Why is On-Demand Business App for Startups the Successful Model?

Change is inevitable, and the one who tries to escape change ends up being deviated from the road towards growth and success.

When we listen to stories about kings and all the benefits and pleasures they had, most of us wish to become one. If you want to grow your business, you have to fulfil your customer’s wishes, and this is what an on-demand business app for startups is based on.

Let’s take an example: Earlier, there were barbershops, and we used to go there and sit in the line until our number comes. Then this got upgraded to booking appointments. We can call the shop to book our appointment, or we can WhatsApp them, or we can download their app, and then we can book the appointment. The point here was that we have to go to their shops. This lacks the experience of feeling like a king because a king doesn’t go to someone, whatever or whomever the king wants, come to him.

Now, we are in the third revolution, and this is where the king-like experience enters the picture. You can now book an appointment, and the barber will come to your house with all the necessary pieces of equipment to give you the haircut. Thus, in this case, what you needed came to you, and this is what most people want.

We live in a world where everyone is busy, and they want the easiest solution for their day to day needs. If you can provide customers with the same, your growth graph is going to increase like crazy! And if you still follow the traditional business, I am afraid to say that your graph is very likely to move in the downward direction.

This has made the on-demand economy and on-demand applications popular nowadays. Mobile has become the first choice to solve everything, and this fact that is driving the growth of the on-demand business. Whether you want food, human services, healthcare, courier, etc. all these can be delivered/reach your home, thanks to your phone and technology.

The simple reason why you should consider having an on-demand business app for startups is that your customers want, and they are getting all the services delivered at their homes, so why would someone come to you?

People want everything at the tip of the fingers and within seconds, and this is the reason why on-demand business is growing at a rapid speed.

So if you are a startup, you should start from what is trending and growing i.e., on-demand app. Here are some points which will show you why is the on-demand business app for startups the successful model for startups.

Benefits of On-Demand Apps for Business

On-demand startups have turned out to be more technically updated, convenient, and highly effective and this is why Uber has managed to raise approximately $10.2 billion, Urban clap has raised nearly $35 million, and Ola Cabs has raised almost $1.18 billion after having completed seven stages of funding.

1. You take advantage of the mobile area:

90% of users spend their time on mobile apps compared to the mobile web. This is the best advantage that you get if you have an app presence. This can be a robust strategy to boost your startup’s growth. You can add custom features to offer your customers a new way to interact with your business.

2. Digitization of all Interactions:

Gone are the days of keeping physical proofs of interaction like receipts and labels. It is the time that all the information is saved in the app itself; thus, your app is your proof. There will be a record of all the services or goods the customer has bought. If the customer connects with your service executive about some complaint or inquiry, they will have a record of that too. Thus this will help in improving your customer experience.

3. Scalability and Security:

The prime benefit here is that you can scale your business in the way your customer wants. For example, if someone wants to parcel some food, they can order the food online from your app, and thus they don’t have to wait in a queue until they get their parcel, and they can pay you online through a secured payment portal.

Demands of the consumer are constantly changing, and so can your on-demand business app. On-demand business app for startups is very flexible, and necessary changes can be easily made to meet the demand of the consumer.

4. Efficiency:

The on-demand app is focused on increasing the productivity of your business. Your business will get the exposure of a much higher audience, and they will get the best customer experience. This will increase the efficiency of your business. This will help you in reaching the desired ROI for your business.

5. Open the door for new Opportunities:

Business is all about finding and using the right opportunity to grow and earn maximum profit. The on-demand app helps you by generating such opportunities.

When people use your on-demand app, they have to sign-in for which they will share their name, email address, and phone number. Now once you have this, you know that these customers will need the same service once again. Now, this is the opportunity to make sure that when they spend for the same service or product, they come back yo you only.

You can use their email and phone number to give them offers or discounts, and thus you can save yourself from customer churn.

6. Long term is Affordable:

Free is not affordable when you look from a long term perspective. The on-demand app is an investment that you may think is costly, but the ROI will cover up all the expenses. Moreover, it will provide your customers with an extraordinary experience and thus will increase your chances of gaining loyal customers.


Therefore you should search for the best mobile app development company so that you can have the best possible on-demand app for your business with all the necessary features. Here is a list of must-have features for your on-demand business app for startups:

  • Notification
  • GPS Tracking
  • Activity list or Wishlist
  • Payment Gateway
  • Rating and review
  • Booking and cancellation, etc.

But before you go further with the development process, there are six factors that you should consider for selecting a successful business model:

1. Degree of Commoditization:

The degree of commoditization refers to the number of variables associated with your service or the product.

Example: In Uber, the customer only has to select the type of car. But, in Airbnb, the customer has to choose the booking date, rent, number of days, location, and many other facilities.

You should try to create the most precise process so that everyone should find it easy to use your on-demand app. Try to give the users as much freedom as you can so that they enjoy the best experience. You must identify the ideal business model for your startup.

2. Relationship between the Supply Side and the Platform:

To run your startup successfully, you might need to aggregate the existing small business or contracting the supply.

To achieve the former one is much easier than later. But if you wish to do the latter, you will need a platform and an on-demand business model to act as one.

3. Pricing Structure:

Pricing is one of the driving for here. Online business has made all the businesses transparent, and thus people know what your competitor offers and at what rate.

You need to use the best possible pricing so that the users can get the most by paying the least. Pricing has always been a factor that affects demand, and it will do the same in this case. Offer fair pricing and offer the best experience so that the customer becomes your regular client.

4. Stakeholders:

You have to consider the stakeholder’s factor, and thus you have to develop apps for them too.

E.g., Uber has two apps i.e., uber for driver and the main uber that we customers use, as Uber has two stakeholders. Postmates has three stakeholders who deliver the prepared meals. They have prepared a structure according to the same.

5. Have your own Fleet or Partner’s Fleet:

You have to answer this to yourself, that if you want your fleet to reach the client or you will have this work done by the partner’s fleet. Let’s take an example: Food delivery.

Here you have two options:

  1. You can send your person to pick up the parcel and then he will go to the customer to deliver it
  2. You can tell the restaurant to send their people for the delivery.

You have to choose one.

6. Schedule Delivery or Instant Delivery:

You have to choose whether you want an instantaneous model or you want a booking model. E.g., In the taxi business, if you’re going to give the customers the option to book now or you want to provide an option to schedule a cab, or you want both.



The on-demand business app for startups is an investment that will give you the highest ROI in terms of money and growth. The only thing is that you have to make sure that your app has all the necessary features and is user friendly. Choose the right mobile app development company to have the perfect app for your startup.

Mr. Vivek Shah
Author: Mr. Vivek Shah
He is the pioneer, motivational speaker, solution provider, MD and CEO of Capermint Technologies Pvt Ltd: A leading Mobile Games & App development company. He believes in crafting creativity with calibre which construct a valuable outcome for the world out there looking for innovation. As a CEO, he likes to help other companies to transform their app ideas into reality.

Leave a Reply

How can we help you?

Contact us at the Capermint Technologies office nearest to you or submit a business inquiry online.

%d bloggers like this: