10 Jun 2022
Updated on January 3rd, 2023

How much does it cost to develop an on-demand app?


Surbhi Bhatia

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on-demand app

Who isn’t a fan of applications like Netflix, UberEats, Instacart, etc?

These applications are built to offer dedicated services like online streaming, food delivery, and grocery delivery, respectively, and it has made their smooth entry into the market. Now businesses have begun developing such on-demand apps to serve their customers directly and hassle-free.

In simple words, these applications are built to target consumers who want to seek quick and efficient access to services, developing an ecosystem that provides convenience to its customers.

Isn’t it fascinating how they ease down our efforts to get things done? Well, by seeing such features, thinking about how much does it cost to develop an on-demand mobile app is nothing but normal. And if you also think the same and wants to know it, read this post.

on-demand model

More About On-Demand Service App

On-demand service apps work as a mediator between a service provider and its customer, allowing them to connect over a platform and reach mutually satisfactory conditions.

There is something for every individual who turns to these applications, and the apps cater to their customer needs efficiently in a few clicks!

These service apps are all about emphasizing a single domain area; for instance, Airbnb enables people to find the accurate place to crash, Lyft that helps find transportation, etc.

However, the cost of developing on-demand apps like Airbnb and Lyft is somewhere around thousands of dollars. Connecting with an app development company can help you understand it better.

Categories of On-Demand Service Apps


Before getting started with choosing a domain and developing a niche-specific mobile app for your customers, it is vital to learn what is in demand. Because with the right research you can save a lot on the cost of making an on-demand. 

So, what are these categories? Let’s read about them in detail!

1. Transportation: For Package Delivery and Our Trips

Calling an Uber is today’s trend; however, the concept of dial-a-ride is not new! Traditionally, finding a ride wasn’t easy, but now that technology has changed the dynamics with the help of on-demand transportation services, commuting has become easier than ever!

Notably, with the help of taxi e-hailing apps, app users can book a ride for free by entering their destination into the app. Then, they get connected to one of the nearby drivers that have accepted the trip and enjoy their safe commute.

On the other hand, transportation apps also include logistics on-demand apps that demand businesses to manage their fleet, handle goods, track orders and more.

2. Grocery and Food Delivery

The on-demand delivery model has acquired exceptional popularity, and the credit goes to the pandemic that has pushed businesses to experiment with their approach.

The restaurant owners are now emphasizing food delivery app development that enables customers to order food directly via a platform. Once the order is placed, a delivery executive is assigned to deliver the package to its destination. Also, it makes them wonder about how much it will cost to develop on-demand applications. 

But that is nothing to worry about as the best part is that consumers can go cashless by paying for the food order within the app or opt for a cash-on-delivery approach.

Awesome, right?

3. Telemedicine and Healthcare

The pandemic gave rise to healthcare and telemedicine applications since the social distancing protocols were strictly being followed.

Due to the fear of being exposed to the COVID-19 virus, patients began connecting with the medical professionals via healthcare apps to seek consultation or diagnosis. Moreover, these apps came as a boon for people who couldn’t commute to hospitals due to living in far-off locations.

Not to forget mentioning that the telemedicine industry is rapidly growing and is leveraging modern technologies for enhanced functioning. Some of the most popular doctor on-demand apps include Zocdoc and Healthtap.

The icing on the cake is that these apps come in handy for various other purposes, like requesting a doctor visit, obtaining health data, prescription monitoring, etc.

If you’re looking forward to healthcare app development, make sure that your app complies with the laws and regulations, like MDR, GDPR, and more.

4. Beauty-On-Demand

There’s a growing popularity for on-demand beauty services, and now people can easily book their beauty appointments and get hands on the services at home seamlessly.

Since the year 2020 witnessed the shut down of brick-and-mortar stores, including salons and spas, on-demand beauty apps proved to be a terrific investment.

Emphasizing personal care for customers has always been the same; however, now the approach to acquiring services has changed and turned digital.

So, why not let people take advantage of the added convenience, time management, and more by developing a platform that offers all the beauty services under one roof?

5. Fitness

You’ll come across diet-conscious and fitness freaks anywhere you go in today’s world! People hire personal trainers in the gym to get in shape by using their expertise. However, the pandemic posed challenges for the fitness industry as well, and people began exercising at home without proper training.

