Ultimate Guide to Develop On-Demand App in 2025
By idea2appAdmin
May 26, 2025
Table of Contents
The new generation of startups is leading to a new revolution with increased demand to develop on demand app, making it easier for businesses to deliver services directly to users’ smartphones. So, if you plan to take your service into the on-demand environment, you are on the right track.
As reported by Statista, about 50% of users are currently using on-demand applications. Additionally, almost 60% of customers are prepared to incur extra costs for same-day delivery, a statistic that is anticipated to rise in the years ahead.
Think about the possibilities of increasing your customer base and satisfying their needs right when they arise—this is the concept of an on-demand app.
The truth is that to succeed in the on-demand app market, one needs more than just a bright idea. It takes a lot of strategy, a user-centric design, and the right on-demand development partner to help you stand out.
In this blog, we will walk you through the custom on demand app development guide, from your brainstorming session for the steps to develop an on demand app and everything after.
On-demand app development will give you many rewards, such as better customer loyalty, increased brand recognition, effective communication, and more. Reports suggest that by 2025, the market value of these mobile apps is expected to reach $335 billion. The apps market is projected to experience a significant annual growth rate (CAGR 2022-2027) of 8.58%, leading to an estimated market volume of US$755.50 billion by 2027.
If you’re still confused, let us provide you with some mind-blowing stats to show you the significance to develop on demand app services:
An on-demand app is a digital solution enabling users to book a service immediately or schedule it later. The app connects customers with different service providers, but not without financial aspects involved. With technological advancements, these apps have revolutionized industries by providing convenience and speed with just a few clicks, and users can buy products of their selected choice and brand instantly.
The success of on-demand apps lies in their ability to meet user expectations for speed and simplicity. They typically offer real-time tracking, multiple payment options, and personalized experiences. Whether it’s booking a ride or ordering groceries, on-demand apps streamline the process and save valuable time for both users and providers.
You name the industry, and there’s an on-demand app for it. However, here are the most trending apps like Uber and Airbnb business types that you must consider while investing your money. Take a look at the list before you develop on demand app.
On-demand food delivery app development has bridged the gap between restaurants and foodies. When the customer places an order with an on-demand app, the restaurant starts preparing the dish and indicates when the food will be ready, monetizing shelf-to-door facilities.
Examples:
While local deliveries have been seriously disrupted, some options for on-demand grocery delivery app development have come forward for more entrepreneurs. Grocery delivery apps like Instacart help customers get groceries most easily. You can order only the necessary groceries and deliver them to your place.
Examples:
Opting for custom laundry app development can help you to connect with a wide range of customers. Extra feaures in applications like dry cleaners provide toxin-free cleaning and open up a new level of business potential.
Examples:
Household chores like house cleaning, repairs, plumbing, electrical, and many other everyday tasks take lots of time. So, as a startup, you can build an on-demand handyman app that connects various handymen to clients on demand for all of these home delivery services.
Examples:
The old-school notion of using taxi services has been successfully discarded by car booking and Uber for a taxi. If you want to expand your taxi services into a multi-billion-dollar market, developing an on-demand taxi app is worth investing in.
Examples:
If you build healthcare apps, they will connect patients to clinicians on demand. Patients can seek support and may chat with their doctors one-on-one. Doctors make decisions just as they do during an ordinary appointment. Fitness and diet app development will help users with weight, calories, and meal plans.
Examples:
This application is a miracle for those who want to be at their best in a limited time. With only a few phone taps, users can connect with a beautician, stylist, or makeup artist using on-demand beauty salon software.
Examples:
To deliver packages and cargo, on-demand app development is a rescue for industries for their shipment, e-commerce for their packages, and by ordinary people for couriers. So, if you belong to the logistics industry, you can develop an on-demand courier app.
Examples:
Apps like on-demand dog walking make it easy for dog owners to find walkers anytime they want. The app connects the dog owner to a dog walker and helps the dog walking business earn revenue by connecting users and service providers.
Examples:
To increase the client base for your garage services, customized automotive mechanic app development can never go wrong. An interface provided by an on-demand app development company helps you accept client requests for a range of services.
Examples:
To develop on demand app is easy. Let’s understand it with an example of an app like Amazon. There are different categories through which customers can select the product. Once the product is chosen, it navigates to the buy now category, where the address and payment formalities (or cash on delivery) are completed.
