Business Model and Guide to Build On-Demand Service Marketplace

Business Model and Guide to Build On-Demand Service Marketplace

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Service industry is highly fragmented across the world. Be it blue collared jobs like house cleaning or more sophisticated ones like photography, it is hard to find professionals even with all the search comforts of Google. An on-demand service marketplace is an ultimate solution to simplify the task of finding and hiring professionals rendering local services from a vast range of industries.

Your On-Demand Service Marketplace should be a perfect combination of manual and technological process to help people hire the right guy for the job. The search portal can be used as a mobile-based app which will help it to become more popular.

Being a mobile-based app, it must offer different services for customers and service providers. Just like its business model and revenue generation, understanding technology of its mobile platform is also critical to start a successful on-demand service marketplace.

Read on and learn everything you need to know about building an app to render local services.

Business Model and Competitors

Offering a mobile based reverse auction/booking solution is an impressive feature that will connect people with local service providers like plumbers, carpenters, photographers, and yoga teachers. While service providers like electricians and carpenters can be booked and paid through the app, an automated match-making algorithm will plays a crucial role in short listing white collared professionals.

Every professional on the marketplace should go through a stringent third party and police verification to ensure complete safety.

The service marketplace must have a variety of direct and indirect competitors. Here are few of them:

  • LocalOye
  • UrbanClap
  • Doormint
  • TimeSaverz
  • Mr. Right
  • Taskbob
  • Zepper

Almost every listed company caters to one or few regions of India. Hence, it wouldn’t be wrong to say there is no established market leader yet. Business listing portals like JustDial, Sulekha, YellowPages and are also line-up in on-demand service marketplace. Here are some offshore players active in the same industry:

  • Homejoy
  • Housecall

How to Make Money?

As per our Google research, not much has been reported by local service rendering platforms about profit generation. However, charging professionals for business generated from the search portal can be taken into account.The percentage charged can be probably shared with the service professional during the vetting process. So, one of the main sources of earning for an on-demand service marketplace can be from professionals.

The application must gradually add more revenue streams. Here are few suggested by our team of marketers for urban lifestyle services providing clones:

Sponsored profiles – Some service professionals wouldn’t mind spending additional to get more business mileage. Sponsored profiles can help in the task.

Advertisements – Implementing ad based monetization may seem a challenge in a mobile app but entrepreneurs planning a website based service providing clone can work with this point with ease.

Now, it’s time to dismantle the apps, starting with the App introduction.

This app must cater to service seekers and should be the result of detailed planning giving an impeccable execution. Check out the main features and aspects of the mobile app:

App introduction

Introductions are very common in mobile applications, and almost a necessity to make users comfortable with the whole interface. The whole process of hiring vetted professionals should be explained clearly through the mobile app. Once a user is through the process, he should be able to proceed easily.

There can be some provision to skip the Intro in case a user is familiar with the app or can work out on his own. The focus obviously must be on simplifying user experience.

Since you are up with an idea of a local service providing search platform, selecting your location must be a priority feature to tailor the results accordingly.

Search and services page

Listing too many services on offer at one screen doesn’t make sense. So the page can be sub-divided based on different service categories to make it convenient for users to perform a search. A sticky sear bar would be a great addition from UX point of view.

Your App search should be very powerful and must generate highly relevant results. It’s only if you type something utterly undecipherable that results will stop making sense. Make sure your Local service providing script promises a superb search experience.

Services can be categorized in different sections like:

  • Personal
  • Events and weddings
  • Health and wellness
  • Lessons
  • Home

All the services offered by the local services provider must be classified under these categories.

Service intro pages

Every service must have a dedicated screen with a relevant background and text that emphasizes on finding the perfect professionals. Adding a hint of minimalism on the screen can work to make the user proceed further.


Every service provider has a different set of expertise and job preferences. Questionnaire gathers data that helps in filtering the professionals and short- listing the most fitted for the job. Because customer concerns are different for every service, unique questions should be planned from the customer point-of-view. Not exactly part of design or development but something that can determine success and failure of your On-Demand Service Providing Marketplace clone.

Information gathering

Gathering information about the app user is important for service delivery as well as system abuse. Placing information gathering process after questionnaire can be a smart move. Following details are must for submitting a request:

  • Name
  • Mobile number
  • Email

To confirm authenticity of a service request is equally important. For that integrating SMS verification mechanism can simplify the task to complete a service request.

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Projects and favourites

Remember how you can navigate to different tabs on Facebook mobile app by swiping right and left? You can opt for the same interface to let users switch from Search, Projects and Favourites.

Program your app in such a way that as projects will list all the work assignments that you will order, service providers hired will automatically get added to Favourites. Both the screens can have buttons to initiate the search of service professionals.

