On-demand Delivery App Business Model 2024 | On-demand Business Model Briefing

Unlocking On-Demand Business Models: Types, Features, and Use Cases

By Suffescom Solutions

December 05, 2023

Unlocking On-Demand Business Models: Types, Features, and Use Cases

On-demand business models are popular and adopted by many. And irrefutably, owners are moving their businesses on-demand. The top reason behind it is the prominent technological emergence offering convenience.

On-demand businesses offer innovation and comfort in people's lifestyles. Small or large businesses are repositioning to an on-demand economy. Over 22.4 million consumers use on-demand services, leading to $ 57.6 billion.

The on-demand economy has contributed largely across the globe. Its recent statistics exhibit a lot about its importance in different businesses. Moreover, different on-demand business models have lucrative benefits for various industries.

On Demand Business Model

In this blog, we have unlocked on-demand business models and what would be the features, types and use cases that can help you step up the ladder of success.

Key Stats for On-Demand Business Models

  1. The expected market value of an on-demand app economy by 2025 is $335 billion.
  2. DoorDash is the US's most prominent food delivery app, with over 50% market share.
  3. There are more than 87 million on-demand users across the US alone.
  4. In 2021, the total revenue bagged by companies through taxi apps is around $225 billion globally. It can skyrocket to $386 billion by 2026.
  5. Amazon sold over 60,000 items per minute during the 2022 Prime Day.

Types of On-Demand Business Models

1. Business-to-Business (B2B)

The B2B model aims to connect different businesses and sell products or services globally. Many companies follow this business model irrespective of its turnover and size.

Walmart, Amazon, Flipkart, and UrbanClap are a few apps based on this business model. Here, businesses easily offer their products to their customers and allow them to shop at their convenience.

2. Business to Customer (B2C)

This business model aims to conduct smooth purchases of products and services between providers and customers. B2C on-demand apps include Walmart, UrbanClap, and Starbucks.

Creating apps based on this business model helps customers place orders online and get them at their doorsteps. Upstarts, such as DoorDash and Instacart, generate plenty of publicity and bulk of on-demand revenue.

3. Peer-to-Peer Model (P2P)

The model allows the delivery or exchange of products between customers. For instance, carpooling apps like Uber and BlaBla connect two users.

In the P2P model, on-demand startups usually produce revenue by charging their sellers a percentage of every transaction and a fee for using the platform.

Use Cases of On-Demand Business Models

An on-demand business strives to provide rapid delivery of services or products to customers at their doors. Below are a few examples of on-demand business apps in various industries.

1. On-demand Food and Grocery Delivery App

In 2023, the revenue of the food delivery market in the United States was US$1.02tn in 2023. It will reach US$1.65tn by 2027.

Food and grocery delivery apps allow restaurants and grocery stores to serve customers at their doorsteps in a few clicks. The top food and grocery delivery apps include Instacart, UberEats, DoorDash, and Grubhub. These apps offer multiple advantages for grocery store owners, restaurants, and customers. Gorillas, an on-demand grocery delivery app, promises to deliver the items in 10 minutes.

Owners of grocery stores and restaurants get more orders and can manage them effectively. Customers, in turn, get easy access to user-friendly menus. As the food industry is the fundamental niche of the on-demand delivery market, it offers umpteen solutions, such as pizza delivery, alcohol delivery, grocery delivery, etc.

Our Successfully Delivered On-Demand Projects: Similar to Top Delivery Giants

We have readymade solutions of on demand applications and platforms for several on demand categories with successful business model Such as food and grocery delivery apps include Instacart, UberEats, DoorDash, and Grubhub like apps. We promise to deliver an on-demand delivery apps in couple of hours.

Get your food delivery app like Grubhub with professional wizards of Suffescom, delivering on-demand business solutions with the following features-

  • Quick Delivery
  • Reliable Order Tracking
  • Secure Payment System
  • Easy Refunds and Cancellations
  • Enhanced Customer Service

2. On-demand Healthcare Services Apps

The research says the mobile health market will surpass US$ 300 billion by 2025.

On-demand consultations with doctors are gaining popularity among patients. Thanks to on-demand healthcare applications! They connect doctors with patients. Spruce is an excellent example of an on-demand healthcare app. It allows medical professionals to enjoy a secure way to communicate with their patients via video conferencing.

Similar to in-person doctor visits, such apps allow patients to consult doctors to get recommendations for their medical conditions. Moreover, these services are accessible 24/7.

Further, medicine delivery apps let users get medications delivered to their homes. For instance, Epocrates, Capsule, CVS Pharmacy, PillPack, RiteAid, and more.

3. On-demand Transportation & Logistics

Presently, on-demand transportation and logistics services are becoming popular these days. These services are popular as they offer in-app messaging between suppliers and customers, real-time tracking, transparent pricing, quick payments, and on-demand transportation.

A great example of an on-demand transportation and logistics app is Uber Freight. It is an app that helps customers transport their freights hassle-free. Another example is the Uber package delivery service, named Uber , which permits customers to deliver parcels anywhere, anytime.

