How to Build an On-Demand Platform Like Uber or Airbnb

How to Build an On-Demand App Platform Like Uber or Airbnb


There are apps on the market that deliver their service within minutes to your physical location. Apps like Uber and Airbnb fall into the category of on-demand apps. On-demand apps help create a link between a customer and a business. Services available on an on-demand app get delivered within a few minutes, like booking a ride through Uber. On-demand apps solve everyday problems from ordering food, cargo, taxis, healthcare services, beauty, and educational services. The platform charges may differ from the actual market price, but users prefer paying extra money over spending hours searching for the service in the market themselves.


On-demand apps bring noticeable benefits to customers and businesses, such as:


  • Customers can request any service from any location, track their order or ride using GPS, and make in-app payments.
  • Producers can track customers’ areas and approve or decline requests within the application.
  • Both businesses and customers can rate and write reviews about their experiences.


What Makes Them Popular?


Many smartphone users use at least one kind of on-demand app, and we know a few points that make it a reasonable option to use an on-demand app.


  • Lower Costs


On-demand apps gain popularity by providing exciting offers at the start and later keeping the prices lower than the traditional providers. Low costs, along with door service gained attention quickly.


  • Availability


Smartphones are handy, mobile, and easy-to-use devices that are everywhere. Putting forward services on smartphones is a wise move to provide services on a platform everyone uses daily.


  • Adjust to User’s Preferences


On-demand businesses focus on providing services within minutes, not days. For example, the app Jiffy is a home-service platform where you can request a plumber to fix your pipes within a couple of hours.


  • Payment Methods


On-demand apps offer a variety of payment methods. A customer can link an online payment method or their payment cards to the app itself, or they can pay in cash. All the payment methods put customers at ease to make payments in their prefered way.


  • Save Efforts


A customer can make a personal profile in the app and add personal details like prefered payment method, delivery address, personal contact, etc. It helps the regular customers go directly to the service booking while not entering their personal information again and again.


  • Variety of Services


The options for booking a service are endless. You can book a ride, order food, hire a maid, get a doctor’s assistance, and so on. An On-demand app presents you with solutions for almost every daily need.


Types of On-Demand Apps


Based on the provider and the target, we can categorize on-demand apps into three major categories:


  • Business to Business


On-demand apps connect one enterprise to another, which is a service of business-to-business on-demand apps. They involve producers, suppliers, and maintenance companies that require high-level customer satisfaction. An on-demand app can provide services quickly, and one can track the progress in real time. Thanks to the on-demand apps, the European B2B eCommerce market will be worth $1.8 trillion by 2025. It proves that creating a B2B on-demand app is a promising idea.


  • Business to Customer


The ultimate target is the customer, and a Business to Customer on-demand app is essential. Businesses require a medium to deliver their services to the customer, and creating an app is a very efficient way to do so. The customer can download a single app for a specific business or service. Apps like Uber create a link between a customer and a particular business, while a food delivery app links to several restaurants that distribute their service on a single platform. The global B2C eCommerce market will reach $7,724.8 billion by 2025. So getting an on-demand app for yourself can bring opportunities to make money fast.


  • Person to Person


A person-to Person app allows people to exchange services or goods and make transactions through a specialized platform. Apps can help you find co-travellers by entering your departure date and destination details. Some platforms let you sell your second-hand goods or even sell or rent an apartment. Such apps help people find cost-efficient solutions among themselves.


Industries Involved in On-Demand Apps


We know that there are many services available on apps these days and now let’s discuss in detail the types of industries that are dealing with on-demand apps.


  • Taxi Services


The taxi and transportation fields gain the most from on-demand services. It is the reason Uber has shaped the market immensely. Now, a taxi is available in front of the customer within a few minutes. Customers only put their GPS location and destination in the app and wait for the ride to appear.


These apps have a very simple mechanism:

  • Use maps and GPS to locate the drivers available near the customer.
  • Communication medium between the customer and driver
  • Feedback through rating and reviews


  • Food Delivery


Using a food delivery app is a convenient way to get food from your favorite restaurant. Customers don’t have to wait in lines or rush through the menu. The app provides a menu, which one can look at thoroughly and, once decided, place an order. As soon as the restaurant receives an order, the preparation starts, and the app notifies them when it is ready. It only takes a few minutes for the food to be delivered.


The use of an on-demand app brings benefits to both customers and the restaurant. The restaurant can take as many orders as they like, and the customers don’t have to spend their time waiting at the restaurant. Hundreds of restaurants are accessible from the phone, and new restaurants can reach their customers more easily than before. More customers, more revenue.


  • Household Chores


House cleaning, repairs, car washing, and many other everyday tasks that take lots of time can be done with a little help. On-demand apps provide perfect assistance with household chores. Leaking pipes? Hire a plumber, and your work will be done within a few hours. Or hire a beautician before going out for an occasion. All this from your smartphone.