After the order is placed, the vendor receives the request for the product along with the customer’s details to streamline the whole process. The vendor will proceed with the request, making it dispatch-ready. If they have the delivery option, they will send out the item for delivery, or the courier delivery company will pick it up. Customers can track the item easily in real time from the start until it reaches the destination.
Since the basic working is clear, let me take you through significant steps to build an on demand app:
This aspect is easy to understand since it involves requesting a product from the customer. The customer will place the order, which is considered a delivery request. The order will be dispatched to the service provider so they can deliver the product.
The assigned delivery agent will pick up the order or package per the source location. The location can be a warehouse, a shop, or a person who can hand over the package for further proceedings.
Customers and vendors can check the real-time status of the ordered product. The tracking section contains all the information from the start of proceedings until the package reaches its destination. Some apps send push notifications to send all real-time information on the package.
Just because a product was ordered and delivered doesn’t mean the information will be lost. The apps must contain all the data in a single database to allow customers or vendors to access it anytime. On top of that, during the payment, it must be made through the secure gateway. An OTP is sent out to the customers to ensure that no fraud is done to the customer.
One must remember that reviews and ratings are very important. There are options at the Google Play Store or Apple Store that permit users to post a negative review in case the app is unsatisfactory. Similarly, the in-app features allow customers to review and rate a product to enhance other customers’ experiences.
These apps cover a wide range of services, offering unmatched convenience and flexibility at the user’s fingertips. From booking a cab to ordering food or scheduling home cleaning, on-demand platforms are transforming how we access services in real time.
Below are some of the most popular on-demand apps that have set benchmarks in their respective industries:
Uber Eats is a well-known food delivery on-demand platform. It is available in various countries and delivers local and international food items to your door. This software for managing delivery services to provide food has joined forces with hundreds of restaurants and offers its clients discounts, promotions, and specials.
TaskRabbit is a well-known in-home service application that offers various services. It allows you to find “Taskers” for multiple tasks, including plumbing, furniture assembly, etc. TaskRabbit has a wide range of Taskers and lets you connect with Taskers through the app.
Netflix is a streaming service that offers many films, TV shows, and other entertainment content. Its primary characteristic is its ad-free streaming, so users can enjoy their content without interruptions. Additionally, it allows you to download your most loved shows to watch them offline.
Amazon Prime is another famous streaming service that is the best. It has a huge selection of films or TV series and is accessible in a variety of countries. Members who sign up for the service get 30 days of trial for free. The cost is reasonable, and anyone can comfortably afford it. Prices vary based on location.
Spotify is a digital music streaming service. This app offers access to millions of songs from various artists and albums. Premium subscribers can download songs and play them offline. The service is available on both desktop and mobile computers.
Airbnb assists you in finding the perfect accommodation at a reasonable price. It offers a variety of lodging options, such as hotel rooms, apartments, restrooms, and much, much more. It is available in thousands of cities and countries around the world. On Airbnb, you can effortlessly reserve homes, hotels, and other accommodations at reasonable prices.
Kayak’s mobile apps and websites are accessible in over 30 destinations and 20 languages. You can plan your itinerary using tips, monitor prices, get price alerts, and much more. It’s an easy-to-use tool that allows you to prepare with ease.
Duolingo is a platform for free to learn a language. It allows you to learn more than 30 languages online using bite-sized lessons. You can take classes that teach writing, reading, listening, speaking, and reading skills. Duolingo offers listening and speaking exercises for understanding and pronunciation. AI, along with language science, can be used to personalize classes according to your level of learning.
Teladoc offers a variety of health services. The certified doctors are available 24/7 via video or phone calls. Teladoc completed 50 million virtual visits. Additionally, 76% of those who suffer from depression are happier after their third-party visits to therapy. In just a few moments, Teladoc will connect patients with their doctor.
DispatchHealth is a cost-effective and top-quality medical service that provides on-demand medical in-home services. Its primary goal is making healthcare available and accessible. DispatchHealth is a medical clinic with qualified doctors, nurses, nurse practitioners, physician assistants, and medical technicians. It can send medical personnel to patients’ homes or workplaces to offer medical assistance.
Now if you consider developing an on demand app, here are some features you must include.
