On-Demand App Development Challenges
By idea2appAdmin
June 5, 2025
Table of Contents
A good mobile app idea could turn the tide to your advantage. This isn’t an exaggeration. This isn’t an exaggerated assertion. Many mobile app developers have enjoyed gaining recognition and an increase in return on investment from a basic concept for an app.
The idea behind a mobile app is about understanding the common problems in on-demand apps, identifying the most appropriate service gap, and implementing your solution. This is why it’s crucial to test the viability of your concept initially. If the idea you are considering has a chance, it will be well-received by those who listen.
Recently, we’ve witnessed an explosion in the desire for mobile applications. Customers are not satisfied with the quality of the product or service; they want speed satisfaction, a pleasant user experience, and personalized service. Behavior patterns and users’ personalities are changing, and customers want more than high-quality goods or services. They expect easy and pleasant customer experiences that are personalized and no less. Finding an on-demand application development company to develop your mobile app concept can take a long way.
Apps can be downloaded in all sorts of industries, including healthcare, finance, retail, entertainment, and finance. Consumers have established this model for using the products or services they need.
We’ll review the most significant on-demand app development challenges. However, you can turn these obstacles into opportunities by taking the correct steps to overcome these challenges. Keep an eye on the future!
On-demand apps function as a bridge between consumers and companies; Uber connects drivers to riders, Airbnb links travelers to accommodation, and Zomato provides food delivery right to your door. They immediately allow users access to services across diverse fields, including healthcare, beauty education, taxi services, etc. It’s all accessible by a couple of clicks. People appreciate the ease of use and are often willing to pay a fee instead of spending hours searching for the best service provider.
They make life easier by providing instant solutions, whether it’s booking a taxi, scheduling an appointment, or comparing prices from a variety of service providers. Uber was the first to pioneer this approach, providing people with services that didn’t require assets. It soon became a model that other industries could emulate and inspired solutions that resembled Uber in almost every industry.
Building on-demand apps can significantly improve your return on investment, whether you’re a startup, a small/medium-sized company, or a large corporation. Let’s see why
The expectations of customers have changed. In the smartphone and the internet era, many users are eager to use technology to do anything and everything. Instead of shopping at traditional stores, they turn to immediate online services to satisfy the demands of their day. In addition, due to their hectic lives, they have to balance work, home, and social activities, and online home services are the best choice. These services are readily available to anyone who has timetables and preferences.
The market for on-demand home services includes numerous small businesses that operate on a common platform to offer a variety of options to customers. In the process, this market is now highly competitive. To be competitive in this market, each vendor is determined to offer customers top-quality, affordable, innovative services. In addition, delivering services within a day is the latest trend, and many suppliers are already doing this to increase sales and beat their competitors.
On-demand services are developed to meet the needs of customers. Since various suppliers offer the same service through an identical platform, customers can choose any provider based on their brand, budget, and preferences. They can be certain they will get the service within the specified timeframe. Depending on their availability and comfort, they may also schedule appointments with any provider. They can look up all information and track the service provider’s arrival on their phones in real time following the hiring of the service. In the end, the majority of customers prefer to utilize these services.
Generations to come will have different needs. They won’t spend their weekends cleaning their homes. Instead, they will use cleaning services. Already, they outsource their laundry, and there are numerous other advantages. The power of consumers to spend has also grown, and they can now purchase expensive products and services. Ultimately, there’s room for various types of on-demand home services in the next few years.
This is the top on demand apps concepts for development that you can go for by 2025. You may be wondering what application on demand will meet the evolving needs of the users and help you stay ahead of your competition. With many options, selecting the best choice for your startup is difficult.
According to Statista, the market for grocery delivery apps development is projected to grow to $1381 billion, with an average CAGR of 12.03% by 2029. The number of customers who use these apps on demand constantly increases, making it an excellent opportunity for companies seeking to establish an online presence in the food industry.
There are many kinds of grocery delivery apps, such as those that cater to special diets, late-night delivery, pet-focused delivery, and recipes-based delivery.
The next row in the list is the app for food delivery. With the increasing demand for food delivery to the doorstep and the advancement of technology, the number of users is predicted to grow to 244.9 million by 2029.
As life becomes more hectic, the ease of food delivery apps that offer an array of eateries and cafes will continue to increase. Designing an app that can be ordered on demand is a good option for businesses to increase their sales on the internet market.
As more and more people turn to online platforms for their everyday needs, and even purchasing online delivery of medicines sounds promising for businesses.
The global market for online pharmacies is expected to increase at a compound annual rate of 11.57% from 2024 to 2028, resulting in a market size of $81.37 billion in 2028.
If you’re an entrepreneur in the healthcare sector, consider developing an on-demand teleconsultation application that lets patients contact healthcare professionals to receive diagnostic or therapeutic recommendations and medications through online platforms. Why?
