There are apps for everything. Be it ordering pizza through a delivery app or booking gym classes using a gym booking software, a few taps on the smartphones can get things done. With businesses lining up to set foot into the vastly expanding on-demand app market, the need to achieve success gets lost somewhere down the way. From the passion of launching a successful brand to having an app just because of the competitors, the market is crammed with entrepreneurs from all walks of life.
With the competition growing intense in this chock-a-block sector, how can a startup achieve success? The online medium does provide a level playing field, unlike traditional businesses. However, when looking at the visibility factor, startups struggle to reach out to the right audience at the right time. In this blog, let’s take an in-depth view of how an emerging startup can raise in ranks with its multi-service business.
Why are businesses opting for the On-demand app market?
Multiple reasons make entrepreneurs prefer the online market. They include,
- Convenience: The factor that can make revolutions happen – comfort. People are more convenient to access services with a smartphone in hand. The modern era, rightly called the digital age, has made customer convenience reach a whole new level.
- Accessibility: In this fast-paced world, services that are within customers’ reach survives. Making a business accessible can open the floodgates for unlimited revenue.
- Cost-effective: Customers have the choice of choosing services within their budget. This cost-effectiveness has made people rely on on-demand services.
- Online transactions: Customers needn’t transact via cash every time for services. They can pay via numerous options, making the process hassle-free and time-conserving.
How is the On-demand app economy faring?
Monumental is one word that can define the growth of the on-demand app market. From generating a revenue of $14 billion in 2014, this number will rise to a massive $335 billion in 2025 (according to the PwC Report). With the world anticipating digital trends in the upcoming years, the on-demand app economy is set to strengthen further.
Investors are always on the lookout for sectors that are flourishing both in terms of revenue and popularity. The on-demand industry that gained $74 billion in 2014 grew massively in numbers to attract $10,293 billion in the last quarter of 2017.
With the market rising from the entrepreneurial and investment perspective, businesses have to either launch an on-demand service app or risk losing potential customers.
How can a startup become successful?
Let’s break down the journey to success here. Initially, an entrepreneur needs to have an idea, possibly a ground-breaking one. The next step involves transforming the idea into a business strategy, especially a feasible one. Subsequently, the entrepreneur needs supervision and assistance to develop a platform to incorporate the approach. The final and most crucial step involves reaching out to customers. The process continues with entrepreneurs modifying the idea as per the customer needs and preferences.
Any hindrance or hurdles that can hamper this cycle can have complications, leading to either failure or reduced responsiveness among the audience. Providing the utmost care to the steps involved can yield fruitful results.
What are the services worth considering for investment?
With apps for almost every sector, an entrepreneur needs to identify those services that promise a sound ROI. Some of the top-performing services include,
- Taxi services: The online medium would have remained a distant dream if it weren’t for Uber. With people requiring cabs for their everyday commute, taxi services are the most-preferred on-demand app segment.
- Delivery services: There’s no other service that matches the comfort of doorstep delivery services. People’s increasing need for doorstep delivery has led to the rise of food, grocery, medicine, alcohol, flower, and many more industries.
- Digital payment services: Paying bills online and spending on e-commerce shopping has become a trend nowadays, especially among millennials. This trend has made digital payment services an irreplaceable sector among entrepreneurs.
- Home services: Almost every household needs a variety of service providers nowadays, whether painting or plumbing. Aggregating multiple service providers under one roof makes it simple for customers who wish to access their services.
Why do On-demand platforms fail?
Analyzing the pitfalls can make an entrepreneur wary and make informed decisions. The narrow success rate of the industry is attributed to various factors. They include,
- Failing to engage users: User engagement is a skill. From minuscule push notifications to personalized messages, the app must engage customers, letting them know that they can reach out to the services with just a few taps. Unfortunately, most apps fail in engaging and retaining customers, digging their own grave in due course.
- The supply-demand balance: Not many apps can strike the chord between demand and supply. When one exceeds the other, businesses cannot cope up, paving the way for their failure.
- Introducing unpopular services: Introducing those services that aren’t popular in a locality can lead to loss of potential investments. The golden rule in business – the right audience, the right place, the right time. When businesses cannot abide by this rule, sustainability is impossible.
How can a multi-services app help startups thrive?
Culminating multiple services in an on-demand app can prove both beneficial and profitable to the entire community. Apps like Gojek, Grab, WeChat, etc., have gained massive success in exploring this sector. Some of the benefits include,
- Widened customer base: The platform needn’t restrict its services to a particular set of audiences alone. With multiple services, the app can enjoy an enlarged customer base, enhancing its sustainability.
- One-stop-shop: An average user has 35 apps installed in smartphones, leading to the deterioration of phone speed and storage. With a multi-service app, customers can access multiple services through a single app, increasing user engagement rates, and reliability.
- Multiple revenue streams: A multi-service app can gain consistent revenue in various ways. This way, entrepreneurs needn’t worry about their ROIs.
- Higher chances of success: Even if one service fails to meet customer expectations, other services can still attract customers. A highly reliable Gojek clone app, accommodating more than 50 services, has higher chances of success than many other service-specific platforms.
Startups need to create a potential impact on the audience right from day 1. Having an on-demand multi-service app like Gojek can help the startup take on competitors more easily, paving the way for its success. In this digital era, on-demand apps are inevitable. However, an app has to be unique in multiple perspectives to make a mark for itself. The time is ripe for entrepreneurs to invest in this lucrative business opportunity.