The on-demand application must have a registration form or a login page where users can submit the necessary details to access it.
When you develop on demand app, it must have an instant service booking feature to allow consumers to book their service needs efficiently. This functionality will certainly amaze many consumers on the web, as they will immediately get professionals for their on-demand services at their convenience.
The application should have a payment gateway system for seamless checkouts, such as debit cards/credit cards, wallets, and COD.
The on-demand application must allow users to log in with their current social media accounts. It should also enable customers to share the application with friends and followers.
Clients are often hesitant to make a transaction right away. Before eventually deciding on something, they need time to test other goods or compare them with suppliers. In such situations, favorites and wish lists are helpful to develop on demand app, so prospective customers can return to the same supplier when they can order.
The app must have a Geolocation feature, which makes order tracking easy and gives customers real-time updates.
This advanced feature helps users alert admin personnel, family members, and medical support lines about uncertain situations such as injuries, incidents, and extremities.
It allows users to share their ratings & reviews so that you, the business, can evaluate their experience and make changes.
The application should offer help & support to the customers to improve the brand’s reputation.
The application should have a registration for the service provider, like the customers. In this application, they must submit their brand details and information.
When the user places an order, the service provider must receive a notification with all the details, which they can then send back to the users regarding their order updates.
This is the most essential feature that should be included in the application for service providers. It allows them to track the revenue they generate.
It’s a crucial feature that helps customers when things are not going their way. It keeps the service provider available for their customers to resolve their issues quickly. This service is necessary to keep the customers happy and satisfied.
This feature should be included in the app for service providers so that they can accept or reject any order based on the availability of any product.
This toggle feature helps customers place orders if the service provider cannot take orders online.
This is a crucial feature from which the admin can easily manage and customize the service providers and users. Through the dashboard, the admin can access both parties.
This feature allows the admin to allow users to scroll to check the discounts, rewards, order details, and cancellations. Admins can easily resolve customer issues quickly by ensuring a seamless experience.
The following app section shows the analytics of service providers and users regarding how many orders they placed, were accepted by the service provider, and were cancelled.
This section allows an admin to track service providers’ performance rate reviews and offer bonuses to keep them engaged.
The app’s admin panel must have access to track the product cost and the commission charge. The admin can also increase the charge by witnessing the product demand.
What makes on-demand apps well-known? The growth of apps on demand is directly related to the emergence of the economy on demand. The rise of market giants like Amazon, Uber, and Netflix signified the beginning of a new age, which brought about dramatic shifts in consumer behavior and prompted people to seek quicker and more efficient services.
The popularity to develop on demand app could also be due to the following factors.
Users can order goods or request marketing services with a single click. The capabilities of on-demand apps cater to the needs of immediate users and deliver instant results. The ease of use offered by these apps perfectly matches people’s modern lifestyles.
Recent years have shown that having a robust online presence is essential to the success of your business. The website that is your sole source of online presence is not enough; investing in developing on-demand services and apps improves your online presence, making sure your company is available and relevant.
The versatility of on-demand apps can be applied to various industries and companies. For instance, there are applications for booking services, food delivery apps, transportation apps, e-commerce applications, etc. This flexibility for different sectors allows businesses to start using on-demand apps and later expand them into an on-demand market, which can then be monetized through transactions. Because of their capability to scale easily, the on-demand apps enjoy a significant advantage, offering growth opportunities over time.
To develop on demand app, you need a systematic and strategic process. Here is a detailed process for developing an on demand app:
In the case of an on-demand service app, it is crucial to analyze the primary concept and how it will influence the identified audience. Conducting a market analysis will help you understand the market completely. It will identify the user’s requirements, competition, and existing trends. Discuss with all the stakeholders what the app is for, what elements it should consist of, and what users it serves. This preparatory phase defines the overall developmental process and /orients the projects.
User experience (UX) design enhances app relevance. Some examples include wireframing and prototyping, which determine the app’s layout and navigation flow. The key is to use usability, simplicity, and the laws of the universe/ergonomics of human interaction with technology. Ideally, the user involved in a specific task should not expend much effort on various options and interfaces in the app to accomplish the goal. High-quality UX design positively impacts customers’ engagement and loyalty.
