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Here Are The Top 5 On-Demand Service Apps of 2020



Undoubtedly the On-Demand Apps services have taken the world by storm. The niche customer base for On-Demand apps are people who require easier and faster access to products and services.

As per the figures by Statista, in 2016, the revenue generated by On-Demand apps through in-app advertising, advertising, and app downloads was 88 billion USD. This number has hiked to 188 billion USD in 2020. These numbers may seem crazy, but they surely indicate that customers are growing comfortable using On-Demand services. 

A ton of apps have appeared in the last few years. Let’s have a look at a few who have gathered exceptional customer base and engagement over the years.


1.     Uber

Uber no longer holds the title of an on-demand hailing service. It has also dipped 

its toes in on-demand food delivery service as Uber Eats and in on-demand trucking service as Uber Freight.

Uber has become a household name when it comes to ride hailing services. The portal has gained the tag of ‘The original transport disrupter’. It provides cab hailing service in 65 countries and more than 700 cities around the globe.

The way Uber functions is when a user generates a demand, the drivers fulfill the demand and Uber acts as an intermediary that helps them meet using a mobile application.

Uber is available for both Android and iOS users. Having more than 75 million users all over it has a current valuation of 120 billion USD.


2.      DoorDash

DoorDash works by delivering food to customers from branded chains to local vendors. The guys who deliver the food are called ‘Dashers’. 

The company was founded in 2013 and has now reached a valuation of about 16 billion USD. Doordash operates across the US and Canada connecting around 20 markets with its customers.

Doordash follows a ‘Y’ structured business model that allows them to focus on all 3 of its essential sides i.e. customer, restaurant partners, and drivers (aka dashers).

It earns revenue by charging the restaurants a straight-up 20 % fee for each order that is ordered from the platform. Other than this, revenue modes include a delivery or service fee on orders. And DashPass, a monthly subscription pass for all the consumers.


3.     Drizly

When everything is available at the click of our fingers why not the booze we consume. Yes, a US-based On-Demand Alcohol delivery app allows you to acquire booze at your doorstep within 60 minutes. 

The start-up was founded in 2012 in Boston. It has become the world’s largest alcohol marketplace today and is nicknamed as “Amazon of Liquor”. It has currently grabbed deals from 1000 retail stores in North America. This helped them process 1 million transactions in 2017.

Drizly offers alcohol delivery in about 20 – 60 minutes respectively. One should make a minimum order of 20 USD to avail of the home delivery service to which they’d be charged a delivery fee of 5 USD. 

Drizly also earns revenue by selling ‘zip-code’ subscriptions to liquor stores. This provides the store with the opportunity of selling alcohol in that particular service area. 


4.     Urban Clap

Urban Clap is an Indian-based online platform that helps one find professionals that provide services essential to our daily lives. The platform covers a wide range of services i.e. from home cleaning, yoga-trainers, beauticians, electricians to engineers, photographers, lawyers, chartered accountants, and many more.

Urban Clap was founded in 2014 with an initial 1.5 million investment and has reached a 450 billion USD valuation in 2020. It has received 60 million USD through its 6 rounds of funding.

Urban Clap earns its revenue by:

  • Charging commission to the service provider from the payment made by the customer.
  • Charging service providers a fixed amount using the ‘Reverse Auction’ facility. This helps the service providers generate leads and conversions.
  • Charging service providers an advertising fee for promoting their service on the platform through advertisements. 


5.     Fiverr

Two Israeli entrepreneurs started this venture in 2010. Their aim was to help people buy and sell digital services as one exchanges physical goods on an e-commerce website.

The duo started this portal with 8 service categories that reached to 200+ categories in 2019. This progress over the years helped the company earn a revenue of 107.1 million USD in 2019.

Buyers and sellers are the prominent players of the game. Buyers are businesses looking to outsource digital services while sellers are freelancers willing to provide these services to gain some financial freedom.

Fiverr earns money by charging transaction and service fees to the buyers and sellers. They charge buyers with 2 USD for transactions smaller than or equal to 40 USD. And a 5% processing fee to orders more than 40 USD.

They also receive a flat 20% cut from the seller’s fee. Hence, a seller earns 80% of their total fees. 


6.     Lyft

Lyft is a cab hiring portal that was founded in 2009 under the name ‘Zimride’. The purpose of ‘Zimride’ was to allow users to share rides. It was renamed to Lyft in 2012 also re-inventing its business model. The purpose of Lyft is similar to Uber with a few subtle differences.

Lyft matches the nearest available driver with the customers willing to ride. It promotes car drivers as their friends and so unlike Uber most passengers prefer sitting in the front seat. Every car associated with Lyft has a pink colored mustache in their front. Unlike Uber, Lyft has only 2 car options i.e. Lyft and Lyft Plus. It also allows drivers to rate customers and vice versa.

Lyft earns money by charging 20% of what the driver earns per ride. To draw customers Lyft also offers free and discounted rides on certain occasions. It also uses ‘Heat Maps’ that denote the areas that would be charging more due to the high demand.

Lyft has reached a valuation of 5.5 billion USD since 2012.Does your booming idea need the right technological guidance? Feel free to ring our bells anytime to request a free consultation. Let’s amplify your business with the experience and expertise we possess.



Author bio

Mr. Sanjay Rajpurohit has always been a venturer. An engineer who became an early aged entrepreneur. He shares his time between his On Demand App Development and other ventures named Technource, Eminent Academy, and Tuitment and is still exploring the world of software technologies.

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