There was a time when on-demand mobile applications were considered a revolution, but it is no longer so today. It would not be an exaggeration to say that on-demand service apps have become an integral part of our lifestyles. Today, more often than not, we take out our mobile phones, launch an app, and get things done!
The “getting things done” spans many services like transportation, food, parcel delivery, grooming, personal care, tutoring and education, household cleaning, handyman services, babysitting, but working, and even dating.
The advantages of the on-demand service apps business model
No business revolution will sustain if it does not provide tangible benefits to the business and the user. The on-demand business model brings to the table a lot of advantages that benefit both the service provider and the customer.
No longer does the customer have to stay in the territory of uncertainty. The app makes it possible to avail of any service from the comfort and confines of customers’ homes. All that the customer is required to do is to launch the mobile app and request a service.
The GPS comes to the forefront in making on-demand a better business model than any other incepted until now. One of the biggest challenges for any business was to find out who the customer wanted and where exactly they were. With the GPS and a profile, it becomes easy to establish the user’s identity and location to provide a service.
It benefits independent service providers as well. The on-demand business model takes care to connect a service provider who can offer a service and a customer who needs assistance by providing precise information to each other. Before this business model, you might have missed a taxi that was desperately waiting for a trip a couple of streets away. However, with the on-demand revolution, your need is flawlessly connected with the services provided by a skilled worker.
Some on-demand service apps can create extensions of existing businesses. The best example is restaurant food delivery. While restaurants (except for cloud kitchens) still have their dining business running, they can increase profit possibilities by delivering food to customers’ homes in the vicinity.
This business model also opens up employment opportunities for gig delivery executives. These delivery executives might be students looking to earn an additional income or workers who want to make an extra amount to support their families. The best part about this earning opportunity is that the worker is not expected to be available at all the time. They can choose when to be open and when not to be! They also have the freedom to accept or reject delivery/driver requests.
The gig employment also provides some relief for the businesses in terms of employee commitments. For example, Uber does not address their drivers as employees but as driver-partners. It ensures that Uber, as a company, it’s not committed to pay salaries and comply with minimum wages.
The on-demand revolution coincided with The digital payment revolution across the world. It means that when you use an on-demand service over a mobile app, you do not have to pay in cash essentially. Most of these businesses offer cash payments and prefer digital payments made through credit cards, debit cards, Internet banking, wallets. Some companies have even evolved their native wallets, making processing returns and refunds easier and convenient.
The evolution of on-demand service apps
The entire on-demand revolution started with Uber. It disrupted not only the cab industry but the whole landscape of transportation. While it vertically proliferated in extending similar services to different transportation needs like shuttles and specialized transportation services, it also spread its tentacles horizontally, impacting multiple business areas.
The Evolution of On-demand Service Apps
One of the most significant advances in the on-demand space is integrating multiple services into a single app, commonly called super applications or super apps. Although the American and European countries might not have many such applications, Asian countries like China and Indonesia have scripted some formidable success stories from these super apps.
It will not be long before even the West starts to replicate the success of apps like Gojek and WeChat. The presence of the white label Gojek clone app makes it easy for an aspiring entrepreneur to launch an on-demand services app.
With the field being so fast and every opportunity looking lucrative, it is crucial to understand the most marketable segments when launching your on-demand service mobile apps.
The lucrative segments
A few services have either stood the test of time or have training supreme all the while, or some have exhibited clear potential to be successful in the future. When you launch your on-demand mobile app, you will need to consider both these factors.
Based on some research, we present below some of the segments you can explore when you intend to launch your on-demand mobile app.
The entire on-demand revolution started with transportation, and to this day, the vehicle has remained on Evergreen Avenue in terms of profitability. Maybe the COVID-19 pandemic made it take a strike, but it is almost certain that the segment will bounce back to better profitability.
While the need for transportation will remain constant, specific influences like the need for more private transport to minimize exposure and specialized transportation for women and children will make transportation one of the best areas to invest in.
The segment in itself is pretty lost considering the options like ride-hailing, ridesharing, carpooling, specialized transportation, luxury travel, airport shuttles, and office shuttles.
When the pioneer of the on-demand revolution takes their second step in food delivery, it is something to be noted. Instead of just involving the driver and the passenger, the food delivery ecosystem also involves restaurants. It is considered more lucrative because, as a business owner, you are capitalizing on the brand names of already established businesses. Unlike transportation, where you have to build your brand name, you will only deliver food from restaurants already found their reputation at supremacy.
Also, this business model introduces gig workers in the picture. The same business model can be extended to a multitude of other areas like parcel and courier delivery.
Medical consultation is the need of the year. With the COVID-19 pandemic making hospitals less accessible and the imposition of social distancing rules, medical consultation on demand can be expected to minimize the uncertainties in meeting doctors. With a schedule calendar, GPS, and the profile/identity in play, it becomes easy for the consultation to happen and helps in proper recordkeeping.
This domain has evolved further to provide consultation over video calls. The same app can be tied up with diagnostic centers and local pharmacies to coordinate with the doctor and the patient for diagnostic tests and medicine delivery.
Grocery shopping that was once taken for granted has now suffered a major transformation because of the pandemic. While on the surface, the app addresses the need for getting groceries delivered, it also presents a lot of passive advantages like attenuation of impulse buying, scheduled grocery delivery, and offers and discounts.
Like food delivery, the grocery delivery ecosystem also aims to empower local businesses to the demand economy. More often than not, grocery delivery on-demand application businesses tie up with local vendors to provide grocery delivery from the nearest outlet.
Beauty and massage services
With people becoming more conscious about their looks and appearance, beauty and massage services increase in demand every passing day. It also gives additional employment opportunities for certified and experienced beauticians and massage therapists in the vicinity of a residential area.
It also makes better sense to start the services now because people are hesitant about visiting a parlor or a spa during a global pandemic. It also mandates that your beauty and massage services comply with the highest safety norms as directed by the government and jurisdictions.
Learning and education
Education is no longer confined to schools and classrooms. It has moved into the online platform with mobile applications, videoconferencing, online classrooms, e-books, and a host of other technical advancements. The pandemic has also forged the closure of schools, making education over the Internet more prominent, and parallel to this, forcing the need to improve the ecosystem.
Since you can expect parents not to compromise on the children’s education, investing in an Uber for learning would be a lucrative business idea for the moment.
What we have discussed until now is the tip of the iceberg. It would not be an exaggeration to say that the earning opportunities are infinite, and it’s only limited to your imagination as to what service you can provide your customers.
The availability of white label clone applications for almost every on-demand app developer makes the process of kickstarting your business straightforward. All you need to do is get in touch with the company specializing in developing and customizing these white label clones. They will provide you with perfect technology solutions so that you can concentrate on marketing and operations alone!