on-demand service

What is an on-demand service app?

On-demand service apps are service platforms that connect waiting-time-sensitive customers with independent service providers or agents. Such an app acts as a mediator between a company and a consumer, enabling them to first come into contact and establish mutually beneficial customer-provider relationships. These exchanges are different from those in a typical employer-employee relationship. These partnerships’ mediation does not fit to any accepted framework for cooperation either. Instead, it is a broad revision of labor regulations that is still under progress.

Because they can satisfy each individual’s demand, these applications have grown in popularity. Additionally, as the number of mobile users keeps increasing, user expectations shaped by this change have also increased to the point where users expect to be able to get what they need at almost any time by touching the screen a few times. The bar has been raised so high that there is no other option than comply with the standards.

Types of On-Demand Service Apps

Knowing what customers want and how to deliver it in a way that is both natural for the customer and effortless for the agent is essential knowledge for the on-demand sector. Basically, there are three options. Customers and clients of a business can access services using a business-to-business, customer-to-customer, or business-to-consumer model (e.g., Netflix, Airbnb, and Glovo’s future B2B logistics unit).

Within the framework of the on-demand business model, there are also significant differences in the categories of services and goods offered. No matter if the transaction is B2B, B2C, or C2C, the receiving party will value a platform that can not only connect them with the provider but also save them time and generally improve their lives.

 As of today, there are several categories in which such improvements have become and repeatedly proved feasible.


  • Education
  • Recruiting
  • Transportation
  • Consumer Goods
  • Delivery
  • Food

1.Types of On-Demand Service Apps

The continued success of on-demand food and grocery delivery applications is evidence that the on-demand delivery model is here to stay. Google searches for “food delivery” went over the roof in April 2020, breaking all previous records. The way individuals purchase groceries and food has been impacted by the pandemic problem.

You shouldn’t be discouraged by the development of food delivery apps and online grocery shopping. Instead, it should inspire you to release your own product with a unique twist on its feature set, capitalizing on what others have already tried and proven to work. Making distinct items for customers, delivery people, store managers, and administrators is thus one of the best practices for food and grocery delivery.

2. Entertainment

On-demand entertainment is flourishing. The popularity of watching TV shows, TV series, documentaries, and movies has significantly changed since the launch of on-demand streaming services like Netflix and Amazon Prime.

Today, a wide variety of video-on-demand services compete for the attention of potential users, and new ones are launching more frequently. On-demand users continue to increase in number. For instance, according to Statista, there were 195.15 billion paid Netflix users worldwide as of the third quarter of 2020.

However, there is a lot of competition in this market. All video streaming businesses do not succeed. Some of them surprisingly fall short. Quibi, a business that received $1.75 billion but folded after just six months of operation in April 2020, experienced exactly this.

3. Home Services 

Online on-demand home services are forecast to grow by over USD 1.5 billion from 2020 to 2024.

Users of online on-demand service apps may have access to a large network of licensed experts who will take care of their houses, kids, and pets. Online booking for cleaning and other home services must be made simple for customers.

Additionally, this platform should also enable to support pricing comparison, ensure the legitimacy of each contractor, and offer ratings and review inspection. A result of this need, numerous new web-based and mobile apps for home services are now available. Users can also decide whether to use a marketplace that acts as a middleman to link clients with speciality contractors or to request assistance from a private company that directly employs workers.

How an On-Demand Business Model Works

Customers are generally able to choose which services to use or subscribe to as well as how much money to spend utilizing them while using on-demand self-service. Everything is available at the swipe of a credit card or through an online payment system.

On-demand service applications typically focus on a single service area, such as Airbnb, which helps in property search, Lyft, which offers transportation, and GrubHub, which allows food ordering. One company may create and operate many businesses in various industries as a result of specialization, as happened when Uber and Uber Eats split into two distinct applications. This keeps navigating a market for segmented services relatively simple for customers. They always know which app to use when looking for a specific item, whether it’s food, a taxi, a place to live, or entertainment.

An on-demand approach is designed to improve the customer experience by providing access to a bigger pool of service providers and clients. For consumers to access what they want more quickly and simply, on-demand service platforms are typically created in the form of both a mobile app and a web app.


Bottom Line

On-demand service apps have been among the digital items that have been introduced to the market most innovatively in recent years. Fortunately, there is still plenty of room for new entrants and a ton of untapped markets for on-demand service apps.

If you have an idea for an on-demand service app but are not sure where to start, WonderIT is there to help you turn your vision into a reality!