4. On-demand Hyperlocal Delivery App

The hyperlocal industry refers to services and businesses within a specific geographic region. The global hyperlocal delivery apps market revenue was $952.7 million in 2021 and will hit around $8856.6 million by 2023 at an increasing CAGR of 22.6% between 2022 and 2032.

Various factors influence this growth, including the proliferation of on-demand app platforms, the growing use of mobile devices, and the increasing demand for speed and convenience among customers.

Apart from food and grocery delivery, businesses offering hyperlocal services that contribute to driving the on-demand economy are on-demand fuel delivery apps, such as Yoshi and Booster. Also, they include car wash, home services, salon services, cooking gas delivery, laundry services, home cleaning, and more.

5. On-demand Entertainment Apps

The introduction of on-demand streaming services, such as Amazon Prime and Netflix, has dramatically changed how people watch various television shows, series, movies, and documentaries.

In the tech-driven world, several on-demand entertainment services like movie apps compete for potential customers' business. The number of on-demand customers keeps boosting year by year.

For instance, the total paid subscribers of Netflix as of the third quarter of 2023 are 247.2 million.

The entertainment apps are web-based and mobile-based, helping viewers watch their favorite shows anytime and anywhere. Creating on-demand entertainment apps like Netflix helps businesses generate revenues by offering top facilities and functionalities.

6. On-demand Cab Booking

Cab booking apps like Uber, Lyft, Curb, and Wingz are popular for their exceptional features and revenue graphs. The development of such apps includes a UI/UX interface with great usability that has all the required features for assisting passengers in booking a quick ride.

Starting a cab business is simple. You can get an app like Uber or Lyft from on-demand app developers. They develop Uber like apps at affordable price from scratch, clone them, or offer white-label solutions.

The cab booking app comprises a taxi owner admin panel, driver dashboard, and passenger application. It allows drivers and customers to share feedback.

Many businesses already utilize different on-demand apps to skyrocket their revenues and sales. Your business can be one of the top choices.

successful delivered projects by Suffescom in 2023

Features of On-demand Applications

On-demand apps are the future. They must possess features according to the changing trends, as mentioned below-

1. Push Notification: Businesses can easily send push notifications to customers through an on-demand app. The feature has many options for choosing whether to send notifications as urgent or normal. This feature is a useful marketing tool to engage more prospects.

2. GPS Tracking: It is vital to integrate GPS tracking into on-demand apps. With this feature, customers can easily track their food orders, and businesses get updates about customers' activities, from browsing to making an order and receiving to returning it.

3. Activity List: On-demand apps offer an activity list feature to help businesses display ordered items for customers and get answers to their queries. It lets customers get their order history, add-to-cart items, and more.

4. Multiple Payment Options: Everything is online these days, even payments. It becomes easier for customers to make payments online due to convenience and exciting deals. On-demand apps with multiple payment options help customers make transactions directly with businesses.

5. Reviews and Ratings: Customers prefer checking a product's reviews and ratings before placing an order. On-demand apps providing in-built order review and rating features save time and increase the business credibility. Nothing is more authentic than that customer reviews to drive sales and take corrective measures.

6. Real-time Analytics: It is an inevitable feature that provides business insights. The feature allows you to study your customers, products, competitors, and operations and uncover loopholes to make them more airtight. Real-time analytics help you optimize your consumer experience, boosting customer retention.

7. Easy User Registration: Signing up for an account on an app helps customers access various facilities and benefits. For instance, signing up on Amazon helps customers shop anytime and anywhere without inserting bank account details every time. Registration feature lets businesses know about users added.

8. In-app Chatting: Human intervention is essential to retain the personal touch with customers even after the availability of chatbots. Communicating with customers via the app lets them get detailed information on order details, registration queries, payment issues, return items, and more.

Inoculating these features into an on-demand app requires you to invest as required.

AI Powered On Demand App Development And Business Models

In the advanced technology era, on demand applications are now less with AI technology. Share automatically best food ideas and new recipe taste to customers by analyzing the insights of previous orders. Also send diet plan to customers automatically with regards health parameters. Consult and know business model now! 

Cost Estimation of On-demand Business App Development

Developing an on-demand business app varies due to certain factors, such as complexity, development team size and location, features, and time to market. A rough estimate would be around $15,000 to $80,000. It can exceed more depending upon your requirements.

Wrapping Up!

Putting the best on-demand app ideas into practice is a game-changing and needs investment. Over the last decade, the smartphone market has experienced tremendous expansion, increasing the value of ideas for on-demand mobile apps.

If your business runs without on-demand apps, it might have less footfall than your competitors. The report predicts the market will reach $335 billion by 2025.

From now on, give your customers the convenience to stay engaged with you and your services and products. It is "never miss an opportunity" to initiate with on-demand business models so you accomplish your business goals.

Ready to take your business to the next level with readymade on-demand apps? Team Suffescom is adept at building high-performing on-demand solutions based on required business models. Reach us today!

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