When we buy services via a mobile app, we engage in a so-called on-demand economy. The core attribute of such economy is on-demand apps. How much does it cost to make an on-demand app? Around $91,000 with Velvetech; between $10,000 and $800,000 with other mobile agencies.

Continue reading to find out more about how to efficiently budget on-demand mobile application development. In addition, we’ll cover other essential aspects of this topic:

What Is an On-Demand Service App?

Let’s briefly recap what an on-demand service app is. Simply put, an on-demand service app allows the user to order a product or service and have it delivered literally to their doorstep, be it a ride, meal, house-cleaning service, or anything else you can think of.

In essence, the answer to “What Is an On-Demand Service App?” is it’s a link between users and their needs — a link in the form of a mobile app. In fact, there are significantly more components than a mobile app linking users to products and services, and we’ll talk about them in a bit.

Types of On-Demand Applications

Business to Business or B2B

B2B applications, as the name suggests, are designed for business needs only and connect companies with other companies to provide and receive services. It can be logistics, banking and investment, hiring, or some other use cases.

Read about B2B Investment App Development

Business to Customer or B2C

That’s probably the most common type of apps we see in the category of on-demand mobile solutions. You’re most familiar with them as these applications came to stay in our daily lives. Companies provide a great variety of services to consumers — Uber, Netflix, and McDelivery are just a few examples here.

Customer to Customer or C2C

Finally, the last bunch of apps is focused on services within the customer-to-customer sector. Individuals use mobile marketplaces to provide a variety of services and sell goods to each other. A good example here is Airbnb, eBay, or Etsy.

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On-Demand Apps Use Cases

There are numerous ideas and use cases you can get inspired to build an on-demand app. The sky is the only limit here. This mobile app market has penetrated almost all industries, from healthcare and logistics to insurance and consumer sector. So below, we’ve categorized on-demand apps into groups that found their way into the hearts of users. Again, these are just a few examples.

Food Delivery

Definitely, food delivery apps are the most widespread of all on-demand applications — the ones you know so well and probably use the most. The food and grocery delivery market gained so much traction during the pandemic and continues to drive value, with the revenue expected to reach $1.45tn by 2027. Uber Eats, Grab Hub, and DoorDash are popular apps in this category.

Ride Hailing

Another well-known and most used group of mobile applications is taxi and ride-hailing services. Many of us use it if not daily, then on a regular basis. We can name a few here, like Uber, Lyft, and Bolt. When it comes to B2B, then there are also many logistics apps that companies use for transportation needs.

On-Demand Healthcare

As people focus more on their health and wellbeing and we see a boost in healthcare consumerization, telemedicine and on-demand care assistance apps are on the rise. They are very convenient for getting consultations with medical professionals, monitoring conditions, and requesting medical care services at home.

Read how Velvetech developed an On-Demand Care Assistance App for Seniors

Home Services

Whenever you need any cleaning, plumbing, moving, and packing, on-demand apps come to help. The range of services provided and requested through these mobile applications is constantly extending, so it can be a good idea to consider this niche. You can take a look at TaskRabbit or Handy apps.

Pet Care

No need to explain in detail, but apps assisting with pets are a great help for us if we have furry friends to take care of. Vet services, dog walking, grooming, sitting, or just feeding — the demand for these is growing. Rover and PetBacker are the ones to check out.

Gifts and Flowers

The last category we’ll talk about in this section is the delivery of gifts and flowers. One can always choose the most appropriate and delightful bouquet or present and schedule the delivery to a specific address and at a certain time interval. It’s a pleasure to give, and it’s a joy to receive. Examples here are 1800Flowers and Roses Only apps.

Why On-Demand Apps?

The post-Uber era has unleashed a tide of startups focused on mobile-first experience. And the pandemic made this niche even more lucrative. And the pandemic made the niche even more lucrative, boosting the on-demand economy and uncovering vast opportunities across many industries. According to the survey, the global gig economy market size is projected to reach USD 873 billion in 2028. It means that there will be no shortage of services offered.

