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May 6, 2021

How to Develop an On-Demand Service Application and Launch the Growth of Your Business

May 6, 2021

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On-demand service application development has revolutionized the way we buy groceries, get lunch, order taxis, and even medicine. The modern world of fast-paced life paired up with technological progress has created an amazing opportunity for on-demand solutions to grow and expand.

While competition is increasing, companies are forced to find new ways to attract customers and offer tailored and competent services. With the help of portable devices like smartphones and tablets, people get access to many services they could not reach before, whereas businesses have a chance to target a new user base. Wondering how to create an on-demand service mobile app, and which features should not be left out? Keep reading to learn the answers.

Why Consider On-demand Service Mobile App Development

Why are we talking about developing an on-demand service app? What makes it such a hot topic for discussion nowadays? The ever-growing global revenue of on-demand tools, the ability to provide custom solutions, and real-time interactions with customers are the main factors of the booming success. According to data from Statista, the Online Food Delivery segment will reach $151 billion in 2021, whereas the ride-sharing market will grow up to $218 billion by 2025. The market for online educational applications will also experience rapid growth and reach $243.8 million by 2022.

Harvard Business Review states that nearly a half of on-demand apps users are millennials, 30% are from generation X, and 22% are baby boomers. Why is this service so popular among millennials and other generations?

First, users are one click away from a large variety of products and services that they can get for a reasonable price. Second, modern software applications come with the newest technologies like Augmented Reality that provide a nearly real-life experience. Finally, on-demand service app development gives you the freedom to shop anywhere and at any time.

Further, we will talk about the core features of an on-demand service application, the average cost of development, and the most prominent industries for this type of development. We will also look at the most groundbreaking and inspiring examples like Uber, GrubHub, Eaze, Doctor on Demand, Wag, and others.

Building On-demand Services Apps For Different Industries

Creating an on-demand service mobile app will be beneficial for a plethora of industries. However, we will concentrate on the biggest ones such as healthcare, pharma, food delivery, taxi, and others.

Healthcare Mobile App

Despite the overwhelming importance and technical and scientific progress of the medical industry in the last decades, the experience that patients have while visiting a doctor has not much changed. It takes an average 24 days to get an appointment that requires you to physically go to the hospital and still wait in lines.

With an on-demand healthcare mobile app, you can book an appointment in one click or request a home visit from your doctor. Hospitals also benefit from this system as it reduces a hospital’s budget and provides efficient interaction with patients. A great example of a healthcare application is Doctor on Demand that runs on both Android and iOS. It comes with a video chat feature that allows you to discuss your health-related concerns with the doctor at any time.


Pharmaceutical applications simplify shopping for medical supplies and cater to people’s drug-related needs. Pharmacies benefit from building on-demand services apps by attracting a broader customer base and maximizing user experience. In the abundance of drug stores in each and every town, the market has become highly competitive, and having such an advantage will be a great booster for the business.

On-demand pharma applications are helpful tools for marketing and promotion campaigns. You can attract much more new customers by providing unique client assistance and personalized touch. 1MG is a viral Indian pharma application with a large client base that offers a variety of services. You can order medical supplies or drugs, book lab tests, and read professional health advice from the best healthcare experts.

Cannabis Apps

The cannabis online delivery market is relatively new due to the recent legalization of the industry. Making an on-demand service app will enhance your chances of creating a loyal customer database and give you a competitive advantage. Customers, on the other hand, gain access to a large variety of products and can enjoy delivery to their doors.

On-demand apps for the cannabis industry allow for rapid growth and expansion of the market. It also acts as an excellent marketing tool that enables you to send notifications, promotions, and other helpful information directly to the customers in real-time. Eaze is a platform for cannabis delivery. It offers a wide range of products, including supplies, and educates their customers about the different kinds of cannabis.

Delivery Apps

Food delivery services have become such a big part of our lives that it is hard to remember the time when we did not have them. Especially if you work from home and do not have time to go out, food delivery apps can come in handy. They give us access to an enormous database of local restaurants and cafes and bring delicious meals right to your door.

Restaurants can use these apps as a promotion platform to offer new dishes and discounts as well as a tool that connects them with their customers. On-demand apps provide personalization and customization options that cater to users’ tastes and requirements. GrubHub is one of the most known delivery apps on the market. Besides working with the largest selection of restaurants, GrubHub offers deals and discounts that attract customers.

Social Network Apps

Social network applications can also deliver on-demand services. For example, Wag — a dog walking app that connects dog owners and thoroughly vetted dog walkers. It is an amazing way to find quick help for a day or a helper regularly. The application charges 5% for every transaction, which makes the idea highly profitable. Customers enjoy the freedom of choice, depending on the town and the district, as well as security with a built-in tracking feature.

Taxi Apps

You probably remember the times when you had to call a taxi agency to order a car. Nowadays, you can get a ride with a push of a button thanks to on-demand service mobile app development. Using mobile applications, you can swiftly check the availability of a car in your area and the rates for the ride to your destination. The best thing for the customer is the fixed rate which means that you will pay a defined amount regardless of the traffic jams.

Taxi applications increase visibility and ensure safety as well as provide real-time feedback and location tracking. Uber is definitely the biggest application for ordering taxis with 75 million active users. Working in more than 10,000 cities around the globe, Uber is the clear industry leader due to its high level of safety, excellent features, and customization options.

