Planning a Budget for On-Demand Mobile Apps: Know About the Things to Consider

Updated on :June 16, 2024
By :Ashish Parmar

On-demand mobile applications are creating a niche in the world. It is not an overstatement. After the success of some On-demand businesses such as Airbnb, Uber, and Postmates, most of the new entrepreneurs want to jump in this river of possibilities and potential. Well, they are not wrong too. According to industry experts, on-demand businesses will surely skyrocket in the context of revenues and profits.

According to research by, the expected on-demand market revenue will reach $335 billion by the end of 2025. Also, as per the survey conducted by Burson-Marsteller, 42% of Americans have used On-demand service in recent years and the numbers are increasing exponentially with each passing day. What these stats reveal is that on-demand businesses are going to rule the digital economy in the upcoming years. Many start-ups are looking for opportunities to start an on-demand business that provides some unique and exciting services to offer to customers.

Why are On-demand apps so popular?

In the current era, cut-throat competition and digitalization have put the customer on the highest chair. They can be more demanding and less loyal due to the number of viable options available. Today's consumers don't just want good product or service, but also look for gratification, superior shopping experience, and quickest delivery too.

Whether it is transportation or food delivery or other services, they want their orders to be served in just no time, without any waiting period. They don’t have patience, and as a business person, you have to address each and every expectation they raise. On-demand apps offer that instant gratification and mobility to the consumers. These apps allow them to ask for services through apps. If you identify a problem and have a mobile solution for it, you are ready to go. This is the core thing to start. Many routine tasks consume time, efforts and energy. If with the help of technology, you can provide a solution to the consumers and eliminate time and efforts they put, you have just hit the jackpot.

There are many important questions to ask yourself when you decide to go for an on-demand mobile app.

  • Does your idea solve the problem of the users?
  • Which tasks you can simplify with the help of the on-demand app?
  • Does your idea have the potential to lure investors?
  • Which niche do you wish to explore? Will it be relevant for years to come?

The structure of the On-demand mobile app

The structure includes 3 components:

User App

This is for customers who are going to use your services. It consists of a search option for products, services, reviews, maps navigation, cart, order history, pricing details, tracking orders, product recommendations, and other services. The overall cost of developing a basic one for iOS or Android ranges from $10,000 to $15,000.

Service Provider App

The service provider app is for- as the name suggests- service providers. The service provider app has sections such as service provider’s profile, active orders & history, chat, and other settings with their features for the on-demand application to be developed. The estimated cost for this will be $6,000 to $8,000.

Admin Panel

The admin panel is all about controlling the service providers and users. The main aspect of this panel is to efficiently maintain both the user as well as the service providers and to answer all the queries and abuse reports quickly to offer a smooth and seamless experience to the service providers and users. Incorporating a basic one of this panel will cost you around $4,000 to $5,000.

Factors that affect the cost of developing an on-demand mobile app

Native or cross-platform

First of all, you need to decide whether you want your app for a single platform or want it to be available across various platforms. There are certain limitations for both native and cross-platform app development, but you can opt for the one that best suits your requirements based on the concept of your app and the targeted users. It should be decided before you start developing an app.

Identify your Market and segment

Currently, there are three major market segments where on-demand apps are trending: transportation, food delivery, and home delivery. The first thing that you need to do is to identify which segment you want to explore. Take your time and research to evaluate potential. Once you decide the market segment you want to explore, you will be able to concentrate more specifically on it.

Make a technical requirement sheet

Also called as Product Requirements Document (PRD), a technical requirement document is very crucial to prepare for estimating the budget. It covers the whole app development process with micro details about each step and what is to be expected of it. It will help developers to estimate the cost of each stage such as backend development, testing, architecture, and many others. A product manager or a lead developer can prepare a PRD after consulting with the client.

Outsourcing or In-house development

When you are preparing a budget for an on-demand app, you need to decide whether you want to outsource the project or develop it in-house. Both have their pros and cons, and you need to weigh all possible factors in-depth to conclude. Remember, the decision will significantly impact the overall cost of the mobile app development project.

