Nevertheless, software vendors are not lagging behind and today there are a huge number of software solutions that can be useful for various companies. And while many companies make their choice in favor of purchasing software from vendors, it remains obvious that such a solution is not able to solve many of the unique problems that companies face.

Given such a large number of different factors, it becomes obvious that it is impossible to give a clear answer to the build vs buy software question. In this article, we tried to compare both options and explain under what circumstances it is recommended to use each of them, with insights from a reputable software development company. Although this material is still not a direct guide to action, we believe that it can be useful for those who are faced with this dilemma.

1. When Do Entrepreneurs Face This Dilemma?

The situations when businesses need software solutions vary depending on the industry and the specifics of the company. In most cases, such companies first evaluate ready-made solutions, since their implementation can be done much faster. When it turns out that none of the ready-made products can truly solve the business problem, the question arises of whether to develop your custom solution.

So, as an example, we can consider an IT enterprise that seeks to optimize its business processes by introducing a high-quality CRM system. There are many ready-made options on the market, but none of them seems to be an effective solution. That’s when you need to develop a custom CRM, which will be tailored to the needs of a particular company and will bring value.

And although the decision to create a custom product “just for me” seems to be the most logical and correct, it is not suitable for each business. Before making such a decision, it will be wise to consider several points.

2. Build vs Buy Software: Technical Criteria to Consider

In deciding whether to build or buy software, you’ll have to evaluate all relevant factors. You need to assess factors like your project requirements, the upfront cost, long-term maintenance, etc. And more than just the internal factors, you should also consider how external users can work with it. Here are some criteria to consider:

2.1 Price

It is absolutely clear that entrepreneurs and business representatives are trying to reduce their costs. Often, the decision to implement some kind of software is explained by the desire to reduce future costs.

Within the build vs buy software dilemma, there are two main arguments most often encountered. First – the purchased solution will start to bring value almost immediately. Second – creating a homemade product can be an overwhelming burden for the company’s budget. Both arguments are valid. However, it is hard to say which one is the best for a particular case. A purchased solution doesn’t need large costs and is implemented quickly. However, more often than not, it still requires either a large single payment or a monthly payment. You will be charged constantly and the benefits that off-the-shelf software brings aren’t always sufficient.

Thus, although developing homemade software will cost more, eventually, it will pay for itself since it will bring business value. At the same time, it is worth making a reservation and saying that you need to sensibly assess your capabilities. It’s a terrible mistake to go into debt for the development process if you understand that your business has no opportunity to afford such expenses.

2.2. Maintenance & Control

Maintaining the work of any software is a separate stage that requires certain resources. Selecting between the build vs buy software, it is worth saying that the software vendor is most often engaged in maintaining the operation of its product. Thus, any bug fixes, database updates, etc. aren’t part of your duties, so you don’t need to spend resources on these tasks.

However, this coin has a downside. Since the purchased solution is being supported by the vendor, you, as a client, will have no control over the operation of this software. Thus, any shutdowns, unwanted bugs, or updates will be made regardless of your desire. Therefore, you can face a frequent situation when constant problems with the product or one unsuccessful update forces business representatives to refuse to continue using this software.

2.3. Coherence

Of course, modern businesses, especially related to the IT industry, have a set of complex tools and processes that harmoniously interact with each other. These can be time & task trackers, CRM, CMS, risk management tools, a bunch of different connectors and communication tools, and so on. That’s why the introduction of a new tool often causes coherency problems. Thus, a new solution may conflict with existing tools and require a complete overhaul of present workflows.

This problem can be avoided only by resorting to building a custom solution. By developing software from scratch, you can take this factor into account and build a product that ideally fits into the existing frame and will be coherent with the tools already in use. This is one of the most important points to consider in the build-or-buy software debate.

2.4. Customization and scalability

As you know, off-the-shelf solutions are called so because they do not imply any major adjustments. Yes, there are situations when software vendors make big changes and add new functionality based on the wishes of a large number of customers. However, no one will do it just for your sake. In case you urgently need additional features, you just have to stop using this product and choose something new.

On the contrary, the product developed by you has the capacity to scale and expand from the outset since you can point this opportunity at the design stage. Thus, your product is easily amenable to any changes and scales perfectly in connection with changing business requirements.

These four factors are crucial in the struggle between build vs buy software. Of course, some additional and unique factors are specific to certain companies. However, more often than not, businesses make decisions based on these four considerations.

3. The Pros & Cons Of Buy And Build Software For Businesses

To consolidate the information received, we suggest that you consider the following two tables of buy vs build software-pros and cons, which can become a reliable assistant in this dilemma.

3.1. Custom solutions

3.2. Ready-made solutions

4. Summing Up

As you can see, build vs buy software analysis implies that each option has its pros and cons that can be useful for certain companies in specific situations. Of course, a custom solution is always a more useful option, but it comes with some additional costs and risks.

We said at the beginning that we would not give a clear build vs buy software assessment. Nevertheless, to draw some line, let’s look at several possible consequences of a wrong build vs buy software decision.

• First of all, your problem will remain unsolved. Simply put, the wrong choice won’t bring you value and you just waste your resources.

• Also, making a choice in favor of custom development, while the existing solution on the market has all the needed features, you doom yourself to unnecessary waste of money and time.

• At the same time, choosing a ready-made solution, while you have a clear understanding of how to build your own software program, you lose the unique opportunity to receive real value, solve your problem, and bypass competitors.

We advise you to carefully approach the question of whether to make or buy software and study your case to make the only right decision for your business.

There are some great marketing trends that the SaaS travel industry may find useful to utilize this year. In this article, you’ll learn some of the latest statistics for the travel sector in general and five marketing trends to know about as a business in the software development as a service market.

1. Travel Industry Statistics in 2024

It’s not been a great couple of years for the travel industry and due to COVID-19, the industry worldwide is expected to lose $810.7bn USD as a result of the pandemic.

Whilst it’s a lot of money, the travel industry, just like the hospitality industry, can bounce back. Many of us love to travel and the same goes for workers. A staggering 92% of business travelers find a better quality of life when traveling for work.

Traveling helps to connect businesses and individuals together on a personal level. Calls, emails, and video conferencing can only do so much. In 2024, businesses are looking to do more traveling, which means plenty of opportunities for SaaS companies that provide travel support for clients.

2. Who Are Some Great Providers For The SaaS Travel Industry?

There are some great providers within the SaaS industry that are worth knowing about.

2.1. TravelPerk

For corporate travel, TravelPerk is a great choice. They provide the world’s largest travel inventory, whether you’re after transport or accommodation for your employees.

Its easy-to-use intuitive design is why so many businesses opt to use this platform amongst other competitors. Described by TravelPerk themselves, they claim to be the best tool for corporate travel as an all-in-one solution. They’re a fantastic agency for corporate travel.

2.2. Netradyne

For some businesses, offering travel services means safety and professionalism are key.  It’s not just about providing your clients with transport but delivering on safety when they’re in your care. Netradyne is great for offering driver safety monitoring solutions. Having an awereness of how yoour drivers are reacting and behaving on the road, can help keep your customers satisfied.

2.3. GetYourGuide

For those travelers looking to skip the queue or book activities in various locations across the world, GetYourGuide is a must-have in your SaaS tool kit. For most customers when traveling abroad, knowing what to book in order to see the sights or keep entertained can be difficult. 

Having a booking engine that showcases all your options available to you, is a useful one and offers free cancellation policies up to 24 hours in advance. It offers plenty of flexibility for anyone looking to book excursions abroad or within their own country.

3. Five Marketing Trends For The SaaS Travel Industry

As a SaaS company, making use of marketing trends is extremely beneficial. Keeping your finger on the pulse of what’s trending can help you maximize your marketing efforts and to make that budget you have available, go further. With that being said, here are five marketing trends for the SaaS travel industry to adopt this year.

3.1. Offer A Personalized & Tailored Experience

It may require more legwork on your employees’ part, however, you can save a lot of resources if you’re doing everything you possibly can to hold onto existing customers. You can save yourself a lot of money and hassle by enhancing your current customer’s experience with your brand.

This is also a great method to help pull in new customers to your platform. When making comparisons with other competitors, they’re more likely to opt for those that provide a more tailored service. It makes them feel valued and not just another transaction. 

Customers are willing to pay for it too, with 86% of buyers paying more for a great customer experience. If they’re willing to pay, then focus on offering them a personalized experience that starts when you market your product or service.

3.2. Make Your App Or Website Mobile Friendly

It’s obvious that many internet users are opting to use their mobile devices for navigating the web, over any other device.

