On Demand Economy | Statistics that Define the Future of On Demand Startups

On-demand-economy-stats

The On-Demand Economy has swiftly taken over the traditional business models by serving people with what they want and where they want. Statistics show that this new trend called as on-demand or access economy has changed the way businesses serve people and has thus become the most talked about business term of this decade. The on-demand economy took shape in the US with companies like Uber and Airbnb. But what seems even more amazing than this, is the fact that 42% of total adult US population have used the services of at least one on-demand startup. This was revealed by a publication on The Street which highlighted a survey report about on-demand economy which was jointly compiled by Burson-Marsteller, the Aspen Institute and Time.

As mentioned in the on-demand economy stats, 42% of total US population is a huge number. It amounts to 86.5 Million Americans. These numbers clearly show the impact being created by these on demand startups in the USA and the promising future of on-demand economy. But wait! Does a huge number like that really mean that this access economy is really huge and does it define the future of on-demand economy? There would be different viewpoints for this question. In order to figure out some clarity, we at Juggernaut studied various survey reports and came out with the following facts and statistics about the on-demand economy.

On Demand Economy Facts & Stats (USA)

According to Burson-Marsteller’s on demand economy survey: 

  • 86.5 Million Americans (42% of adult population) have used an on-demand service.
  • 45 Million Americans (22% of adult population) have offered services in on-demand service.
  • 51% of those who offered services in on-demand economy admitted that their financial situation has improved in past year.
  • 64% of those who offered on-demand services hope that their financial situation will improve in coming year.
  • 51% of people offering services for startups in the on-demand economy are under 35 years of age.
  • 41% of people who have used or provided an on-demand service live in urban areas.

According to Intuit’s on demand economy survey:

  • 70% of on-demand workers are satisfied with their work.
  • 81% of workers in on-demand economy plan to continue working with the same provider over the next year.
  • 63% of on-demand workers say that they are happier to be working in the on-demand economy.
  • 63% workers say that they are working with on-demand startups to earn supplemental income.
  • 46% people working in this economy say they are working because of their flexible schedule.
  • 33% people work for more than one platform.
  • Only 11% workers said that they work in on-demand economy as they could not find any other job.

For more, Check out this infographic published by TIME : https://time.com/4169532/sharing-economy-poll/

Funding Trends in the On-Demand Economy

The massive funding received by Uber ($8.6 Billion till Feb 2016) and Airbnb ($2.4 Billion till Feb 2016) has created ripples in the on demand funding space. The venture capitalists who missed out the opportunity of investing in these giants are now looking for startups having the caliber to cause the next big disruption. However, if you give a closer look to CB Insight’s “On Demand Funding data”, you’ll see that the trend has come down after a boom in the first quarter of 2015. Refer to the below image:

ondemandq32015

According to a post on CB Insight’s titled – Unless You’re Uber Or AirBnB, The Mobile On-Demand Funding Boom Has Cooled, VC funding in the on-demand space dropped in the third and fourth quarter of 2015. While this does not define the upcoming funding trend for 2016, but it surely is a matter of concern for some entrepreneurs looking forward to raise huge rounds. 

Another aspect to the funding culture in on-demand economy is that earlier there were just 20 venture capitalists investing in on-demand startups but this number has risen to over 200. These stats clearly make us believe that more VC firms are showing an interest to invest in on-demand startups.

With more venture capitalists interested in the on-demand space than ever before, we can positively predict the future of on-demand economy not just in the USA but across many nations where such startups are evolving. It is often said that the big companies of the future in on-demand space are the ones who exist today. But I believe that innovation can never be time specific.

The Future of On-Demand Economy

If you are an entrepreneur looking forward to enter the on demand economy with your own startup then this question would be a million dollar question for you. Although, it is hard to predict the future but let’s try to answer this question with facts and figures.

Taking into consideration the recent investments from venture capital firms and the above mentioned stats about the on demand economy, it can be positively predicted that this new economy is here to stay. On the contrary, many thought leaders believe that we are in the on-demand bubble. Startups are simply copying the Uber model and implementing it in different industry segments. This is the reality of the term “Uber for X”. If things continue the same way, a day will come when this bubble might burst. 

