cost to build an on-demand app

How Much Does It Cost To Build An On-Demand App?

Are you having a tough time finding out the correct quotation for your On-Demand App? Well, the overall budget depends on how complex or minimalistic your app is, but that can also be translated to numbers if you follow the right approach. In this blog, you will learn about the cost of On-Demand App Development and tips to manage it.


The internet is filled with countless strategies, tricks, and eBooks to guide entrepreneurs about budget management. However, On-Demand Apps are largely known for their complexity and heavy cost of development, largely because of the wide range of interfaces they bring along with them. A user app, a delivery driver app, and a store app coupled with an admin panel are the essential platforms anyone venturing into the business would have to develop. That is why it is said to plan accordingly. 

Likewise, if you have a great idea for connecting customers with service providers, you may be wondering how much it costs to build an app like that. The costs vary greatly depending on the app’s complexity and features, but let’s dig deeper into the key expenses.

Development Costs

A basic On-Demand App with user profiles, listings, search/discovery, communication, payments, etc., can cost $150,000–$300,000, excluding post-maintenance costs. A more complex app with advanced algorithms and functionality could cost even more than $500,000. Here’s a breakdown:

Backend Development: $50,000-$150,000

Building a scalable backend with service provider availability tracking, demand prediction algorithms, database architecture design, etc. As mentioned earlier, the higher the complexity of the On-Demand app, the higher the development cost.

Frontend Development: $100,000-$250,000

iOS and Android apps with polished UI/UX for easy bookings, communication, reviews, and payment integration. Essentially, this is the part where the app would find its true look, starting from the home screen to the payment gateway.

Testing And Quality Assurance: $25,000-$30,000

Even after doing multiple rounds of testing, you can only be sure of the current app maintenance, as this is an ongoing process. In other words, testing is a practice rather than just a regulatory check.

Technical Project Management: $30,000-$40,000

Experienced project managers oversee timelines, milestones, and communication and coordinate technical aspects to the best of their abilities. Therefore, it is best to have a hierarchy set up in teams to strategically avoid repetition at different interfaces. Also, you don’t have to depend on one person to be in charge of everything. Instead, delegate the work smartly and efficiently.

UX/UI Design: $15,000-$25,000

Intuitive, aesthetically pleasing designs tailored for your On-Demand App drive user engagement. If you have a unique style in mind, don’t hold back from testing it out, as this is your only chance to introduce something new to the market. This could be anything related to the features of the on-demand app and its core services. Essentially, UI/UX is a very niche task that has evolved into a major role as meeting new demands results in more downloads.

Launch And Growth Costs

While a quality On-Demand App is essential, top-notch marketing and operational support are equally critical for scaling the business. Most entrepreneurs often connect the true service of the app to the target audience as a place where they would find the solution to their problems.

Therefore, new post-launch promotional channels have emerged with the help of different online platforms. Overall, the launch and growth costs depend on the vastness of the app and the people who can apply for it.

Apart from this, there is also a chance of not spending a dime except on post-launch maintenance. As a result, whenever a certain number surpasses the total number of delivery orders, your app can ask its users to opt for subscription plans. However, be careful, as introducing a subscription plan this early can lead to customer abandonment.

Funding Requirements

Investors are known to settle for a percentage cut as a favor. This is a very common practice and has been going on since the advent of business culture. But where does the funding come from to build and launch an on-demand service app?

Regardless of funding sources, having detailed financial models and projections will be critical. Investors will want to see clearly how much is required upfront, what milestones it will help you hit, and when profitability can be achieved.


Start by funding the project yourself using whatever savings you have left. The benefit of bootstrapping is that you will have complete control over the project. However, the risks are also yours to handle. Therefore, it is advised to bootstrap your On-Demand App when it is in the MVP phase.

VC Funding

Venture capital firms are made up of a group of people who actively participate in exploring top companies. They have a tier system in place, separating top companies from new ones. You can pitch your On-Demand App to venture capital firms for larger investments of around $500,000. They have a threshold of investments placed depending on the requirements made by the entrepreneur. However, after a successful funding round, you can lose equity and control of your business.


If you are planning to raise smaller chunks of funds from regular people, many platforms allow a small fee for it. Moreover, crowdfunding platforms are also a great way to test your app among the public before you take your pitch to VC firms.


To make the most of your on-demand app idea, take the help of a clone app from a white-label firm. Known for their quick and quality re-branding services, white-label firms also offer clone apps that provide services and features similar to their original counterparts. The main benefit of buying a clone app is that you will get a feature-loaded app at a fraction of the cost of the original budget that you’ve planned for. Moreover, it hardly takes around 1-2 weeks to complete the entire customization process.