An app or website that’s mobile-friendly is going to provide a better user experience for the customer. There’s nothing worse than having landed on a website or app that hasn’t been configured properly for mobile use.

With smartphone usage expected to rise, all SaaS companies operating within the travel sector should be highlighting the use of mobile-friendly products to their customers. Accessibility is a big one that is growing in its importance. A lot of sites and apps don’t have an access-friendly version available. This freezes out anyone with accessibility needs, which may be valuable customers for the business.

3.3. Encourage & Promote Customer Reviews & Feedback.

Not all businesses focus on their customer reviews or feedback, especially if it’s not that positive. However, it’s useful to encourage and promote customer reviews because many users online are looking at them. 

They are often influenced by other people’s feedback, so even if it’s negative, you should be doing something about it. Nearly 95% of customers read reviews before making a purchase. That’s data that no business should be ignoring, particularly in the case where reviews aren’t all that gracious.

If you’re being seen to tackle those less than positive reviews, it’s going to change perceptions of the new customers who are assessing your business. 

3.4. Utilize Social Media Influencers Within The Travel Industry

Collaborating with social media influencers and even businesses or individuals that would actively use your product is essential. Just like customers online are influenced by customer reviews, many also take the advice of social media influencers when it comes to making a purchase.

A lot of businesses have become trustworthy in their own right so as a travel product or service, it’s worthwhile partnering with both where possible. Many brands are leveraging social media influencers to advertise their business and so you may find it useful to include them in your marketing budget for 2024.

A top tip when it comes to collaborating with influencers is to ensure they’re the right fit for your brand. It’s a waste of your budget to pick those influencers who may look good at first glance but their engagement and reach are poor in comparison. 

When doing your influencer outreach, assess their profile beyond just the amount of followers they have. Make sure their engagement is good and that they’ve got a good connection with many of their followers.

3.5. Push Your Sustainability & Concern For The Environment

It comes as no surprise that more of us are worried about the harm we’re doing to the environment. With 68% of millennials buying a product with social or environmental benefits in the last twelve months, the future generations are who you should be targeting.

If you’re not already, find ways that you can be more sustainable in your approach to the environment through tour products or the business. It may be that you actively promote and run initiatives that benefit the environment. 

Telling your customers and the world about what positive impact you’re making is going to do wonders for your business. Look at how your business can be more sustainable as this alone can help to cut down costs and give you something to talk about online.

4. The Benefits To Following Marketing Trends

Following the latest marketing trends are a great way of keeping up to date with all the necessary changes and improvements you should make to your marketing strategy. There’s always room for improvement and the market is always changing.

4.1. They Keep Your Business Relevant

As well as being useful to everyone else, they keep your business relevant. When you’re making use of marketing trends, it keeps your business current and up to date with the rest of your competition.

4.2. It May Uncover A Gap In The Market

When it comes to marketing trends, adopting one of them might result in you uncovering a gap in the market that’s currently not being catered to. This can be great for expanding the business and an opportunity to boost your sales or awareness of the brand.

4.2. More Opportunities For Success

As mentioned above, the right marketing trends can help deliver more success for your business. These marketing trends are popular for a reason and as a business, it pays to be invested in what’s working for other companies within the SaaS travel industry.

If you’re a SaaS brand, then there are plenty of trends that you could pick up and run with to help your business succeed. Don’t forget to take a look at other SaaS travel brands that are making big movements within the industry. It’s a great way of finding some inspiration for your own business in 2024.

This is where the secure software development life cycle (SDLC) comes in to address security vulnerabilities early enough in the concept and design stages. A secure SDLC follows a long-term security-first approach to software development where every phase is thoroughly screened to minimize threats, with insights and expertise from a trusted software development company.

1. Why is a Secure SDLC Important?

The digital transformation age is full of new tech advancements that guarantee efficient processes and cost-saving opportunities for companies of all sizes. The shift to the cloud, for instance, is now mainstream, and several businesses are halfway in their transition. And while moving legacy systems to the cloud is a good thing, it comes with several security risks. So, organizations that are not prepared to face such risks are probably on a compromised edge. 

That said, a secure SDLC plays a central role in the implementation of robust application security. It seeks to maintain safe and secure operations from the conceptualization stage to deployment and maintenance. The benefit is that it becomes easier to spot security threats and to resolve them before they wreak havoc.

Thanks to already-developed functionalities available in various open-source components, most software developers do not have to code from scratch. This saves time as it allows developers to focus on building more innovative projects instead of reinventing the wheel. The problem is that the open-source database is more vulnerable to security issues, especially if it’s not well-maintained.

Therefore, a secure SDLC allows developers to run through security scans on open-source components before adopting them for use in their projects. A secure SDLC also empowers the development team to prioritize security and to continually integrate new measures into the process as they proceed. 

2. How Does Secure SDLC Work? 

The secure software development life cycle consists of five key phases, where each plays a critical role in enhancing the security of the overall software or application. These phases include:

2.1. Collecting Requirements

Here, key security concerns are gathered from all the stakeholders. For instance, security requirements such as ensuring personal information are only visible to the users. Another would be functional requirements, e.g., ensuring that users can easily verify and edit their data inside the app or software.  

2.2. Design Phase 

The requirements obtained in phase one are now used to blueprint what needs to be done and what needs to be avoided. In other words, functional requirements are translated into functional design concepts and security requirements into security design concerns. Security design is often approached from the lens of what should happen and what shouldn’t happen. This helps exhaust all the security requirements and concerns before moving to the development phase.

2.3. Development Phase 

This is the implementation phase, where the code is written or retrieved from open-source platforms to solve the problem in question. Often, secure coding guidelines are used to eliminate vulnerabilities that would be introduced into the development phase. Some of these guidelines include:

• Checking all the open-source libraries for security vulnerabilities before adopting them. Software Composition Analysis tools are often used.
• Validating all the user inputs prior to processing any data they hold.
• Verifying any data sent back to the user from the database.

2.4. Verification Phase 

At this phase, the software goes through the rigorous testing cycle to check for any security issues that might have sneaked in somewhere along the development stage. Due to the complexity of the code, it’s recommended to use automated testing technologies. These include tools such as CI/CD pipeline deployment for seamless software delivery.  

2.5. Maintenance and Evolution 

Once the verification phase is over and there are no vulnerabilities, the software is ready for release. However, this doesn’t mean that security testing is no longer relevant. In fact, vulnerabilities can slip into the system just after deployment; hence maintenance and evolution should always follow a security-first approach.

During this stage, any vulnerabilities found should be traced to the source to help uncover other underlying issues. At times, this would mean rewriting the application functionality and rethinking the use of open source components in future projects.

3. Popular SDLC Models in the Market 

Over the years, developers have relied on some secure software development lifecycle models to ensure their projects can withstand security threats. Some of the popular models include:

• The Waterfall Model – this is a documentation-intensive model that’s widely accepted and used in the software development niche. Here, the software development process is grouped into different phases. The waterfall model follows a structure where the output of one stage is the input of the following stage. So earlier phases often determine the processes and techniques to be deployed in the next phase.
• The Spiral Model – this is a risk-driven model with four main phases; planning, design, development, and evaluation. The spiral model emphasizes managing risks, so the project passes through these four phases repeatedly in an incremental and spiral manner.
• The Agile Model – this model adopts an iterative approach to development where each incremental part prioritizes testing and troubleshooting. 
• Often, the entire project is grouped into incremental builds designed in iterations, and where the iterations last for one to three weeks.
• Incremental model – here, the requirements are bundled at the start of the project before they are divided into standalone modules, where each module goes through the five phases of secure SDLC. 
• The V-Model – with this model, the SDLC phases are planned in parallel. Execution happens sequentially in a V-shape, with each development phase paired with a testing phase in parallel.   

4. How to Succeed With Secure SDLC Implementation 

To make the most significant impact with your secure SDLC implementation, you should develop a comprehensive strategy with the end results in mind. Some of the critical steps include performing a gap analysis and creating a software security plan by establishing realistic goals with well-defined success metrics. 

But first, you’ll need to educate yourself and your co-workers/employees on the best coding practices and security frameworks. Conducting a thorough security awareness routine at the beginning will help educate all involved on the basics of software security risks and how to handle potential threats before getting started with the implementation process. 

Similarly, use the best security tools and technologies you can get your hands on. Checking for security vulnerabilities in huge texts of code requires more than just quick security scans. You need a comprehensive yet customizable cybersecurity tool with easy-to-understand security reporting metrics and insights. That way, you can successfully run a cybersecurity risk assessment before proceeding to develop the software.

