Tips to plan your Budget for On-Demand App Development


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On-demand applications such as Airbnb, Uber, Postmates etc. are shaping the world. The entire on-demand economy has managed to surpass the traditional enterprise and business models which allow the people to easily get instant access to whatever they require and whenever they want. On-demand services apps are mobile applications which enable the users to requires any product or service through the mobile application and get it delivered to their own doorstep.

They have been popular in the market for quite some time. On-demand apps have become the latest face in the market. It is expected to flourish in the years to come and become the vital part of our lives. Everyone wants convenience and mobility of getting everything that they desire. In these cases, if you are wishing to build your own on-demand service app then you need to be well-versed with the currently growing competition as well as the steps to create a user-centric app. A wide range of mobile applications for various business verticals has been researched. There are vital factors that need to be considered when it comes to the development of on-demand service apps. The cost of development is the most vital aspect. Here, we present the best tips to plan your budget for on-demand app development.

1.Type of App and Market Domain

First, you have to know which particular segment of the industry that your app will be actually associated with. There are three major segments for creating an on-demand app which are Transportation delivery, Food delivery and Home service delivery. Once you have finally decided which part business domain you are actually going to target, then you can easily find the particular problem to focus on.

2.Find your Target Audience

In order to ensure your mobile application’s success, you need to have the entire knowledge about the users. It includes their interests, ages, taste, income, expectations and many more. You also need to know about the latest market trends. If you have the knowledge of your target customer base then it allows you to easily cater to their requirements more effectively. Along with this, beginning with a particular local market is the most profitable way for any business.

3.Strategy to Provide Convenience

The people want convenience. They wish to have faster, effective and easier services that are available to their own doorstep through mobile apps. So, if you wish to develop an on-demand service app, then you need to keep in mind that how actually you can provide the people with a better user experience. Following are significant features that you need to consider in order to provide the great user experience.

a. Tracking ability

Whenever the users are offered with the tracking facility of their order or service provider online, they tend to feel more control over the entire procedure. They can easily see how much process is actually done and how much time will it actually takes to complete the service. This provides them with assurance as well as build a great loyal relationship.

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b. Real-time Communication

You can easily offer a real-time communication feature like chat functioning in the on-demand service app. Whenever the users have the inherent facility to easily communicate with your business through your app, they find it much easier to choose you as the preferred service provider. It also makes the entire processing faster.

c. Seamless Payment Process

Serving the customers with different payment options is quite an effective way to deliver a high-quality and rich experience to the users. In the case of Android app development, you can add multiple payment options.

d. Ratings and Reviews

The users often like to check the ratings as well as reviews of the other users and then pick the service provider on the basis of them. So, you should inculcate this feature in your app.

4.Partnership with Other Services

In the case of business to the business app, you need to form a great partnership with the different service providers who constantly interact with each other via your own app platform. In case of customer-to-customer on-demand service app, you need to form a partnership with individual business as well as customers. You need to market the application to your end customers in order to prompt them to install your app.
On-demand app developers like to share their portion of the entire transaction made on the application platform. So, you need to consider this before creating the entire revenue model.

5.Association Type

Different companies often hire their service providers while other works with different freelancers. For instance, Amazon actually hires delivery providers that operate in a particular area in order to deliver products and services to its customers. They also outsource safety training along with maintenance costs as well as insurance by means of contracting with a reliable and recognized delivery enterprise. There are other companies like GrubHub that work with freelancers. It is up to you to choose any particular association type which suits your budget and target audience.

6.Matching Algorithm

This particular section actually determines how exactly a service provider will be allocated to any particular user. It is the major feature which is the driving force of the app. If the matching algorithm of your app server your users with convenient and instant support, then they would really love to use it.

Any app doesn’t match and actually route the people on its own. Various algorithms are used for this purpose. When it comes to various matching algorithm types, there are two most significant one: Manual Matching and Automatic Matching. You need to select a particular one which suits your app requirements.

If the logic to actually assign a service provider is inherently built into the mobile app code, then the technique is called Automatic Matching. In case the app administrator manually assigns any particular service prover to the customers who are requesting, then it is called Manual Matching.

A good mobile app development company consider automatic matching as a better choice as it can easily render many options to the customers at a great speed.


Android app development of on-demand service app can be quite costly if done from scratch. However, it provides a lot of freedom in order to create an application as per the requirements of the business. If the budget is a major issue, then you can go for any handy solution which is available in the market in a particular form of White label apps.


On-demand service apps have become the latest trend in the market. They offer seamless services to customers. Any mobile app development company looking to get more market share needs to get into the business of on-demand apps. It can start with Android app development of the on-demand app. These above-mentioned tips need to be considered while building an on-demand app.

Tarun Nagar
Tarun Nagar is the Founder & CEO of Dev Technosys, a global ranking Mobile and Web Development Company. With 10+ years of experience of enabling then Startups which are now global leaders with creative solutions, he is differentiated by out-of-the-box IT solutions throughout the domain. He is known for his visionary qualities and adaptability for technology and trends, passionate as he is in every aspect dedicated to making IT simple, accessible and approachable for business enterprises.


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