Whatever may be the outcome, we have understood that consumer trend is changing and it is time to make changes in business model in order to rise above the competition. Today, we can get almost everything on demand by tapping our smartphone and I don’t think there can be anything easier than this (as of now). Stats have proved that the on-demand economy has so far been good for consumers, service providers as well as technology platforms. 

Got a million dollar idea? Want a technology partner to develop an on-demand platform? Get in touch with us now!

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Not Just Uber for X : On Demand Business Models of the world!

On Demand Business Models

Uber has been a revolutionary concept in many ways, literally defining what on demand business models are. The larger than life goal of providing a reliable and efficient alternative transportation system in every place in the world has impacted many lives. The impact of the model has led to disruptive ripple effects with new platforms emerging to streamline value chains across industry verticals. These platforms that position themselves as “Uber for X” have been constantly in news for the last few years viz. a viz. bullishness shown by investors, asset light growth focussed on better utilization of existing assets and apprehensions viewing the entire thing as a bubble.

Let’s dig deeper. Semil Shah defines On Demand Mobile Services (ODMS) as “apps which aggregate consumer demand on mobile devices, but fulfill that demand through offline services.” Often this ODMS definition has been generalized and characterized as “Uber for X”. While this does give some insights into on demand business models but there are many key variables that might be different when compared to Uber.

The point that I want to bring forth through the analysis is that ODMS as a business model bridging offline and online is a super set that finds application across business verticals. There are some key variables that are different depending on the vertical and geography. Based on those variables an AirBnB for Y or Postmates for Z, etc. characterization might be more applicable than Uber for X.

Important Variables for On Demand Business Models

  1. Degree of Commoditization

Number of variables associated with a service or a product in question that consumers care about. Lesser the variables more commoditized a product/service. For instance Uber as an ODMS platform is highly commoditized with consumers only deciding the type of car while for AirBnB the user cares about the date of booking, number of days, location of the listing, facilities available, rent, etc.

  1. Relationship of the supply side with the platform

A business model might involve aggregating existing small businesses or freelancers or contracting the supply. Former is easier to scale while in the latter’s case the platform is responsible for training and fixing the rules.

  1. Price Control

Singular pricing structure defined for the whole platform based on some variables or the one that changes with the choice of the service provider is a core consideration that goes on to define a business model. Generally the choice depends on the level of commoditization as discussed earlier. More the difference in quality of service/product based on the choice of the service provider, more difficult it becomes to impose a pricing control on the platform.

  1. Instant vs Scheduled

One of the driving trends making the value proposition for On Demand platforms is clearly the convenience they bring to the end consumers. But a common misconception goes on to equate this convenience with instant provision of goods/services. Depending on the nature of the product/service scheduled can be an equally convenient and viable option.

  1. Stakeholders

Most On Demand platforms have to deal with 2 stakeholders at the minimum. The involvement of more number of stakeholders outside the roles performed by the platform also goes on to impact the business model. For instance Uber and AirBnB deal with 2 key stakeholders while Postmates, Instacart, etc. which don’t own the infrastructure for goods to be delivered have a 3rd key stakeholder who provides the groceries or prepared meals.

Based on the variation possible on account of the above variables, let’s try to create more granular parallels for the broader On Demand landscape.

Uber for X 

The term was the finalist in this year’s Forbes Jargon Madness competition [https://www.forbes.com/sites/briansolomon/2015/04/06/jargon-madness-final-four-will-uber-for-x-win-it-all/] This goes on to show how popular and unavoidable the term has become in the startup circles.