Front-end development defines the process of transforming UI designs into an application. Developers employ HTML, CSS, and JavaScript technologies to develop an on demand app front end. Frameworks such as React Native or Flutter are common when developing mobile applications because they allow the creation of iOS and Android apps. This makes the app fluent when downloaded to iOS or Android operating systems and strengthens the app’s usability among users.
The backend development aims to create mathematical algorithms for running the site and the database. This includes acquiring servers, databases, and API services. The back end makes the app operational to users’ requests. These are also the time measures to secure the users’ and the environment’s data.
Most on-demand applications interface with external systems such as payment processing systems, Geographic Information Systems, and social media networks. Such integration enhances the user experience by adding more things to do. Develop on demand app that incorporates APIs into the services to be used by the app in an easy flow for the user.
Testing is among the final stages an ‘on-demand app’ goes through during development. It means the debugging process in which the program is tested for faults and errors in the developed app. In functional, usability, performance, and security testing, several tests and operations are performed to gauge the application’s robustness. A well-tested app relieves users of all the bugs that may distort their faith in the application, making them fully satisfied.
After testing through different phases, the app is determined for launch with deployment. This involved uploading the app to app stores such as Google Play and Apple App Store, and the app complied with the respective platforms’ standards. First-time users must likely be attracted through marketing and promotion so that app usage begins at the proper launch time.
Maintenance is essential to ensure that the application operates optimally after it has been launched. Developers refine the application by correcting default errors or improving it to meet needs and demands. The strong emphasis on continuous improvement keeps the app relevant.
The average cost to develop on demand app ranges between $30,000 and $250,000 +, depending on the app’s complexity and features. Some of the most influential cost drivers are the platform of creation (iOS, Android, or both), features, a backend system, and design.
Here’s a quick overview of the typical costs for developing an on-demand app:
When considering the cost of creating an on demand app, it’s crucial to understand the varied elements that influence these expenses. The table below provides a clear overview, using industry insights and expert references, to help simplify these factors for a professional yet accessible understanding.
| Key Factor | Description | Impact on Cost |
| User Interface/User Experience (UI/UX) | A crucial component for user engagement, requiring meticulous design for seamless navigation. | The complexity of the design could raise costs substantially. |
| Platform and Device Compatibility | The app should be compatible with the major platforms such as iOS, Android, etc. | Increased development costs on platforms. |
| Feature Complexity | The advanced features such as real-time tracking, communications, or feedback system. | Innovative features increase development costs. |
| Third-Party Integrations | This involves linking to various services like social media, payment gateways and payment gateways. | It can significantly impact the budget. |
| Backend Infrastructure | This includes server management as well as storage solutions for data that are essential to application function. | Infrastructure needs can drive costs higher. |
| Testing and Quality Assurance | Methods to ensure app effectiveness and smooth operation. | Testing phases can also add costs. |
| Maintenance and Support | Updates as well as fixes and customer support after the launch. | Maintenance results in recurring costs. |
Developing an on-demand service app is a multifaceted endeavor that presents several obstacles:
Challenge: When the app reaches a point where thousands and millions of people can use it, you always need to closely track its performance to ensure that it functions optimally even as users register. If not scalable, you can have slow load times and crashes that drive away your users.
Solution: Dynamic scaling of cloud services and microservices architecture enables efficient user growth. Regular performance tests and optimization are also necessary.
Challenge: Real-time data is a fundamental feature that on-demand apps heavily depend on for tracking and updates. Quickly and accurately processing this data is necessary for user satisfaction.
Solution: With modern, robust data processing libraries and good backend infrastructure, managing real-time data is manageable. Other methods, such as implementing caching strategies and optimizing database queries, can help with better performance.
Challenge: In a saturated market, keeping users interested and getting them to use the app again can be tough. High churn rates can slow down app growth and profitability.
Solution: Personalized inclusions, such as loyalty programs and regular updates, can boost engagement. User feedback and behavior are analyzed to design features that address users’ needs.
Challenge: Sensitive user data, such as payment information, must be handled in a very secure environment to ensure no one can breach it or create trust with users.
Solution: End-to-end encryption, secure payment gateways, and data protection regulations go a long way. And from a security standpoint, these are further regular security audits and updates with user information.