Fortunately, fitness apps enabled customers to connect with the trainers of their choice and get going with their fitness journey. Not to mention, the cost to develop on-demand application for fitness doesn’t burn a hole into your pocket. On the contrary, the return on investment for such applications is relatively high.

6. E-Learning

Similar to any other industry, educational institutions also began tweaking their patterns by developing e-learning apps for children. These apps ensure efficient learning at home by connecting students with their teachers virtually.

Nowadays, course providers have begun providing their expertise via online learning apps for students to acquire and learn the subjects that they like.

7. Entertainment

The entertainment industry is booming, and people have their eyes glued to apps like Netflix, Amazon Prime, etc. The audience has made a drastic shift from televisions to smartphones and laptops that have these applications downloaded. Consumers buy a subscription for these platforms and enjoy unlimited binge-watching of their favorite shows and movies!

Moreover, if you wonder how much does it cost to develop an on-demand app like Netflix, you shouldn’t. The world is witness to the success of this video streaming platform.

Pros of On-Demand App Development for Businesses

Pros of On-Demand App Development

In the wake of finding the development cost for on-demand app, here’s some motivation for you to get started with on-demand app development:

1. Flexibility

It is vital to analyze the user data before you roll out product recommendations, offers, etc. An on-demand app provides app owners the flexibility to change the offerings accordingly for providing a personalized experience to the customers.

2. Scalability

Scalability is at its best in an on-demand delivery model. For example, you may develop an on-demand marketplace to host other organizations that’ll pay you for the transactions that take place via your app.

Sounds interesting, isn’t it?

3. Easily Accessible

– Visit the app

– Book, order, schedule!

This is it! Customers want to seek convenience and easy methods of carrying out activities; thus, on-demand apps are the perfect solution.

4. Efficient Analysis

Determining the services and products that are most and least popular will enable you to understand the demand and consumers’ purchasing behavior. Thus, the data can be used to plan marketing strategies accordingly. That later can alter the on-demand app development cost.


Determining the services and products that are most and least popular will enable you to understand the demand and consumers’ purchasing behavior. Thus, the data can be used to plan marketing strategies accordingly.

5. An Online Presence

An on-demand app will benefit your business tremendously if you’re planning to switch from your brick-and-mortar store to a digital approach. Thus, having an app is a robust weapon to attract a solid consumer base.

Building a Successful On-Demand Service App

On-Demand Service App

An on-demand app is much more than acquiring satisfying services for consumers. For example, they expect a professional to show up at their doorstep in case of househelp services, while a licensed driver while booking a cab. Not only this, but a personalized experience, accurate pricing, etc., matters too!

Therefore, here are the top five things to keep in mind to build an app that steals your customer’s heart and avoid overspending on the cost of building an on-demand app.

1. Select a Domain

There’s a lot to explore when it comes to developing an on-demand app to cater to customers’ needs. Therefore, keep your options and experimental vision open, eliminating domains that already have a lot of applications in the market. Instead, pick a specialized domain and ensure that you have things to offer that customers would love to integrate into their life. Additionally, it must add value to the users’ lives.

2. Start from a Small Scale

If you’re thinking big, you must start small.

Why, you ask?

It is always better to get reviews and feedback from a small group than to release your product or services to a bigger lot. It is because altering flaws are much easier on a small scale than changing the opinions of a wider audience.

3. Define the Target Audience

Knowing the potential customers you’re going to serve is crucial! Always develop a product by keeping the end-user in mind, and what they would prefer. And you know what? It will help you to identify the challenges 

Start by conducting thorough market research and studying the offerings of your competitors to the audience. Learn about their strengths and weaknesses before making any decision, and act accordingly! It will help you to understand the development cost structure of on-demand apps.

So, what do you think?

4. An Accurate Pricing Strategy

For any business to attract its audience and earn profits, the right pricing strategy is mandatory. Traditionally, sellers defined the prices in a marketplace while providers only added a service charge to it. However, nowadays, providers are free to set the pricing!

Notably, a business is most likely to create a blunder if the prices set are too high. In case your competitors are charging fair prices in comparison to you, nobody would want to acquire your services.

5. Emphasize the Functionality

Indeed, the functionality and the manner an on-demand beauty app operates will vary with a healthcare application. Moreover, three different interfaces will have to be developed for customers, service providers, and the admin panel. Therefore, don’t forget to integrate the right set of features that an app can’t do without.

