Imagining that you are concealed by an abundance of messiness on the floor of your residence, among other things a cluttered bedroom, a kitchen reeking of rotten food, and a shedload of soiled clothing. And it is already 10:00 AM, and you must hurry to the office.
What actions will you take? Cleaning?
Certainly not!
We are in the 21st century and possess miniature angels in our devices that can assist us in managing these tedious household tasks while we focus on more important matters. These guardians were christened “Home Service Apps” by the innovators, and they are greatly appreciated by extremely busy individuals worldwide, including ourselves.
These applications not only allow humankind to manage their hectic and present-day lifestyles by hiring anyone at all to handle these tasks (such as cleaning, laundry, and plumbing), but they also offer numberless advantages to home-service businesslikely and service providers.
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This implies that both stakeholders benefit.
1. They Offer Convenience
On-Demand Services satisfy the desire for convenience that is prevalent in contemporary life. Urbanclap, Housejoy, and TaskRabbit are exceedingly popular due to their integration of all household services on a single platform, which simplifies the lives of individuals worldwide.
Users can browse a variety of service providers, evaluate them based on ratings and reviews, engage an individual who meets their preferences, and pay for the services they receive—all within a user-friendly platform.
2. Home service applications incur reduced expenses.
Buyers frequently prioritize affordability. In comparison to conventional providers, on-demand home service platforms provide more affordable prices. Consequently, the market is experiencing a surge in the number of residential service applications.
3. Convenience of Payment
Apps that offer residential services serve as intermediaries between service providers and consumers. These applications frequently facilitate invoicing and payment transactions, enabling users to make payments with a single swipe, thereby enhancing their convenience.
4. Conserve time
Apps that provide on-demand residential services are aware of their users’ preferences.
Although home service applications offer numerous advantages to consumers, they are also advantageous to service providers and home services businesses. If you are uncertain as to why, the following are a few of the critical reasons that will assist you in comprehending its essential advantages, thereby enabling you to make a more informed decision prior to investing in its development:
Here are the reasons why home service apps are essential:
1. Marketing
Direct marketing opportunities are available to both current and prospective consumers through mobile applications. These applications perform a variety of functions, including providing general information about services, registration forms, rates, search options, and more. This, in turn, facilitates the marketing efforts of businesses. Additionally, the business may experience an increase in sales by implementing features such as text notifications that provide information about available discounts and offers.
2. Brand Recognition
In the current competitive world, it is of the utmost importance to capitalize on opportunities to educate the target audience about your brand and establish a potent image of it. This can be accomplished by utilizing a mobile app for residential services to establish brand recognition.
3. Customer Relationship Management
The enhanced efficacy of customer care services is one of the primary benefits of mobile applications for businesses. With a home service application, you can either address your customers’ inquiries in-app via messaging or incorporate a chatbot into your mobile application to offer round-the-clock support.
The Home Service App Development market is experiencing substantial growth as a result of these advantages, and the number of participants in the market is expanding at a rapid pace. Examine the subsequent statistics, which provide a wealth of information regarding the demand and scope of home service applications.
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Why Is the Development of Home Service Applications a Billion-Dollar Idea?
With the knowledge of these statistics, it is imperative that you conduct a thorough investigation of the home service app market and then enter it with a robust solution to immediately capture a significant portion of the market.
In other words, it is imperative that you possess a comprehensive understanding of the industry’s most prevalent business models, the methods by which the most significant market actors operate and generate revenue, and the strategies they employ to maintain their market position and attract new users.
To assist you in navigating the process, we will first examine the business models of the home service app market. Subsequently, we will examine the main actors as examples of all types of business models.
Business Models of the Online Home Service App Market
1. Model Based on Transactions
Home service apps collect a portion of each transaction that transpires on the platform by employing a transaction-based business model. This model enhances the scalability of your platform; as transactions increase, revenue will be generated.
Users also benefit from this model, as they only pay for the services they require or desire, and service providers receive payment only if they are employed. This increases the credibility and supply of the platform by attracting both consumers and service providers.
2. Model Based on Subscription
This model is well-suited for platforms that provide services that do not necessitate a one-time fee. For instance, users may purchase weekly or monthly cleaning services or household assistance.
This model is advantageous for service providers, as it increases the likelihood of consumer retention. Conversely, this model alleviates the daily burden of service registration for customers. Moreover, it assists them in reducing expenses, as it is always expensive to reserve services on a daily basis.
3. Model Based on Leads
Let us comprehend this model through the use of an example.
Assume that a consumer requires a roof repair and visits a home-service platform that operates on a lead-based model. The application or platform will consolidate a number of professionals who will submit bids for the project after reviewing its specifications. The customer will be able to select the quote that he or she finds most appealing after reviewing the bids.
The app will attract a greater number of service providers as a result of the increased user base. Consequently, you will be able to increase your revenue streams by proposing sponsorships to providers.
4. Full-Stack Model
The company’s ability to complete duties is contingent upon its own team members, rather than external partners or third parties, when employing this business model. This model is advantageous (as the entire revenue will be yours), but it is also somewhat challenging to execute.
