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Why 2016 is the Year of On-Demand Apps

One of the most common phrases in mobile is “there’s an app for that”. Now, it should be “there’s an Uber for that”.

 

This year, we’ve seen the “uberisation” of mobile apps – the increase of on-demand mobile apps in the market. There are lots of on-demand apps that offer different services, such as food deliveries,  postal services and many more.  These apps are part of a market that is known as the On-Demand Economy, also called the Sharing Economy.

the-uber-of

The Uber of different categories

 

The On-Demand Economy

on-demand-economyA diagram of the On-Demand Economy

 

The On-Demand Economy refers to activity that is focused on providing goods and services to consumers efficiently and immediately. A majority of the key players consist of technological entrepreneurs and startups. The leader market is Uber. Valued at $85 Billion, Uber is dominating the transportation market with the highest funding.

There has been a high interest in on-demand apps with investors resulting in a lot of money being invested in on-demand apps. Since 2010, $9.4 billion has been invested in the on-demand industry and we’ve seen a major jump in funding for on-demand service apps.

The tech-savvy and constantly connected millennial generation (18-34 year olds), make up most demand in the sharing economy. As a result, an increase of apps catered towards this group  can be expected in the future.

on-demand-australia-1The On-Demand Economy is revolutionary

 

The Future of the On-Demand Economy

The on-demand app economy is expected to grow thanks to the positive outlook in the Australian app economy.

App entrepreneurs will look for new opportunities, while current on-demand apps will expand. As a result, others will compete with the big on-demand app players.

There will also be expected growth in various industries in the future due to the on-demand economy, such as groceries, transportation, home services and food delivery.

 

Why are On-Demand Apps so popular?

The on-demand economy is booming because of our consumption behaviour. On-demand apps are easily accessible, very convenient and easy to use.

These on-demand apps help make life easier for us by fulfilling our daily needs. With the touch of a button all our chores are done, at a low cost.

On-demand apps are also popular with app entrepreneurs and startups. This is because it enables them to bring their idea to life faster and more cheaply.

On-demand services like Dispatch help startups list and source their services to customers. It gives app entrepreneurs and startups the opportunity to capitalise on markets that have been untapped. These include B2B On-Demand Services, drone deliveries and B2B shipping.

 

What are the most popular categories of On-Demand apps?

 

  • Food Delivery

This popular service trend began with a company called Suppertime, now called Foodora, which delivered food to late working business people and entrepreneurs.

Food delivery is now one the largest and most popular areas, with lots of service operators, such as Deliveroo, UberEats, Menulog and Foodora. In fact, restaurants offer a whole diverse range of cuisines so consumers can purchase food from any nationality.

With Australia’s multi-billion dollar takeaway industry, this sector will continue to grow as more restaurants take on these services.

 

  • Outsourcing

Outsourcing services have become very popular in the United States. Being influenced by the success in America, these on-demand services are currently trending in Australia with major platforms such as Airtasker and Sidekicker. These services help consumers with daily tasks such as general cleaning and home improvements.

In addition, there are now on-demand clothes washing startups, such as Dryz and LaundryRun, launching in Australia. This area could potentially grow further in the future.

 

  • Transportation

Ride-sharing was the pioneering sector, which started the on-demand app trend. Uber was the first app to disrupt the transportation service and on-demand platform. Ridesharing services are growing and used more often by commuters.

The most popular apps in this category include Uber, GoCatch and Shofer. This is very popular because it’s cheaper compared to taking taxis. Consumers have a range of different services and tiers, which range from budget to luxurious rides.

 

Tips on entering the On-Demand app industry

 

  • Convenience is key

Your app should give consumers and users a simple purchasing experience. Here, you should implement features and technology that makes the app easier to use, e.g. live tracking, easy payment options, have a service progress screen etc.

To complement the intuitiveness, your app should have a UI and UX design that is visually appealing and intuitive. Users should be able to navigate the app easily and identify which buttons are interactive.

 

  • Create an app that solves a need

With the various on-demand apps out in the market, you’ll need to identify how your app will stand out among others. Here, find out if your app idea solves a need that hasn’t been met.

For instance, in 2015 the on-demand dog helping service, Wag!, was launched to help busy people take care of their dog. If there are other apps that solve an existing problem, think about how you can do it better than competitors?

 

  • Identify your industry

During the planning stage of your on-demand app idea, you should try to find an industry or market where you can get a competitive advantage. Focusing on one market when first starting out allows you to stay focused on a specific target audience and avoid competing with others and market leaders. This is how current ride-sharing platforms became successful. You can do this by either targeting a niche market or trying to disrupt an existing market.

For instance, Drive Yello disrupted the food delivery market by enabling restaurants to post delivery jobs; essentially being a job board for drivers.

 

Key takeaways

The on-demand economy has been booming this year and will be expected to grow in the coming years. These platforms have changed our lives, making daily chores like preparing dinner and postal delivery more conveniently.

With the most common apps being food delivery, outsourcing tasks and transportation, there is the potential for other markets to be disrupted. If you are looking towards creating your own on-demand app, remember to make sure that it solves a problem of a defined market with a design and features that are easy to use.

