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In Development Last updated: June 25, 2023
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Are you curious to know about on-demand application development? We have summed up all the details to help you understand it.

COVID-19 changed the lives of everyone. It spread around the globe rapidly, making people isolate themselves to stay safe. Companies embraced remote working, and citizens found a way to survive.

During these difficult times, on-demand applications became a game-changer, making it possible for everyone to stay at home without any problem. You might be surprised to know that most applications we use are on-demand apps.

Statista represents the worldwide mobile app revenues from 2014 to 2023.

There might be a few questions revolving around your mind. What is the on-demand application? Is it changing our lives? How does it affect our lives during a lockdown? What are the types of on-demand applications available in the market? What is the on-demand application development lifecycle?

Let us give you a glimpse into on-demand applications before deep diving into them.

What are On-Demand Applications?

Want to go somewhere? Book a cab. Want to order food? Order food online. Want to get salon service at home? Just tap in a few times on your mobile, and you are good to go. Want to consult a doctor? Book an appointment online.

On-demand applications are mobile apps that offer comfort to users at home. The on-demand service’s app bridges the gap between customers and businesses, allowing them to stay connected irrespective of circumstances.

Businesses overnight switched to the cloud and digital services amid the pandemic that evolved them drastically. On-demand services made it easier for users to hail (book), order food at home (without calling the restaurant), shop grocery online, and whatnot.

However, if you think that on-demand services are new to the market, you are wrong. These services have existed for a long time, not in mobile apps but a slower version (mobile call).

Presently on-demand services are available for different categories and industries. The best part is that these service applications are user-friendly and easy to understand. Here is how on-demand applications work.

  • User order the product,
  • The application connects them to the seller,
  • The provider accepts the request,
  • Users make an online payment,
  • And the provider delivers the product to the user’s address.

Furthermore, on-demand applications work on several sets of features that they must have. Without these features, on-demand applications might lose their credibility in the market.

1. Security and Authentication – The payment gateway must be safe and secure for users as it contains confidential details like debit and credit card details.

2. Payment Options – The on-demand service application should not be limited to one mode of payment, including net banking, cash on delivery, debit card, credit card, etc.

3. Live Tracking – Users need to know the real-life update on their product delivery that becomes reassuring. Even the location of users is shared with the delivery partners.

4. Rating & Review – Authentic and genuine reviews from users increase the credibility and value of the mobile app in the market.

5. Notifications – Whether it is about offers, upcoming sales, or live tracking information, notifications are the best way to connect with the users.

6. Wishlist Feature – The feature allows users to add the products they wish to purchase later. Users can easily access it even if the product is out of stock.

7. Search and Past order history – This is one of the vital features of the on-demand applications that allow users to repeat the order or continue their research.

8. Voice Recognition – With the popularity of Artificial Intelligence in the market, on-demand applications include voice recognition features for easy ordering.

On-demand applications have several categories and are popular among a range of industries. However, the working of such applications is similar as the vendors are connected with customers via the platform. The basic working of on-demand applications is:

  • Using the service application, the user places the desired request and make the payment (in some cases or choose cash on delivery)
  • The application sends the request to the service provider or vendor
  • The provider accepts the request
  • Provider start the processing of product and get it delivered to the users
  • Users can review the product post-delivery

The working of all the on-demand app might be similar, but it is different ton the basics of its types, such as:

  • B2B services connect with big enterprises to meet the hiring, banking, and transportation demands.
  • B2C services where businesses connect with customers such as Amazon, Uber Eats, etc.
  • C2C services can earn two-sided commissions without doing anything like Uber, OLX, eBay, etc.

These types are divided into different categories based on the requirements and on-demand services.

On-Demand Application Categories

With on-demand applications flooding the market, it is becoming essential for business owners to choose as per their requirements and products. There are applications like Uber for cabs, Uber Eats for food, Airbnb for hotels, Facebook for connectivity, WhatsApp for chatting, etc.

Here are the best on-demand application categories that one must be aware of.

Food Delivery Apps

The food and grocery delivery model gained immense popularity amid the pandemic when people were locked at home. They were able to order groceries and food at their doorsteps. However, the services were in-demand earlier. Amazon offered grocery delivery and Uber Eats ensuring food delivery from restaurants divided into three factors – admin app (third-party or mediator), vendor app, and a customer app.


As per Google Trends, the search stats of food delivery is more than 50% in 2021. These stats were higher in 2020 due to the increased coronavirus cases worldwide.