Menu button

Tasks like Login, Logout, and Account settings can be managed through the Menu button. In addition to these, the button can also carry Call and Share features.

  • Call feature can offer option to connect with team to share queries or doubts and
  • Share can help you recommend the app to your friends and family

Both these are highly important features to retain the customer and spread brand awareness. Make sure you choose a service rendering script that brings these features.

We have covered all the major features and areas of a Services providing app. Now it’s time to delve into the Providers app.

Service Rendering Search for Providers app

Providers are critical for a service providing marketplace business model, and require entirely unique features to list and manage their leads through the services marketplace. The Providers app helps professionals with every detail starting profile creation to lead management.

Here are the features that will make your app a game changer of services marketplace:

USP focused screens

In place of app introduction, your search platform should include screens that can introduce service provider to the benefits of using the app. The screen must focus on:

  • Benefit
  • Control
  • Growth
  • Management

Besides listing benefits of using the mobile application, the screen must also include Sign Up and Login buttons to make the conversion whenever service provider is ready.

Sign Up process

A single tap on the Sign Up button launches the registration process. It can be divided into multiple stages, initially making the service provider choose an area of expertise. Following the turn of basic business information, city, and exact location. The sign up process should ask for extremely business critical information and leave the lesser important details for later.

Simplifying the sign up process is important because not every service provider will be willing sail through lengthy registration forms.

Profile screen

As we said, Sign Up process gathers only the most critical information. Rest must be added by editing the profile. Make different tabs where additions and changes can be made to make the profile appealing to future customers with below-listed features:

  • My Services
  • Personal
  • Business
  • Photos

In addition to the changes in the above tabs, service provider must also be able to update cover photo and image. This will add a touch of personalization to the profiles.

Menu button

Professionals have more to manage as compared to service seekers. Hence, they have more powerful features under Menu button. Here are some of the major buttons:

  • Leads dashboard
  • Edit profile
  • How it work
  • Contact us
  • Account
  • Get Review

Feature your Edit Profile to open the profile page with its tabs discussed earlier, Contact Us should list ways to get in touch with the Service Providing team. Get Review is an impressive feature that can help professionals gather positive feedback. Pick a professional services marketplace solution that comes impressive review generation and management functionality.

Leads dashboard

Leads dashboard is the heart of any Provider’s app. From this feature, service providers can keep watch on some basic features which include:

  • New leads
  • Ongoing projects
  • Clients

This feature can help professionals manage ongoing assignments and allocate time slots for future ones, meaning that it simplifies work management. Just like easy search matters to service seekers, Leads Dashboard matters for providers.

Working of App

Service providers can also find it difficult to understand app features. Hence,  make space for How It Works under the Menu button. All the main tabs and features should be explained through simple process like a bubble message.

Such features become even more critical if you consider the fact that your service providing marketplace will cater to blue collared professionals.

While we have covered all the features that need to be part of every website like UrbanClap, Doormint and LocalOye, it needs to be understood that the app should be mainly driven by technology that works in the backend such as:

  • Matchmaking algorithm
  • Database of providers
  • Leads management functionality

Plenty offline marketing efforts have also gone into creating a growing Indian platform for service providers.

Although your service rendering team can ace the feature game but can make major enhancements in terms of UX design.

Auto-next functionality

Modern mobile applications focus on minimizing the number of taps and automating everything that can be automated. Take care of this aspect while designing your service providing app.


Overlapping of navigation elements is something very generic but not at all acceptable from a service marketplace. Make sure such design issues don’t appear in your service rendering clone app.

Response time

Response time plays a huge role in retaining customers. Poor response time leads to loss of customers and revenue. Customers want timely response to their queries which should not be neglected.

Suggested Read: Ideal Features and Business Analysis to Create Local Services Marketplace

If you can come up with a service rendering app clone that generates faster results, then, you obviously will have a shot in a booming market.

Services marketplace has humongous potential but only if you invest in a platform that is driven by powerful technology and great team. Your On-Demand Service providing marketplace should be based on critical understanding of market needs.

Build your Local Service providing clone or hire a dedicated team for creating it from scratch. Whatever you do, get an idea of the best price before making an investment.

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Comments (9)
FATbit Chef Post author

Hey Danesh!
We would surely like to help you.
Just wanted to confirm if you need our help for creating a platform for running an online on demand service business or require a business model canvas for on demand services marketplace?
We want to help in you in a better way, kindly send in your specific queries to us on [email protected] or you may get in touch with us over skype @ fatbitteam1.
FATbit Team

FATbit Chef Post author

Hi Yaseen,

Are you looking for websites similar to UrbanClap or you want to start your own online services platform?
Please confirm.

FATbit Team.