Top Benefits of Building an On-Demand App: Types, Features, and Cost

Are you planning to create an on-demand app? 

If your answer is yes, you’re already on the right track to boost customer satisfaction and loyalty. 

Today’s consumers increasingly expect to access the products and services they need anytime and anywhere with just a few taps on their smartphones, and on-demand app development is meeting that expectation. 

However, delivering such convenience and satisfaction requires careful consideration of several key factors. This guide to on-demand app development covers everything you need to know to build a high-quality on-demand application or marketplace solution. 

From essential features and business benefits to cost insights, this article provides all the information you need to get started. 

Let’s dive in!

What is On-Demand App Development?

On-demand app development refers to the creation of mobile applications or web platforms that enable users to request various services and receive them quickly. Examples include popular apps like Uber, DoorDash, and Airbnb. In these platforms, users simply identify a need, access the app, and get connected to the right service provider. Essentially, on-demand apps act as a bridge between customers and businesses, facilitating instant service delivery and convenience.

Businesses looking to create such solutions often partner with an on demand app development company. These companies specialize in designing and developing apps that streamline service delivery, enhance user experience, and ensure seamless interaction between customers and service providers. 

Features of On-Demand Service Apps

Developing a comprehensive on-demand service app involves careful planning to address the needs of all the users who will interact with it. Whether it’s customers requesting services, providers fulfilling those requests, or admins overseeing operations, each group requires specific features to ensure smooth functionality and communication. 

While your business may choose to add or remove certain elements based on your goals, the following features represent the core components that every on-demand service app should include, no matter the industry. 

On-demand service applications are already widely used across multiple industries, including healthcare, education, freelancing, food delivery, logistics, and many more.

A. Customer App & Website

The following features are designed for the customer-facing side of the application. For context, just as the Uber app for riders differs from the one used by drivers, customer apps typically have distinct functionalities tailored to user needs. 

1.Real-time booking system:This feature enables users to instantly book the services they need, displaying available slots and real-time availability.

2. In-app payments and digital wallet: This system handles secure payments directly within the app, supporting multiple options such as credit or debit cards, UPI, net banking, and integrated loyalty points or credits. 

3.Live GPS order tracking:This functionality provides real-time location updates, estimated arrival times, and live route visualization,similar to the “Your driver is 5 minutes away” feature you see in ride-hailing apps.

4. Search filters and ratings: This functionality enables smart sorting, review-based rankings, and feedback-driven interactions. It helps customers browse service providers, read reviews, and make well-informed decisions.

5. Multilingual support: This feature provides localized content and interface options, allowing businesses to serve users across diverse markets.  

6. Push notifications and alerts:Customer-facing apps often send timely updates about bookings, special offers, and reminders. This feature ensures users stay informed and engaged. 

7. Live chat with support:If a customer has questions or is dissatisfied with a service, live chat allows them to communicate directly with the service provider’s support team for quickassistance. 

B. Service Provider App & Portal

Service providers can efficiently manage their tasks, schedules, and earnings through an on-demand service platform using the following features:

1. Smart job matching:Integrated with the real-time booking system, this feature automatically assigns service requests to providers based on their availability and location. In simple terms, it ensures that customer requests are matched to the right provider at the right time. 

2. Availability scheduling:This functionality allows service providers to set custom time slots and define work areas through geofencing according to their preferences. 

3. Earnings dashboard:On-demand apps assist service providers in processing payments from customers and managing their income. The dashboard provides daily, weekly, and monthly summaries of orders and earnings, along with the option to request instant payouts.

4. Customer chat integration: This feature enables service providers to communicate directly with customers through in-app messaging, promoting transparency and smooth interactions. 

5. In-app navigation and route planner:Built-in GPS tools help service providers determine the fastest routes, minimizing service and delivery delays and improving overall efficiency. 

6. Document integration:Service providers can securely upload essential documents such as KYC, service licenses, and tax or payment records, ensuring authenticity and compliance. 

7. Ratings and performance history:Customers can rate service providers after each service, creating accountability and providing insights to maintain high service quality.

C. Admin Panel & Dispatcher Dashboard

The admin panel serves as the central hub for managing the on-demand service platform, connecting customers with service providers while providing real-time control, oversight, and insights. Key features include: 

1. Live operations monitoring:Admins can track all tasks, bookings, and deliveries on a map-based overview, giving a clear picture of ongoing operations for both customers and service providers. 