5. Make Security a Top Priority 

Building a successful software that’s secure and scalable is a lot of work. There are numerous security and functionality concerns that go into the equation. But with a competent team and the right set of tools and technologies, it’s possible to transcend all the security obstacles and develop a robust application that meets and exceeds market standards. However, achieving this milestone calls for keen attention to security aspects in every phase of the software development journey.

What is SaaS, and why is it in demand?

Software as a service is a model of distributing and running software in the cloud.

According to a 2020 global forecast by MarketsandMarkets, the cloud computing market is growing at a 17.5% CAGR and is expected to reach $832 billion by 2025.

Most people and businesses today use at least one SaaS product:

• Cloud storage (Google Drive, Dropbox)
• Video call software (Zoom)
• Collaboration software (Slack, Google Workspace, Office 365)
• Creative software (Adobe CC, Figma, Canva)

The SaaS model isn’t as new as it might seem. In fact, its history goes back as far as 1999 — to the launch of the Salesforce CRM. However, the rapid growth of SaaS and its expansion into enterprise-scale businesses is a much newer development brought about by the fast evolution of the internet and cloud computing.

The last twenty years or so have seen almost a hundred unicorn startups in the SaaS category, the best known being Stripe, the credit card processor valued at $95 billion as of March 2021.

Developing SaaS applications bring benefits to both end users and software development companies.

For end users, using SaaS products means:

• Saving money on buying pricey software for each individual machine. SaaS solutions are mostly subscription-based, with a variety of flexible plans for individuals as well as for businesses of any size.
• Easy software installation and updates. Users download SaaS products from the cloud and may not need to actually install them, instead running them in a browser. In addition, SaaS solutions can be updated automatically in the background, without any downtime.
• Saving time on data sharing. Cloud-based software offers instant access to files by syncing them across devices and accounts. This helps collaboration immensely for team members who have access to the file.
• Easy scaling. Users can upgrade or downgrade their plans at any moment without having to call a technical support specialist to remove or install software.
• Zero to no downtime. In contrast to physical servers, cloud servers are able to automatically call on extra copies of an app to distribute the load if the app receives too many requests.
• Data safety. Cloud servers have higher default levels of security compared to physical servers.
• Maintenance support. Individuals and businesses using SaaS products don’t need their own maintenance teams. If anything happens, the software owner provides maintenance and updates.

For software service providers, the SaaS model has the following pros:

• Secure software code. With cloud distribution, end users have no access to the app’s source code, making it impossible for them to steal the code in whole or in part.
• Continuous revenue. SaaS is a subscription-based model, which makes for steady revenue flows as long as customers use the software.
• Possibility to update and upgrade regularly. Cloud servers are able to make app copies. Thanks to this, with app code in the cloud, it’s possible to update the app without downtime for users: a copy of an app’s current version can continue functioning as you update the main version. When the update is finished, the updated version will go live and the copy of the previous version can be deleted.

Types of SaaS solutions

There are two distinct types of SaaS software: traditional software as a service and white-label software.

In short, the difference between traditional and white-label SaaS software is as follows:

• Traditional SaaS software allows the end user to see who owns the software code.

  For example, any business can use Slack for communication, but Slack is the recognized brand. Google owns Google Workspace, Adobe owns its Adobe Creative Cloud software, and Zoom is also a well-known and recognized company.

  The software we built for Shanghai nightlife, Unight, is a traditional SaaS solution that helps venues sell tickets and promote events. Unight is currently the #1 ticket selling platform in Shanghai.

• White-label SaaS software is sold unbranded. Businesses and individuals that buy it can customize the software and apply their own branding with little to no mention of the code owners and can resell the software’s services under their own brand.

  For example, DashClicks, a popular drag-and-drop website builder for digital marketing agencies, is a white-label solution. Websites created with DashClicks have custom domains, making it impossible for end users to know they’re not custom solutions but rather third-party software.

  Website builders, content management systems (CMSs), and hosting solutions are usually white-label SaaS products.

White-label SaaS platforms need to be more customizable than traditional SaaS platforms; therefore, the white-label model is not suitable for all kinds of software.

SaaS tech stack

Almost anything can be a SaaS product these days: CMSs, CRMs, creative software, messengers, audio/video calling apps, and more.

However, certain tech solutions will be necessary for most, if not all, SaaS products.

Content delivery network (CDN)

A CDN is a network of servers — preferably cloud-based if you want to develop SaaS applications — located all over the world. CDNs are used to distribute the load on the network and enhance platform performance. With servers located in all areas where your SaaS platform is available, users will have shorter response times, improving the user experience.

Examples of CDNs are Amazon CloudFront, OVH Cloud, and Cloudflare.

Application programming interfaces (APIs)

APIs are used to implement specific functionality into an application without building it from scratch. For example, when a website offers you to connect or link your social network profile — Facebook, Twitter, LinkedIn — it is made possible by the API of the social network in question.

There are APIs for all kinds of functionality: booking flights, booking a table in a restaurant, streaming, chat functionality, payments, analytics, and much more.

Multi-tenant architecture

A multi-tenant architecture, or multitenancy, is an integral part of any SaaS application. This architecture enables a single server to run multiple applications and allows multiple users to access a single application. At the same time, each “tenant” — whether an app or a user — remains separate from all others, even if tenants share a database.

А мulti-tenant cloud-based SaaS architecture is what makes SaaS platforms scalable.

Load balancer

Whereas a CDN distributes content across servers to deliver it to users faster, load balancing systems distribute incoming requests/traffic across multiple servers to enhance application performance and split the load on databases.

How to make a cloud-based SaaS application

In this section, we’ll show you the ideal SaaS development process as we see it. This process may seem quite complex, but it’s also flexible enough to fit diverse forms of SaaS software.

Step 1. Clarify your idea for yourself

It’s important that you approach developers when you yourself know what you need — to some extent, at least. You might want to do some preliminary research and survey your existing customers and/or potential platform users as to what they need.

• What problem do you want to solve with the platform?
• What analogs to your idea are there on the market, and what are they lacking?
• Is SaaS the best model for your product or service?
• Do you want your platform to be a traditional SaaS product or white-label software?
• What requirements do you have for your software?

Experienced software developers will help you polish your idea, will offer you solutions for your desired functionality, and will estimate the SaaS development cost and timeframe. However, the more information you provide at the start of collaboration, the faster the team will start development.

Step 2. Find developers

Choosing SaaS developers isn’t an issue to be taken lightly. SaaS cloud technology is complex, and SaaS platforms often need to adhere to local and national requirements.

You can choose to hire in-house developers or outsource your product to either a SaaS application development company or freelancers. You’ll also need to consider where you’ll be looking for developers, as software development specialists can be found in all corners of the world. The process of finding specialists might be daunting.

Step 3. Research and validate your idea

The first thing most good development companies will offer is to conduct thorough market research into your idea. To build a product with success in mind, developers need a lot of information, and you’ll need to make some decisions at the initial stages.

• Is your idea valid as it is?
• What alternative solutions exist that solve the same problem?
• What do you offer that’s unique to your product or service?
• What is your platform’s target audience, and what do they need from your SaaS product?
• How should you attract users to your platform?
• How should you measure your platform’s performance?

Research results will help you create a business plan for your platform and allow your team to prioritize features and create road maps for developing your software as a service product.

Step 4. Make prototypes

To make sure you and your team see your SaaS platform the same way, designers will create several prototypes:

• Navigation concepts — the basis for the UX
• Low-fidelity prototypes — the first UI concepts
• High-fidelity prototypes — full-color and sometimes interactive prototypes
  Testing a prototype for each stage of design is important to understand how the platform will work and fine-tune it for the best user experience.

Step 5. Build an MVP

A minimum viable product (MVP) is a product with the minimum functionality that you can release to the public. An MVP serves several purposes:

• It helps you better gauge audience interest
• It allows developers to test the product on real users who might leave genuine feedback
• It helps you prioritize features for future development stages
• It creates opportunities for building brand recognition and obtaining your first loyal users
• In certain cases, an MVP allows you to earn some ROI

The scope of MVP development will depend on the kind of SaaS software you’re building. An MVP usually needs basic features plus your unique value proposition, and its design might be rather simple.

An alternative to an MVP is an MLP — a minimum lovable product. An MLP also has basic functionality plus a unique value proposition, but it usually has a more refined UI/UX design aimed at building recognizability and emotional attachment in users.