But what is Uber for X? Value Flow in different On Demand Business Models

Circling back to our previous discussion, while it is clearly a subset of broader On Demand platforms attempting offline-online integration by closing the DISCOVERY – BOOK – TRANSACT – PAY – REVIEW loops involved in customer -supplier value chains, it is also characterized by –

  1. highly commoditized nature of the transaction involved
  2. direct involvement of end service providers (taxi drivers)
  3. airtight price control due to low variation in the quality of service from one driver to the other
  4. instantaneous nature of the service to the point that optimizing the ETA is one of the most important consideration involved in the mind of the end consumer.
  5. two stakeholders

The above characteristics make Uber for X based platforms a “Supplier Pick” model whereby the customer requests a service (not a service provider) and the service provider accepts the request. 

Related Reading for ‘Uber for X’ on demand business models – 7 factors that will make your Uber for X startup a success

AirBnB for Y

An equally popular jargon that is associated with unbundling of CraigsList into individual vertically aligned marketplaces. While the offline -online and closed loop characterizations apply, the platforms are distinctly different from Uber for X counterparts in that, they are based on a “Buyer Pick” model.

Related Reading – Airbnb business model – How Airbnb Works | Insights into Business & Revenue Model

  1. lot of variables that differentiate one service provider from another
  2. Most listings on Airbnb are now aggregated.
  3. Price varies
  4. Instant or scheduled, both are viable models
  5. Two stakeholders
  6. each service provider has its own individual existence.

While Uber for X and Airbnb for Y find a lot of applicability, number of stakeholders involved as discussed above lead to further variations. Here are some examples –

On Demand food requires 3 major steps to close the loop –

COOK – ORDER – DELIVER

Stakeholders being restaurants or kitchens; end customers and delivery people. While some platforms take care of both the 2nd and 3rd step by owning the virtual centralized kitchens – read Munchery, SpoonRocket (true Uber for Food Delivery) some others like Postmates, DoorDash, BiteSquad just take care of the delivery aspect relying on aggregating existing restaurants to cook the food. Instacart does something similar by relying on existing supermarkets to provide the grocery while they do the delivery bit.

Related Reading – Food On Demand : Business Models of Meal Delivery Startups

Flywheel for Z

Flywheel is an On Demand app for taxi companies. It helps taxi companies provide an Uber like experience by providing an On Demand interface.

Why this warrants a separate characterization is because these platforms directly aggregate the existing businesses instead of freelance service providers. Many such platforms aggregating cleaning companies, plumbing companies, car wash, salons, etc. are taking roots.

  1. Commoditization of the service
  2. Businesses are aggregated and contracted, and they have their own service providers
  3. Prices can be variable for each business or fixed by the platform
  4. Instantaneous nature of service
  5. Three stakeholders

While the model can be supplier pick or buyer pick based on the vertical, the above distinction is enough to visualize this as a distinct business model, making it one of the unique on demand business models. 

Postmates for W

“Postmates is an On Demand Delivery platform that delivers virtually anything – food, groceries, office supplies, etc.”

  1. Very low commoditization as each business has a different offering
  2. Businesses and Service providers are either aggregated or contracted.
  3. Variable price, set by each business
  4. Instantaneous nature of service
  5. Three Stakeholder   

Munchery for V

A recent and successful addition to on demand business models is the Munchery business model. “Munchery Chefs make delicious meals that they then deliver directly to customers from their kitchens in San Francisco, New York, Los Angeles and Seattle.”

  1. Highly commoditized nature of transaction involved.
  2. Direct involvement of service providers
  3. Fixed prices due to highly commoditized nature of service
  4. Instantaneous nature of service
  5. Two stakeholders.

Related Reading – Munchery Business Model – How Munchery Works: Comprehensive Business and Revenue Model

We recently launched an On Demand Phlebotomists platforms, Iggbo. Iggbo is a 4 sided marketplace that involves doctors (prescribing the tests), end customers searching for the laboratories to do the tests, phlebotomists responsible for getting the customer’s blood drawn and laboratories doing the test. Again, while Iggbo’s categorization as Uber for Phlebotomists won’t be too far fetched but I have created a different category nevertheless to bring home the importance of the stakeholders in impacting the various decisions that go on to define the business model.