Having observed the operations of the Online Home Based App Market, it is time to focus on a few of the key market players in order to gain a better understanding of their market position and the strategies they employ to remain competitive.
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Five of the most significant players in the online home service app market
1. UrbanClap
UrbanClap offers a variety of services on a single platform. This application enables you to obtain a variety of services, including cosmetic services, home cleaning services, and relocation services, all from the comfort of your own home. The application operates under the Transaction business model and offers substantial discounts to its users in order to retain them.
Despite these promotions and discounts, the organization generated approximately Rs. 45 crores in revenue during the 2017-18 fiscal year. The platform’s extensive user base and diverse array of services enable the organization to maintain its market position.
2. TaskRabbit
TaskRabbit, a Boston-based application, was established in 2008 to facilitate the aggregation of individuals who were in need of services and those who desired to earn an additional income by performing basic household tasks.
TaskRabbit has evolved from a mere concept to a multimillion-dollar enterprise in approximately a decade. It has amassed more than $40 million in funding and is home to more than 2 million active consumers, as well as thousands of service providers in approximately 40 locations throughout the United States and beyond. In 2017, IKEA acquired it, and it is presently operating as an independent subsidiary of IKEA under the Transaction Based Model.
3. Alfred
Based in New York, the organization was established by Marcela Sapone and Jess Beck in 2014. Alfred has been the recipient of numerous accolades and honors, in addition to more than $60 million in funding. Customers are billed on a monthly basis and receive their service at their discretion. The application provides home management services.
The subscription fee for each service is predetermined by the nature, frequency, and rates of the professionals who provide it.
4. Thumbtack
Thumbtack has explored both a transaction-based and subscription model before ultimately adopting a lead-based strategy. At present, professionals are required to purchase credits from Thumbtack in order to communicate with users. These credits can be acquired during the registration process or at any moment they require employment.
Service providers are only charged for quoting customers on Thumbtack; they are not charged a commission for completed jobs or for additional tasks received from the same customers or referrals.
Thumbtack has been assisting users in locating local service providers for their requirements since its inception in 2008. The company has received over $200 million in funding. Thumbtack maintains its market position by remaining pertinent to consumer requirements through the collection of a nominal service fee for each offer.
5. Lifeasy
It is a home service application that is based in Malaysia and has adopted a full-stack business model, which has somewhat challenged the entire home service market. Rather than relying on external service providers, the application employs its own in-house team of professionals to complete the task.
Approximately $100 billion is the estimated value of the Malaysian home services market, with an average transaction size of $295 per household per year. Apps such as Urbanclap and Lifeasy are capitalizing on the ever-expanding market with their robust business models.
Where your app becomes a success or fails is determined by the selection of the appropriate business model, its execution, your technology infrastructure, and app designs.
Ten Essential Features of an Online Home Service Mobile App
Onboarding of the application
You will need to address this issue initially in order to ensure that your users have a seamless experience. It is important to remember that users are seeking a solution or service to resolve their issues when utilizing a home-service app. Therefore, ensure that they are not misplaced within your application.
Explore Services
A user must be presented with an introductory interface that lists all the services your app provides after a successful app onboarding process. The application should redirect users to a specific service page that contains all the necessary information regarding the cost or per hour charge for that service.
Enhanced Search and Filtering
Although the perusing feature is essential, it is imperative to incorporate sophisticated search filters into your application. The services that users wish to utilize can be readily identified through the use of these filters.
In-App Conversations
Real-time interaction between service providers and consumers is essential for the success of your application. The In-App messaging feature is essential for this. However, it is imperative that you provide them with a secure and protected platform for communication.
In-App Payments
Although it is always advisable to provide users with the option to pay for their orders in currency, it is also advisable to integrate in-app payment functionality to allow them to pay with a single swipe. By enabling users to pay with a single swipe, you provide them with an additional incentive to remain engaged and connected to your application.
Monitoring
It is imperative that you provide your users with the capacity to monitor your service providers in order to ascertain their current location, the estimated arrival time, and other pertinent information. This will alleviate their apprehension and enable them to prepare for the visit in a manner that is suitable for them.
Push notifications
Push notifications are crucial for maintaining users’ engagement with your applications, as the rate of app attrition continues to rise. In addition, this feature can be beneficial in a variety of other ways.
From informing service providers about the order they received to regaining users who are no longer engaging with your app, the push notifications feature is a mutually beneficial solution for all parties involved (users, service providers, and app proprietors).
Ratings and Reviews
Users must be able to rate and review a service based on their experience after they have used it. This feature is also highly beneficial, as it enables app users to select service providers with higher ratings.
Loyalty and Referral Program
In the present day, it is impossible for any application to achieve success without gamification. It is your responsibility to entice and attract your users to your app, as they have a plethora of options to choose from when it comes to home service applications. Therefore, it is imperative that you incorporate at least one of these features into your application.
You are all prepared to capitalize on the effort you will invest in the development of your application. Nevertheless, it is imperative that the user experience is not sacrificed in order to save a few dollars. At Linkitsoft, It is crucial to distinguish yourself from your competitors in order to succeed in this overcrowded market. Currently, the home service market is dominated by companies that have made significant investments in providing exceptional service, while others are experiencing significant declines.