Step 6. Launch marketing

Marketing is an important stage in the SaaS software development life cycle. You’ll need to run marketing campaigns as long as your SaaS platform is live (which will hopefully be a long time after the full launch), so it’s critical to use the MVP to figure out the best marketing channels, estimate the possible cost of campaigns, and tweak your marketing actions according to actual data.

Often, it makes sense to launch marketing before the release to feel out demand, build brand recognition, and make users anticipate the release.

Another benefit marketing brings is that it allows business owners to calculate future costs and profits and analyze the product’s performance.

Step 7. Analyze performance

To fine-tune your platform, you’ll need to know if it’s performing as expected or if you need to introduce changes — to functionality, to marketing, or to your business plan and strategy.

One of the most helpful tools to analyze MVP and marketing performance is unit economics.

Unit economics = Customer lifetime value / Customer acquisition cost

Unit economics helps you calculate the value each customer — a user, in the case of a software product like a SaaS app — brings to your business. This allows you to determine whether it’s profitable to use a particular marketing strategy to attract users or you’re throwing away your hard-earned money. It can also help you optimize your prices and forecast profits.

Having analyzed performance and gathered feedback, you’ll have the data you need to make better decisions and continue developing your software as a service product.

How much does it cost to develop a SaaS app?

Given that almost any software can be built as a SaaS platform, making precise estimates for a generic SaaS application is nigh impossible. A highly customizable white-label website builder with numerous templates and built-in tools will have a whole different set of features compared to video conference software like Zoom, for example.

The type of platform you want to create, its feature set, the niche you’re aiming at, the development timeframe, the price tag of your chosen development team — all of this will impact the price of creating your product.

The cost of developing a SaaS platform consists of multiple parts — a lot of research and design prior to actual development, testing, and marketing. And it involves multiple specialists:

• Project manager
• UI/UX designer
• Server-side developer
• Frontend developer for a web-based SaaS platform
• iOS and/or Android developers if it’s a mobile app
• Quality assurance engineers

Based on our experience, the development cost for a traditional (not white-label) web-based SaaS platform will start at about $65,000 for an MVP and will go up as you add and fine-tune features. If you’re going for a platform in the form of a mobile app, expect to hear numbers around $70,000 and up per platform.

There’s also an option of a satellite mobile app for a web platform — a small app with very limited functionality. Fitr, a platform we developed for remote coaches, is a web-based solution, but it has both iOS and Android satellites created solely for fitness clients to comfortably watch programs from their coaches.

Twilio’s Authy app only provides two-step authentication. An app like that might cost about $15,000 or so depending on its purpose and functionality.

Possible pitfalls in SaaS platform development

Cloud-based platforms are well known (and well liked) for their high levels of security by default as well as for having next to zero downtime. However, it’s not that you can do no wrong with a cloud-based product. Cloud-based platforms have their own landmines.

One of those landmines — the biggest one, we think — is paying for cloud servers. Cloud providers charge for every little thing:

• Incoming and outgoing content requests
• The amount of data that goes in and out
• The number of machines you use
• The time these machines are active
• Cloning your servers
• And more

Therefore, setting up cloud servers is no trifling matter. You need experienced developers who will evaluate what you need and what will cost you money but will bring few or no benefits.

The second issue to pay attention to is compliance with regulations and laws in the locations in which you will launch your software. Granted, cloud servers offer great data security. However, local requirements like Europe’s GDPR or California’s Consumer Privacy Act might require you to implement specific measures. It’s important to not just leave everything to the cloud providers.

A reliable and experienced SaaS development company will help you research the topic and implement necessary functionality so you don’t fall into any traps.

We hope this article helps you answer at least some questions about how to develop a SaaS application for web or mobile. Developing a SaaS product is a lucrative business venture, and it will become more and more popular in the future. The time to start is now.

As your trusted software development company, we’ve chosen 08 most popular Software Development Models to show you their core features and how they would benefit your business.

1. Waterfall

The process moves cascaded through all development stages (analysis, design, coding, testing, and deployment). Each step has specific deliverables that are meticulously documented. The following stage cannot begin until the preceding one has been finished completely. As a result, software requirements, for example, cannot be re-evaluated during development. Furthermore, there is no way to examine or try the software until the final development step is completed, resulting in significant project risks and unexpected project outcomes. Testing is frequently rushed, and fixing errors is expensive.

Use Cases:

• Simple small to mid-sized projects with well-defined, repeatable needs (small company website development).
• Projects that require a higher level of control and a more predictable budget and timeframe (e.g., governmental projects).
• Multiple rules and regulations must be followed when working on a project (healthcare projects).
• Projects that make use of a well-known technology stack and tools.

2. V-Model (Validation & Verification Model)

Another linear model is the V-model, which has a testing activity for each level. Such workflow organization ensures high-quality control, making the V-model one of the most costly and time-consuming models. Furthermore, even though problems in requirements specifications, code, and architecture can be spotted early, changes throughout development are still expensive and difficult to implement. All requirements are gathered at the start, just like in the Waterfall instance, and they cannot be modified.

Use Cases:

• Projects where downtime and failures are unacceptably costly (e.g., medical software, aviation fleet management software).

3. Incremental & Iterative Model

The incremental development process is divided into multiple iterations (“Lego-style” modular software design is required!). In each iteration, new software modules are added, with no or minor changes to previously added components. The development process can be carried out in either a sequential or parallel manner. Parallel development speeds up the delivery process, whereas sequential development takes a long time and costs a lot of money.

With iterative development, software evolves and grows with each iteration. The software design remains consistent as each iteration builds on the preceding one.

Because software is given in pieces, there is no need for a detailed specification at the outset of the project, and tiny adjustments to requirements can be made during development. However, conditions cannot be drastically altered; essential requirements, particularly those for system architecture in the event of incremental development, must be established at the outset, as future integration of the provided software elements may become a problem.

Because tiny requirements amendments may be required during the development process, this SDLC approach often involves some client input.

Use Cases:

• Large, mission-critical enterprise programs made out of loosely linked components like microservices or web services.

4. Spiral Model

The Spiral model emphasizes extensive risk analysis. To get the most out of the model, you’ll need to work with people with a good risk assessment history. A typical Spiral iteration lasts about 6 months and includes four key activities: comprehensive planning, risk analysis, prototyping, and review of previously delivered parts. Spiral cycles that are repeated significantly lengthen project timelines.

This is the model in which the consumer is heavily involved. They can participate in the cycle’s exploration and review stages. The customer’s revisions are not acceptable during the development stage.

Use Cases:

• Projects with ambiguous business needs or requirements that are too ambitious or inventive.
• Projects that are enormous and difficult to complete.
• The launch of a new service or product through research and development (R&D).

5. The Rational Unified Process (RUP)

The Rational Unified Process (RUP) is a framework that combines linear and iterative approaches. According to the paradigm, Inception, elaboration, construction, and transition are the four phases of the software development process. Except for Inception, each step is typically completed in numerous cycles. All basic development activities (requirements, design, etc.) are carried out parallel across these four RUP phases, though at varying intensities.

RUP aids in the development of solid and flexible solutions, although it is still slower and less adaptive than a pure Agile group (Scrum, Kanban, XP, etc.). Depending on the project requirements, the level of client interaction, documentation intensity, and iteration length may vary.

Use Cases:

• Large and high-risk projects, particularly use-case-based development and high-quality software development in a short period.

The Agile – Development Models

Of all software engineering models, Agile methodology is used by more than 70% of businesses in their IT projects. Iterative development, intensive communication, and early client feedback are at the heart of Agile in general.

Each Agile iteration usually lasts a few weeks and results in a fully functional software version. This group’s approaches place a greater emphasis on swiftly delivering an active element of the application. They give more attention to software testing activities than thorough software documentation (detailed requirement specification, detailed architecture description). This encourages rapid creation, but it also delays software transfer to the support team and complicates maintenance because it takes longer to detect a problem when there isn’t a clear program description.

Agile emphasizes close collaboration among team members as well as with consumers. After each iteration, stakeholders analyze the development progress and re-evaluate the priority of activities for the next iteration to maximize the return on investment (ROI) and guarantee alignment with user needs and business goals.

As a result, Agile models are known for their frequent releases. They also help deliver applications that better suit customers’ expectations by allowing for continuous software enhancement through simple fixes and changes, quick updates, and feature addition. However, it is impossible to accurately predict the project’s budget, time, and personnel requirements because of a lack of precise planning and a willingness to change.

Use Cases:

• SDLC model for small projects or startup initiative that requires early input from end customers.
• Most mid-sized custom software development projects where business needs cannot be reliably converted into detailed software requirements.
• Large projects can be broken down into small functional components and developed slowly over time.

