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Top 15 Industries that Drive the On-Demand Services

16 Feb 21  

Reading Time: 12 minutes

Fazmeena Faisal


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The on-demand services sector has witnessed rapid growth in the recent past.

From transportation, food and grocery delivery to booking your doctor’s appointment, the on-demand economy is gaining pace, pushing the conventional models behind. 

According to the PwC research, it is estimated that the on-demand economy will soar to reach a whopping $335 billion by 2025. 

The wave which Uber and Airbnb started, has its ripples stirring the entire economy worldwide.

The uberization has begun, and now there is no going back. 

The mobile app development industry has also boomed along with the rise in the number of smartphones over the years.

Another fact which will support the above-said situation is that, according to Burson Marsteller, The Aspen Institute Time, 42% of the adult Americans have used at least one on-demand service.

The on-demand economy is beneficial to many at different levels of the food chain. 

Primarily it provides a wide range of opportunities for entrepreneurs.

Also, the consumers get their goods faster at a lesser price when compared to the traditional ways.

Again when looking at a macro level, the on-demand economy profitably facilitates better utilization of resources. 

Even though the on-demand economy is covering many sectors, the major players are very few.

The investors jumped in to ensure their share in the booming on-demand services in the first quarter of 2015. 

But by the third quarter of 2015, the venture capitalist investments came down for the on-demand services unless you are Uber or Airbnb.

And in 2020, we witnessed the biggest revolution in the on-demand industry.

According to CBInsights, among the 310 companies whose value is or above $1 billion, 23 belong to the on-demand industry.

What more to say, every year, 22.4 million new consumers are opting on-demand services to fulfill their needs by spending 57.6 billion dollars, according to Harvard.

What is On-Demand Service? 

The change in customer requirements created a need for a change in the mode of providing services. 

Earlier, the prevalent model used to be scheduled services, for example, public transports and cable television. 

But as the customer needs began changing and technology started advancing, on-demand app development came into being. 

How on-demand services are different from scheduled services is that it allows customers to fulfill their needs immediately, as and when they experience it.

The key is the immediacy of need fulfillment

On-demand services eliminate the gap between demand and supply.

A person experiencing a need for something can use on-demand services to immediately fulfill that need, regardless of location or time constraints. 

Let us look at a little example to clear any confusion.

Ten years ago, a person wanting to watch a movie would either have to wait until it releases in a theatre near them, buy a CD when it is out, or wait until it airs on television. 

Today, if a person wants to watch a movie, they can find it at their fingertips through OTT platforms such as Netflix, Amazon Prime, or Hotstar. 

This is the difference between scheduled services and on-demand services. 

On-demand services help you meet your needs immediately, anywhere, and anytime. 

Top 15 Booming Industries in On-Demand Services

On-demand delivery services are being hailed all over the world as time-savers. 

Let us look into the top 15 industries that are disrupting the entire traditional sector and changing people’s lives with on-demand services.

1. Online Marketplace Aka Ecommerce Industry

According to eMarketer, the global e-commerce industry is expected to reach 6.542 trillion dollars by 2023. 

The precision with which the e-commerce industry fulfils the on-demand delivery services has always attracted millennials. 

E commerce applications like Amazon, Flipkart, and Alibaba have given us a whole new experience of shopping. 

Notably, the Asia-Pacific region has the highest e-commerce growth in 2019 compared to the other areas.

Ecommerce app development has also witnessed an upsurge as a result of the rising revenues.

Looking again at statistics, we understand the hold of e-commerce in different countries.

Ecommerce soars with the increased use of smartphones. 

People are glued to the screens, and they will probably order something online rather than go to the store.

Who doesn’t like their groceries to be delivered at their doorstep hassle-free?

Since on-demand services started flourishing like nothing before, on-demand app development has also witnessed a sea-change.

2. Transportation

The On-demand transportation industry is a golden pool for investment when it comes to venture capitalists. 

By 2025, the on-demand transportation market size is expected to reach $304.97 billion.

Taxi booking apps like Uber, Lyft and Ola are writing a new chapter in the on-demand transportation sector. 

According to research, the market size of the on-demand transportation market size is anticipated to expand at CAGR of 19.8% from 2018 to 2025.

The graph explains a lot about the deeper divisions in the transportation market. 

Online taxi booking, car-sharing or pooling, car rentals and pre-scheduling your rides are some of the features an on-demand transportation provider has to offer its customers. 

3. Learning

What is a better way of learning than having access to knowledge that you need when you need it? 

The learning industry has changed tremendously in the past few years. 

A one-size-fits-all approach to learning has become redundant. 

On-demand learning services are the future of learning without any doubt. 

Employee training in corporates and educational institutions are incorporating eLearning apps to meet with the new trend. 

On-demand learning offers convenience to learners, improves engagement, and creates customization, helping learners gain the best out of learning and efficiently use their time and effort. 

In a corporate world, both employees and employers benefit from the e-learning approach.

Instead of spending time on training that may not be relevant to them, employees can choose what they want to learn and learn at their own pace. 

