We are living in a world where everyone is busy with their smart devices and try to find the simplest and easiest way to solve their day to day requirements. We are in the era of technology and every business seeks something new to engage with their consumers. These services can range from pickup and delivery, taxi, food delivery, grocery, handyman, cleaning and home service, laundry, beauty and salon, medical and pharmacy etc. In this blog we will look into the future of on-demand apps.
On-demand can be considered as a linking layer between consumers and different businesses. On-demand apps cover various sectors, and consumers use them to get their hands on multiple products and services which they wish to purchase. In short, consumers can get their hand on such services with a few taps on their smartphone devices. Most of the online businesses out there are today leveraging the service of On-demand apps in order to flourish and build a reputation.
Why do on-demand mobile apps have a bright future?
We know that on-demand apps startups have been the buzzwords for more than a couple of years now. Nowadays on-demand apps taking the whole on-demand business economy to the next level, the on-demand apps serve customers to get anything at their doorstep. Many on-demand service apps are launched and it will represent the variety of business sectors. These on-demand apps it will give more business opportunities to the startups and the due to a large number of on-demand business, the future of the on-demand business economy will grow much more than this present.
As per statistics, (Harvard business report) consumers across the world spend $57.6 billion each year on the on-demand apps. The on-demand market revenue is projected to reach $335 billion by 2025. More than 50% of on-demand service consumers are between the age of 18-34.
There are more users spending their time on mobile applications as compared to the mobile web. As per Statistic, the number of mobile users is said to rise by 4.68 billion from 2015–2020. This is the opportunity to invest in mobile apps and develop a solid business strategy & Plans. They understood that they need to renovate the way they carry out their business to have a competitive advantage. This is the reason why the start-ups are shifting their strategy towards mobile apps to flourish business.
Types of On-demand delivery apps.
Lots of people enjoy the possibilities that on-demand apps offer. Years ago, it was a daily task for people to head to shops to buy food, groceries, and other necessities. But today, the evolution of smartphones has distinctly changed our lives and has offered us various means to get our necessities in the comfort of our homes. On-demand application are divided into 3 types-
Businesses use B2B applications to connect with other businesses, clients or employees within the company. Some B2B apps may be available to the public, while others are exclusively used in-house. Many of the applications that fall into this category are enterprise apps designed to fulfill a specific need, such as in-house inventory management or a portal used to assign and manage projects.
It’s common to see B2B apps that serve as a tool. For example, a wholesale supplier might employ an app through which customers can place orders and pay. Similarly, a land surveying company may develop a mobile application to assign site visits to various surveyors, who would then input data into the app.
Cargomatic, Catalant and Eventio are good examples of B2B apps. Enterprise to Person (E2P) / Business to Consumer (B2C)
B2C apps are perhaps the most well-known type, as they are commonly found in places such as the app store. B2C on-demand apps facilitates transaction of goods or services between provider\’s and costumers. B2C apps tend to be more labor intensive and costlier to implement, in part because they need fairly frequent updates in response to user feedback and issues identified in user analytics.
Bookings.com, Starbucks are examples of B2C.
Customer-to-Customer on-demand delivery applications allow the exchange of goods and services among users. On this app, a customer can sell to another customer, and can also buy from another customer. On this form of on-demand delivery applications, all users have equal rights, and none of them is considered business owners.
Examples of on-demand delivery app accommodate this form of the transaction are eBay, Esty, and BlablaCar.
Popular on-demand apps
On-demand Mobile App Start-ups Appeal to investors.
In the recent times, the market for the on-demand delivery services have really expanded in a major way. This had certainly paved the way for further development in the sphere of mobile apps for various types of demands delivery business. The radical shift in consumer behavior is something that they would want to leverage upon. Hence, they would be willing to invest millions.
Plenty of businesses start small and require the support from angel investors that offer financial support for their growth and expansion. Eventually, these businesses expand and provide with excellent returns for their investors. However, in order to achieve the trust of the investors so that you can get interested in investment prospects, it is important to create apps which can drive in the business. Airbnb and Uber are perfect examples.
Some other examples include BYJU\’s and swiggy. The former raised $785 million in 2019 and $200 million in February 2020 while the latter raised over $1 billion which made it the biggest funding in India\’s food-tech sector.
These instances shows that investors are having more and more faith in these companies since they are likely to give a better return on investment in the future.
Annual On-demand Economy Spending.
These are just a few validatory statistics that prove how on-demand mobile app startups like Uber and Netflix have given birth to a market that both users and angel investors are partial about. The market that the on-demand industry has captured is growing progressively. The investors who couldn’t be a part of the trend when the uber economy was getting incepted but are now prepared to book their share.
The investment rounds focused on funding on-demand startups that started in 2014 with $74 Billion reached $10,293 Billion in the last quarter of 2017 and only expected to grow by huge numbers by this year. According to the latest PwC report, the market for On-demand mobile apps and websites will reach a significant value of $335Billion by the year 2025.
The On-demand mobile app economy is prompting over 22.4 million users annually to spend around $57.6 billion to get real-time services and they are happy making the payment. Attracting more than 22.4 million consumers every year, the on-demand app industry has annual average spending as $57.6 billion.
World wide Distribution of Start-Ups Using On-demand mobile apps.
An app startup is all about a great idea. What the app can offer and is the app really needful, will it hit the market are some of the questions that come to every entrepreneur’s mind. But coming up with one of the best app ideas is not as easy as it seems. It is the most crucial and difficult part of the process that you have to overcome.
In Fintech industry we can find most of the start-ups using on-demand mobile apps. With the failure of the traditional banking system worldwide, fintech started to grow. Long waiting line for deliveries was no where to be found in fintech which led to its growth. The Fintech industry is giving tough competition to Banks and NBFC\’s and changing the rules of the game on how financial services are delivered effectively to the consumers.
2020 Growth Trends For The On-demand Mobile App Economy.
With every passing day, the on-demand economy is getting a boost and has shared major part of the world. The valid reasons of on-demand economy success in the form of quickest growth rate, increase in ROI, and efficient streamlining of the business operations, have developed a keen interest among businessmen to invest in on-demand service business. Entrepreneurs, businessmen, startups, as well as established businesses are focusing towards transforming their businesses into on-demand platforms.
On-demand service apps are improving day by day by introducing advanced features which are bringing more comfort to the people’s lives. The current stats reveals that a large number of established businesses as well as startups have turned their businesses into on-demand using apps or platform.
Corporate giants have made huge funding and investments in this domain. Investors invested $8.6 billion in 2016 and Airbnb received funding of $2.4 billion. Investment options in the on-demand economy has increased after seeing the huge profits and customer behavior towards on-demand services. Significant examples of on-demand economic reforms include UBER, JustEat, PayPal, and eBay. On-demand service apps such as food delivery apps, grocery marketplaces, uber like taxi apps have revolutionized the business models according to the modern trends and lifestyles with specialized features to fulfill the consumer’s needs. So in a sense the future of On-Demand Apps is not so dark.