Which in this article, I will go through some of the most popular Agile Models like Scrum, Extreme Programming, and Kanban which you can find more about down below.

6. Scrum

Scrum is the most widely used Agile methodology. Iterations (‘sprints’) typically last 2-4 weeks and are preceded by comprehensive planning and prior sprint evaluation. After the sprint activities have been defined, no alterations are permitted.

7. Extreme Programming (XP)

A typical iteration in Extreme Programming (XP) lasts 1-2 weeks. If the team hasn’t started working with the appropriate software element yet, the paradigm enables changes to be made even after the iteration has begun. The supply of high-quality software is substantially hampered by such flexibility. To address the issue, XP recommends pair programming, test-driven development and automation, continuous integration (CI), limited releases, and simple software architecture and adhering to code standards.

8. Kanban

The absence of significant iterations is a fundamental differentiating aspect of Kanban. If they are used, they are kept to a minimum (‘daily sprints’). Instead, the focus is on visualizing the plan. The team uses the Kanban Board tool to keep track of all project activities, their quantity, accountable individuals, and progress. Increased transparency aids in a more accurate estimation of the most pressing tasks. Furthermore, because the model lacks a specific planning stage, a new change request can be made at any time.

Customer communication is ongoing; they can review work outcomes at any time, and project team meetings can take place daily. The model is commonly used in software support and evolution projects due to its nature.

9. Other Notable Software Development Models

Just like we have mentioned at the beginning of the article. There are many Software Development Models for you to choose from, and here are some honorable mentions.

9.1. RAD (Rapid Application Development) Model

The RAD Model, short for Rapid Application Development, is a variation of the Incremental Model. Several components are produced simultaneously as if they were smaller, individual projects when this model is implemented. The various elements are then put together to create operational prototypes.

• Advantages: The RAD Model provides for faster development and greater client feedback during the software development process.
• Disadvantages: The RAD Model’s application is limited because the project must be easily modularized into many steps. It also necessitates experienced developers with solid modeling and planning abilities. Issues with final component assembly could lead to unanticipated setbacks and the need to redesign components to fit correctly with the rest.

9.2. Prototype Model

The Prototype Model is based on generating software applications or system software prototypes used to visualize various software components. This model is intended to close the gap between misunderstood needs by allowing for extensive engagement and input with the user.

• Advantages: With a high level of user interaction, the Prototype Model can save time and money.
• Disadvantages: This model may produce misunderstanding among users as to the difference between a prototype and a finished product, and it may add unnecessary development time to prototype development.

Which SDLC Model Is Right For You?

Each of these SDLC Models offers a unique process for the variety of project challenges you will encounter in your career. Finding the right one depends heavily on not just the expected outcome, but the parameters by which the project is executed.

What is software development methodologies?

Software development methodologies are structured processes and techniques used to plan, design, develop, and test software applications. These methodologies provide a framework for managing the lifecycle of a software project, including requirements gathering, coding, testing, and deployment.

What is software process model?

Software process models are standardized frameworks that outline the stages and steps involved in the development of software applications. These models provide a structured approach to software development, ensuring that all essential phases are systematically addressed.

Follow us and you’ll learn about the latest features and get a step-by-step guide to creating a fitness app. You’ll also get an estimate for the cost of developing a fitness app, with insights from leading software development companies. But first and foremost, let’s talk about the basics.

1. Fitness App Industry

The pandemic has certainly turned our world upside down, but it’s also paved the way for some exciting advancements in the fitness world. More than ever before, fitness app developers have become our go-to fitness companions, helping us stay healthy and active right in the comfort of our homes. This transformative shift has added a vibrant digital hue to the global fitness landscape.

Here are some fitness app project reports that showcase the burgeoning influence of digital fitness platforms like fitness apps:

• The United States is leading the digital fitness revolution. In 2022, eight out of the top 10 apps by consumer spending were based in the US, with the top three being MyFitnessPal, Fitbit, and Calm.
• The 2023 Wellness Index reveals that over half of US consumers are going for a blend of virtual and real-life fitness experiences, creating a dynamic hybrid fitness culture.
• This year, an impressive 44.5 million US adults are set to use a connected fitness platform like Peloton at least once a month.
• Gym apps are receiving a big thumbs up, with around 70% of consumers viewing them as an engaging supplement to their in-person gym workouts.
• The virtual fitness landscape is also encouraging users to step out of their comfort zones. Over a third of consumers have started attending an in-person fitness class that they first discovered online.
• The fitness app industry is booming, with revenue set to hit a whopping $19.33 billion in 2023.

1.2. Fitness App Types & Casestudies

Fitness App Example

Each type of fitness app has a notable casestudy that we would like to show you:

• In 2020, Fitbit led the activity tracking category in terms of new installs (4.8 million) and average daily active users (1.5 million).
• Since September 2020, MyFitnessPal has been the revenue leader among nutrition and diet apps, bringing in over $1.44 million.

Wanna Train | Premier Fitness Platform | Built by Savvycom

2. Fitness App Development: Key Features

Are you unsure what features to include in your exercise app? Each fitness app development serves a different purpose and provides its users with special features. However, there are some basic features that a fitness app must have in order to be more user-friendly and accommodating. We’ve put together a list of fitness apps’ must-have features.

2.1. Onboarding

When you need to explain app features or give instructions to new users, onboarding really comes in handy. (If your app is straightforward, you can skip this step.) When users interact with your app, you can provide onboarding by showing two to eight screens, adding a 60- to 90-second video tutorial, or sending in-app prompts. On Dribbble, you can see examples of onboarding.

2.2. Sign-up & Login

Allow users to sign up using their Facebook, Google, Twitter, Instagram accounts or other social media accounts that suit your target audience, as well as their own personal email addresses.

2.3. User profiles

Users enter personal information such as their name, age, height, weight, gender, and fitness level when creating a profile. Both app developers and users will benefit from this information. It assists app developers in creating apps that match users with customized workout routines and track their sporting activity. A user’s profile gives them easy access to subscription plans, as well as a history of completed exercises, progress, bonuses, and other information.

2.4. Goals

Setting goals is an important aspect of any fitness app. Allowing users to set objectives and goals is motivating because it translates into a goal tracker that will help them achieve their fitness goals without fail.

2.5. Synchronization with wearable devices

Smart watches have became increasingly popular for the past few years

Which the rise of smart watch and other wearable devices like Apple, Samsung and Xiaomi, your Fitness App should ultimately be able to connect and synchronize with them. To combine data from fitness trackers and your fitness app, you can use the HealthKit and GoogleFit APIs. Apple Watch and Android smartwatches can be synced using the watchOS and Wear OS operating systems.

2.6. Workouts & exercises

Photos, 3D animated models, and video illustrations can all be used to illustrate exercises and workouts. Allow users to make their own workouts, use a standard set of exercises, or combine the two. You’ll need an organized and searchable content library for this.

2.7. Activity tracking

Your app can obtain activity tracking data in one of two ways: from smartphone sensors or by integrating with any wearable tracker. Smartphones allow your app to show the number of steps taken, the number of stairs climbed, the distance traveled, the speed, and the direction traveled – a noteworthy app can be mentioned here is Samsung Health. To sync with fitness wearables and measure other parameters like heart rate, sleep quality, or body temperature, you’ll need to add third-party APIs. You should also inquire about the parameters that users want to track.

2.8. Audio/video player

Kokkiri | Meditation App | Created By Savvycom

Exercises, workouts, running, yoga classes, meditation — audio/video podcasts with a trainer’s voice, a soundtrack, or a video tutorial can guide you through a variety of fitness activities. Users should be able to leave feedback, bookmark/favorite/like tracks, and return to them later in your fitness app player.

2.9. Product & recipe database

Access to a large database of products and healthy recipes, analysis of nutrition values, and data on ingredients received through a barcode scanner are some of the most compelling features of nutrition apps. Nutrition APIs are required to provide this functionality to users. Allow users to manually add goods to your app that they don’t see.

2.10. Workouts customization

Within your app, users can make their own workouts, meditations, exercise sets, recipes, or diet plans using a customization feature. This feature on paper might take a lot of work but in a user-centric world, your customer should be put in top priority.

2.11. Push notifications & reminders

Push notification is probably the most important feature to have in any app

The right text delivered at the right time will boost an app’s retention rate by three to tenfold. Push notifications for fitness apps should contain no more than 90 characters and be sent between 7 a.m. and 8 a.m. or 12 a.m. and 2 p.m., according to Business of Apps. If your app allows users to customize the timing of reminders and push notifications or in some cases to turn off notifications completely, that’s a plus.