This analysis is not intended to promote the use of Postmates for Z or Flywheel for W parallels. It was intended to have a deeper look at the variables involved in deciding the contours of On Demand business models. I believe whether it is an existing business looking to leverage the On Demand trends or a completely new platform trying to provide a full cycle treatment to the existing value chains, On Demand is the future. The only thing that is left to be decided are the various winners in different verticals and geographies trying to attempt the various on demand business models.

If you are interested in knowing how to build the next big thing in the on demand economy, get in touch with us today!

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79 Comments »

79 Responses to “Want to develop an app like Uber? Know the cost and other details“

  1. Shaw says:

    Need a übe type app

  2. Ajay Deep says:

    Hi Shaw. Thank you for your interest. Our sales team has sent you an email. You may take it forward from there. Cheers!

  3. I wan’t uber like platform but for another kind of business. real estate?

  4. Pac says:

    Hi, I need app like uber but with little changes

  5. shane says:

    Uber like app for delivery service

    • Ajay Deep says:

      Hey Shane,
      Uber like app for delivery service seems to be a great idea. Someone from our sales team will be in touch with you through email. You may take discussions forward from there.
      Cheers!

  6. Antoine says:

    Hi Ajay – What assurances one has that the app developper would not simply take an inovative idea and create its own app? An NDA, despite its loopholes, is a legal instrument that prevents the “Disclosure” not the copying or the taking over of an idea. Your open mindness on this delicate matter is appreciated.

    Cheers,
    Antoine

    • Ajay Deep says:

      Hi Antoine,

      We value intellectual property very highly. As and how it may be required, we are open to discussing transparent and clear clause/s that would prevent us from developing similar application for a time period. The developers working at our organization are hired after a verification process and are legally bound not to indulge in any such activity. Further, we have sent you a copy of our NDA. You may go through that and reply to the email. Rest assured, Juggernaut will be your best choice to develop an app like Uber in any industry segment. Let’s take it forward.
      Cheers!

      • Ahmed says:

        Hi Ajay, I came across your articles…I really like what you write about on demand tech..very helpful and inspiring…about this point specifically I’m so interested to know more.can you send me a copy of your NDA.
        We might discuss something even more interesting starting from this point

        My regards,
        Ahmed

        • Ajay Deep says:

          Hi Ahmed. Glad that you liked our content. We focus on providing value to our readers. Our team has sent you an email. Just reply back to take the communication further.

  7. tony hakim says:

    you guys are world class

  8. Milind Shah says:

    Hi Ajay,
    I need an app same as Uber. what will be the cost? and can you show me if you have any such app on itunes?, so that i can download and try.
    Milind

    • Ajay Deep says:

      Hi Milind,
      Being a leader in on-demand space, we have developed a number of apps in various business verticals for both android and iOS platform. Our sales team will get in touch with you through email and provide you with all the required info.
      Cheers!

  9. Wafir says:

    Do you guys do projects for the Middle East?

    • Ajay Deep says:

      Hey Wafir, of course we do!
      In fact, the Middle East region is booming with startups in the on-demand sector. We’d love to work on your project. Just sent you an email to initiate the conversation. Let’s take it forward through that.
      Cheers!

  10. nitesh says:

    hi need a app like uber let me know

  11. Subomi says:

    Hi,

    Need an app like Filld On Demand Gas Delivery.

    But with no payement option for now since that needs a lot of security and will be expensive. I’m bringing Filld’s business model to Africa.

  12. Parul Singh says:

    Are you guys involved in developing all kinds of apps or its just limited to the apps like uber?

  13. Jesse says:

    Hello, I would like to get more information on developing an app similar to Uber but for providing a standard service. It is a very saturated industry and simplifying access to such service I think can very well find its way in the mobile App world. As like previous comments left I too am concerned and question if my idea can be taken or copied.
    Thanks for your time and eager to hear your response.

  14. Can you send me a copy of your NDA? I am most concerned with this and how it works and what is the time line of the NDA?

    My idea revolves pretty much around UBER and but is not related to rides.

  15. william says:

    Hi AJAY or juggernaut , am interested in developing an app which is as complex as uber or a little more complex but nothing like uber. would like to get in touch with you via email. so reach out to me lets discuss. thanks.

