The on-demand economy is on the top of the market and if you aren’t using an app for all your grocery, housecleaning, parking, lawn mowing, and personal butler needs, you are missing out and lagging behind in your life. Think of getting smartest haircuts or perhaps flowers, restaurant reservations, laundry, booze, dog walking, cat sitting, or pizza. Today’s startups for on-demand services have stretched a good idea to its utter limits. Amid the scramble to re-create the success of on demand apps.
Over A period of time, on demand app startup companies are facing many challenges in front end and at the backend to execute the daily operations. Despite of technology advancement, the delivery of goods from one place to another and the delivery in minimum time requires a lot of resources. Providing a low -margin logistic is always a greater challenge.
In the past few years, while many startups are just gearing up to start the business of on demand apps, many big pioneers have fallen down. The examples of Postmates and Homejoy who are abruptly facing a down fall, force us to list down the reasons behind the failure.
The big question lies that what is the reason of failure or what is the actual need of the on-demand app to become successful? When the team of Matrix Marketers started exploring the facts of on demand apps, the first thing came across is the low cost as compared to the actual cost. The big brands and other companies are running behind opening the on-demand apps and they are bringing the cost to minimum but as the delivery of goods become higher the profit margin decreases but because you promised customers to deliver free logistic services at the launch time to match with the demand of competitive market, now you are bound to deliver and bear the heavy expenses of transportation and delivery.
Best 3 Industries in On-Demand Delivery Startup
The on-demand apps, we’re talking are those apps that allows you to request a product or service when you need it. To make it simpler, we are listing three industries which you can be targeted while developing on demand apps. Before we move forward, let’s know the current leaders of the market at present.
Knowing the Leaders of On Demand Delivery Market
Uber – Price Surging Strategy It quickly connects you to the taxi app which books a ride quickly for your destination.
According to a statistic, Postmates has already raised more than $280 million and has over 7000 restaurants as their business partners. Currently, the company operates in more than 200 cities and fulfills approximately 2 million delivery every month.
Wag, to explain in the simplest terms, is an Airbnb for Dog owners and Dog walkers. If you’re planning to get away for the next weekend and have nobody to watch your dog on your behalf, Wag will solve the problem for you.
Wag is an on-demand dog walking app to aid those people who do not have time to walk their dog twice a day. Wag solves this issue by helping you find a nearby dog walker for your four-legged friend.
Now let’s further discuss and select our area in which we want to build the app.
Best 3 Industries for Launching on Demand Delivery Startups
1 – Food & Drinks Delivery Industry
Food & drinks delivery is capturing the attention of food lovers and becoming a major area of development of on demand apps. Moreover, today’s modern lifestyle leaves no time to make home meals or find an alternative. Therefore, to get the ease on weekends people look for easy options for food which can be ordered through an app.
2 – Transportation Industry
The transportation industry was the first one to use and successfully implement on demand app. We all know how easy it is to book a cab within a city. The business model of Uber has grown to a $60 Billion business in the span of 6 years, transporting people from point A to point B. Although, you’ll be surprised to learn that your choices are not limited to Uber, Ola, and Lyft.
Cabs and taxi businesses have completely shifted to on demand model. Many existing taxi businesses have built and launched their own taxi apps like Uber to make it easier for their customers to book their taxi services.
With more and more people using smartphones and mobile apps in their everyday lives, developing taxi apps for existing taxi businesses will achieve great heights in terms of customer base and profits.
3 – Home Services Industry
Skilled professionals, nowadays, no longer wait for customers to call them anymore. Customers looking for professional help do not depend on the yellow pages to find their phone numbers. The home services which can be availed by children and elders can be a good area to develop more service apps.
Why choose Matrix Marketers for developing your On Demand app?
While hiring a top mobile app development company like Matrix Marketers can take the entire burden off you but when it comes to establishing an on-demand startup, there are certain points to consider.
Before you develop on demand apps, the complexity and type of on-demand app has to be studied before giving any estimation of app. There is a lot to consider such as platform, target audience, features, and cost. Our expert team of on demand app developers with creative blend of UI/UX designers can develop a feature-rich on demand app that fit your business requirements and goals.
No one really wants more dot-bombs. So, the learning for the IT companies before trusting and relishing on-demand luxuries is to know the background and challenges of that app. It’s cool to get a service in midnight with a tap of your smartphone. Just don’t expect it to cost any less than it used to.
We provide the web, mobile and cloud solutions. We have adopted the process, system & technologies to produce scalable solutions. Our focus is to develop long-term strategic partnerships with our clients by exceeding expectations and a great level of transparency. Our developers are in constant touch with the clients to imbibe the client’s viewpoint.
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