2.12. Recommendations

Machine learning algorithms can be used to provide personalized recommendations based on a user’s preferences and/or viewing history. Artificial intelligence (AI) enables an app to build customized fitness programs with dietary plans, and it has a good chance of outperforming any human personal trainer when it comes to accurately adjusting personal workouts.

2.13. Profile Settings

Users can change their passwords and emails, alter their notification settings, and deactivate their accounts using this feature.

2.14. Support & Customer Services

Users will appreciate a chat feature in a workout app where trainers provide real-time advice or consultations. If your app doesn’t have live chat options, consider combining a chatbot with pre-programmed responses. Nevertheless your app should include contact information that users can have access to at anytime, it not only increase your trust but also help at gathering much needed feedbacks. Consider incorporating fitness app development services to enhance these features.

2.15. Payment feature & method

A secure payment method greatly increase trust

The need for a payment feature is actually self-explainatory. How can you make money from your app if you don’t have it? Integrate a payment gateway into your app, such as PayPal, Visa, etc.

3. Choose The Monetization Model For Your Fitness App

Of course, you must ensure that the fitness application you are creating can provide you with positive results. You can monetize your app in a variety of ways. You should include the following in your fitness app to generate profit or income:

1. Paid Apps – Users must first purchase your fitness app in order to benefit from it. Offering a free trial is one strategy you can use, and if they know the value of your app, there’s a good chance they’ll pay for it or subscribe to keep using it.
2. In-app Purchases – If you want to create a free fitness app for users, you can still make money by encouraging them to buy something in the app, such as an advanced feature setting or premium content that they can only get if they buy the feature.
3. Advertisements – Other fitness companies may be interested in partnering with you and running advertising campaigns in your app, which you can charge a cost-per-mile commission for.
4. Free Apps – It’s a freemium model. Your users can use the basic features of your app for free, but you can charge for the premium features. A premium subscription model is another name for this type of business model. Basic features are free, but advanced fitness plans or personal coaching services are not.

The paid subscription model is, according to Statista, the most useful and profitable monetization model. However, you are free to make your decision based on your company’s objectives and app. In any case, during the discovery phase of development, you can choose a business model for your app.

4. The Cost To Develop A Fitness App

An outsourcing fitness app development company will only give you a rough estimate of your workout app development cost based on their previous experience with similar projects at first. After you’ve gone through the concept validation and UX strategy stages of development, they’ll be able to give you an accurate estimation. Regardless, here at Savvycom we’ll talk about the price.
Your minimum requirements with software outsourcing companies for a fitness app should include:

• QA engineer
• Project manager
• UI/UX designer
• iOS developer
• Android developer
• Backend developer

So, how much does it cost to make a fitness app? Fitness App Development cost on average is $63,770, based on a $35 hourly rate and 1822 hours of work. But that is just for MVP (Minium-viable-product), contact us to get your free consultation now!

5. Fitness Application Development Stages

5.1. Discovery

At this point, your mobile app development team performs preliminary market research to determine whether or not your fitness app idea is marketable, and if so, what can be done to make it so. You’ll brainstorm with a product manager, designer, and project manager to:

• Make a vision for your app that includes challenges, solutions, requirements, rivals, acquisition channels, your app’s unique value proposition, and revenue sources.
• Consider the logic behind your fitness app.
• Make a list of epics based on the main functionality of your app.
• Make a drawing of your prospective customers.
• Create a table with epics and potential user stories.
• Make an idea for your fitness app’s navigation.

5.2. Idea validation

Validation of an idea You analyze problems that your app will be able to solve during the discovery stage. You should check the solutions your app can provide during the idea validation stage. A product/project manager, UI/UX designer, iOS and/or Android developer, backend developer, and quality assurance engineer are all required to accomplish this.

5.3. UX strategy

At this point, your development team is working on a comprehensive app interface and screen relationships. You’ll need to recruit the entire app development team for the UX strategy stage to:

• Create a data structure and interconnections in an information diagram.
• Make a high-fidelity app prototype with an interactive interface that shows where all of your app’s control elements are.
• Make a rough project plan with assignments and deadlines.
• In terms of details and functionality, a high-fidelity prototype is the closest match to the final design.

5.4. Design and development

Your app development backlog is split into sprints during the design and development period, which are typically two weeks long. A project manager’s job is to prioritize tasks, track their progress, and keep track of the backlog.

• The style guide is approved for use in any part of your project during the design concept sprint.
• The team describes the design of functionality, refines documents, and sets up the technical environment for the next sprint during the technical setup sprint.
• The app is developed during a development sprint, and a project manager plans the next sprint and creates documentation.

5.5. Testing and improvement

This stage also necessitates the participation of the entire app development team. When you get a fully functional fitness app, the testing and improvement stage ends, but it resumes if you decide to make a change.

• KPIs for mobile apps are being tracked.
• Taking input from users and analyzing it
• Identifying the faults in an app
• Fixing flaws
• Enhancing the app’s functionality

6. Final Words on Fitness App Development

Remember the following when developing a fitness app:

• To keep attracting and retaining users, provide the best fitness app features.
• In terms of exercise variation, tips, and techniques, workout apps must be adaptable.
• Integrate wearable fitness devices and cooperate with their manufacturers for improved fitness results, not to mention the cost-effectiveness of this method.

Fitness app development, like any other type of app development, can be difficult. It is, nonetheless, effective and worthwhile if you ensure that the fitness app of your choice includes the best features that will be of value to users in the long run. To do so, make sure you can provide people with customized workout plans that are tailored to their specific needs. It’s more likely that your fitness app will stand out and succeed if you have the sincere intention of assisting users in achieving their fitness goals through various features. Consider incorporating yoga app development to broaden the range of fitness activities offered.

What are The Main Types Of Fitness App Development?

• Diet and Nutrition Apps: This type of app works like a tracking device for a specific function, such as eating habits. Users can log the food they eat, and the app helps track how much calories are included in the food they have logged.
• Activity Tracking Apps: This type can keep track of different activities or exercises a user chooses to do. The app tracks the distance traveled, the number of steps taken or climbed, and calories that were burned during workouts.
• Workout Apps: This type serves as a personal trainer or a mimic of a gym or an exercise studio. It provides a specific workout routine or exercises for your fitness requirement, whether you want to gain muscles or simply lose weight.

Step-by-Step on Fitness App Development

Basic steps to create a successful workout or fitness app:

1. Explore the fitness apps market
2. Choose the fitness app type you need 
3. Pick the monetization model
4. Hire a team of professionals. i.e. "Savvycom"
5. Communication between all parties
6. Define fitness app key features
7. Technical documentation and design
8. Application development
9. Quality assurance
10.  Marketing and further updates as well as improvements

Choosing the right software development company is a crucial factor in project success.

How do You Make Money With Fitness App?

There are different ways of monetizing your app. To get profit or income from the fitness app, you can include:

• Paid Apps
• In-app Purchases
• Advertisements
• Free Apps

The problem is that numerous factors can influence app development costs. Do you want to create an app that works on both iOS and Android? What country do you want to hire a development team from? What kind of app do you want to create? The cost of your project will vary greatly depending on the answers to these questions.

As a trusted software development company, we have created over 100 mobile apps since the company first surfaced in 2009. Being a part of the Apple Consultant Network, our article speaks from our own experience. Let’s delve into the most influential factors influencing mobile app costs and provide real-world app cost examples.

With this information, you’ll be able to estimate the cost of developing your mobile app. Anyway, feel free to contact our managers for a more precise estimate or further consultation.

1. What Factors Influence App Development Costs?

As with any complicated app development process, a variety of factors can influence the final cost. Here are the most important ones.

1. App Types (native, cross-platform, hybrid)
2. Platform (iOS, Android) 
3. Design
4. Features/complexity
5. Developer Rate (varies depending on location, hourly rate, and team size)

1.1. Android and/or iOS

Android and iOS are the two most popular mobile operating systems. They aren’t the only ones, but they rule the mobile world, with Android accounting for 69.74% of the market share and iOS accounting for 29.49% as of 2022, according to Statista.

When you begin working with a project manager on the first rough estimate for your app, one of the things you’ll research is the best platform to build for. What mobile devices does your target audience prefer? For example, 55.26% of mobile users in the United States use iOS, whereas in Poland, it is less than 10%. As a result, before deciding on an operating system, you must first research your target market.

If you choose one platform to begin with, the cost difference will be determined primarily by the length of development. iOS and Android development rates are roughly comparable.

Building an Android mobile app typically takes longer because your team will need to test on a wider range of devices.