What are these features? And what different functionality needs to be added to the three interfaces?

Don’t worry; we have got you covered!

On-Demand App Features Not to Overlook in 2022

  • Customer App Features

Customer Interface

1. Search and Filter

Remember, consumers are landing on your app to get their hands on a few preferred products for their everyday use. Thus, your app must be quick enough to accommodate what they are looking for by enabling them to search and find the same for instant solutions. And adding such a feature doesn’t bother your app development cost.

2. Order Tracking

Have you ever felt the curiosity of getting a package because you ordered your favorite items? Don’t you think your customers might feel the same?

Therefore, one of the must-have features includes order tracking that integrates a GPS tracker to enable your customers to monitor the movement of their package.

3. Push Notifications

push notification

Push notifications are a magic wand for enhanced engagement, and you may let your users know about your ongoing deals, discounts, new products, and whatnot.

Incorporating push notifications won’t affect the cost of on-demand app development much. And chances are, the customers are most likely to tap on the notification and visit your app to learn more about the exciting deal!

4. Feedback and Ratings

Do you want to push your sales?

Then, feedback and ratings are the way to go! Enable customers to leave their valuable comments for you to work on what they have got to say. Furthermore, since customers are influenced by the review of their fellow consumers, there’s a solid chance of boosted sales.

5. Multiple Payment Gateways

The liberty to pay using any mode of payment is satisfying for the customers since they won’t have to carry around their wallets all the time. Therefore, you must integrate payment options like- wallets, credit/debit cards, etc., to present them with a choice. However, this feature plays a key role in the on-demand application development cost and makes your app user-friendly.

6. Order History

What if your customers had suggested a few items to their friends that they like from your brand? Obviously, they would want to re-order, but what if they couldn’t find the same?

Order history precisely does the job by presenting the previously ordered items in one tab for customers to access easily.

It sure is a worthy feature!

7. Analytics in Real-Time

Real-time analytics presents insights on things you must know, for instance, consumers’ purchasing behavior, competitors, out-of-stock products, etc. With the help of the analytics feature, a business is likely to work on any loopholes in advance without bearing losses.

8. Chat Feature

It is crucial to stay in touch with the customers in case they want to resolve any queries or issues. Notably, an efficient on-demand app development company prioritizes leveraging technologies like Artificial Intelligence bots to enable automated chats that emphasize resolving issues instantly.

9. Wishlist

Nobody would want to go through the hassle of adding items to the cart again and again. For instance, sometimes, it is hard to remember all the essentials while I am ordering groceries. It is better to order everything at once than to get the products delivered one by one, isn’t it?

Therefore, amalgamate a wishlist feature that’ll allow customers to keep adding the items in the cart and checkout when they are satisfied.

  • Service Provider App Features


1. Acceptance or Rejection of Orders

Have you used a food delivery app like GrubHub, Uber Eats, and Zomato? Then, you would have noticed that sometimes when a food item you’ve ordered from a restaurant is unavailable, the eatery declines the order and initiates an immediate refund in case of a paid order. Nevertheless, the cost to develop on-demand applications like GrubHub is much higher. Therefore, a business owner’s investment is worth trying to get the highest ROI.

Similarly, the service provider’s interface must have an ‘accept’ and ‘reject’ option to let the customers know about their order confirmation.

2. Push Notification

The push notifications for the provider must be integrated to send them an alert whenever a customer has placed an order.

3. Revenue Module

A revenue module feature enables providers to keep track of their overall revenue earned via the platform.

4. Availability

This feature enables the service provider to go offline by turning off their availability status during their non-working hours. Therefore, when the provider goes online, customers are notified!

  • Admin App Features



1. Dashboard

The dashboard is one of the most crucial app features of the admin panel to access multiple app modules efficiently. With the help of the dashboard board, the admin can flawlessly manage the working mechanism of customers and service providers.

2. The Matching Algorithm

Numerous on-demand apps like the one built for dating by finding accurate matches require the integration of an algorithm that enables the two parties to match. Thus, the algorithm can be of two types: manual or automatic.

3. Customer Management

Features must be integrated for the admin to manage their customers and the services they enjoy, including online payments, order cancellation policy, discounts, etc.