This improves their engagement and productivity and saves valuable time, which benefits the employers as much as it does the employees. 

In an educational environment, students can choose the course they want to learn, go in-depth into areas that interest them, and use the time they are most focused on learning rather than having to sit through scheduled classes.

This improves their quality of learning and makes it an interactive experience.

4. Food Delivery

On-demand food delivery is an industry which is undoubtedly scaling up in the map of on-demand services. 

Millennials adore online food delivery apps.

The on-demand food delivery sector is expected to touch 200 billion dollars by 2025. 

Such a massive spike for industry within its first ten years of inception. 

Food delivery apps like Uber Eats, Seamless, GrubHub, and Doordash are now a part of Millenials everyday lives. 

Eating out gave way into ordering in. 

According to Statista, revenue from the online food delivery industry’s amounted to $122739 million by 2020.  

Pizza Hut launched the very first food delivery service in 1994. 

Since then, the online food delivery business has taken an upward climb.

Food delivery app development companies made sure that they explore the opportunity at hand to soar their business. 

With the increasing ease that comes along with the on-demand food delivery apps, it is expected to rise even higher in the coming years.

Definitely, an industry to invest some of your hard-earned money.

5. Grocery Delivery

One of the on-demand services that have boomed since Covid-19 is the grocery delivery service. 

Having fresh groceries delivered at your doorstep within minutes of placing an order brought in a level of convenience like never before in the lives of people.

No need to wait in long queues at cash counters, not having to walk from one aisle to another searching for things you need- the pros of on-demand grocery delivery were many!

The demand for grocery delivery created a huge potential for grocery app development

We witnessed the growth of hyperlocal delivery models— an on-demand service model where local suppliers meet the demands of small localities. 

For grocery delivery, this model was the best approach as it brought transparency into dealings and gave customers an assurance of quality and trust.

Several big ecommerce players like Amazon, Flipkart also ventured into grocery delivery owing to the popularity of this industry. 

Studies show that even post-pandemic, online grocery delivery will remain in trend.

6. Healthcare

On-demand healthcare mobile apps are gaining popularity widely. 

When it is challenging to get that appointment with the doctor, on-demand mobile apps come to your help. 

In 2017, the global online health market generated a revenue of 73.1 billion USD as per reports.

Healthcare industry is vast, and it can be categorised into many.

Telemedicine, health, electronic health record(EHR), and healthcare analytics are some of the divisions.

The graph gives an idea of the boom in the on-demand healthcare industry, which began in 2018.

Venture capitalists are identifying the vast potential that lies in the on-demand healthcare industry and is now sending in their shares into healthcare app development.

7. Fuel Delivery

Fuel delivery is an on-demand service that is still growing and hasn’t marked its presence in most countries. 

Considering the importance of fuel in people’s everyday lives and the convenience that a fuel delivery app brings, there is no doubt on why it is a top on-demand service.

Imagine you are travelling to somewhere important and you run out of fuel in the middle of nowhere–wouldn’t it be great if you could get fuel delivered where you are stuck?

Fuel delivery apps can come to help in such situations. 

And not just in some emergency situations, in regular scenarios as well, it can make filling fuel in your vehicle super-easy.

Just schedule a fuel delivery service from an app, park your vehicle outside, and that’s it! The delivery people will take care of the rest.

Cafu in UAE, Filld in the USA are two popular fuel delivery apps in the world. 

The fuel delivery market is far from saturated, there is no global leader for this industry, and its value is evergreen. 

If you are looking for successful mobile ideas, this is a great choice! Now is the right time to venture into fuel delivery app development

8. Car Wash

We all like clean cars, but getting a car wash is an arduous task.

Whether you are performing a self-service or giving your car to a car wash center, it takes a lot of time to get it cleaned.

On average, most people wash their cars at least three times a month. 

Imagine how much time it will take then to keep your car clean! 

On-demand car wash services are convenient and easy.

You don’t have to stand in long queues to book a car wash, wait for your turn, or hang around till the car wash is over. 

With car wash app development, all you have to do is schedule a car wash from the app. 

And they will deliver the washing service at the location you choose. 

For the 24X7 busy people, it provides a great opportunity as they can schedule a car wash for time slots where they don’t need their cars, like when they have a meeting or are taking a travel break.

9. Logistics

Another industry that is undergoing tremendous change is the on-demand logistics industry. 

With the increased popularity of e-commerce platforms, the expectations on logistics also skyrocketed.

To meet the user’s expectations, the logistics industry has gone online.

Now you can book your truck or even drones to transport your consignments online anywhere anytime through logistics apps.

With the integration of technologies like AI, IoT, Blockchain and machine learning into logistics, the services they provide will meet a whole new level of perfection. 

According to a study by Forbes, 61% of the companies rely on external services to fulfil their logistics needs.

Efficiency is crucial to meet the expectations of customers with the advancement in technology.

Logistics app development is something that venture capitalists are keenly observing at present. 