This on-demand service category is prevalent, consistent, and predictable in the market. As per Statista, The U.S. markets expected 218% of the growth of Instacart in 2020. Online food and grocery delivery applications follow best practices to ensure data storage, ordering, delivering, etc.

Several applications like Instacard, GrubHub, UberEats, Amazon Prime Now, Postmates, etc., are extremely popular as food and grocery on-demand delivery services. The application connects users with grocery chain stores or food outlets (restaurants).

The business models include delivery aggregators, marketplace solutions, grocery or food stores, etc.

Transportation Applications

When it comes to transportation applications, it includes taxi-hailing, cab booking, car purchase, car rental, car sale, and logistics services. Users depend on dial-a-ride for an extended period, but in March 2008, Uber was launched in the market, opening a new path for business owners.

The on-demand transportation services allowed drivers or logistics services to connect with a broader audience. These applications usually come in two categories like other on-demand apps – vendor application (driver) and customer applications (passenger) other than admin application.

The e-hailing platforms have made it easier for consumers to book cab or delivery services anytime from anywhere. At the same time, the logistics services (like UberRUSH) include labor pool training, fleet maintenance, exemplary handling, order tracking, etc.

To increase popularity, the developers need to focus on agility, high flexibility, broader reach, investment capabilities, bigger fleet size, and secure payment gateways.

Healthcare Applications

The medicine and doctor on-demand application has been popular for the past few years, allowing users or patients to consult doctors from the confine of their homes and get medications ordered at their doorsteps.

The on-demand healthcare applications have taken a new turn amid the pandemic when people opt for online doctor consultation instead of visiting hospitals that are not safe. It has become a new trend in the market that is reliable and helpful for users.

Several online healthcare apps are available in the market, such as Doctor on Demand, and Pager. Telemedicine and healthcare applications are developed using up-to-date technologies.

The healthcare applications allow users to consult the doctors while maintaining their privacy, seek consultation while checking the doctor certificates (and ratings), find specialists, and voice or video call the doctor as per the appointment. It allows health data collection, remote patient monitoring, wireless testing, requesting doctor visits, etc.

Apart from this, fitness applications are a part of the healthcare industry. The personalized on-demand fitness services have become a comprehensive application that includes gym/home workout programs based on users’ preferences.

Entertainment Applications

The entertainment sector is booming, and so are their on-demand applications such as YouTube, Amazon Prime Video, Amazon Music, Netflix, Hulu, etc. Especially amidst the pandemic, the demand for online entertainment increased since users prefer to watch TV series, shows, documentaries, movies, etc., while locked at homes.

It is fierce competition between the applications and services with the increased demand. Several streaming applications have made a massive success in the market, whereas some have failed due to lack of popularity or similarities.

The video-on-demand and music-on-demand services offer customized content to the user as per their preferences. It has somewhat replaced television for some people that prefer streaming videos on their mobile phones. OTT platforms have become a crucial part of everyone’s life at present.

Home-Service Applications

Gone are the days when you have to search for people for any home service. Some applications ensure that users can book or order home services with a few clicks. It is forecasted that the total growth of home services will go more than 1.5 billion dollars by 2024.

These services include babysitting, packing & moving, pet care, repair services, house cleaning, etc. Users can get in touch with a large pool of registered professionals and book an appointment as per their services.

It allows guarantee contractor’s, price comparison, and checking reviews and ratings to hire proficient and budget-friendly professionals.

The independent or contract workers can quickly obtain the job from the application, and users can instantly get assistance. The household chores on-demand apps require time for mundane tasks such as plumbing, clearing, carpentry, etc.


There are several other on-demand applications such as eCommerce & retail apps, delivery apps, dating applications, recruitment applications, beauty applications, social media applications, video conferencing applications, and e-Learning applications.

These applications are taking over the world and making it easier for users to get the desired services. For on-demand mobile application development, users need to keep several aspects in mind such as:

  • Do your homework to understand the customer, unique features, etc.
  • List down the must-have features such as notifications, registrations, payments, geolocations, etc.
  • Choose between MVP mobile app development or others.
  • Choose the technology stack depending on the requirements and platforms.

These are some revolutionary products in the market that have been ruling for quite some time. These on-demand mobile applications are becoming the core for everyone and opening doors towards a better future.

  • Neha Kaushik
    I am a Content Strategist and Senior Writer with diverse experience giving me a 360-degree understanding of the audience. My passion is to deep dive into the market to understand what works best and use it to benefit everyone with top-notch… read more
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