Users opt for on-demand apps for several reasons:

Instant Access

In a typical on-demand app we can order a service virtually from anywhere with a couple of taps. As long as our smartphones have the Internet connection, we can order sushi, taxi, makeup, etc. any time we want.

Sense of Control

On-demand apps usually feature an interactive map where consumers can track delivery. This functionality instills a sense of control in users and makes them feel at ease.

In-App Payments

Users can pay for services and goods with a credit card right from a mobile app. We’ve come to rely on payments within apps since there are several security layers. For starters, Apple and Google perform an audit before making an app available to the public. In general, users feel safe when paying from a mobile app.

Of course, the surge of on-demand apps has also raised the question of how much a company needs to invest in on-demand app development to get a decent-looking app. Let’s dive in.

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Cost of an On-Demand App per Feature

Most people know Uber as an app they download from an App Store or Google Play. The app is cool and looks fancy, with all these little cabs zigzagging on the map. It’s also around 2 million drivers all around the world, multiple data centers, and more importantly — a driver app and a web dashboard app for Uber administration.

Here’s a very high-level representation of what Uber — or any on-demand solution for that matter — really is in practice. Click To Tweet On-Demand App Components

The on-demand app — the “consumer app” we use every day — connects us with a service provider. Service providers need their app too to respond and to be able to deliver the service.

For the company that takes a cut-off service providers’ fee, there needs to be a web-based dashboard solution — to monitor orders, etc.

Let’s take a closer look at the on-demand app development cost of these three components of a typical “Uber-for-X” on-demand service app. We’ll focus on the feature sets in:

The sum of these components will give us a rough cost of an average on-demand app-based solution.

Consumer-Facing On-Demand App Development

Consumer-Facing On-Demand App Cost: $37,000

What is the essential functionality in a consumer-facing (CF) on-demand app that costs $37,000 to build, on average? Let’s take a look.

User Profile

A user profile is where customers can add info about themselves, such as their names and photos; set their preferences, etc. This section also includes registration & authentication in the app.

The profile is usually the most boring, but unavoidable part of an app. Click To Tweet User Profile

The average cost of the profile with registration and authentication in a CF on-demand app is $3,000.00.

The cost includes:

Marketplace

A marketplace is a list of available service providers or products that you can order. Think of TaskRabbit with a list of all available plumbers in your area. This section allows the user to review their previous work, see their reviews; or read the description of a product that they would like to order.

Marketplace

The marketplace is the most complicated part of the app as it glues together two sides: consumers and service providers. Remember, there is a whole layer of logic behind these eye-candy screens.

The average cost of the marketplace feature in a CF on-demand app is $11,000.

The cost includes:

Map

It’s hard to find a mobile app these days that wouldn’t boast a map screen with lots of moving parts and interactivity. In on-demand apps, the map screen serves two objectives:

Map

Obviously, not all on-demand apps need to have a map feature, but the trend is seemingly still there.

The average cost of the map functionality in a CF on-demand app is $7,000.

The cost includes:

Chat

Integrating a readily available SDK for chatting will let providers and customers communicate directly. There are many chat SDKs available on the market. We have shared quite a few in our post about the mobile app development cost.

Chat

The average cost of the chat functionality in a CF on-demand app is $3,000.

The cost includes:

Cart

A cart is where users review and confirm or cancel their order details. The app might also ask users to approve their address details or specify another address. As one would expect, this part of the on-demand app should also allow the user to see all available order options.

Cart

The average cost of the cart and order details features in a CF on-demand app is $5,000.

The cost includes:

Order Details & History

It’s a good practice to let on-demand app users review their past orders. Users may repeat orders, leave feedback, reference a provider they worked with, etc.

The average cost of the orders history and order details in a CF on-demand app is $6,000.

The cost includes:

Settings

The most obvious section of the app where users can change their email and password, bind a credit card or other payment options to their account, etc.