Real Estate Apps

The real estate market is only at the top of its game. When life is good, people move into bigger and nicer places, and during crises, they go for smaller and cheaper homes. Customers can access the information about each listing, browse through images, and schedule a visit. Some applications even offer a 3D tour of the apartments and houses to make the virtual experience feel more real for customers. Home sellers benefit from reaching out to a larger target audience.

Real estate applications provide greater engagement with customers, open up a wider pool of potential buyers, and improve the viewing experience. Zillow is a real estate marketplace company that offers a convenient mobile application to its customers. Buyers can browse through the thousands of options and filter out the important features to find the perfect match.

Online Education

The availability of online learning platforms gave access to education for millions of people. Students worldwide who did not have an opportunity to take a course due to its price or physical distance from their region have been deprived of the chance of getting an education. Nowadays, many educational tools offer free and fee-based courses for anyone interested.

Online courses give access to various learning programs to everyone regardless of age, location, and wealth. They also make the process of learning more fun by offering an interactive approach and gamification. Coursera is one of the most popular online education platforms that works with universities like Yale, Stanford, and Michigan.

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The Main Features An On-demand Service App Should Have

There are certain features that are necessary for a successful application. How to develop an on-demand service app that will deliver the best results and help you achieve your business goals?

User Registration

Every on-demand application needs a registration form either for customers, or, in the case of a marketplace tool, for both users and companies.

Real-Time Tracking

Real-time tracking helps the customers know where the delivery person is at any moment. It gives them more control of the situation and, in the case of a taxi app, makes the transactions more secure.

Maps Integration

You cannot add a tracking feature without installing maps on your application. Users can also use maps to browse through their surroundings and find a service they were looking for.


By default, every on-demand app should have a credit or debit card payment option. However, you could collect feedback from your customers and add more opportunities to meet their needs, such as PayPal or Cash on Delivery.


A rating system is a helpful mechanism that allows users to select the best service provider. You can also add reviews for both customers and service suppliers.


Notifications have become a part of virtually every application that delivers services. Build an on-demand service app with a notification feature that lets users know about discounts and special offers as well as about the state of their order.

Checklist For How To Develop An On-demand Service App

Let’s talk about how to make an on-demand service app in more detail and go through each step of the process together.

Identify User Needs

In short, you need to honestly answer the question: what is the service that your target audience wants to receive in a simpler way than what is currently on the market?

Conduct Market Research

In the saturated market we nowadays have, it is hard to think of something brand new. This is why you should do your research, track similar solutions, and discover their weaknesses in order to offer something better.

Choose the Right Partner

If you feel like your expertise might be insufficient, it is recommended to hire a software development company with extensive experience in your niche. The best way to select the best candidate is to go through their portfolios and read about their case studies, for example, an on-demand taxi application or telemedicine solution. If you find a project or two in your niche, get a consultation with the company’s representatives and discuss your project in more detail.

Features Prioritization

Initially, focus on functional features — the ones that are enough to meet user needs. For a taxi application, it would be a list of features that allow a user to order a taxi. Later, come up with additional features to make your solution more unique and personalized.

Build an MVP

MVP is a product that conveys the basic concept of the application to test the idea and collect feedback. It is a time and money saver that allows you to try out the project and make adjustments before going into the development stage.

Development and Testing

At our company, Interexy, we have adopted DevOps and agile methodologies to build applications. We put a lot of value on Quality Assurance testing to make sure that the product meets the market standards.

Continue to Improve

Even after the launch, you should not stop ideating and innovating. Come up with new concepts, build MVPs, test the ideas and validate them before starting the development.

Cost of on-demand app development

The cost of development is contingent on the size of the app and the number of its functions, the level of customization, the payment system, and the location of the software development company. Obviously, the more features you require, the higher is the investment. And the location of the app development company has an impact on the overall cost because of the discrepancy in the rates between the US and Western European countries on one hand and Eastern Europe and some parts of Asia on the other.

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

Let’s take a look at a simple Uber-like application and break down its costs.

  • User profile — $2,000;
  • Marketplace — $13,000;
  • Active orders and archive — $12,000;
  • Chat — $1,500;
  • Settings — $1,500.
  • Total: $30,000

Our Experience

Interexy is a software development company that offers an array of services including AI and VR development, Business Digitalization, and mobile application development. At the top of the list of our greatest achievements are two on-demand applications — MedKitDoc and One Rover:

MedKitDoc is a German-based application that connects patients and medical professionals.

One Rover is a taxi app that strives to create equal opportunities for both drivers and passengers and offers a matching feature.

Final Thoughts

On-demand service applications provide opportunities to new and old industries to grow and change. Whether you offer a service or you would like to connect service providers and clients, on-demand solutions are the way to go. If you are looking for a reliable partner who knows how to make a service app and could share knowledge with you, Interexy is here to help. Contact us to receive a free consultation and learn more about the app development process.

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Within its first nine weeks, the app received 8 000 users and 4,7 -star rating. The platform is well-designed and hasn’t had many bugs. Interexy LLC is fast and efficient at building new features as well as taking scope changes in stride. Expertise and responsiveness are hallmarks of their work.

Saad Saeed

Co-Founder & CEO in Crumb

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