2. User and vendor management:This feature allows admins to add, verify, suspend, or support any user on the platform, whether a customer or a service provider. 

3. Automated and manual dispatch:Admins can assign orders to service providers using predefined rules or manually override assignments to handle priority tasks efficiently. 

4. KPIand analytics dashboard: This feature provides insights into revenue, retention, service drop-offs, and peak activity periods, helping the company make data-driven decisions. 

5. Dynamic pricing system:Similar to surge pricing in ride-hailing apps, this feature manages pricing adjustments, including discounts, geo-based pricing, and high-demand surges. 

6. Promo CMSand push notifications: Admins can manage offers, banners, and notifications for both customers and service providers, ensuring effective communication and marketing. 

7. Disputeand refund management: This module allows the platform to track, investigate, and resolve conflicts or refund requests between customers and service providers.

Business Benefits of Developing an On-Demand Service App

If you are unsure about investing in an on-demand service app, the following key advantages may help you decide in favor of building one.

1. Revenue growth

A well-designed on-demand app opens multiple avenues for revenue generation. Whether your app delivers your own business’s services or connects customers with service providers, it can drive significant earnings. Revenue can come from subscription fees, in-app purchases, or ad placements, giving your business a strong financial boost. 

2. Enhanced customer satisfaction and loyalty

On-demand apps improve customer satisfaction by enabling users to access the services they need exactly when they need them. This convenience fosters loyalty, which is vital for long-term business success regardless of your industry.Happy customers are more likely to return and recommend your brand. 

3. Scaling your value proposition

Once you have built a loyal customer base through consistent quality, you can expand your service offerings to increase profitability. By leveraging trust and satisfaction, businesses can introduce additional services to existing users, gradually scaling their value proposition and boosting margins.

4. Versatility

Building an on-demand service app offers flexibility in how you structure your business. You could start with a standalone app offering your own services and later expand it into a full marketplace if you identify growth opportunities. This approach works across various industries, including healthcare, e-commerce, and e-learning, providing a platform for sustainable long-term growth. 

5. Expanded customer reach

On-demand apps help increase your business’s visibility and reach, especially if your platform connects customers with multiple service providers. Services offered through these apps often benefit from word-of-mouth promotion. Take Uber, for instance. The brand has become nearly synonymous with on-demand transportation, steadily growing its customer base over the years. Your business can achieve similar reach and recognition.

Factors Affecting the Cost of Developing an On-Demand Service App

On average, developing an on-demand service app can cost anywhere from $50,000 to $200,000, especially as the app grows and incorporates more advanced features over time. If you plan to start with a Minimum Viable Product (MVP) to test the market with basic functionality, the cost can be considerably lower, usually ranging between $15,000 and $20,000. Keep in mind that these figures are general estimates, and the actual cost will vary depending on your specific requirements, chosen features, and development approach. 

Key Factors Influencing the Cost of On-Demand App Development

Several factors affect the overall cost of developing an on-demand service app are explained as follows: 

1. Type of Application
The type of app you choose has a significant impact on development costs. On-demand appsgenerally fall into three categories: native, hybrid, and web. 

• Native apps: These apps typically involve higher development, maintenance, and infrastructure costs. They are best suited for businesses with larger budgets that require high performance, fully customized features, and an exceptional user experience.
• Hybrid apps: Development costs for hybrid apps are moderate, making them a good choice for businesses seeking a balance between cost and performance.
• Web-based apps: These are the most cost-effective option, with low to moderate development costs, suitable for businesses with limited budgets.

2. Feature Complexity
The cost of developing an on-demand app rises with the number and complexity of its features. Functionalities such as multiple payment options, real-time tracking, feedback systems, and 24/7 customer support contribute to higher development expenses. 

Seamlessly integrating these features with an intuitive, user-friendly interface also adds to the cost. Nevertheless, investing in these elements is essential, as they enhance user engagement and create a strong unique selling proposition for your app.

3. Design Complexity
More complex designs require greater resources, which increases development costs. A visually appealing and intuitive UI/UX is essential for boosting user engagement, making responsiveness and ease of use top priorities. 

