9 Feb 2023
Updated on February 13th, 2023

On-Demand Economy: How These Apps Are Influencing Our Lives?


Shivani Singh

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on demand economy

The On-Demand Economy is an economic trend created to meet customer demand by immediately providing goods and services. The digital mesh built on top of existing infrastructure networks drives supply.

The industry’s growth is increasing at an alarming rate due to the number of companies and the categories they represent. This new economy is a result of years of technological innovation and a shift in consumer behavior.

Customers have welcomed the new on demand economy apps delivery models as possibilities for fast and reliable delivery of goods or services.

The question is: how big is the on-demand economy? Will it transform how users transact, create thousands of jobs, or move governments? This is already happening. These fast-moving tech companies are changing industries that were previously slow to invent.

The logistics and grocery industries are the fastest-growing sectors in the on-demand economy. Growth is mainly due to the use of new technologies over existing infrastructure.

The On-Demand economy has created business models that can satisfy consumers’ needs in a more profitable, scalable, and resourceful way than their predecessors. New on-demand companies have better-leveraged technology and are better able to use existing infrastructure.

The smartphone revolution has brought suitability, competence, and ease to procurements. Messaging services, news, and gaming have boosted smartphone adoption. 

The first time smartphones can be used to purchase anything will result in one of the most significant shifts in consumer consumption history. With just a tap, consumers can buy everything they need. The most volatile sector of the on-demand economy is car services. They help people understand its market cap.

The increased awareness of on-demand cars and dispatch services makes Uber’s rapid growth even more remarkable. On-demand delivery services enable the restaurant to reach beyond its physical location.

What is an On-Demand Economy?

On-demand economies help to satisfy purchaser needs by offering quick access to products and services in transportation, healthcare, grocery stores, and retail areas. Mobile technologies create on-demand services that can be delivered while you’re on the move. As customers value simple, well-organized, quick services, the on-demand economy apps is growing at an extraordinary pace. 

Customers are looking for fast, simple, and easy ways to satisfy their needs. It is easy to choose your hours and gives you more time for customers who can meet increasing customer demand.

How does the On-Demand Economy work?

On-demand economies function by offering services such as hairstyling and cosmetics application. They also provide food delivery and handyman repairs. This technology allows consumers to connect with suppliers. The connection can be made via a technology service such as a website or smartphone app. Both parties create accounts to access the service. When a customer needs a service, they access the app and enter their criteria.

The app informs the service provider of the service request, and they head out to complete the work for the customer. Usually, payment is made to the technology company once the service has been completed. The technology business acts as a distributor and safeguard of private information. This ensures that no personal data is shared with third parties. Both parties must rate and comment on each other’s service to improve the quality of service and help develop the system.

Statistics on the On-Demand Economy

The on-demand market is expanding rapidly. According to the most recent PwC report, the market value for On-demand mobile websites and apps will be $ 335 billion in 2025.

  • On-demand users spend an average of $57.6B annually. Over 22.4 million people use the On-Demand mobile app economy to pay approximately $57.6 trillion annually for real-time services. They are happy to make the payment.
  • Another report revealed that 60% of US users are willing to pay more to have material delivered to them on the same day.
  • 51% of retailers offer same-day delivery
  • 49% of On Demand consumers are Millennials
  • 63% of On Demand Employees report satisfied working in the On-demand Economy.

The On-demand economy is also creating new job opportunities. This has enabled students, workers, and others to be more flexible in their work processes and choose projects/jobs that are available for a shorter period.

Why are On-Demand Apps so popular?

On-demand apps are flexible. This allows this concept to be applied in many sectors. Here are the top reasons for investing in on-demand app creation for your company. Also, if you are curious to learn why on demand app development is in demand, just read these pointers: 

1# Scalability

Start by creating on-demand apps for your company. You may add other businesses to your on-demand marketplace. Your platform may allow you to make money by taking a cut from every transaction that occurs on your on-demand marketplace.

2# User satisfaction

You can better serve customers’ needs by allowing them to purchase products or book services online. This can help retain customers and grow your business.