  • Gifts and Flowers Delivery


Want to make a friend happy on a special day when you are away? On-demand apps have your back on this. You can choose a gift for someone and send it to their address to surprise them. You can choose from a variety of gifts and flowers and deliver them to someone’s address on a specific date to make them happy. On-demand gifting apps are gaining popularity because of their doorstep delivery and the help they provide to stay connected with your loved ones.


  • Healthcare Services


You can connect with a doctor for professional assistance. A doctor will talk to you one-on-one and make recommendations whenever required. Treatments and medications are not possible on an app, but doctors can listen to your problems and recommend you take early measures or reach the nearest physician for further help.


  • Logistics


Apps like Uber Freight understand the importance of building a bridge between shippers and carriers. Logistical on-demand delivery apps provide cross-border eCommerce and gain popularity by enhancing the delivery experience. Users can track goods in real-time, compare carrier rates, gather item-related data, get electronic proof of delivery, receive an instant confirmed booking, etc.


Stages of On-Demand App Development


   1. Research


Developing an app would only ensure a smooth-running platform, but it can go in vain if the goal is not clear. An app is of no use if a customer can’t find it or doesn’t want it. Here are a few points to consider before developing an app:


  • Learn Customer Needs


Try to learn what customers require the most, what their hobbies are, and what other apps fail to deliver. It is necessary to understand what customers require to ensure the future of your app.


  • Provide Unique Features


Customers tend to put their trust in an established app. Thus, providing a clone with the same features will have a hard time finding its place in the market. Put forward an original solution, and it will attract customers who were looking for it but were unable to find it before.


  • Don’t Target Blindly


No app can solve everyone’s problems. You should keep your focus on a saturated audience and keep your idea targeted to that particular set of people only.


2. Pick The Right Features


Before you can hire a developer, you need to note down how you want your app to behave. If you want a taxi service app like Uber, then what would be the unique features you wish to add? You need a customer to register, add a payment method, GPS location, notifications, etc. Also, how do you want to monetize your on-demand app?


  3. Development Team


It depends on how you prefer to manage your development process. You can hire in-house developers who can keep the app updated according to customer reviews. An in-house team will be available 24/7 for the long term. But it will cost you salaries, taxes, insurance, etc. Or you can choose an offshore team that will provide you with long- and short-term services. It is a cost-efficient solution, and you can have an outsourcing team work under a contract.


  4. Choose The Technology to Use


There are numerous options available when it comes to coding languages. You can get expert help to learn about the latest trends in technology, which can save both your time and money. The technology can vary depending on the requirements. Whether you wish to go for a web application or an Android or iOS application, A few popular technologies provide a cross-platform code that runs on all platforms using a single code, which is preferred by many who want their app to be available on every platform.


  5. App Development Process


It is necessary to put effort into post-app development. Every business dreams of hitting success as soon as they launch their app on the market. For this, it is essential to build an MVP to make the on-demand app gain success in the minimum amount of time with minimal investment. The idea behind creating an MVP is to test your on-demand app on a real audience and get information about how it performs in the market. Different services need to work on different features, and MVP can be explained as an individual topic.


MVP Features for On-Demand App Development


There are various services you can provide through an on-demand app, and here we list a few features that you should have in your app according to its type.


   1. Customer App


  • Registration
  • Geo location
  • Notifications
  • Payments
  • Feedback System
  • Help & Support


    2. Client App


  • Advanced Searching and Sorting
  • Recommendation Engine
  • Wishlists



  3. Service Provider App


  • Registration and Profile Management
  • Push Notifications
  • Accept and Reject Buttons
  • ‘My Earnings’ Page
  • Offline/Online Button


   4. Advanced Features


  • Report Page
  • In-app Chat


   5. Administration App


  • Admin Dashboard
  • User Management
  • Service Provider Management
  • Change Prices and Fees
  • Analytics and Reporting


How Uber and Airbnb Make Money


  • Value Creation


Some marketplaces empower not only the trading of information but also the exchange of money in a meaningful way to make money on a platform by charging a fee for a value created by the platform. Since customers are not charged until service is provided, they are not discouraged from taking an interest in the platform.


  • Access to The Market


A few apps charge customers at the time of registration. It is usually a subscription or membership plan that asks for a fee. At launch, an on-demand app should not charge customers without giving them a demo of ‘how it works.


  • Access to Tools


A few platforms charge producers and customers for premium tools and administrative services. The excellence of charging for improved features doesn’t discourage customers from using it. Users have access to many free features, and those who are interested in premium tools will pay for them willingly.


On-demand apps are assisting customers with making the delivery process smooth. With Boffin Coders you can enter the on-demand industry too and create a delivery app that offers genuine benefit to your audience. If you still have any questions regarding how on-demand applications are helpful for your business, feel free to contact us.