The settings part of the app is even more boring than the user profile. Click To Tweet

We add to “Settings” information about the version and all legal stuff, like the Privacy Policy and Terms of Service.

Settings

The average cost of Settings in a CF on-demand app is $2,000.

The cost includes:

Please note that the proposed cost of the consumer on-demand app here also includes integration with the backend. The $37,000 price tag covers business analysis, quality assurance, project management, submission to App Store or Google Play, deployment — everything from A to Z — for a single consumer-focused on-demand app: either iOS or Android.

Summary: the on-demand app development cost for a consumer app is $37,000.

Service Provider-Facing On-Demand App Development

Service Provider-Facing On-Demand App Cost: $30,000

One may think that an on-demand app for service providers should be much simpler than an on-demand app for consumers. After all, the show is for the customers: with no demand, there would be no reason to start the on-demand shenanigans in the first place.

Uber thinks differently. The company has just rolled out a new app for its drivers. They even got the keynote out and stuff about how their engineering team worked with Uber drivers across the globe. The result of this collaboration is a completely revamped Uber app for drivers that features 60-something improvements.

Uber did this for a good reason: the on-demand space is becoming crowdy. You need to pay attention not only to your customers’ experience but to service providers’ needs too. See how Uber CEO tested their new on-demand app for Uber drivers:

Now, let’s break down a typical service provider-facing (PF) on-demand app into components and see what makes up the $30,000 price tag.

The big thing with on-demand apps for service providers is you can reuse some parts of the consumer app, thus optimizing the development budget. Click To Tweet

User Profile

Just like in the consumer app, service providers would like to know who their customer is. The app should provide access to a customer’s profile. Additionally, service providers should have the option to update their info.

Service Provider-Facing App - User Profile

The average cost per user profile in a PF on-demand app is $2,000.

The cost includes:

Marketplace

The heart of a provider app is the app’s marketplace. Here providers spend most of their time in the app looking for gigs and searching for an ideal customer. The marketplace section is different for service providers and often includes live notifications and other features, like communication with the back office.

Service Provider-Facing App - Marketplace

The average cost per marketplace feature in a PF on-demand app is $13,000.

The cost includes:

Active Order & Orders History

After the marketplace, the most actively used section in the provider app is the “Active Order” tab. Here providers can see the details of their running orders and control them: cancel, complete, etc. The access to previous orders allows service providers to review how they did.

Service Provider-Facing App - Order History

The average cost per active order functionality in a PF on-demand app is $12,000.

The cost includes:

Chat

It will be a smart idea to reuse the chat module implemented in the consumer on-demand app. However, there still will be some customization.

The average cost per chat functionality in a PF on-demand app is $1,500.

The cost includes:

Settings

Same old boring stuff that you can’t get away with: passwords, Terms of Service, manuals, etc. Again, an unavoidable but necessary part of the app.

The average cost per settings feature in a CF on-demand app is $1,500.

As you can see, the cost of the on-demand app for service providers is lower. The main reason is your team will be able to reuse large chunks of code from the customer app. The $30,000 price tag covers business analysis, quality assurance, project management, submission to App Store or Google Play, deployment — everything from A to Z — for a single on-demand app for a service provider: either iOS or Android.

Summary: the on-demand app development cost for a service provider is $30,000.

Web Dashboard Component of On-Demand App

Web Dashboard Component of On-Demand App Cost: $24,000

Someone has to control both service providers and customers, otherwise, things will get out of hand very quickly. You would want to give both sides an option to report abuse and be able to take action by yourself.

Web Dashboard Web Dashboard is where a business owner has access to all customers, service providers, and jobs or products. Click To Tweet

The average cost per web dashboard for an on-demand app is $24,000.

The cost includes:

Summing Up

On average, it will cost $91,000 to build an on-demand app platform with Velvetech:

We provide more details on the cost of developing various mobile apps in a separate app cost post. I think we can all agree that despite some similarities each on-demand app is unique. Get in touch for a free consultation to pinpoint your company’s app budget or discuss on-demand app development cost options.

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