On-Demand App Categories: Where the Market Is Growing
August 20, 2023
TL;DR
On-demand isn't just ridesharing and food anymore. The model has expanded into healthcare, home services, professional services, and more.
- Telehealth — Virtual doctor visits are now mainstream
- Home services — Cleaning, repairs, and maintenance on demand
- Grocery delivery — Rapid delivery in under an hour
- Professional services — Legal, financial, and business consulting
- Pet services — Walking, sitting, and veterinary care
Each category has different challenges and success factors.
The Expansion of On-Demand
Uber and DoorDash proved the model. Now it's spreading to every service category where:
- Supply exists (service providers)
- Demand is time-sensitive
- Coordination is currently inefficient
- Technology can improve matching
The result: on-demand apps in categories you wouldn't have expected a few years ago.
Category 1: Healthcare
What's happening
Telehealth exploded during 2020-2021, and usage has remained elevated. Virtual visits are now standard for:
- Mental health (therapy, psychiatry)
- Primary care (non-emergency consultations)
- Dermatology (photo-based diagnosis)
- Chronic condition management
- Prescription refills
Key apps
Teladoc: General telehealth with 24/7 availability BetterHelp/Talkspace: Mental health focused Ro/Hims/Hers: Specific conditions (hair loss, ED, birth control) MDLive: Insurance-integrated primary care
Success factors
- Regulatory compliance — HIPAA, state licensing requirements
- Insurance integration — Coverage affects adoption
- Provider quality — Reviews matter significantly here
- Wait times — "On-demand" means minutes, not days
Market insight
Mental health apps have seen the strongest sustained growth. Therapy demand exceeds supply, making efficient matching valuable.
Category 2: Home Services
What's happening
Home service apps connect homeowners with cleaners, handymen, plumbers, electricians, and other service providers.
Key apps
Thumbtack: Broad range of services, quote-based TaskRabbit: Task-based, acquired by IKEA Handy: Cleaning and handyman focused Angi (formerly Angie's List): Reviews-focused marketplace
Success factors
- Provider vetting — Users invite these people into their homes
- Pricing transparency — Quote variability frustrates users
- Scheduling flexibility — Same-day availability is competitive advantage
- Quality consistency — Service quality varies more than food delivery
Market insight
Trust and safety are paramount. Background checks, reviews, and guarantees differentiate winners. The "Uber for X" model is harder here because service quality is harder to standardize.
Category 3: Rapid Grocery
What's happening
Grocery delivery has split into two models:
- Traditional — Order from store, deliver in hours (Instacart, store apps)
- Rapid — Order from dark store, deliver in 15-30 minutes (Gopuff, Getir)
Key apps
Instacart: Personal shoppers from existing stores Gopuff: Warehouse-based rapid delivery Amazon Fresh: Amazon's grocery delivery Walmart/Target apps: Retailer-owned delivery
Success factors
- Delivery speed — Expectation is same-day, increasingly same-hour
- Product availability — Out-of-stock items frustrate users
- Substitution handling — Communication about replacements
- Freshness — Produce quality is make-or-break
Market insight
Unit economics are challenging. Many rapid delivery companies have pulled back or folded. Survivors are focusing on higher-value orders and better density.
Category 4: Professional Services
What's happening
Professional services are moving on-demand for lower-stakes needs:
- Legal (document review, simple contracts)
- Accounting (tax prep, bookkeeping)
- Business consulting (marketing, design)
- Technical help (IT support, development)
Key apps
LegalZoom: Legal documents and services Rocket Lawyer: Subscription legal help Bench: Bookkeeping on demand Upwork/Fiverr: Freelance professional services
Success factors
- Expertise verification — Credentials matter more than reviews
- Clear scope — Well-defined services work better than ambiguous projects
- Communication — Professional services require more back-and-forth
- Pricing clarity — Hourly vs. fixed pricing affects adoption
Market insight
Works best for standardized, lower-complexity services. Complex legal or financial work still needs traditional relationships.
Category 5: Pet Services
What's happening
Pet care has become a significant on-demand category:
- Dog walking
- Pet sitting
- Boarding
- Veterinary telehealth
- Grooming
Key apps
Rover: Dog walking and pet sitting Wag: Dog walking, expanded services Petco/PetSmart apps: Retail + services Fuzzy: Pet telehealth
Success factors
- Trust — Users are protective of their pets
- Reliability — Missed walks are immediate problems
- Communication — Updates and photos during service
- Emergency handling — What happens if something goes wrong?
Market insight
High emotional stakes create strong loyalty but also strong reactions to problems. Review monitoring is especially important here — pet owners are vocal.
What Works Across Categories
Common success patterns
1. Two-sided quality management Both users and providers need accountability. Ratings work both directions.
2. Clear expectations Pricing, timing, and scope should be obvious before booking.
3. Easy rebooking Recurring services (cleaning, dog walking) need subscription-like convenience.
4. Fast issue resolution When problems occur, users need immediate help — not email support.
5. Trust signals Background checks, reviews, insurance, and guarantees reduce booking friction.
What determines category viability
| Factor | Easier | Harder | |--------|--------|--------| | Service standardization | High (cleaning) | Low (consulting) | | Provider availability | Many (drivers) | Few (specialists) | | Urgency | High (food) | Low (legal) | | Transaction value | Low-medium | Very high | | Regulatory complexity | Low | High (healthcare) |
Using Reviews in On-Demand
Reviews matter more in on-demand than almost any other app category because:
- Pre-purchase uncertainty — Users can't evaluate service before booking
- Provider variability — Quality varies person-to-person
- Trust requirements — Users invite providers into homes, cars, lives
What to monitor
- Rating trends — Are they improving or declining?
- Common complaints — What patterns emerge?
- Provider-specific issues — Which individuals need coaching?
- Post-update sentiment — Did changes help or hurt?
AppReviewBot can alert you to sentiment shifts and pattern changes across your reviews.
Key Takeaways
- On-demand has expanded far beyond ridesharing — Every service category is affected
- Trust is the universal challenge — Users need confidence in providers
- Reviews drive decisions — More than in most app categories
- Standardization affects viability — Some services fit the model better
- Unit economics matter — Not every category can sustain rapid delivery
Next Steps
Exploring on-demand opportunities?
- Analyze existing players — What works and what doesn't in your category?
- Identify the trust gap — What makes users hesitant to book?
- Study review patterns — What do users in this category care about?
- Test unit economics — Can you deliver profitably?
- Monitor sentiment — Use AppReviewBot to track how users respond
The on-demand model works when it makes coordination easier and builds trust between strangers. Find the categories where that gap exists and fill it.