As soon as we purchase services via mobile apps, on-demand economics is at play. A normal on demand app development company charges approximately $91,000 to create such applications. In comparison, other agencies charge between $10,000 and $850k depending on the complexity of the development project.
Read on to learn how to effectively budget for mobile app development, along with some additional important aspects.
What is an On-Demand Services App?
On demand app development services provide users with convenient ways to request services or products and have them delivered right to their door - meals, house cleaning service or taxi rides.
What exactly is an on-demand service app? It serves as an intermediary between users and their needs in the form of mobile applications and products or services they require. In this instance, we'll refer to them simply as apps. We will discuss more aspects in a moment.
On-Demand Applications
B2B or Business to Business
As the name implies, B2B apps are only designed to serve business purposes and allow companies to connect and exchange services. This can include hiring, logistics, investment banking, and other uses.
B2C or Business to Customer
This is the app we most commonly see when it comes to on-demand solutions for mobile devices. These apps are the most common ones you're familiar with, as they have become a part of our everyday lives. Uber, Netflix and McDelivery, to name a few, all offer a wide range of services.
C2C or Customer to Customer
The last group of apps focuses on the services provided by the customer to customers. Individuals use mobile marketplaces to sell and provide services. Airbnb, eBay and Etsy are all good examples.
What are On-Demand Applications?
Uber's demise has unleashed an explosion of mobile-first startups. This global pandemic has only increased competition within this niche market and increased profit. Furthermore, this increase has expanded many new industries with vast new opportunities as it's estimated the gig economy could hit USD 873 Billion by 2028 and that service providers remain plentiful compared to before Uber came along.
There Are Several Reasons Why Users Choose To Use On-Demand Apps:
Instant Access
A standard on-demand application can virtually order services from anywhere using a few taps. So long as we have an Internet connection on our smartphones, we can order anything from sushi to makeup. We can order anything we like.
Sense of Control
Apps that are available on-demand usually include an interactive map, which allows consumers to track their delivery. Users feel more in control and at ease when using this functionality.
In-App Payments
The app allows users to pay with their credit cards for goods and services. Payments within apps are increasingly popular due to their multiple security levels. Apple and Google perform audits before releasing an app to the general public. Users feel secure when using a mobile application to pay.
The surge in demand for on-demand applications has raised questions about how much an organization should invest in developing a good-looking on-demand application. Now let's get started.
The Cost of An On-demand App Per Feature
Uber is a widely downloaded application available through Apple's App Store and Google Play. It is known for its visually stunning taxi cabs zooming around on an interactive map. Uber employs over 2,000,000 drivers worldwide, with multiple data centers hosting its data and having driver apps and dashboard web applications specifically created to address driver needs.
Individuals like us use on-demand or consumer apps to connect with service providers. Each service provider also requires its app to deliver services and respond quickly to requests for service. Providers that charge fees must have access to an online dashboard to manage and track orders effectively. This enables customers to make their purchases more efficiently.
As part of our analysis of on-demand apps like Uber for X, let's consider these three elements of their features sets:
- Consumer app
- App for service providers
- web dashboard
This will give us a general idea of the cost of an on-demand, app-based service.
On-Demand App Development For Consumers
The cost of a consumer-facing on-demand app is $37,000. What are the core features of a consumer-facing (CF) app, which costs an average of $37,000 in development? Take a look.
User Profile
Customers can create a user profile to add information about themselves. This includes adding their name, photos, and preferences. In this section, you will also find registration and authentication for the app.
A CF On-Demand app's average profile cost with authentication and registration is $3,000.
The Cost Includes:
- Registration and Login by email
- Registration and Login through social networks
- Customer's Profile
- Access to service providers' profiles
- Friends Invitation
- You can also contact us via our website.
Market
Marketplaces provide listings of service providers and products you can buy - think TaskRabbit as an example - offering access to plumbers near them with reviews on past work or reviews they can read of products available for ordering.
Marketplace apps are among the most complex components, combining two distinct sides - service providers and consumers - in an intricate web of logic behind attractive screens. Marketplace apps typically cost around $11,000 each to develop and market.
The Cost Includes:
- List of Service Providers or Products
- A service provider's profile or product cards with specifics
- Map integration shows available offers on a map
- Favorites and search;
Map
A few mobile apps don't have a map with lots of interactivity and moving elements. The map screen is used in on-demand applications to accomplish two things:
- Show the Delivery in Real Time
- Show service providers' location
It is clear that not every on-demand app needs to include a map, but the trend continues.
