Delivery Apps
Food and grocery delivery apps have entirely transformed the food industry as we know it. From the comfort of their own home, users can place an order at their favorite restaurant and receive it directly at their front door. Prior to delivery apps, services like this were not accessible aside from pizza delivery or a local family-owned business that chose to offer delivery on their own. Now, home delivery has been mainstreamed in a big way.
Users will notice a wide variety of food options when they download apps like Grubhub, DoorDash, and Uber Eats. Some apps list menu prices at an inflated rate so that they're able to make an additional profit off individual items. Then, apps can add in service fees and delivery fees as well. Aside from paying their drivers, these businesses are able to float significant profit margins. Understandably, the delivery app industry is continuing to grow at a rapid pace to meet demands.
Travel Apps
The travel category is relatively broad on Apple and Android stores, making this a diverse yet wildly successful kind of on-demand app. Ridesharing is the most popular sub-category of this group, with Uber and Lyft ranking as the most successful of them all. Even so, there continue to be smaller rideshare apps popping up as the demand has only increased since their inception. We are now seeing categories like luxurious private driving apps emerge, the newest of which is Alto. Alto is an exclusive rideshare app that is only available in six major cities across the entire United States. This level of exclusivity may be a deterrent for some, plus it's less accessible in general. Still, it stands to show how unsaturated the market really is.
These apps have saved time and money as users avoid wear-and-tear on their own cars, avoid paying heightened gas prices, and don't have to worry about driving themselves. In addition, those that travel for business no longer have to concern themselves with renting a car or hailing a cab. Aside from ride-sharing, numerous other on-demand travel apps make life easier for consumers. For example, you can easily book flights, hotels, and rental cars all on your phone via apps like Southwest, Hertz, and Expedia. The convenience factor alone explains why on-demand travel apps have become such a hit.
Home Task Apps
Finding a handyperson to come directly to your door has never been easier with the introduction of on-demand home task apps like Task Rabbit and HouseHappy. Prior to the development of these apps, users would need to search through web pages and make individual phone calls to price check before hiring someone. Now, users can scroll through a single app to find the right fit for their task.
Plus, these apps perform background checks on their service providers, so you can rest assured that whoever is coming to your home is trustworthy. This is another challenge that users had to inevitably navigate before the existence of these on-demand apps. The development of home task apps has streamlined the various processes that used to be required of potential customers.
Health Apps
On-demand health apps have taken the healthcare industry by storm, ranging from prescription medication deliveries to quick chats with your doctor from home. Many major healthcare systems like Sutter and Kaiser have begun taking advantage of the app system to communicate easily with patients. Whereas traditionally, it could take days to weeks to see a primary care physician, patients can now message them directly through the app and get a response far quicker.
Additionally, prescriptions like birth control can be refilled via the app and delivered directly to your home. Once again, the pandemic became a driving force that ultimately has made patients' lives easier in the process. The lowered wait time for appointments has allowed those needing in-person care to access it when needed. It has decreased the strain on healthcare staff overall.
Another incredibly valuable app that has made big waves in this sub-category is Better Help. Users can connect with a licensed therapist and receive one-on-one counseling at home or wherever they may be in the world. With the mental health crises countrywide, this increased accessibility is not only lucrative for the company itself but wildly beneficial for the population. They have even taken advantage of influencer collaborations to further reach potential users, making them one of the most successful teletherapy apps on the market currently.
Pet Care Apps
This kind of on-demand app has transformed the pet care industry entirely. The freedom to keep a pet in the comfort of their own home while owners travel is just one of the luxuries that were not widely accessible before apps like Rover were created.
This app alone is an example of the immense success seen in this market. Rover was valued at a whopping 1.35 billion dollars as of 2021. This was especially game-changing during the pandemic when many people fell victim to mass layoffs.
Other popular services that can be acquired from pet care apps are one-on-one training, overnight care, dog walking, in-home vet care, virtual vet appointments, and even a pet-friendly hotel locator. If you have a pet need, there is almost guaranteed to be an app for it.
Not only does this category of on-demand app benefit pet owners and those seeking flexible employment, but it also floats a significant income for the businesses facilitating this care. Companies can take a portion of the profits acquired from dog walking, typically around 20 percent, while their task is simply enabling the arrangement.
These apps can decrease the stress pet owners experience and provide them with a wide range of tools to solve any potential issues quickly and easily.
Video Streaming Apps
The market for video streaming apps has continued to grow steadily over the last decade. Originating with companies like Netflix, streaming apps have taken over media consumption and now dominate the industry. Users can watch their favorite shows and movies from their phones, laptops, and screens at home. Experts expect that streaming will only continue to grow in the future.
Production companies have had to pivot drastically to accommodate this change. We are now seeing new releases emerge on streaming platforms shortly after they appear in theaters. Partial reasoning for this has been attributed to the pandemic as movie theaters closed for a period of time. As a result, movie-goers adjusted to the experience of watching new releases from the comfort of their couches. As theaters opened back up, numbers continued with a trend lower than they had been pre-pandemic. Now, production companies are offering theaters anywhere from a few days to a few weeks before they premiere the movie on streaming apps.
The apps are able to charge a premium, which can offset some of the financial loss from decreased movie theater traffic. In addition, users can remain at home, save money on items like popcorn and soda, and even pause and resume the movie at their discretion. Once again, the theme of convenience has been a driving force for video streaming apps' success.
E-learning Apps
The transition to online learning over the last two years has promoted the creation of e-learning apps to target individual demographics. Educators have taken advantage of apps like Google Classroom and Schoology, which assist in grading, curriculum, and overall organization. Students have begun widely using apps that help with daily work, remediation, homework, and tutoring.
Significant learning gaps have been seen by educators following the two years of covid-related instruction. These apps have the ability to fill in some of the gaps and catch students back up as they continue on in their education.
Quite a few of the companies that previously existed in person switched to apps to better serve the needs of those requiring their services. A few of the most popular e-learning apps right now are Khan Academy and Coursera, both of which assist students via direct instruction videos and readings.
Parents can set their children up for success by purchasing premium versions of the apps that exclude ads and assist in focusing on learning. As a result, companies can lock in subscriptions and generate ad revenue.
Fashion Apps
Online shopping generates around 3.5 trillion dollars per year in the United States. Shopping for clothing, shoes, and accessories within an app is a convenient way for users to peruse their favorite shops without having to drive to an in-store location.
Many online stores also offer easy returns through their apps, with shipping labels provided. This has made the process of shopping online easier than ever, which has ultimately increased spending across the board. The fashion industry is known for its innate ability to drive sales due to visually appealing models, marketing strategies, and intentional collaborations, all of which are neatly packaged within their apps.
A recent addition to the on-demand fashion market has been linking products within social media platforms that redirect users to their apps when they click on a link. This subtle but effective strategy has significantly increased revenue for brands like Revolve. Other large-scale apps that offer fashion products, like Amazon, continue to see success as well. In 2020 alone, Amazon fashion raked in more than 41 billion dollars in revenue. We can expect to see these numbers climb even higher as they continue to grow. The ease of purchasing and returning clothes without waiting in line or engaging with other people has contributed significantly to the explosion of these on-demand fashion apps.