1.2. Native, cross-platform, or hybrid app

When estimating the cost, the type of app makes the most difference. First, what exactly are these apps?

Native mobile apps are designed exclusively for a single mobile platform. It is impossible for a regular user to run an APK file (executable for Android) on an iPhone or an IPA file (executable for iOS) on an Android device.

Android and iOS use different programming languages and frameworks: Android uses Java and Kotlin, while iOS uses Swift and Objective-C. If your target audience owns both Android and iOS devices and you decide to support both platforms with native apps, you’ll need to create two apps: one for Android and one for iOS.

However, you can build a single app for both platforms (in addition to a web app or a responsive website):

1. App for multiple platforms
2. App hybrid

Cross-platform apps can be written in C# using Xamarin or JavaScript using React Native, while hybrid apps use AngularJS and its Ionic framework. All of these options are compatible with both Android and iOS devices.

You might be thinking right now. Why would I create apps for each platform when I could create a single app for both?

Indeed, developing a hybrid app is faster and less expensive than developing two native apps. However, you should be aware of the disadvantages that cross-platform and hybrid apps bring. Here is a brief comparison:

Despite these disadvantages, there are some popular cross-platform and hybrid apps, such as Skype, Slack, and Instagram. The trick is determining what type of app your company requires. Perhaps the disadvantages will be irrelevant to your application. But perhaps they will.

1.3. Cost of App Design

Great visuals are the foundation of a good app, so it’s no surprise that design can influence the cost of developing an app. Custom icons and design elements, such as screens, logos, and buttons, will take time and money to create. In addition, each screen in an app must be drawn separately. Making custom animations is an entirely different challenge, but they are frequently a winning feature.

However, great design does not always imply complex visuals. Sometimes simplicity is the best solution: depending on what your app does, it may be possible to use standard OS-provided elements that don’t take much time or effort to compose.

When it comes to games, design is an especially important component of the cost of mobile application development.

1.4. Features

The cost of developing an app is largely determined by the number of features — but this is not the only factor.

The complexity of those features can be more influential at times. Some features rely entirely on standard tools and APIs. Others necessitate the use of third-party APIs. A third type necessitates the development of custom algorithms.

It’s something of an industry standard to divide mobile apps into three categories based on complexity:

1. Simple apps have few features, most of which are either fairly standard or relatively simple to implement. Consider this type of app to be a minimum viable product (MVP), or an app with only the features necessary to collect feedback and validate the app idea. Some finished apps are similarly straightforward. Building a simple app can take between 2 and 4 months and cost between $18,000 and $60,000.
2. Medium-complexity mobile apps typically take 6 to 10 months to develop. Apps of medium complexity have more screens, features, and complex features than simple apps. If a simple app has a basic login feature, for example, a medium-complexity app would have Facebook integration. That’s just a simple example, but you get the idea. The cost of developing a medium-complexity app will most likely start at $50,000 and can rise to around $130,000.
3. Complex apps include features such as augmented and virtual reality, bots, payment integration, NFC (near-field communication), and media streaming. Development time can range from 7 months to more than a year, depending on the number of such complex features. The average cost of developing an app with complex features starts at $130,000 and can reach $500,000 or even more.

1.5. Backend

The backend, also known as the server-side, is the part of your app that is invisible to your users but supports some of the more complex features, such as device syncing and push notifications (though the latter can be handled by cloud integrations today). Servers host your databases, custom, and third-party APIs, and other applications.

A backend isn’t required, but if your app requires one, you’ll need to hire a separate developer, such as one who works with Ruby on Rails or Python. And, of course, that developer will raise the price of your app.

1.6. Workload

When asked, “How much does it cost to develop an app?” The answer is typically calculated based on the amount of time required for analysts, developers, designers, and testers to complete all stages of development. However, developers’ work can be calculated in two ways:

1. In hours, which is the traditional unit of measurement for task complexity. Developers estimate the time required to build each feature, allow for unexpected complications, then total the time for all tasks and multiply it by the hourly rate. Easy.
2. In story points, a system that is increasingly being used in Agile development. The idea behind the story points system is that instead of attempting to predict how long it will take to develop a specific feature, the feature (or story) is assigned a number of points for difficulty.

Story points are subjective. The team chooses the simplest story (one with the fewest risks and the least amount of effort) and assigns it to two story points. Then all of the other stories are compared to it and given points in comparison. Typically, stories begin with two points. Not 1, because something is always added or removed during development, and a story worth fewer points than the one previously thought to be the smallest may appear.

1.7. Team Size

It’s difficult to estimate the average cost of developing an app without knowing how many people are involved. After all, these are the people you’re paying to do the work.

A single UI/UX designer is usually sufficient for both iOS and Android apps, but an additional web app may necessitate its own designer. A backend developer is required if your app requires a server-side.

This team can be expanded for faster and more complex development, which will impact app development costs.

1.8. Outsourcing vs. Internal Team

Hiring a team of specialists to sit in your office and work solely on your project is what in-house development entails. Outsourcing means hiring a separate company to do the development for you without having the developers within arm’s reach.

Both options have advantages and disadvantages, but we’ll concentrate on the price differences here. To make a long story short, hosting a team of developers in-house is far more expensive than outsourcing. Having an in-house team means you’ll be paying for the followings:

• Salaries
• Taxes
• Additional office space and workstations
• Software and hardware
• Tools for developers
• Everything you pay for your regular employees’ social benefits and everything else

These costs vary greatly depending on where your office is located. Even general numbers are impossible to state. An in-house team is sometimes justified, especially if you have multiple mobile products that must be constantly updated. In other cases, outsourcing is a better option. And outsourcing can be calculated with some accuracy.

1.9. Development Team’s Location

The geographical location of the company you’re hiring accounts for the majority of the cost of outsourcing. Here is a list of countries organized by average hourly rates, from the most to least expensive:

• North America (the United States and Canada) – $100-150 per hour
• $110 per hour in Australia
• Western Europe (the United Kingdom, Germany, and Austria) — $90 per hour
• $50 per hour in South America
• Eastern Europe (Poland, Ukraine, Romania, and Bulgaria) — $40-50/hour
• $25 – 30 per hour in Asia (Vietnam and the Philippines).
• Egypt, Kenya, and South Africa — $30 per hour

We can estimate the average cost of developing an app in different regions using these approximations. To accomplish this, we simply need to go back in time and recall the average development time for each of the three types of apps:

• Small app for at least two months
• Average 6 months for a medium app
• 8 months to more than a year for a complex app

2. The Unknown Costs of Mobile App Development

The cost of developing an app extends beyond the development process. There may (and almost certainly will) be additional expenses to consider along the way. Here are the five most common hidden costs you may not have considered.

2.1. Upkeep and upgrades

The app’s release is undeniably significant, but it is not the endgame. As long as the app is available in app stores, you must maintain it, respond to user feedback, and provide regular updates. According to the Outsystems Survey, the cost of app maintenance during the first year after launch is approximately 50% of the cost of app development. The second year is usually 25%, and each subsequent year is 15-25%.

Maintenance and updating services typically include the following:

• Optimization of code
• Server enhancements
• Application updates and bug fixes
• New technologies and features
• Support for new operating systems
• Scalability of the app

2.2. Infrastructure expenses

These costs are primarily associated with app hosting on servers. The main goal here is to ensure that your platform can handle traffic spikes following the launch. The scalability requirements of your app will determine the cost of these services. Here is a list of infrastructure fees you may be required to pay:

• Server
• Storage of data
• Content distribution networks
• Integrations
• Tools for development
• Load balancing devices

2.3. Functional expenses

This section’s services are designed to help your app’s functionality. For example, you may need to subscribe to several services and set up third-party integrations. The cost of these services varies according to how many you require, and these expenses frequently include:

• Notifications via push
• Notifications via SMS
• Integration of social media
• Geolocation
• Gateways for payments

2.4. Level of app security

While you can completely delegate the development process to the hired team, there are a few aspects we recommend familiarizing yourself with, one of which is security. You can inquire about the development team’s security practices and discuss the best options for firewall protection, secure transactions, and other critical issues. Making the platform as secure as possible may increase the cost of developing an app, but it is well worth the investment.

2.5. Patenting applications

This legal step will protect your intellectual property rights while also assisting you if other app owners falsely accuse you of intellectual property theft. This must be completed before the app is released to the public.

During the patent application process, you will need to specify what makes your app unique, define the aspects of your app that you want to claim ownership of and provide a visual representation of the app.