4. Pricing and Commission

Admin must efficiently manage the entire pricing and commissions that are a part of the business. Therefore, every on-demand app must enable the same for the admins.

5. Analytics and Report

The analytics and report feature provides insights on the entire business operations of the business to the admin. Numerous apps also enable admins to download the stats and keep a check on the same!

To integrate the best and most advanced features into your on-demand app, connect with a top app development company today!

Roadblocks in On-Demand Services App Development


Now that you know all about building a successful on-demand app, you must also get familiar with the potential roadblocks that may come your way. As he cost structure for on-demand apps, these roadblocks have a significant impact. So, continue reading to learn more:

1. Supply and Inventory Management

The supply chains got disrupted due to the COVID-19 pandemic, and many businesses also experienced collapse.

So, how would a business continue with a stable supply chain and efficient inventory management?

The solution is to build effective strategies by utilizing analytics via a supply chain management system.

2. Dynamic Consumer Behavior

The pandemic has led to a change in consumer behavior since there’s a massive difference in buying patterns and habits. Staying at home has given consumers the window to spend more time on value-based purchasing, the quality of goods, etc.

Additionally, the demand has now become dynamic, and many businesses might face challenges while adapting to the new patterns.

3. Rising Competition

Do you want to reach the markets worldwide?

The solution is to pick a domain based on factors, including your expertise, users’ requirements, budget, etc.

Undoubtedly, the competition is rising, and you must cater to what customers demand to intrigue them and build a solid user base.

For instance, initially, Seattle-based Starbucks offered its rewards program only via Starbucks card. However, now it enables people to earn points through payment methods, which has led to an increase in their sales.

Though adding such features may elevate the cost to develop an on-demand application, it ensures the app’s success.

4. UI/UX Design

Another challenge that app developers may encounter is the requirement of developing an app with a complicated design.

According to statistics, about 88% of users either uninstall the app or stop using the same after encountering a cluttered app.

Therefore, if you’re precisely looking forward to not experiencing the same, integrate your app with a minimalist design, simple colors, and a few crucial features.

5. Unprofessional Development Team

As important as it is to emphasize other factors of app development, it is significant to prioritize hiring a professional development team.

Notably, a lack of knowledge and skills can cause gaps that can not be refilled. Furthermore, improper planning may also impact the project’s workflow negatively.

Thus, it is essential to partner with a trustworthy technology partner with expertise and experience in doing the job.

The Cost of Developing an On-Demand App

Developing a flawless mobile app requires the investment of money along with sweat, blood, and effort!

Guess what?

We have got your back!

We allocate a dedicated team of developers, designers, testers, and project managers who work on your idea to bring the best out of the same.

Do you think we are the right technology partners for you?

Then, take a look at the cost to develop a mobile app quoted by us, and the factors that may influence the overall mobile app cost:

– Choice of the platform

UI/UX design

– Number of features integrated

– Complexity of the project

– Tech stack used

– Technology integrated; for instance, Blockchain, AR/VR, etc.


The cost of building a product if you hire Techugo may lie between 35k-175k USD.

Frequently Ask Questions

Q. How much does it cost to build an on-demand delivery app?

There is no such fixed cost to develop an on demand app. However, the average cost may lie between $75k for a basic feature application and $240k to develop an advanced feature application. Also, as mentioned above, several factors may help to decide the development cost.

Q. How do I start on demand app?

You must start with the research. Conduct thorough research about the market and gather all information data for your app. The strong research you do, the better app you can develop. However, there are several app development companies that can help you to start your on-demand app.

Q. How do you create an on-demand app?

To create an on demand app, you must contact the top app development company. Only a team of experts can only help you to create an application on a budget.

Q. How much does it cost to build an interactive app?

Developing an interactive app may cost you thousands of dollars. It requires experts to create an interactive app with top-notch features. In addition, the cost depends on what features you need in your app. If we talk in numbers, it may cost you around $10k to $500k.


Wrapping It Up!

Being a technology partner for hundreds of businesses, we have helped app owners acquire the competitive edge they deserve by amalgamating cutting-edge technology and techniques.

Indeed, it’ll take time to win your trust; however, our testimonials speak volumes for us!

Visit our website and learn more about the services we offer, projects we’ve delivered, etc!

And still, you wonder how much does it cost to develop an on-demand app; give us a call to schedule your first consultation with the top mobile app development company in India.

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