3# Comprehensive analytics

This data provides valuable information about your customers’ behavior. Analyzing the data will allow you to determine what services your customers want and what prevents them from purchasing. This information will enable you to improve your solutions and provide better customer service.

4# Improved Online Presence

It’s not enough to have a website. On demand app development company can help you increase your online visibility with a robust tech solution. 

5#-Focus on mobile users

Statista predicts that mobile users will exceed 7.49 billion in 2025. These data provide compelling reasons to invest in on-demand app developers to offer mobile users an exceptional experience using mobile cloud computing.

Tech Stack for Mobile App Development on-demand

Among various factors influencing the cost of on demand app development, the tech stack is the major. Here is everything you should consider for building your app for iOS and Android. 

1# iOS

Swift is our primary on-demand mobile app development language for iOS app design. Apple created the iOS operating system. It has a native programming language. The firm made it easy for beginners to feel at home. It is also known for its security, open-source, fast, and high demand. We use Objective-C, C++, and C, in addition to Swift, to ensure maximum efficiency.

2# Android

Kotlin, our preferred language for Android application development, is ideal. We use this programming language because it allows our developers to understand the code written by their colleagues.

Kotlin is also a favorite because it offers higher security and Java compatibility.

We can assist you if your app for an on-demand service requires a different programming language, such as Java, C++, or C.

Industries driving the On-demand App Economy

1. Healthcare

Healthcare is the most critical business sector that needs on-demand delivery apps. Patients used to have to go through a complicated process to book an appointment. Doctors and medical professionals must manage many files to keep track of patient’s medical records and health reports. These complexities have led to the development of healthcare apps for providing the best healthcare services. Healthcare mobile apps can also address medical emergencies efficiently and cost-effectively. Healthcare apps simplify the lives of patients and doctors and provide immediate customer support without any time limitations.

2. Beauty

This application is a lifesaver for anyone who wants to perform at their best in a concise amount of time.

You can quickly call a stylist, a beauty therapist, or a makeup artist by using On-demand Beauty Apps.

3. Tourism and Travel

The worldwide pandemic disrupted the lives of everyone in unprecedented ways and shook the economy around the world. Industries are still struggling to recover from the crisis, even though they continue to fight the deadly coronavirus. Travel, tourism, hospitality, and other sectors will likely be the most affected by COVID.

Tech innovation is crucial in streamlining contactless travel and ensuring high-security standards. The online booking app is an excellent alternative to window bookings. It allows users to book holiday tours, route maps, and plan their vacations. The online booking app enables the travel and tourism industry to reach new levels and engage potential customers.

4. Groceries

People have chosen grocery delivery apps to replace grocery stores over the years.

Why not? These apps make grocery shopping easy and save you time. It is easy to search for groceries and then choose what to buy. It would arrive at your doorstep in a matter of hours.

5. Food Delivery

Food business owners have used on-demand delivery apps because of their limited working hours, cash crunch, poor inventory management, and inefficient delivery. In addition, on-demand delivery apps have made it easier for consumers to order their favorite meals from their smartphones. Cloud Kitchen has opened up new business opportunities for online food service providers and restaurant owners. They can sell their products, promote their business offers, connect with a broader audience, and ultimately maximize their ROI.

6. Retail

Another sector that the on-demand economy has significantly disrupted is eCommerce and retail.

A survey by Walker Sands found that 54% of US citizens aged 25 and under consider same-day delivery their first choice.

This percentage will increase with the development of On-demand logistics technology. A retail-based on-demand app allows users to purchase almost any item with limited options and short delivery times.

The Future of the On-Demand Economy

On-demand is changing the world as we know it. So no matter what business sector you are in, there is a good chance that someone from your industry would consider investing in the on-demand market.

This unabating demand for on-demand app services is more than just the truth of today. The future holds a similar story. There are many categories where the future of on-demand is possible. Let’s look at the most vital ones. You should also consider expanding your business portfolio.