Challenge: On-demand apps often require the integration of services such as payment processors, mapping systems for on-demand carpool apps, and SMS gateways. Ensuring seamless integration without data flow issues is challenging.
Solution: Integration is much simpler when reliable third-party services have complete APIs and consistent communications protocols. Thorough testing during development will ensure the product is compatible and working.
Challenge: The on-demand app space is very competitive, and it is very difficult for new competitors to succeed in the market.
Solution: An app can stand out by conducting thorough market research to understand unique value propositions and market in a niche market. Marketing strategies and a great user experience also play a huge role in making the app competitive.
Challenge: To avoid legal tangles, it is necessary to navigate the complex terrain of regulations, from data protection legislation to industry-specific rules.
Solution: It’s important to stay informed of relevant regulations and ensure the app complies with all legal requirements. Consulting with legal experts during development can help you understand and implement appropriate compliance measures.
On-Demand App development is subject to various legal and regulatory requirements that developers must comply with to ensure user protection, data privacy, and ethical practices. Non-compliance results in severe consequences such as reputational damage, legal penalties, and loss of user trust.
The significance of complying with legal and regulatory requirements includes:
Common legal frameworks and regulations that govern app development include:
Compliance with legal and regulatory requirements needs:
Just developing an on-demand app is not enough to earn money. If you want to generate some revenue, then it is vital to keep the monetization of app methods in mind. Follow these ways to earn money via on-demand app:
One of the most frustrating things a restaurant faces is putting customers on the waiting list. In such a case, logistic partners are preferred by restaurants to earn a few bucks in the form of a delivery app. There are two ways to work on the delivery charges—show them with flat charges or hide them in the bill.
The best thing about on-demand apps is that adding features and focusing on delivery is fun. It is possible to limit the price, location, and service according to peak hours. This helps generate revenue according to the business model. On top of that, the users cannot opt for bargaining since the prices will be fixed. Hence, it is best to keep this in mind when deciding on the maximum demand prices for the portal.
Some apps, such as Zomato, UrbanClap, and 1mg, generate revenue with features like in-app ads. Ads are a great marketing tactic for easily luring the user or customer. When it comes to marketing, ads are generally the topmost tactic to follow. They expose the vendors/merchants more than competitors on the same platform.
When it comes to on-demand apps, it is vital to consider the merchant’s requirements and user demands. Several apps, such as food delivery apps, e-commerce apps, and cab/taxi booking apps, can potentially attract different merchants or partners on a single platform.
There are two types of feature models: paid and freemium. In the latter, the user can purchase the plan in the app with special benefits. These can include combo packs, free delivery services, and even free servicing. Keep the business profit in mind while deciding on the model and structuring the price to make it more relevant.
So you’ve got the concept and are set to build a scalable app for your service-based company. Now the next step is to partner with a reliable on-demand app development company like Idea2App. We don’t just create apps – we create on-demand marketplace platforms that scale with you.
Our team specializes in building an on demand app that can handle millions of users without breaking a sweat. From ideation to deployment and scaling, we’ve got your back. Ready to scale your app into the next big thing? Let’s make it happen.
On-demand apps are changing the user experience across many different areas, and their popularity is predicted to grow even more. They have become commercialized, making millions of dollars in their initial phases and attracting a range of businessmen from various regions eager to profit from their potential.
On-demand application development is the perfect software solution for any company, whether an upcoming startup or an established one. The on-demand method can be adapted to any business, from on-demand food delivery services to mobile health apps.
This blog will guide you if you want to build an on-demand application and need help. It’s easy to work with one of the top on-demand app development companies and get a custom application that meets your business’s needs.
On-demand app development refers to creating applications that provide users immediate access to services like food delivery, ride-sharing, or home services, seamlessly connecting providers and consumers.
The technologies used in app development vary based on the application’s features and needs. Common technologies involve programming languages such as Swift, Java, MongoDB, etc.
Making an on demand app requires a clear vision (of what you want to develop and how it alleviates your customers’ pain points), the choice of an on-demand application development company (this is a critical factor), and how you market the app. Last but not least, an essential step in building a successful app is how well you maintain and monitor the app’s performance post-launch.
By providing customers with all they need at their doorstep, on-demand service applications have almost replaced conventional business models. So, the future of on-demand applications and the on-demand economy will flourish and thrive, boosting sales.