 

What are your thoughts on the on-demand economy? Let us know in the comments below or on our Facebook page.

 

Contact us if you have an app idea and we’ll help you bring it to life.

 

4 Mobile App Trends for 2016

Mobile app development is at the top of the agenda for many entrepreneurs and businesses in 2016. We share our top 4 predictions for the year ahead on the changes in the mobile industry and app market.

2015 was a huge year for apps. Mobile overtook desktop as users spent more time on their mobile devices. The app development market experienced tremendous growth, profitability and expansion. Mobile devices became the new normal for delivering content, entertainment, transportation and much more.

App developers must evolve its strategy to be relevant across new channels and screens moving forward. We expect an exciting year ahead. Here are the top four app trends for 2016.

 

User-Centric Apps

Whenever we do a Rocketfuel Workshop with our clients, there is one key process that ensures we define a minimum viable product and lockdown their app concept’s product position: User Persona Modeling. Personas are an effective tool to create the right product for the app’s intended target market. This allows our clients to understand the motivation of their app’s target users and, in turn, define the product features that satisfy the market.

App User Persona

An example User Persona Model, including the intended user’s bio, motivations, personality and goals. Source: Xtensio

We apply this user-centric approach to app development because, now more than ever, entrepreneurs and businesses need to consider the complete user experience their app provides. With mobile apps now accounting for more than half (52%) of all the time spent on digital media, a user-centric approach to app development is crucial to creating a meaningful app experience.

However, you can’t just assume to know what your target users want in an app. You need to track and analyse relevant Big Data for it to become Meaningful Data that provides insight into your app’s potential consumers. This is essential to creating a user experience that caters to how your consumers are actually using the app.

At Launchpad App Development, our mission is to help entrepreneurs and business transform innovative ideas into successful apps. If you want to create a successful app in 2016, your target users should be defining the app product.

 

In-App Ads

Three of the largest players in the mobile space (Google, Apple and Facebook) have all been investing an enormous amount of time and resources into powering ‘virtual assistant’ type technology. Google created Google Now, Apple has Siri and Facebook is testing M. The goal of all of these companies is to become the best personal assistant you’ve ever had and in large part to provide personalised ads proactively before a user even makes a request. This represents a fundamental shift in the way we think about in-app advertising.

As businesses improve their ability to create data-driven experiences for their app users, the targeting of ads will greatly improve and consequently become much more effective. Once users have opted-in to a data program they will often provide a great deal of information regarding their preferences, as well as geographic and demographic information that can be quite useful.

By developing a data program, apps will be able to leverage the behaviour of users within the app to refine their experience with ads that are more relevant. Personalised in-app ads draw double the click-through rate of normal display ads and, in many cases, bypass ad blockers to reach the right audience in the right context.

With nearly three times more spent on in-app advertising compared to mobile web, personalised in-app advertising will continue to flourish in 2016 and beyond. By 2018, Juniper Research predicts it’ll reach $17 billion, making in-app the fastest growing sector in mobile advertising.

 

Mobile Video

Mobile video is growing quickly. IAB found that 58% of people watch videos daily from their mobile device. Clearly, quality video production intended for the small screen can be truly effective in reaching this growing audience. This makes businesses eager to capitalise on this trend.

 

As eyeballs shift away from the TV screen to the smartphone, advertising dollars are quickly following. As a result, redirect viewers to an app plays a key role in the growth of the mobile video format.

Mobile Video App

The explosion in engagement for YouTube’s smartphone and tablet app highlights the rapid shift to mobile video. Source: comScore

When it comes to mobile video, apps are clearly the consumers’ choice for viewing them. 48% of the respondents to IAB’s study confirmed they access video content via applications rather than visiting a mobile website. While only 18% indicated they would rather view video via mobile website. The mobile video market is expected to reach over $13 billion by 2020 and grew rapidly in 2015. It’s safe to say that we can expect continued substantial growth in 2016.

 

Apps Becoming Part of Our Lifestyles

The problem with app adoption in the past can be nailed down to one singular issue – mobile data. With data caps and overcharge rates, apps have been limited how creative and forward thinking they can be. As a result, we  restrict ourselves to apps that provide individual features. For example, an app for music streaming, an app for weather, an app for fitness tracking etc.

Expect apps in 2016 to become an integral part of your life. For instance, a fitness journal that displays the weather before your run and provides music playlists customised. Sound a bit far-fetched? Not to us app developers!

As long as there are forced restrictions on how much you can download, apps themselves play a pivotal role in positioning themselves as a lifestyle attachment, rather than a usable ‘thing’ that can quickly be uninstalled in favour of the next big thing. There’s only so much data that will fit in a mobile plan – better make sure your app is making the most of it.

What’s more, the apps you choose could very well communicate your values in terms of your lifestyle. The apps you use every day could soon tell people “I’m proud to be a _____ and that’s why I use (app).” The more attuned these apps become to our goals, likes and dislikes in life, the more they’ll find themselves being used likely far beyond what even us as developers envisioned.

What app trends are you anticipating in the year ahead? Let us know in the comments section below.