The term “on-demand services” sits with Uber as the company offers an extensive range of services. We can’t deny the fact that Uber’s on-demand ride-hailing services have plummeted the traditional taxi businesses. The marketplace of on-demand services didn’t stop with Uber. The success path of Uber was followed by apps like Lyft and Grab.
This entire blog will be on how to develop a successful on-demand app like Uber, Lyft and Grab. First of all, let us look at the business model followed by ride-hailing apps like Uber.
How come Uber’s business model became a great hit?
Generally, Uber works on a two-sided marketplace that acts as an interface between the drivers and the passengers. Uber is based on the aggregator model of providing taxi services. As per Uber’s business model, the drivers will use their own cars and for each successful ride, the app charges 20% commission fees.
Have you heard about Uber’s flexible business model? Uber employs flexibility in different means. Flexibility in a business model means adapting to the current circumstances. For example, the concept of dynamic pricing is to increase the fare of the ride as the demand for the taxi increases. Another example of flexibility is when Uber incorporated different safety standards into its ride-hailing services. On the whole, the flexibility employed in the business model has been the major reason for the great success of Uber.
Alright! Not just the business model of Uber that takes all the appreciation. But what? The user interface and the features of the app covers a major part in making Uber’s ride-hailing business a grand success.
Apps like Uber, Lyft and Grab have seeped into the other verticals of on-demand services like food delivery, bike rental, grocery delivery, handyman services, etc. You might have been familiar with the concept of Uber for X, right? This business model is the foundation for many apps that provide multiple on-demand services.
Features that will crane up the user experience of your on-demand app
Earlier, we discussed that the success of a business is not only dependent on the business model and value propositions but also on the design of the app. For a while, image that you are the end-user. Say you are looking to download an app to book on-demand services. What will be the first thing you will expect from the app?
The app must be easy to understand. Secondly, you will look for the features that give you a real-time experience. After all, you will look for a preferred mode of payment. Basically, these factors will influence the user experience and decide whether they will stay engaged with your app or not. So, it is a must to know the set of real-time features your on-demand app will need.
- Social media login – One of the features of the on-demand apps that let users easily log in to the app is the social media login option. Just by synchronizing the social media profiles, users can directly log in by skipping the registration process.
- Automatic fare calculator – If you take the Uber app, the fare of the ride will be informed to the users beforehand. This feature helps the users in knowing the fare and deciding whether to confirm the ride. So, this is one of the good-to-have features of your on-demand app.
- Scheduler – Whether users are booking a taxi or any type of on-demand service, the user must be able to schedule the time to receive the service or orders. For that purpose, the in-app scheduler is a must.
- Tracker – The live tracking feature should be integrated with both the user app and the driver app. For users, the live tracking feature shows the location of the driver. Whereas the drivers can pinpoint the user’s location via the live tracking feature. In the row of real-time features, the live tracking feature is crucial.
- Payment integration – A simple yet effective payment system is necessary, along with a band of payment options. Some of the most used payment gateways are PayPal, Amazon Pay, Stripe, etc. Know the preferred payment modes of your target users, which will help you in choosing the payment modes to integrate with your app.
- Heat maps – Uber has an in-app heat map that depicts the demand for their services in different locations. Based on the demand and the location, the drivers can take up the ride. This will be useful for your business, as you can accurately note down the demand for your services.
- Push notifications – In simple terms, push notifications are considered a marketing tool that lets you share promotional messages with users. Other than that, through instant push notifications, users can know the location of the driver, estimated time of arrival, etc.
- Route optimizer – Route optimizer is employed in finding the feasible or shortest route to the destination. Making use of the traffic-free and the shortest route will increase the speed of the delivery.
By now, you have a general idea of the features and business model of the on-demand apps. Next, you must know the app development.
Importance of investing in the ready-made on-demand app development
Since the on-demand apps are becoming overly popular, app developers have introduced ready-made clone scripts. The ready-made clone scripts are pre-built and well-tested that are ready for immediate launch. Most importantly, the amount of investment is far less compared to in-house app development. Many entrepreneurs who are high on investing in on-demand app development choose Uber clone app solution since it is ready to launch.
Since we are discussing app development, you must also know the approximate cost of app development.
Cost of on-demand app development – A basic framework
The application stack integrated into the app, the platform, and the sum paid to the app developers will enunciate the overall cost of development. For instance, to add the tracking feature, developers will have to integrate Google maps/OpenStreetMap API, etc., into the app. Similarly, for adding the push notifications, developers need to integrate Firebase/ AWS SNS/AIRSHIP, etc.
From this blog, it is pretty much clear that you can attract and retain users with innovative and easy-to-use applications. Launch your on-demand app in a matter of a few days by choosing the ready-made app development.