If you want to outsource the project, check out the hourly costs of all the nations — not just that, research about top mobile app development companies in different countries by evaluating various factors such as developer strength, reviews, quality of work, experience and expertise.

Must-Have Features in an On-Demand Mobile App

On-demand apps are entirely different from other apps, and there are some must-have features you have to integrate into them to offer a superior experience to the users.

User Registration and Profile

When a user visits the app first time, the user registration is a must. You can specify the information you want the user to add such as name, age, address, email address, phone number, and others. It will help you to track the user's behavior and activities on the app.

Map Integration

Customers generally order services for particularly geographically locations. Hence, integrating map is a must-have feature in most on-demand apps. It is convenient for both the customers and for service providers. Customers will be able to track services in nearby areas, and service providers will be able to deliver the goods or services.

Filters & Lists

Embed specific filters in the app for customers to facilitate them to choose goods or services as per their preferences. Also, you can add the feed for them to check out the latest product recommendations and new arrivals. Ensure that the navigation is smooth and seamless for customer comfort and convenience.

Vendor Profiles

There are chances that users want to know more about vendors before placing orders. They might want to see photos or read reviews about the service provider to make the decision. Hence, including vendor profiles is a must for on-demand apps.

Cart and payment integration

Setting up a cart makes it easy for customers to select multiple goods without leaving the current page. It helps to enrich the customer experience and to improve the overall efficiency of the app. Also, payment system integration is a must to offer a seamless experience to the users. When you opt to integrate the cart with the payment system, a user can place an order for all the items by initiating the payment.

Push Notifications

Customers love to get notifications from their favorite apps. With the help of push notifications, you can notify users about new product or service arrivals, discount offers, promotion packages and many more. Also, users are informed about restocking or reordering items.

Comments & Ratings

This feature is crucial for customers as most of them check out ratings and reviews before reaching the purchase decision. Hence, incorporating reviews and rating feature is mandatory to be incorporated into on-demand mobile apps.

Why is budget planning important for On-demand Mobile Apps?

There is no fixed cost of developing the on-demand mobile app as it depends on a number of factors and considerations. However, if you plan your budget roughly, it might help you to get an idea of the estimated budget. Also, budget planning helps you to get a blueprint of the whole mobile app development process. In addition to that, it will undoubtedly give you an insight into the project's technical and business feasibility too.

Budgeting is difficult. Just admit it! Even experienced app developers sometimes find it difficult to plan a budget as it varies from project to project. However, the guidelines and the information provided will help you to make the best estimate that can help you to get started with your project.


The reason why on-demand apps are in vogue and trending nowadays is its ability to offer convenience. According to top mobile app development companies, ensuring that an app has all the necessary features that can address the issues and concerns of the users and offer them a streamlined and seamless experience is mandatory. Making an estimated budget in advance gives a detailed insight into the app development process. It also helps to add or remove certain features during the app development process.

Ashish Parmar
Ashish Parmar

Ashish Parmar is the CEO of Prismetric and is an enthusiastic entrepreneur, interested to discuss new app ideas, rich gadget tricks, and trends, and admires signature tech business styles to readily embrace. He enjoys learning modern app crafting methods, exploring smart technologies and passionate about writing his thoughts too. Inventions related to mobile and software technology inspire Ashish and he likes to inspire the like-minded community through the finesse of his work. 

Read Similar Blogs

Top 8 Reasons to Outsource React Native Development Services

Top 8 Reasons to Outsource React Native Development Services

48% of developers use React Native to build mobile applications, as it is one of the most powerful frameworks available today for building cross-platform mobile ... Read more

Are Open-Source, Subscription-based Apps the Future of Social Media?

Are Open-Source, Subscription-based Apps the Future of Social Media?

Social media sites have been around since the early 2000s at least, and over the past two decades, they have undoubtedly grown to dominate significant aspects o ... Read more

The Ultimate Guide to Hire Flutter Developers (Affordable Locations, Technical & Soft Skills )

The Ultimate Guide to Hire Flutter Developers (Affordable Locations, Technical & Soft Skills )

While it's true that quality often has a premium attached, this isn't always the case when hiring Flutter developers. Budget-friendly destinations ... Read more