According to a study by Fortune Business Insights, the telecommuting market is projected to grow to $286.22 billion in 2030, which makes it a great investment opportunity.
The market for apps that deliver alcohol is still relatively new, but it might be a great choice if you’re working in the drinks industry. You can choose an aggregator model where you create a platform for local liquor stores and customers or a delivery service model where customers can place orders or take away from your shop. The market for online liquor delivery is predicted to grow to $67 billion by 2028.
Another fast-growing app idea is the on-demand home services app. The app’s market size is expected to reach $14.7 billion by 2030.
The app on demand allows users to engage experts for painting, cleaning, or drywall, remodeling plumbing, furniture assembly, pool maintenance, replacing fixtures, fixing, and many other tasks.
Ride-hailing apps make local travel easy for customers by offering live tracking and navigation, fare estimation, and the option of booking a vehicle before booking for a more enjoyable experience.
The global market also seems to reach S$215.70 billion by 2028 at a CAGR of 6.83%, making it a great app development idea for startups and entrepreneurs in hailing businesses.
The fuel delivery app is relatively new on the market and is quickly expanding. Like the app that delivers liquor, it is possible to opt for an aggregator or a delivery business model while developing this app to establish your presence on the internet in the fuel business.
The app for fuel delivery on-demand market size is projected to be $1171.5 million in 2030, with a CAGR of 18.54%. This app lets customers reduce time, have greater payment options, and receive premium fuel.
As a health enthusiast who would like to help others in their fitness journey, you could invest in the development of fitness apps that offer subscription or fee-based plans based on the user’s requirements.
The app could also provide information on nutrition, track steps and calories, and more, making it the personal coach of their choice. However, if you’re worried about its future growth, don’t worry; it is projected to hit $10.04 billion with an annual rate of 9.99% in 2028.
In the present, both businesses and people are looking at sustainability as they seek to live more environmentally sustainable lives and reduce their carbon footprint.
A carbon footprint monitoring application will allow users to discover the source of carbon emissions in their daily activities while also sharing strategies and tips to decrease their carbon footprint. In addition, its market will increase at an average annual rate of 22.64% and reach 11.50 billion in 2031.
To create a full-blown on-demand app, you must clearly understand who the intended users are. When you are creating an on-demand service application, make a list of features that allow users to access different categories of apps: the customer app, the service provider, and the administration panel.
The user-facing part of the app includes features that allow shopping for products, making an order, paying, and more. Let’s go over the most important features step-by-step –
This feature lets users sign up for the app using any method, such as Google sign-up or login via Facebook and Twitter accounts. Users can also create accounts manually using their email username and password.
A great way to engage the app’s users is to regularly send notifications regarding order delivery and payment or completion so that they cannot ignore your reminders.
Geolocation is an essential feature for monitoring the delivery of your product from the order confirmation stage until the point of delivery.
Customers can understand where the product is and when they’ll receive it. By using real-time tracking, consumers will have peace of mind. The location core framework and Google location APIs on Android can be used to integrate location services through real-time tracking in iOS.
When you add multiple payment options, allow customers to make secure transactions using one of the payment methods, such as PayPal, debit card, credit card, or any other. These transactions must be safe and encrypted from end-to-end so that nobody can steal them.
Users can provide feedback on their experiences using the application, which will allow potential customers to make better decisions. This will also help you know the percentage of your customers who are satisfied, and service providers can assess whether they meet the quality standards or not.
Customers can contact the assistance and support desks inside the app if they encounter any difficulties. This kind of support on demand boosts your business’s reputation and increases customer satisfaction.
You could incorporate an AI-powered chatbot into the application to offer continuous customer support.
Here are a few essential aspects you can incorporate into an on-demand application for service providers
Service providers can sign up for an account either by accessing social media accounts or by manually signing up. Once they have done that, they can fill in the necessary information about their brand.
As consumers receive frequent updates, service providers, too, must be updated as and when a customer makes an order.
The service provider will be able to monitor the total earnings earned from each purchase. This is a crucial feature that should be included when customers place orders through the app so they are aware of the revenue being added to their income dashboard.
Service providers may either accept or reject the request. They decide whether they have the capacity to accept future orders.
Service providers can toggle between offline and online buttons. They can switch to online mode once they’re ready to start taking orders or after the work day is over.
The app administrator ensures that everything runs seamlessly between the clients and the service provider.
Let’s discuss the most essential elements you should incorporate into the development of your app on demand —
The administrator of the application on-demand can monitor and control the actions of service providers and customers.
The app’s administrator should have access to the customer’s order information, payment details, fees, cancellation charges, and any other rewards or promotions.