  16. Peter says:

    Hey Juggernaut, I’m interested in developing a service within the On-Demand economy, with some added variables that could prove difficult to navigate, but can definitely be done with the right expertise. Really in the ideas stage at this point, but I can definitely see a road to success and I’d love to talk with you guys regarding my options and so on. Thanks.

  17. please give the ideology and working of the app,and how to develop an app like uber for autos and taxi which could be affordable for all class of people

  18. King Spesh says:

    Hello Ajay, I have an idea for a transportation app but have no finances nor the expertise to pull it off, I have made a thorough research on it and its big, please contact me via email to discuss it.

    Kind regards,

  19. Amaro says:

    Hi Ajay:

    Do you have a uber alike plataform already? I’ll be interested on getting such a service from you and your team

    Thanks

  20. Daniela says:

    Hi Ajay,
    I am looking to outsource (hire or partner) the development of a new business idea that can use this kind of structure. Would your team shoot me an e-mail so that I can assess whether Juggernaut may fit into the picture? Thanks!

  21. Jon says:

    Hi Ajay,

    Looking for a Uber like app in RSA, also have concerns about NDA, costs and durations.
    Please could you send me a copy of your NDA and any other info that may assist me in my choice of Developer.

    Please also send me through a direct contact so that i may contact by telephone if possible.

    Thanks Jon

  22. sudheer says:

    Hi, i want to start a business on GPS based. It likes UBER r OLA but not in transportation mostely deals with FMCG. Can u please email me the details.

  23. Thanks for this….i also like to develop Uber type of apps. Please inform me what is the exact cost to develop in India.

  24. i need an app developer just like uber..
    can u help?

  25. Daho says:

    I would like to have an estimat for uber like platform thanks

  26. Carlos says:

    Hi im interested in an app with similar UBER features

  27. Jordon says:

    I need to be able to have clients send their location to a computer at our office so we can send a car to them,

  28. Sunny says:

    Would like to make an app please contact me

  29. Joniel says:

    Hi Ajay, I have an app in my mind same as Uber and I would like to discuss it further. Hope to hear from you soon.

  30. Tim says:

    What are your rates and can you refer me to a source to develop a solid NDA and IP lawyer before we get the ball rolling?

  31. MJ says:

    I’m interested in an uber like app. Can you help? Thanks!

  32. hasan says:

    I need a app like uber county base

  33. Ami Khan says:

    Hi Ajay,

    I have a business idea/proposal and need to work out how much it will cost to develop an app like uber (but also maybe have some sort of video link too). I plan to pitch to investors by Q316 so am working on the Financial model now.
    What credentials do you have in this field and could you also let me know what guarantees you can provide in terms of ensuring that any plans I share with you are confidential? Thanks in advance!

  34. Chris Dre says:

    Interested in UBER-like app with some changes. Please contact me with NDA. Thank you.

  35. Mark says:

    Thank you. Very informative and well-structured article. I think it would be helpful for everyone. Maybe you should try to add it to the Wiki page about Uber: http://getsmall.link/6eb1a0e8

  36. Rigoberto paz says:

    We are in los angeles trying to start ul a bussiness like uber can you guys helps out.

  37. Barkaat Ahmad says:

    Hi

    We like to get an estimate on an Uber like app. Would you be able to email me a ball park estimate on development cost, timeframe and on after sales service/enhancements.

    • Ajay Deep says:

      Hi Barkaat,
      Thanks for reaching out. Our sales team will be in touch with you through email and you may take the discussions forward from there.
      Cheers!

  38. mugambe ramathan says:

    hi,am in east africa, am planing on setting up abusiness more like uber hope we can discuss more

  39. Stephanie says:

    Hi Im interested in developing an app like uber for another service but same concept as uber can you please provide me with costs thank you

  40. Amr Gadalla says:

    Hi Team,
    I want to ask about the details of a program like Uber, but of course on a much lower scale (10-20 cars), including the cost and the maintenance fee , and if there is any fixed sets to be fixed in the cars.