  • Hyperlocal

Hyperlocal is an on-demand model that revolves around the local provisioning of services and goods. This is a local marketplace that operates within a radius of a few kilometers. Roadrunner and Swiggy are two examples. This category will include business ventures that aim to make the user experience memorable. They will focus on quality and speed and provide many options for users to keep returning to their services.

  • e-Scooters

Since Bird invented the e-Scooter in San Francisco, demand for e–Scooter app design has increased steadily. As a result, the segment is a favorite of investors, and brands are looking to expand their reach.

Not only that, but several governments have also given their approval for eScooter usage in their places.

  • Self-Storage Market

Over 30% of Americans have more storage space than they need, and 40% of citizens face the problem. This is where on-demand apps come in. For example, Cuft is an app that allows people who require space to connect with others who do not have enough and then makes them use it as storage.

Make a feature set for each actor in On-Demand App

After you have identified the actors, it’s time to determine the feature set for each set of apps, mobile or web. Here are some features that each actor should have.

Customer app feature

  • Push notification
  • Tracking in real-time
  • Payment System
  • Favorites
  • Reviews and Ratings
  • Assistance and support

Service Provider App Features

  • Push Notifications
  • Accepting & rejecting requests
  • Service from start to finish
  • Keep track of earnings
  • Plan your time
  • Select your availability

Admin App

  • Dashboard
  • The matching algorithm
  • Manage users
  • Manage Service Provider
  • Manage Pricing
  • Analytics and reports
  • Launch and test
  • Publish

Advanced Features for On-Demand App

Here are some advanced features that you should be aware of to build your own on-demand app. 

  • Transport of Contactless Parcel

You should pay attention to contactless delivery. As a responsible vendor, you must ensure that your parcel arrives in a safe place during transit. This is a great way to protect consumers and ensure quality standards.

  • Multiple delivery options

Amazon is a business giant that allows customers to have their parcels delivered wherever they are. Customers can have their parcel delivered anywhere they like, whether in a guard room or on the top floor of their hotel. To ensure customer satisfaction and convenience, multiple delivery options must be offered.

  • Online Payment Gateways

Are you sure contactless delivery is a viable option for an app that doesn’t have secure payment gateways? You should ensure that you have access to any payment options that your users may prefer. To ensure users can make quick and secure payments, it is highly recommended that you integrate a robust and secure payment method into your mobile application.

  • Chat or calls in-app

This feature can be added to your on-demand delivery app for customer satisfaction and security. This feature allows customers to get customer service quickly and easily. Customers can communicate with their delivery person by using chat or phone options. Chat and in-app calls allow for quick communication between consumers and vendors.

  • Push Notifications

This feature keeps users informed about their orders and delivery updates. This results in enhanced user engagement and experiences. Also, this improves customer experience and contributes to revenue growth.

  • Emergency care

How will the customer complain if the delivery person does not follow the safety and security guidelines? Including emergency care options in your mobile app makes it more critical. In addition, users can place queries and complaints about orders or services in seconds.

How Techugo Will Help Shape the World With On-demand Applications

If you’re a startup entrepreneur looking to transform your startup with on-demand apps, consider On-Demand Applications. On-demand apps are shaping the world’s economy. These apps have a large user base. Investing in On-Demand Apps can benefit you as a service provider or business owner.

The future of On-Demand Apps looks bright. So take your chance to be the best on-demand app on the market. Do you have an idea? Techugo, the top on-demand app development company, can help you turn it. 


  • What are the most current trends in App development?

Consumers love on-demand applications because they allow them to select services with a few clicks. This segment has attracted many firms to invest in it due to its numerous benefits. 

  • What are the advantages of on-demand mobile app development?

The following are the benefits of on-demand app development for your business:

  1. Scalability
  2. Book easily
  3. Flexible Offers
  4. Customer service improvement
  5. Analytics of user activity
  6. Gross revenue
  7. Online presence development
  • What’s the future of On-Demand Home Services in the Business World?

You can order on-demand services from your home and receive them immediately. In addition, it is a platform that allows you to hire specialists for your domestic tasks.

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