The average cost for the map feature in a CF On-Demand app is $7,000
The Cost Includes:
- Interactive map
- Option to Switch to Order Details
Chat
Integration of a chat SDK will allow providers and clients to communicate directly. Many chat SDKs are available. In our article about on demand app development cost, we have listed several of them.
Chat functionality is usually $3,000.
The Cost Includes:
- Basic chat with Images
- No group chats and no fancy animations, as shown in the example above
Cart
Users can review their order in the cart and either confirm or cancel it. Apps may also require users to confirm their addresses or enter a different address. This part of the app should allow users to view all order options.
The average cost for a CF On-Demand app order and cart details is $5,000.
The Cost Includes:
- Order Summary
- Add or Edit the Address
- Modification of payment information
- Add-ons for Cross-Selling
Order Details & History
It would help if you let users of the on-demand apps review past orders. The user can repeat an order, give feedback, or mention a service provider.
The average cost for the order history and details of a CF On-Demand app is $6,000
The Cost Includes:
- List of Orders
- order details
- Rate service
- Transition to the profile of a service provider
Setting
This is the most visible section where users can update their password and email, add a credit or debit card to their account, change other settings, etc. In "Settings", we add information on the current version and all the legal stuff like Privacy Policy or Terms of Service.
Setting in a CF app on-demand costs an average of $2,000
The Cost Includes:
- Everything you could imagine is available in Settings.
Note that this cost includes the integration of the back end. This $37,000 cost includes business analysis, quality control, project management and submission to the App Store or Google Play.
On-Demand Application Development: A Service Provider's Perspective
An on-demand app for service providers costs roughly $30,000.
An app for service providers would be easier for consumers than vice versa; after all, customers drive business operations; without demand, there would be no on-demand antics to support. But such apps might simplify business life for service providers and clients.
Uber offers an alternative perspective. Recently, they unveiled a completely redesigned driver app with over 60 improvements following engineering team collaboration with drivers around the globe and unveiling keynote and other materials as a result of this collaboration.
Uber made this move with good reason; the on-demand Marketplace is becoming increasingly crowded, making it important to consider not just client needs but also service provider requirements. Uber CEO tests their on-demand driver app:
Let's examine how an on-demand service app for provider-facing (PF) purposes can be broken down to arrive at its final price of $30,000.
User Profile
Like in consumer apps, service providers want to know their customers. Apps should allow access to the profile of a user. Also, the service provider should be able to update their information.
A PF app on-demand costs an average of $2,000 per profile.
The Cost Includes:
- Email registration and Login
- Registration and Login with a phone number
- Profile of a service provider
- Access to the customer profile
- Friends Invitation
- You can also contact us via our website.
Market
The Marketplace is at the heart of any provider's app. The Marketplace is where providers spend most of their app time searching for gigs or ideal customers. The Marketplace is different for service providers and includes features like live notifications.
The cost of a marketplace in an on-demand PF app averages $13,000.
The Cost Includes:
- List of customers or gigs
- A customer profile with all the details or a card detailing the job
- Favorites and search;
- Live notifications
Order History & Active Orders
The "Active Orders" section is used the most in the app by providers after the Marketplace. The "Active Order" tab allows providers to see and manage their orders, including canceling, completing, etc. Service providers can review their performance by accessing previous orders.
The average cost of an active order in a PF On-Demand app is $12,000
The Cost Includes:
- order details
- order management logic
- Navigation
Chat
The chat module implemented on the app for consumers on demand will be a great idea. There will still be some customization.
A PF app on demand costs $1500 per feature.
The Cost Includes:
- Consumer App Chat: All the Features
- Minor customization
Setting
You can't avoid the same old dull stuff: Terms of Service (TOS), manuals, passwords etc. This is a necessary but unavoidable part of any app.
A CF app on-demand costs approximately $1500 per set.
You can see that the app on demand is cheaper for the service provider. Your team can reuse huge chunks of the code in your customer's app. This $30,000 cost covers everything, from A-Z, for an on-demand mobile app that a service provider wants to offer.
The Web Dashboard component of the On-Demand app
The cost of the Web dashboard component for the On Demand App is $24,000
Having someone in charge of the service provider and the customer is important. Otherwise, things can quickly spiral out of control. Both sides should be allowed to report any abuse, and you must also be able to act on your own.
A web dashboard available on demand costs an average of $24,000.
The Cost Includes:
- Moderators of the Marketplace moderate all items and users.
- Basic statistics
- Content management
Summary
As we discussed in an earlier post, there are additional costs involved with developing different mobile applications or hiring on demand app developer. Each on-demand app differs, yet it can have similarities. Contact us to arrange a consultation to help determine your app budget and discuss the costs of developing one on-demand application.
