On-demand apps were slowly but steadily gaining popularity up until in 2019. However, the Covid-19 pandemic in 2020 fast-tracked their growth to an astronomical pace.
While the on-demand app development and custom services were earlier restricted to certain sectors only, various other businesses with a range of services are now exploring the benefits of this concept. The businesses in this domain are witnessing not only improved profits and growth, but also an increased interest from customers and investors alike.
With the growing demand of on-demand app development services, it is safe to say that the economy is being reshaped by this new wave of trend. Every business today is exploring ways in which it can jump on the bandwagon and join the league of businesses that are benefitting from the trend. As more and more businesses feel the brunt of the Covid-19 pandemic, they are turning to custom app development companies to expand their operations and stay ahead of competition.
Letâ€™s start from the beginning and understand how on-demand economy is changing the way businesses are functioning during a pandemic.
On-demand apps have been acting as mediators between providers of different services and customers during the pandemic. With many countries imposing periodic lockdowns due to the Covid19 Pandemic, businesses are relying on the best custom mobile app development services to stay afloat in the market.Â
The Unprecedented Growth of the On-Demand Economy
The outbreak of the novel Coronavirus pandemic mandated everyone to stay at home and follow social distancing. This led to people operating their businesses and essential activities from home â€“ thus leading to an absolute boom in the on-demand apps economy.
Freelance services, home delivery services, health and beauty services, and many other similar services became the lifelines of the economy. While a number of business owners were reluctant to join the bandwagon, there were others who swiftly switched to the new way of working to manage their business. The majority of customers of on-demand apps were millennials, followed by those in the age group of 35-54, and then 55 years and above. The customer base comprised a mix bag of people when it came to annual household income as people from varied economic conditions became customers of such on-demand apps.
In order to take a profitable course of action, entrepreneurs were guided by several reasons that helped certain service-based businesses to be successful in the online domain. These businesses chose to develop custom apps to provide various services and paved the way for future entrepreneurs to innovate and rise in their respective domains.
Reasons that Prompted Businesses to Take the On-Demand App Development Route
Users are always inclined towards services that can be conveniently booked and availed in real-time.
- Available in the Vicinity
Users are greatly drawn towards service providers that are stationed in the vicinity so that they donâ€™t have to travel long distances or spend time and money on the commute to avail a service.
- Cost Efficiency
Custom apps are known to provide cheaper solutions than their traditional counterparts. They prove to be more cost-effective, and thus, more lucrative for users.
- Ease of Payment
On-demand apps are usually equipped with effective, safe, and reliable payment gateways that make cashless payments not only possible, but extremely easy as well.
Increased Emphasis on Entrepreneurship
Professionals these days are choosing to develop custom apps and, thus, entrepreneurship is permeating every level of the business world. Local service professionals are increasing their earning potential by providing services through the on-demand apps. In fact, the option to develop custom apps is creating avenues for entrepreneurship that were not possible before in certain industries.
The increased emphasis on entrepreneurship is not only changing the workplace environment, but also enabling customers to choose between a large number of options to get the best services. There is a shift in the mindsets of business owners who are experimenting with the notion of taking their business online.
Availability of Personalized Services through On-Demand Apps
Customers are now getting used to personalization in every field. More and more businesses are trying to entice customers by providing tailor-made solutions for their problems. This can be seen as an opportunity for businesses where custom apps and on-demand services have not yet taken root to pivot and seize the opportunity.
Businesses need to learn from the growth curves in other industries to provide personalized services in their domain. As individuals increasingly realise the benefits of personalized services in their niche, the competition among business owners is set to grow across the board. It makes sense, therefore, to take timely actions to stay on top of the game.
Top Reasons for Investing Time, Money, and Effort in On-Demand Business Model:
1. Technically Inclined Customers
Customer expectations have changed over time, especially since the pandemic. In an era of internet technology and smartphones, a large number of customers prefer using technology to meet their basic needs. Due to their busy lifestyles where they are juggling work, social life, and household chores, customers seek online solutions rather than traditional ones. The convenience of time and place that on-demand apps provide is the biggest reason for their success.
2. Healthy Competition Among Vendors Ensures Better Products and Services
The on-demand home-service providing companies are usually made up of small vendors that get together on a platform to provide diverse services to the customers. Due to the large asymmetrical workforce involved, the market is highly competitive. In order to survive and flourish in this environment, every small vendor tries to provide unique and quality services at affordable prices. This competition works in the favour of end-users!
3. Customer-centric Solutions
The on-demand solutions are tailor-made to serve individual customer needs. As there are multiple vendors providing the same services and competing for every single client, customers have the privilege of choosing a vendor as per their requirement.
4. Luxuries are Now Basic Necessities
The smartphone generation can afford simple luxuries by trading their money for free time. These include laundry services home cleaning services, food delivery, etc. The customers no longer wish to spend their time on such chores, but prefer to outsource them. This creates a huge scope for growth and diversification for businesses aiming to provide on-demand services.
The on-demand app development companies are gradually becoming very popular. They are offering the promise of convenience, efficiency, and simplicity for businesses that are struggling to sustain themselves during the pandemic. As the traditional business methods take a back stage, on-demand apps are helping businesses thrive in todayâ€™s time.