet the demand of each particular individual. Besides, as the number of mobile users keeps growing, user expectations shaped by this shift have also risen so much that users expect to get what they need at nearly any given moment by tapping a couple of times on the screen. The bar has been raised so high that there is no other option than comply with the standards.
To give you a clearer picture of the on-demand service market landscape, we suggest you take a look at some recent statistics, trends, and data.
According to the National Technology Readiness Survey (NTRS,) from 2018 to 2019, the US on-demand economy reportedly grew by 18%. Also, the report offered the analysis of participation in the on-demand economy by category in 2016-2019:
Another analysis by NTRS found that the number of on-demand consumers doubled from 2016 to 2018 (25 and 56 million, respectively.)
Generally speaking, with on-demand self-service, customers are free to decide which services to use or subscribe to and how much to invest in using them. Everything is available at the swipe of a credit card or through an online payment system.
Companies like Uber or Netflix connect people who want goods (e.g., a meal from a restaurant) or services (e.g., video streaming) with people who can provide them with what they are looking for for a certain price.
Usually, on-demand service apps focus on a single domain area like Airbnb that helps people find housing, Lyft that provides transportation, and GrubHub that allows ordering meals. Sometimes such specialization results in one company launching and running multiple businesses across different domains, as it happened with Uber and Uber Eats becoming two separate applications. This way, it remains relatively easy for consumers to navigate through a segmented service marketplace. They always know which app to open when searching for a particular thing they want, be it food, taxi, housing, or entertainment.
An on-demand service business model is also characterized by immense delay sensitivity and high agent independence. In other words, users expect goods and services to be delivered immediately. On the other hand, agents (service providers) serve as independent contractors in the sense that they decide whether and when to work and receive payments from the platform for each service completion.
An on-demand model enables access to a larger pool of service providers and customers and is meant to drive a better customer experience. Therefore, on-demand service platforms are usually developed in the form of both a mobile app and a web app for users to get to what they want faster and more easily. These apps are, in turn, managed through the admin dashboard that allows you to watch over every single ongoing and completed operation.
A deeper look into Home Services
Online on-demand home services are forecast to grow by over USD 1.5 billion from 2020 to 2024.
On-demand domestic services can be classified as follows:
- House cleaning & repair services
- Packing and moving
- Pet care
Online on-demand home service apps can grant users access to a large pool of registered professionals who will take care of their homes, children, and pets. Customers need a simple tool for booking cleaning and other home services online. This tool should also enable price comparison, guarantee each contractor’s credibility, and allow checking out reviews and ratings. Such a demand has given rise to many new online home services emerging in the form of both web and mobile apps. Also, users can either choose to request assistance from an independent organization that employs workers directly or opt for a marketplace that serves as a mediator connecting customers with specialty contractors.
On-demand service apps differ a lot. Using a ride-hailing app, we keep our expectations not too high. If the driver arrives in time, doesn’t get lost, and the car is clean, the service quality can be considered fine. However, there are more elaborate services like babysitting, medical advice, a facial, or a haircut that demand a much higher level of expertise. Then it won’t suffice if a random person shows up to do any of those things. We expect a professional in their field to take care of us.
One way or the other, there are still distinct basic principles, according to which all on-demand service apps for Android and iOS are being built. We suggest you should take these five steps to create your successful on-demand service application: