On-Demand App – Advantages and Disadvantages Worth Exploring


It’s 2022, and in this modern era, you can get everything with just a few clicks. 

If feeling hungry, there is an app that can deliver anything you need outside your door. If you need a ride to reach somewhere, you will have a taxi at your place. 

On-demand apps help to deliver products/services from the comfort of home. They are also contributing considerably to the current health crisis where social distancing is mandatory.  

To keep pace with global digitalization, old-school business models are being revolutionized more rapidly than ever before. With the on-demand apps, it is now possible to deliver products/services right away, and it also boosts business ROI. 

In this post, we are going to discuss the pros and cons of on-demand applications. So let’s get going.  

On-Demand Apps – Advantages

#1. Scalability 

As a startup, you can begin with an on-demand delivery app and scale it in the future. Your on-demand platform can turn out to be a marketplace where it is possible to host different companies’ services and products. They will pay you for each transaction that occurred on your platform. 

Unlike traditional business models, on-demand apps can be scaled easily to adapt to changing market demands and the introduction of new products/services, offering them a competitive edge. 

#2. Assessment of User Activities 

You can assess users’ activities on your app. It will help you to determine your most and least popular services. You can also acknowledge what is stopping your users from making a fair purchase, and what are your customers’ behavioral patterns. 

When you have all these user behavioral data, you can use it to enhance your on-demand app and scale it. This data also helps you develop powerful advertisement strategies for your targeted audience. 

#3. Better Online Presence 

If you want to enhance your business’s online presence, an on-demand mobile app is one of the great sources to leverage. Gone are the days when just having an online presence with a website was enough. 

But today, on-demand apps are a buzzword, and every business is harnessing the best possibilities from them to succeed in the ever-changing market. 

#4. Flexible Offers 

With on-demand applications, you will have an opportunity to change your offerings based on users’ behavior. When you assess customer behavior it will unlock a number of opportunities for customized marketing, help with Smart assumptions, and create relevant deals/offers by using the app’s in-built recommendation engine. 

Offering discounts and bonuses encourage your customers to repurchase from your platform. 

#5. Revenue Growth 

On-demand app revenues are increasing constantly as users are ready to spend money on on-demand applications to make their lives easier. So you need to focus on delivering an excellent customer experience by developing user-friendly on-demand apps. 

The app will also act as a tool to retain your customers for a long time and boost sales by motivating users with deals, discounts, and loyalty programs.  

#6. Improved Customer Service 

Today’s customers prefer to go online and use on-demand apps to address their emerging needs. 

When you have an on-demand app for your business, you do not need to make extra efforts to enhance customer service. Just developing a simple yet fully-featured app with an intuitive UI is all you need. The app also mitigates the need for customer service representatives. 

#7. Data Security 

Any business wants to safeguard its essential data and maintain confidentiality. The on-demand app comprises a solid encryption system that secures data stored in a Cloud platform. 

Unlike old-school business models, which are vulnerable to cyber attacks, on-demand apps enhance data safety. The app also retains consumer and shipment privacy.

#8. Frictionless Payment  

In the age of M-commerce, there are different options available when it comes to mobile payment. 

In the on-demand app also, different payment options play a significant role that enables users to pay in their preferred way. Payment would be quick, secure, and instant.  

#9. Actionable Rating Systems  

The success of on-demand apps is highly dependent on customer reviews, ratings, and testimonials. App owners can enable rating systems after the product gets delivered. Such reviews and ratings help to improve app quality and user experience.  

On-Demand Apps – Disadvantages

#1. Expensive  

When you receive any item at your doorstep, you need to pay for the item as well as the shipping charges. You might also need to give a tip to the delivery person. Many people overlook how much it will cost to use these apps. So it is necessary to monitor all the spendings that take place through the on-demand app. 

#2. Get into the Habit

As on-demand apps are quite user-friendly and easily accessible, you can keep using them consistently. You don’t just use the app to order something you need, but it will turn into a daily habit.  

#3. Not all apps are Excellent 

Many apps are reliable and user-centric. But that does not mean every app you have come through is excellent. They are not completely legal either and do not offer multiple options to choose from. Good experience with one app does not mean all other apps deliver the same user experience. So do not blindly trust all apps.  

#4. App Development would be Complicated  

The process of building an on-demand app can be quite difficult. You might lack some of the skills required for app development. Choosing the OS, frameworks, tools, tech-stack, all these are tough to choose. For that, you need to connect with a top-notch on-demand app development company that will assist you with each phase of development. 

Summing Up 

As a business owner whose focus is on the on-demand economy for their startup, taking a decision is a difficult job. No matter what your business idea would be, it can be acknowledged thoroughly before investing in anything. But keep in mind that on-demand apps are running positively in every industry niche, and also stay for a long time in the market. 

On-demand apps have been doing great since their inception. If you want to keep pace with the changing customer demands, you need to transform your traditional business model for sure.