And that brings us to the conclusion of this discussion about the benefits of on-demand app development. If you need a trustworthy partner to develop an on-demand app. Contact us!

Table of Contents

On-demand apps are a new business model that relies on being the mediator between consumers and providers. Its significance lies in timeliness. Its success lies in functionality. And its relevance lies in the highly competitive market that we all are a part of. Service sectors ranging from hospitality to transportation has been almost taken over by this wave.

  • By 2023, the on-demand economy will generate up to $935 Billion globally.
  • In 2019, the figure was $461 Billion.
  • Annually, the on-demand economy caters to 4 Million users.

To understand the entirety of its magnificence, let us look at the major sectors that constitute the on-demand economy.


  • Hospitality

Growing at a CAGR of 8% from 2019 to 2022, the hospitality sector is deemed to take a huge chunk out of the on-demand economy to serve itself.

  • Health and Fitness

Medical help app and personal trainer apps are becoming common. The Virtual Health and Fitness market is expected to reach a valuation of $59,231 by 2027. The CAGR of 33.1% from 2019 to 2027 is expected to be majorly fueled by on-demand interventions.

  • Transportation

Consumers are demanding more convenient modes of transportation and this has shot up the demand for on-demand travel apps. On demand transportation apps market is expected to reach a value of $218 Billion by 2025.

  • Marketplaces

45% of consumers currently in the market place are online shoppers. Hence, online market places are rising in importance and enhancing its functionalities to cater to customer delight. Online shopping is expected to usher in $20 Billion to the on-demand economy by 2023.

These 4 sectors seem to have taken up the major share when it comes to enjoying the benefits extended by on-demand app development. But what are these benefits? Let us take a deeper look.



Businesses can indulge in on-demand provisions for 5 crucial benefits. Additionally, businesses can add to consumer delight in 5 significant manners as well.

For Businesses

  • One-click wonders

Booking, ordering, and scheduling can be done conveniently through on-demand apps. Making these crucial functions easily accessible, manageable, and reviewable can boost engagement and also have a positive impact on customer retention, if done smoothly.

  • Scalability

It is necessary to assume that scalability will be a factor of concern when it comes to such apps. It is crucial to understand the front-end and back-end technologies to find the right mixture for scalability.

  • Flexibility

User data pours in through these apps. This makes it possible for you to customize offerings and other touch-point communications depending upon the type of user. This hyper-targeted approach adds to personalization and pushes just the right buttons to facilitate your business.

  • Customer service

Customer service can be enhanced through the provision of chatbots and other automated methods that reduce human interaction. Customers prefer to get their issues resolved with minimal interaction and lesser actions.

  • Analytics

As said before, data tend to pour in through on-demand apps. And analyzing this data is crucial to land upon insight-driven decisions that can further enhance targeting. Analyzing behavioral patterns also helps in anticipating the requires scalability.


For Customer Delight

  • Simple to order. On-demand apps makes it easy to avail a service. With minimal interactions required and with attractive app UIs, any service is available in very few clicks or taps.
  • Real-time tracking. For delivery-based apps, real time tracking has become a sine qua non. Customers expect real time updates and any app without this feature looks oddly out of place in the market.
  • With one-click ordering rises the need for one-click cancellation. This reduces the commitment that any customer experiences and further enhances the entire experience.
  • Push notifications. By enabling single opt-in, sign up rates can be increased by about 600% through push notifications. Combining this with a campaign can skyrocket click rates by up to 30%. Consumers are responsive to push notifications especially in the cart abandonment scenario. Re engagement is possible to a whopping 16% through this.

And that brings us to the conclusion of this discussion about the benefits of on-demand app development.



  • In 2020, the platform-to-consumer delivery segment is at a value of $70,741 Million.
  • 5 Million smartphone users currently engage in an on-demand app.

The numbers shout the fact that the sooner an on-demand app is within your business arsenal, the better. Waves of new consumers are adopting this culture shift and enjoying its many benefits as well.

If you need a trustworthy partner to develop an on-demand app that adheres to all the latest trends while creating ripples within your industry, log on to and partner with us.



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