How to Succeed In The Crowded On-demand App Market Space?

Are you an entrepreneur who aims to launch an on-demand services app into the market? If so, this blog discusses crucial aspects that an entrepreneur has to consider while developing & rolling out an on-demand app. Without further ado, let's dive straight in.

on-demand app market

There's no hiding the fact that success takes time. An entrepreneur's journey doesn't end there. One has to successfully launch a business and sustain an increased timeframe to earn revenue, fame, and reputation. The online on-demand market is one segment that is becoming increasingly crowded in today's fast-paced world. Enhanced smartphone penetration is one of the fundamental reasons for this massive growth of on-demand apps.

An average smartphone user has an estimated 60-90 apps installed on their smartphones, according to a study. However, when you dig deeper, you'll get to know that these users utilize only 6-9 apps on a daily basis. After having crunched these numbers, you'll be aware of the fact that sustaining & succeeding in the on-demand market space is no easy task. One needs to come up with an action plan, captivate the audience in no time, eliminate numerous hurdles, outplay rivals comprehensively, and stay up-to-date with the current market trends.

Are you an entrepreneur who aims to launch an on-demand services app into the market? If so, this blog discusses crucial aspects that an entrepreneur has to consider while developing & rolling out an on-demand app. Without further ado, let's dive straight in.

Reasons for Failure

The narrow conversion rate of on-demand apps is one of the main reasons why entrepreneurs hesitate to invest in the segment. By analyzing the reasons for startups to fail, you get to eliminate these hurdles comprehensively:
  • Low customer retention: To be frank, customers are spoilt for choices when it comes to on-demand apps. Even the pioneer Uber faces stern challenges in the name of Lyft, Ola Cabs, Bolt, etc. As a result, customers tend to switch apps with better value utility. This poor customer retention rate is one of the main contributors to an app's failure.

  • Imbalance in supply-demand: The primary idea behind on-demand apps is to work on the supply-demand principle. However, entrepreneurs find it increasingly difficult to strike a chord between supply & demand. Joining hands with excessive service providers without any demand significantly impacts the relationship with service professionals. The vice versa situation is also equally possible in this regard.

  • Less impact among the audience: When you look back at the solutions of successful entrepreneurs, there lies one common thread -solving real-life, mundane problems. When Uber arrived, people didn't need to wave hands at taxis anymore. However, as competition grows, entrepreneurs are stressed to come up with groundbreaking ideas, which, over the course of time, fails to create a positive impact on the audience.

  • Running out of funds: Arguably, one of the most predominant reasons for entrepreneurs to drop the project is running out of funds halfway. At the end of the day, any on-demand app has to benefit the audience and generate consistent income. A significant number of apps fail to achieve break-even sales within a stipulated time, making entrepreneurs restless for returns.

Lucrative Benefits of On-demand Apps

Any business without potential advantages to the entire ecosystem finds it increasingly difficult to sustain and succeed. Here's why on-demand apps are preferred over other modes of availing services,
  • Convenience: The sheer convenience of availing services at doorsteps is one of the main reasons people prefer on-demand apps. Be it booking cabs, ordering pizzas, paying bills, or connecting with friends/family, all one needs to do is a few taps on their smartphones.

  • Accessibility: In today's world, people do not settle for any service until they find it compelling and the best. By opting for on-demand apps, people have access to a wide range of services from a single place. This way, they can choose their most-suited services, leading to ultimate convenience.

  • Multiple payment options: People are under no compulsion to transact via cash alone, unlike conventional businesses. They can transact via numerous payment options like credit/debit cards, net banking, etc. Besides, numerous platforms are coming up with e-wallet functionality as well.

Crucial Aspects to Consider Before Initiating Development

Now that you know the reasons for people preferring on-demand apps and the reasons why on-demand startups fail, it is time to set foot into action. Here are some cutting-edge aspects to consider before initiating your app development.
  • Conduct Extensive Market Research: Unless and until you know the ins & outs of your locality and industry, success will remain a distant dream. Market research opens up doors to identify key competitors in your locality. Besides, you get a fair idea of what customers are expecting from an on-demand app.

  • Incorporate Cutting-edge USPs: It is pointless to expect users to switch from existing apps to your app unless you bring something unique to the table. As a result, you need to incorporate Unique Selling Propositions (USPs) in your on-demand application. Be it the latest tech-stack or advanced features, ensure that your platform stands apart from the rest of the lot.

  • Work on App Marketing: According to a recent study, successful startups spend one-third of their development cost on marketing. You need to let your audience know that there's your app that offers best-in-class services at economical prices. As a result, do not hesitate to spend & dedicate a fixed sum for app marketing. Nowadays, there are digital marketing strategies that are incredibly cost-effective and highly reliable.

  • Integrate locality-specific services: You need to satisfy your local audience to stand a chance of becoming successful. Hence, integrate those services that are in high demand in your application. You can also opt for an all-in-one Gojek clone app that can encompass more than 50+ services. This way, by acting as a one-stop-shop, you get to reach out to a wide range of audiences concurrently, paving the way for enhanced success.


And just like that, you have understood what it takes to build a successful on-demand empire. As an entrepreneur, your primary rule to unparalleled success is developing a top-notch smartphone application that caters to a wide range of audiences. By eliminating numerous hurdles down the way, you get to sail past app development without any hassle. Here's one secret formula - Keep it simple! Reach out to an expert app development company in Kochi, Kerala, tell them your needs and initiate your app development today.

Related Articles

How to improve Android app development process

For someone who's new in Android development environment, its important to know some tips and development knowledge. So to help newbies, I am posting this article. In this article, you will get to know the solutions related to faults while developing apps in Android Studio and some tips to improve their development. Here you will get to know some ideas of Android Studio and some precautions to take while development. Even I am a newbie to Android development, so to help others, I am posting this article.

7 Tips for Android App Development with Xamarin

Read this article to know all about the development of Android applications using Xamarin. Know what is this framework, how you can use it, how beneficial is it for an Android developer and many more such facts about this Android development framework.

More articles: app development


This article is locked for Responses & comments.