Administrators can track actions and check their performance on a regular basis. They can view their rate and how much customers appreciate it, as well as any bonuses they can earn over an elapsed time.
The administrator can obtain specific information about service providers and customers, such as accepted orders, canceled requests, total revenue from service companies, and the number of repeat customers they have.
This feature will reveal hidden gems that you may not be aware of and that are affecting your business processes. This will let you fine-tune the app and develop strategies to boost customer engagement.
Administrators can alter rates and adjust commissions according to current demand. If the demand for a service or product exceeds their supply, they’ll raise the commission rates and reverse.
The notion of on-demand applies to a broad range of companies; the examples above are just one of them. Additionally, creating apps on demand offers the following benefits for your business.
Scaling on-demand platforms can help develop your product to become an on-demand marketplace that allows you to host other companies. They charge you a fee for every transaction they make through your platform.
Many customers are used to ordering, booking, or scheduling. They can be provided with this option through an on-demand application.
An on-demand service allows users to upgrade their services according to user information. Utilizing the app’s built-in recommendation engine, analyzing consumers’ transactions can provide opportunities to create a custom-made marketing plan, monitor customer behavior, create theoretical assumptions, and generate relevant promotions. It is also possible to use an app that allows you to provide discounts and incentives to encourage customers to purchase more.
Nowadays, people prefer going online instead of calling to get the information they require. Enhancing customer service does not require utilizing an app. Create a user-friendly, instant-on-demand application with the necessary and readily accessible features. This will significantly reduce the need for customer support individuals.
Monitoring user behavior within your app will reveal what services and offerings are most popular, what keeps your customers from buying, and what behavior patterns they exhibit. This information can be used to increase the effectiveness and efficiency of your app and create targeted marketing campaigns based on data.
Due to customer demand, mobile app revenues are growing rapidly. In the United States alone, on-demand spending is $57.6 billion annually. People are willing to spend cash on applications that can be downloaded on demand. Thus, you aim to give them the best experience they can through working with a professional on-demand delivery app development company. It’s a great way to keep customers loyal and increase sales through a system of remunerating customers to return for more purchases with promotions and rewards.
You require the development of mobile apps on demand to find a new method of increasing your website’s exposure. While a business website is standard nowadays, an app is a different and fashionable online tool.
On-demand applications always have storage in the cloud. This is beneficial for managing and storing the necessary user data, and data is accessible at all times. Data analysts can evaluate the efficiency of data storage in the exact cloud storage location to identify trends in the usage of on-demand Apps and devise strategies that most effectively meet the needs of all parties. In the end, storing and accessing massive quantities of data is beneficial during growth.
On-demand apps reduce the amount of time required to exchange services by connecting consumers directly to service providers. Because of the fewer physical interactions, the time to turn around is cut down, and services are delivered faster. With faster accessibility to their services, the satisfaction rises, leading to an increase in satisfaction with their service providers. Additionally, the app on demand that is used to exchange services can earn confidence from all sides, leading to an exponential rise in app use.
The appeal of the demand economy is undisputed. However, businesses that venture into this space have to face numerous challenges. Here’s a thorough look at the challenges faced by companies when developing apps that are on demand:
Ensuring users have a smooth experience is crucial for the success of any online application. The trick is to create an easy-to-navigate and visually attractive user interface that can accommodate various user preferences and devices. Developers should conduct thorough research on users, design prototypes and wireframes, and conduct user tests to improve the appearance of the application’s User Interface (UI) and the user interaction (UX).
Performance and scalability are among the two most critical aspects to consider when creating on-demand applications. Scaling on-demand platforms will help handle a large number of user requests simultaneously and still maintain a rapid response time.
Developers should design a solid architecture to manage the increased load while ensuring an enjoyable experience. They must be aware of the server infrastructure, database mechanisms, caching mechanisms, and the overall architecture of the application.
Numerous legislation and rules regulating data protection and specific industry requirements are a significant problem for developers of apps on demand. The legal landscape is not easy but crucial for avoiding legal penalties, maintaining confidence in the app’s users, and ensuring long-term success.
To ensure compliance with regulations, you must understand all relevant laws, implement robust security measures to ensure compliance, and continually monitor regulatory changes.
It is vital to select the appropriate monetization strategy for your app on demand. You must choose a long-term revenue model that aligns with your business goals.
Developers have a variety of strategies to address the issues of developing apps on demand:
Utilizing agile methodologies permits continuous iteration, cutting development time and allowing for greater flexibility in adapting to evolving requirements.
Cloud platforms like AWS and Google Cloud can help in the rapid scaling of resources, ensuring that the app can handle traffic spikes without any issues.
Collaboration with experienced developers will ensure that an app is developed using the correct technology and best practices.
