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How On-Demand Apps are Transforming Economics of Various industries

Have you ever had the question reach your mind "Advancements in Technology could develop tools that would make people’s day to day life easy, so why don't they?" What if I told you that technology has changed this thought to reality!

I am sure the next question that pops up into your mind is how is this possible?

Well, this is the magic of on-demand applications. On-demand apps have become an online platform from which one can sell their goods and services to their customers directly.

Start-ups who wish to develop an on-demand service app have to keep the following points in mind

  • Keep your customers satisfied by offering them quick services
  • Never compromise on the quality of services
  • Make sure that the budget is easy on the consumers pocket

Today we have a number of on-demand startups; like on-demand grocery, food, doctor services, cab booking, restaurant, hotel booking that promise instant delivery of goods or services. Just a single tap on your mobile screen and the job is done. Creative on-demand business like Uber and Airbnb have brought about a tremendous shift in the current economy. This is the spell cast of on-demand apps. The on-demand ecosystem is been adopted rapidly by various industries, to name few, transportation, healthcare, travel, rental, food/groceries delivery are in the top run.


Nearly more than 22.4 million consumers are attracted by the on-demand economy annually and consumers are spending $57.6 billion. Transportation like Uber on monthly has 75 million monthly active riders. Food/grocery industries like Instacart have 40 million monthly consumers who spend $4.6 billion annually. Other on-demand services including home services (e.g. TaskRabbit), and health and beauty services (e.g. StyleSeat) account for $8.1 billion in spending each year, and all other on-demand activity comes in at $3.8 billion.

Few industries whose economies have been transformed by on-demand apps

#1 Transportation

Do you remember the times when people would stand on busy roads to and wave their hand to stop a cab? Well, that was the scenario years back, with the introduction of on-demand apps, transportation was the first industry to experience transformation. This technology-driven business model of Uber has grown to a $54 billion business in a matter of years just by merely transporting millions of people to their desired destination.

Many of the taxi companies have developed their own app to assist their customers in booking taxis. Over a period of time, there has been a tremendous increase in booking services through mobile apps.

Did you know When there is already an established business in the market it makes no sense to begin the same business. A why question must have popped up to you the reason is that it won’t work out until you have added a tinge of creativity in it. Adding something unique to your on-demand service model will let you reap the benefits from it. Best examples of entrepreneurs who have founded Startups like Uber are Lyft, Ola. These startups have been successful so far as they have built the business with a different approach.

#2 Food Delivery

In a world where people run out of time with their hectic schedules on-demand apps have brought about a change in the food industry too. The on-demand services for the food industry is split into three parts.

  • Online Restaurant Discovery
  • Cooking
  • Food Delivery

One tap on your mobile screen and you have your favorite food delivered to your doorstep.


According to the above graph, industry experts believe that online orders are expected to surpass offline orders within the next decade. This raises the great opportunity of on-demand food delivery app development for startups in the coming years.

Did you know Zomato has amalgamated numerous on-demand delivery services in a single app. Zomato app has incorporated Google Maps to get the location and at the same time, it has teamed up with Uber to offer taxi services so that you can reach and enjoy your food with great convenience.

#3 Healthcare

When I think about the healthcare industry a few years back I remember how patients called up the hospital to fix an appointment with doctors. Even after the appointment was fixed the patients still had to wait in queues. the on-demand ecosystem has influenced healthcare industry too. In fact, it is one of the most useful industries for peoples to get healthcare services and on-demand medicines.
With the introduction of on-demand service, the healthcare industry has witnessed a refurbishment in the way patients interact with the doctors, laboratories, hospitals medical stores etc. Just tap on their smartphones and patients get their medical reports/ medicines right at their doorstep.

Did you know Emerging of application like on-demand doctor and Practo has made the appointment booking and doctor consultation hassle free. You can get a direct consultation with your doctors remotely. A key feature of these apps is that it has the ability to hook up with Google Maps. All you need to select your location and find doctors around you on the go.

#4 Travel and Tourism

On-demand apps have changed the tradition of booking a vacation and has revamped the approach to explore travelling. The travel industry is highly influenced by digital transformation. The arrival of on-demand app services has outdated physical bookings and travel agencies. With few taps on your smartphone, you have the status of your booking just before your eyes.

Source: alliedmarketresearch

Did you know A recent survey by eMarketers demonstrates that travel-based mobile apps are a 7th most downloaded category? It also states that by 2020, mobile travel sales alone will surpass $100 billion.

Would you like to pay for an expensive hotel or would you rent a house that is located at the centre of the city for a cheaper price? I am sure you would opt for the second option. With the arrival of on-demand app planning a tour has been quite easy. You have an option like Airbnb, TripAdvisor, Trivago that offers you hotels and rented apartments that fall within your budget.

#5 Rental Services

We humans always tend to go for less expensive options when it comes to shelling out money from our pockets. Modern day customers opt for renting or sharing rather than buying products. On-demand apps offer a lesser pricy alternative to ownership. This has led to a rise in rental products over the past few years.


Imagine you had your favourite match being broadcasted on the TV which you didn’t want to miss out on but for some reason, it happens so that you miss out on the match. Well a few years back if this had happened you could do nothing about it but to accept the reality but with the arrival of on-demand app services like Netflix, has changed the way we have consumed our entertainment. The application offers services that let customers watch their favourite shows or movies at their time.


The current scenario depicts that businesses can no longer expect their customers to be waiting for their services. Businesses have to learn to respond to the increasing demands of the customers for instant product and services.

Are you one of those who are in search of developing an on-demand app for your business? Well, if you have nodded to the above question, you can connect and discuss your idea with us and our team of expert mobile app developers would assist you to get the most viable solution for your business.

Oliver Baker

Oliver Baker is a co-founder of Intelivita, a leading Web and Mobile App Development Company based in Leeds, UK. Oliver has been at the forefront of the business, expanding it globally and into new technologies including iOS and Android, AR, VR and Mobile Game applications. Oliver excels in Project Management, Leadership, Quality Assurance and Problem Solving and has qualifications with Prince2 and APM. He aims to develop his skills further through a shared interest with other leaders in the Software Markets and the Clients of Intelivita.

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