10. Salon Services

In their busy lives, people find it difficult to set aside time for themselves. 

But that being said, people today know the importance of self-care.

Maintaining a good physical appearance is essential for everyone, but not everyone can spend a lot of time on it.

On-demand salon services come as a solution to this problem, where people can access beauty services at their own convenience.

It creates a balance, enabling people to indulge in beauty care, time efficiently. 

Salon app development has been rising in popularity over the years. 

It is beneficial not just for customers but also for salon owners as it cuts down labor costs, real-estate costs, etc.

GlamSquad, MyGlamm, GetLook, etc., are some of the popular on-demand salon services in the market today.

11. Home Services

The on-demand home services industry is booming with the ease that comes with it. 

The increased usage of smartphones for everything and the mob is like ‘there is an app for that’.

By looking into the statistics, we understand that by 2021, the growth of the market of on-demand home services will be at a  CAGR of 48.46%.

Mobile app ideas to fulfill various home service needs are flooding the internet.

According to a report, by 2024, the online global home services market is expected or has the potential to grow by 1574.86 billion USD.

There are divisions in the home care industry like repair and maintenance, home care and design, health, wellness and beauty and the others. 

With the increase in the number of people using smartphones, the number of people searching for on-demand services rose.

The upcoming world is going to witness a whole new perspective of online home services. 

The convenience and ease that comes with the on-demand home services are attracting many to it. 

12. Travel

Remember the times when travelling had to be scheduled to every tiny detail?

From the travel ticket to hotel reservations, food, entertainment activities– everything had to be planned well in advance for a smooth travel experience.

But with on-demand services in our lives, things have changed.

The on-demand economy is reshaping the travel experience for travelers. 

It is helping to make travels flexible and more spontaneous.

Whether it is booking a room last moment or last-minute reservations for events, on-demand travel services have your back.

With just one app on your smartphone, you can just pack your bag, grab a ticket, and go to a completely new place you know nothing about.

The app will guide you to the best tourist destinations, help you get a place to stay, and find you the best food! 

Travel apps have indeed become a blessing for travelers today! 

13. Fitness

Like beauty services, fitness is also something that people find difficult to incorporate into their busy schedules. 

Understanding this problem, several on-demand fitness services have come into existence.

People no longer have to rely on brick and mortar workout studios or gyms.

Fitness applications, in-fitness streaming platforms, etc., bring efficient workout content to people to their homes.

Rather than paying a huge fee and joining a gym where they have to follow a strict schedule, people prefer paying a small fee for fitness apps and working out at their convenience. 

The best part is you can choose highly qualified trainers from anywhere to tutor you and don’t have to limit yourself to local trainers.

Fitness apps are also becoming very popular among stay at home parents and new mothers who often cannot set aside time for workouts because of children.

14. Laundry

An average person spends 10 hours a month doing laundry.

For a generation that is running a race with work every day, every single free hour is precious.

They would rather spend their leisure time pursuing a hobby or socializing with friends than washing their clothes.

This is the reason for the emergence of laundry app development.

Studies show that laundry apps are more used by the working-class population, who find the option to get their clothes cleaned, ironed, and folded with a single touch very beneficial.

Washio and Cleanly are two companies that have recognized the potential of this industry and have utilized it to run successfully.

Customers just have to download the respective mobile app and schedule for the pickup of their dirty clothes.

The laundry service will take care of all the cleaning and deliver fresh clothes to their doorstep within a scheduled time.

On-demand laundry service makes washing convenient, fast, and cost-effective.

15. Video 

Wondering how video is in the on-demand services?

The video like every other industry mentioned above is one of the highly growing on-demand industries in the world.

Heard of Netflix, Hotstar, Hulu or Youtube?

Ever used one of those?

You’re already a customer who is using on-demand video streaming service with or without knowing it.

Online entertainment is growing like never before, as the best way to reach people today is through their smartphones.

There are subscription video-on-demand (SVOD) and video-on-demand(VOD) for free.

Netflix is an example of SVOD and Youtube a VOD which is now offering SVOD services as well.

According to Statista, the revenue of the video-on-demand industry amount to 34,777 million USD in 2020.

The revenue is expected to reach $40095 by 2024 as per the report.

User penetration is also expected to hit 27.6% by 2024. 

A whole new dimension for entertainment is evolving with the growth of technology. 

Final Words!

Now that we’ve seen the top industries that drive the on-demand services, we understand that we are all customers of one or the other on-demand service with or without knowledge. 

The world is changing.

So is every industry.

With the innovation of groundbreaking technologies like AI and IoT the perspective with which we’ve seen our world a while before might no longer be relevant. 

Evolution is the basics of every being, including humankind.

The same is valid for technology.

The pace with which the human king adapt to the changes in how we mark our presence in today’s world.

On-demand is a colossal industry that serves humanity and provides it with a new experience of speed.

Mindster develops cutting-edge on-demand mobile applications using highly sophisticated technologies available.

With the experience over the years and talent unmistakable, we will help you develop the app which holds power to transform your business forever. 

contact us