Developing an app on demand requires a mix of user-centric design and technical expertise. This is a complete guide to creating a successful online-only application:
Every successful on-demand app begins with a clear idea and extensive market study. The first stage is to determine an issue or gap in the market that can be resolved with an online service. In this stage, it is vital to comprehend the customer’s demands and competitors. By analyzing the market and acquiring valuable information, developers can further refine their concept and adapt it to the market’s needs.
Once the concept has been formulated, it’s time to determine the app’s essential features and capabilities. This involves mapping the user’s journey, listing the most prominent screens in the application, and identifying the primary aspects that impact users’ experience. For instance, a meal delivery application could include options like restaurant locator ordering, menu navigation, and real-time order tracking. Making a comprehensive set of features is the basis of app development.
User interface (UI) and user experience (UX) design have an important impact on the popularity of apps on demand. Designers focus on creating a simple and visually appealing user interface that can enhance users’ overall experiences. Wireframe modeling, prototyping, and iterative design processes help refine the interface/application interface for seamless navigation, ease of execution, and aesthetic appeal to audiences.
Selecting the best technology stack is a critical choice during development. Considerations like scalability, speed, security, and cost should be considered. Backend development could use frameworks such as Node.js and Ruby on Rails. In contrast, frontend development may use tools such as React Native or Flutter to ensure cross-platform compatibility. The choices you make with third-party database hosting services and integrations can affect your entire stack of technology.
After the design and technology stack are finished, developers start the actual coding process. The team is currently developing the backend, frontend, and APIs needed for seamless interactions between service providers. A rigorous test is carried out during development to find and address any issues or bugs. These include Usability, functional, security, and performance tests.
On-demand applications typically require integration with a variety of third-party APIs and services. Common integrations include the payment gateways mentioned above, location-based services, push notification services, and SMS gateways. A seamless integration with these services will ensure seamless operation and improve the quality of the overall user experience. Developers must ensure that appropriate authentication and security protocols are in place throughout the onboarding process.
After you’ve completed your app’s development and test phases, it’s time to make your app available on the right platforms. The app is then uploaded to the appropriate app stores, like The Apple App Store as well as Google Play Store. Developers must adhere to rules and regulations of the stores for submitting an app successfully. Following a successful verification process, the app will be made public and accessible for download and installation.
The launch of an on-demand development application isn’t the conclusion of the development process. This is the beginning of the ongoing development and improvement phase. User feedback, analytics, and performance and efficiency metrics are gathered and analyzed to pinpoint areas for improvement.
The cost of building on-demand apps is between $30,000 and $250,000. The quantity and complexity of features available are among the primary factors that determine the cost.
These are apps with basic functionality, making them suitable for creating MVP products. Simple applications have a simple user interface and are typically made for one platform. The cost of building an application that can be downloaded on demand, like this one, can range from $30,000 to $120,000.
Professional-grade on-demand apps are more difficult to build. They feature more advanced functionality (for instance, chat in-app or payments gateway integrations) and a customized UI style. The cost to develop an app on demand similar to this starts at $120,000 and can go up to $200,000.
Custom-made apps on demand come with advanced features (e.g., advanced tools for searching, BI, etc.) and a well-thought-out user interface. They are designed to make money and improve the efficiency of routine business processes. The price to develop an on-demand application ranges between $200,000 and $300,000 and even more.
As I said, the success of any on-demand application, such as food delivery, video streaming delivery, or ride-sharing, requires meticulous planning, understanding the issues, and partnering with a reputable development firm.
As a on-demand app development company, Idea2App offers mobile app development services. It has years of experience creating next-generation solutions that are not only up-to-date but also capable of handling future challenges. Idea2App collaborates with world-class clients in a variety of industries, such as eCommerce and application engineering, along with Cloud & DevOps, to build successful apps after analyzing customer needs and market issues.
Although on-demand apps have revolutionized how we work, their growth poses various challenges that need to be addressed. Developers must overcome issues such as real-time monitoring, scalability, payment integration, user experience, service provider management, and continual iteration. To overcome the on-demand app development challenges, developers must have an array of technical abilities, careful planning, and a flexible development strategy.
At Idea2App, we have a group of experts who are knowledgeable about the latest technologies and trends. If you’re seeking on-demand App Development for your business, you’ve come to the right place. Contact us for more details.
Industries like food delivery, healthcare, home services, transportation, and retail have greatly benefited from on-demand apps.
Yes, on-demand app development is an extremely profitable and competitive business model. To create a successful application, make sure you plan it properly and get professional advice from a demand app development firm.
The common problems in on-demand apps such as scalability, real-time information processing, user retention, and security issues. Scalability lets apps run smoothly as the user base grows, while real-time data management is vital for features such as tracking and immediate updates.
The cost of the app can vary depending on the degree of difficulty involved and can range from $20,000 to $100,000 or more.