Design intricacy directly impacts the overall cost of developing an on-demand app. Customization options, personalized interfaces, and interactive elements also contribute to higher expenses. 

4. Development Platform
Choosing the right platform significantlyimpacts development costs. Identifying whether your target audience primarily uses Android or iOS is crucial. Cross-platform development allows apps to run on multiple operating systems and simplifies maintenance, but it requires more effort to ensure consistent performance. 

5. Third-Party Integrations
Integrating third-party APIs or services can streamline operations and enhance app functionality. However, these integrations can increase development costs due to challenges like ensuring smooth data transmission and compatibility with external systems.

6. Location of the Development Team
The cost of app development also depends on the location of your team. Developers’ hourly rates vary by region, which can significantly influence the total project budget.

7. Size and Expertise of the Development Team
The number of professionals on your development team affects the total cost of building an on-demand app. While a larger team can speed up the development process, it also increases expenses. The experience and skill level of the team, including project managers, UI/UX designers, mobile developers, QA specialists, database administrators, and analysts, also play a key role in overall costs.

Top 5 Types of On-Demand Mobile Apps

Understanding the different types of on-demand apps can help businesses identify opportunities and decide which model best suits their target audience and goals. Below are the top 5 types of on-demand mobile apps that have gained popularity across different sectors.

1. On-Demand Food Delivery Applications

Food delivery apps such as Zomato, Swiggy, Talabat, and Postmates have been around for years, and many people were already using them before the pandemic. However, their popularity and usage surged during the pandemic, as customers preferred staying home instead of dining out. This shift in behavior significantly boosted the demand for on-demand food delivery services.

2. On-Demand Ridesharing Applications

On-demand ridesharing apps have changed the way people commute, offering convenient and efficient transportation options. Platforms like Uber, Ola, Rapido, and Grab became especially popular during the pandemic, as users sought safe and contactless travel solutions. These apps have reshaped urban mobility by providing reliable and easily accessible transportation. 

With a ridesharing app, users can book rides in just a few taps, choose their pickup and drop-off locations, select from different vehicle types, and track their ride in real time. Payments are processed directly within the app, and users can also rate their drivers and share feedback on their experience.

3. On-Demand Grocery Delivery Applications

On-demand grocery shopping has brought a significant shift to the retail industry. Just as malls and large supermarkets once changed shopping habits by moving people from local Kirana stores to big aisles and trolleys, the trend is evolving again. Apps like Instacart, Amazon Fresh, and BigBasket are at the forefront of this change, providing a tech-driven solution that delivers groceries directly to customers’ doorsteps for maximum convenience. 

4. On-Demand Home Services Applications

On-demand home service apps like TaskRabbit, Urban Company, and Handy make managing household tasks much easier. Users can book a variety of services, including cleaning, repairs, and maintenance, directly through the app. They can schedule appointments, track service providers in real time, make payments, and provide ratings and feedback on the services received.

5. On-Demand Entertainment Applications

On-demand entertainment apps have transformed the way we access media, giving users instant access to a wide variety of content on smartphones and smart devices. Platforms like Netflix, Disney+, Spotify, and YouTube have become integral to daily life, offering movies, TV shows, music, and videos tailored to individual preferences. 

These apps let users explore vast content libraries, create personalized playlists, and stream or download media for offline use. They also provide recommendations based on viewing or listening history, and users can rate and review their favorite content.

What Makes Intelegain a Trusted Partner for On-Demand App Development?

Intelegain stands out as a leading on-demand app development company, offering deep technical expertise and innovative solutions customized to meet diverse business objectives. Our skilled team specializes in both native and cross-platform app development, delivering high-performance, scalable mobile applications for enterprises across industries. 

At Intelegain, we utilize a modern and robust technology stack to develop secure and efficient on-demand applications. We use Swift and Kotlin for native development, while Flutter, React Native, and Ionic power our cross-platform solutions. Our backend expertise includes Node.js, Python, and PHP, supported by databases like MySQL, PostgreSQL, and MongoDB. Additionally, we leverage AWS, Azure, and Docker for cloud infrastructure, and integrate AI and machine learning to enhance user experience, personalization, and data-driven insights.

Ready to bring your on demand app idea to life? Get in touch with Intelegain today!