  41. Akshay Kumar Dixit says:

    Hi I also want to know about the cost of making such an app

  42. Aditya says:

    Hi Ajay
    I am thinking to make website like uber but it will be little different then uber. It will be like pre reservation in app and customer can track their car. It will be limousine service but all pre refer action through app. Nothing else.

  43. Mohamed says:

    We are in NJ. And we like to start company like Uber or lyft can u guys helping out by telling what the cost for the app and start the company

  44. David says:

    Please call me to discuss my concept for development.
    David
    9173646218

  45. Sayo says:

    Hi
    I will like to get an estimate on an Uber like app. Please email me a ball park estimate on development cost, timeframe and on after sales service/enhancements.

  46. Hello,
    I am looking to develop an app similar to Uber but will carter a totally different service.
    I like what I read on this page and will love to touch base with somebody in your company.

  47. Pathrose says:

    We would like to get an estimate on an Uber like app. Would you be able to email me an estimate on development cost, timeframe and on after sales service/enhancements.

    Reply

  48. Jignesh patel says:

    Hi
    We like to get an estimate on an Uber/ola/porter like app. Would you be able to email me a ball park estimate on development cost, timeframe and on after sales service/enhancements.

  49. Jignesh patel says:

    i need to detail about this uber/ola/porter application
    who make this type of application?
    its application total estimste and how to operate?

  50. Nuria says:

    Hi I need help trying to making a app like the uber app but we have our taxi company already it will be more easy if we have an app can you help please

Leave a Reply

Want to develop an app like Uber? Know the cost and other details

How much does it cost to make an app like uber

How much doest it cost to make an app like uber

How much does it cost to develop an app like Uber? We come across this question almost always when we think about app development for building apps like uber. The answer always is – It depends!
Uber’s business model has given rise to a large number of On-Demand Platforms being adapted for different verticals. The demand for taxi apps like uber and uber clone app has grown eminently in the recent times. Many entrenched industry value chains stand to be disrupted. The online-offline nature and involvement of multiple stakeholders make these platforms difficult to design, master and scale for uber like app development for your business.

 

Related Reading – The Uber Business Model 

 

Entrepreneurs and enterprises looking to build uber like apps for different verticals often find this analogy easiest to articulate and hence the genesis of the question. There are several variables associated with getting to a correct estimate to make an app like uber. Let’s have a quick look at these variables to understand what goes into designing an Uber for X platform. I am confident this will also lead to a better appreciation of why we as Juggernaut took a modular approach and designed an MBaaS (Mobile Backend as a Service) architecture to create a winning value proposition for entrepreneurs/enterprises looking at making an uber like app / uber clone for their business.

 

Generally the cost for the initial MVP for an app like uber is upwards of $100k-$300k, however while taking the Juggernaut approach it can be as low as $40k – $80k. Read more to learn how :

 

A) Is your business model exactly like Uber? If not, how does it differ from Uber?
Uber for X can be best described as a platform looking to deliver a product or provide a service On-demand with demand being aggregated online and serviced offline. But there are so many variations that can come up when we start analyzing different implementations in this field.

When we talk about an app like Uber:

  1. We can assume – supply is loosely bound to the platform and we are merely aggregating the supply.
  2. Demand is not scheduling the product/service for a time in the future and everything is instantaneous.
  3. Demand is not choosing the service provider and he is being allocated the one based on his choice and other variables.
  4. Service/product that we are talking about has a standardized flow and doesn’t involve customer making a selection across lot of different variables.

Clearly, for most of the entrepreneurs their business model will have many stark differences from Uber’s business model cited above. These considerations have a direct impact on how you deal with decisions related to identity, scheduling, matching, payment, etc. while designing the product and thus the cost associated with defining the MVP.

Related Reading  On-demand startup in mind? Success depends on these planning factors – Venture Beat

If you are in the process of defining the contours of your business model and making these design choices and are looking for a more exhaustive take on the topic – download this free eBook that talks about how to finalize the business model for your On Demand Startup – Ebook: Understanding the On Demand Business Model

B) What is the business vertical you are trying to target?
Is it a taxi app like uber business or an On-Demand platform designed for some other vertical? When you are trying to find a solution to help your existing taxi/limo business with an Uber like application development experience, there are many companies providing white label solutions. When you start going broader to say, ground transportation (shuttle/event/hailing solutions directed at children/senior citizens/corporates etc.) or beauty or home services or delivery and so on, things start becoming more complicated and it is difficult to find a script based approach that works.

We have been grappling with this problem for the last 24 months and have come up with a top down approach as a solution. The basis is that there are certain modules – matching, scheduling, tracking, payments, reviews, notifications, aggregation and signup that form the backbone of any such platform. So we have created backend code blocks or an MBaaS based architecture structured to take care of most of the use cases that can be thrown by an On Demand Business Model. For more information on functional choices that go in defining each of those modules – download this eBook that talks about the Building Blocks for On-Demand Technology.

The underlying premise is that the front end needs to be custom developed. Leveraging the proven backend architecture ensures that we are not reinventing the wheel when it comes to deeper customizations/corner cases.

 

Uber like app development

Uber like app development

C) Evolution of On-Demand Platforms
When we talk about an app similar to Uber, it is helpful to keep the general evolutionary framework associated with all startups in mind. It is a fact that all business apps like or unlike Uber have to go through the 4 stages mentioned below. But the fact that most On Demand platforms are associated with network effects/playbook evolution/solving the initial chicken and egg hurdles, etc. the case for a clear understanding of these stages is much more important. Question then becomes are we looking to validate the business model that is doing less than 1000 transactions a day or are we talking about a system that has already scaled to multiple geographies built on top of a highly optimized logistics framework.

How to make an app like uber

How to make an app like uber

Focus areas during different stages of platform evolution are different. The first hurdle is getting a functioning product to the market that aces the core interaction. Once the MVP is launched its often a race towards achieving that product-market fit which in itself might span multiple sprints. Once the product market fit is in sight, the next hurdle is getting the unit economics (Customer Acquisition Costs/Lifetime Values) right while constantly improving cohort data. This phase generally involves lot of focus on building the analytics capabilities.

Total cost of developing an on-demand app like Uber:

By now it should be clear that the cost of making an app like Uber depends on numerous factors. But here’s an attempt at the estimate. Building an MVP for an On Demand Platform involves creating web/mobile interfaces for both supply and demand. Add to this the fact that native experiences are the expected norm leading to parallel development efforts if we chose to build both for iOS and Android. The other important component is the nerve center/admin panel that doubles up as a CRM and a Dashboard to control some of the critical operations. Everything is glued together by the APIs that operate on top of central databases and control logic – part of the backend framework that runs on cloud.

 

Assuming the platform architecture is scalable and is able to handle 500-1000 transactions a day right away we are looking at an upwards of $100k-$300k effort for an initial MVP. Variations in the ball park primarily are on 3 accounts –
1. Number of stakeholders
2. Number of platforms that are part of the initial launch
3. Complexities in the business model
4. Geography/ Region out of which your development team operates or engineers the product. Per hour rates vary from $20 -$60 (parts of India/Eastern Europe/South East Asia) to $80 -$150 (parts of Western Europe/US)

 

With a modular approach that takes advantage of pre-built IP, we at Juggernaut are able to reduce the time and cost involved by around 30%. In addition, since Juggernaut’s engineering teams are based out of India we bring a huge cost arbitrage to the table while still ensuring smoothness in communication generally associated with in-house teams. The engagement processes have evolved over more than 5 years of distributed product development. All in all the costs for an MVP while taking the Juggernaut approach can be as low as USD 40k to USD 80k. But more than the cost advantage the bigger value proposition that we bring to the table is experience drawn from doing more than 50+ On-Demand Platform in different geographies and domains. This makes the approach consultative wherein at every step, we draw from the playbook of many successful implementations that we have been associated with directly and indirectly.

 

Want to get an accurate cost for your own idea? Get in touch with us now!

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