The cost will vary depending on the country in which you file your patent application and the type of mobile app. A regular non-provisional patent in the United States, for example, can cost between $2,000 and $5,000.

3. App Development Cost Examples

As evidenced by the preceding, so many factors influence the development process that estimating the cost of creating an app on the spot is difficult. At Mind Studios, we write articles in which we share our insider knowledge of the development of various types of apps, including cost estimates.

Here are several examples of the costs of developing an app for both iOS and Android in 2022, as estimated by The Mind Studios with their $45/hour rate:

• FitBit-like fitness app — $84,600
• Tinder-like dating app — $108,470
• Discord-like VoIP app — $99,950
• $82,440 for an educational app similar to Udemy
• Signal-like messaging app — $100,080
• Headspace-style meditation app — $76,590
• Postmates-style food delivery app — $130,500-148,500
• IKEA Place-like augmented reality furniture app — $91,800-124,200
• $137,700-162,000 for a marketplace app like Etsy or eBay

How much does it cost to create an app you have in mind, and how can you find out? If you know exactly what you want to build, you can either contact an app development company for a rough estimate (which is what our contact page is for) or use an online app cost calculator.

Online cost calculators are straightforward web applications. They allow you to select from a variety of parameters and features, and then automatically calculate a rough estimate based on the rates set by the calculator. When using one, keep in mind that the majority of these calculators estimate the cost very, very roughly. Most are designed to obtain your email address and entice you to contact the development company.

4. Mobile App Development Cost – Interesting Facts

As you may have guessed, when we said numerous factors influence app costs, we weren’t exaggerating. And it’s not just the app development options that matter. Post-launch marketing and maintenance costs, economic conditions in the leading software service providers’ countries, and the evolution of the mobile app market all have an impact on the costs to launch a mobile app.

We’ve compiled a list of statistics about app development costs and the mobile app market in general that you may not be aware of.

• According to the Business of Apps, you should set aside at least $10,000 to plan your app’s go-to-market strategy.
• The cost-per-install (CPI), which is the price the app marketer pays to engage one user, can be used to calculate the cost of marketing. The iOS CPI in 2021 was $3.6 per app install, while the Android CPI was $1.22 per app install. Overall, app marketing can cost up to half the cost of development during the first year after launch.
• The average cost of maintaining software and, in particular, applications is approximately 15-20% of the cost of development.
• According to an Outsystems survey, more than 80% of mobile apps take 3+ months to develop, and 40% of applications take 6+ months to develop.
• According to Market Research Future, the mobile app development market will grow at a compound annual growth rate of at least 23.80% over the next eight years.
• According to Globe Newswire, the global mobile applications market is now worth US$ 112.6 billion and is expected to be worth more than US$ 307 billion by the end of 2031.

Given the last two forecasts on the list, it appears that the global mobile app market will continue to evolve at a rapid pace over the next decade, implying that app development costs will not decrease. So, if you’ve been thinking about creating your own mobile platform, now is the time.

5. Mobile App Development Costs by Types

So, how much money does it take to launch an app? To answer this question, the development team must first understand the type of application you wish to create. There is no one-size-fits-all solution, but each type of mobile app has a standard set of features that will allow the team to create a rough estimate for the project quickly. In the table below, we’ve compiled a list of some of the most common app types. Remember that the estimates are based on a $25 hourly rate.

These are only a few of the most common types of mobile apps. If you have an idea for something unique and even innovative, please contact our business development team. We will gladly listen to your idea and answer all of your questions.

6. How to Reduce App Development Costs

If the prices listed above make you nervous, here’s a list of seven things you can do to cut the cost of mobile app development.

• Make a thorough plan

Can you draw it? Better yet! Bring a clear idea and a way to properly explain it to developers.

Make a list of the app’s technical specifications and requirements.

This can prevent miscommunication, nervous breakdowns, and financial loss. In our previous article, we discussed the significance of requirements.

• Outsource

Using outsourcing development services is significantly less expensive than hiring an in-house team, especially if you hire a team from a region with reasonable hourly rates.

• Beginning with a test

Although it may appear obvious, not everyone does this. Early testing helps you find bugs that, if not fixed quickly, can lead to more bugs in the future, necessitating the rework of entire features.

• Create an MVP/MLP

A minimum viable product, also known as a minimum lovable product, can assist you in gathering data and avoiding mistakes long before you launch.

• Maintain regular contact with developers and check on progress

This will keep you and your team on the same page and help you avoid major mid-development changes or adjustments.

• Find a reliable mobile app development company

It is sometimes better to pay a little more for a development team that is experienced in your field and has a good reputation. Examine previous projects and reviews on professional websites such as Clutch.

7. How to Precisely Estimate App Cost?

At Savvycom, we estimate the cost of app development in six stages:

1. You get in touch with us and tell us about your project.
2. We are contacting you to gather general information.
3. Our project managers conduct preliminary research and develop a rough estimate.
4. We will contact you with our estimate.
5. If everything is in order, we will begin a more in-depth discussion with you about the functionality and content of your app.
6. Based on all available information, we create a more precise estimate.

After the final app development cost estimate, there may be adjustments if new features are added or additional technology is required. Slight cost adjustments are possible with any changes. However, the cost rarely deviates significantly from the final estimate.

Before app development begins, reputable software development firms will usually provide you with a rough estimate of the mobile app development cost. The quote is based on your project description, as well as your business and technical needs. This data is compiled and summarized in a preliminary list of features.

It’s also worth noting that initial estimates and actual application development costs don’t always match up. Aside from the obvious assumption that the estimate was incorrect in the first place, another common cause of the mismatch is a change in the app development scope. This can occur if:

• Midway through the project, the client decides to increase the number of features or make other significant changes.
• The MVP launch or soft launch, during which initial feedback is gathered, indicates that the team needs to make some significant changes or even look for entirely new solutions.

Fortunately, in most cases, these disparities can be avoided by investing time and money in the proper discovery stage. That is the first thing Mind Studios does after accepting a new project. During the discovery stage, we determine whether there is a market need for the app, which features the target audience will require, and how we can differentiate the new product from the competition.

8. App Cost By Stages of Development

The entire app development process can be broken down into four major stages. Let’s look at how much each of them might cost and how much of the overall process they compensate for. Remember that the calculations below are based on a $25 hourly rate and apply to medium-complexity projects like an on-demand delivery app or a fitness app.

1. The discovery stage is when the team analyzes the market and the target audience, calculates the risks, and develops solutions that will help the app succeed.
   Time and cost estimates: 80 hours, $2,000
2. The UI/UX design stage is when a team of UI/UX designers decides on the app’s features and develops its visual concept. The outcomes of this stage are presented in the form of prototypes — visual mockups of each app screen.
   Time and cost estimates: 160 hours, $4,000
3. The development stage is when a team of developers turns the prototypes into a fully functional mobile application. The following estimate includes iOS, Android, and backend development.
   Time and cost estimates: 2080 hours, $52,000
4. Testing is the process by which QA engineers test the app and look for bugs to report to the development team so that they can be fixed.
   Time and cost estimates: 200 hours, $5,000

The project management component is an additional important component of the overall development cost. It is not a stage in and of itself, but rather a tool that assists the client and team in staying on the same page throughout the collaboration. This service takes 200 hours on average and costs $5000 for a medium-complexity project.

9. Conclusion

There are numerous factors that can influence the cost of developing a mobile application, including whether it is native or cross-platform, simple or complex, and developed in North America, Asia, or Eastern Europe. Even with the statistics on app development costs in 2022, making an accurate estimate without knowing the specifics of the project is difficult. However, in this article, we’ve covered the most common types of mobile apps on the market, so you can get an idea of how much your project might cost.

If you’d like a more accurate estimate for a mobile app, our business development team will gladly conduct a free consultation for you.

In this article, we will explore the journey of becoming a super app in Southeast Asia, exemplified by Grab, delving into its business and revenue model, its best app features, as well as strategies for building your own Grab-inspired super app, with insights from leading software development companies.

1. The Growth Cycle Of Grab

• 2012 – The giant offered ride-hailing services under the brand name GrabTaxi in Malaysia.
• 2013 – Expanded its business operation to Singapore, Thailand, and the Philippines.
• 2014 – Expanded to Vietnam and Indonesia. Launched GrabCar in SouthEast Asian countries and GrabBike in Vietnam.
• 2015 – Launched GrabBike in Indonesia to compete with Gojek. Entered logistics delivery service under the name GrabExpress.
• 2016 – Launched GrabPay as an online payment service and GrabFood as an online food delivery service.
• 2017 – Expanded to Myanmar and Cambodia. Acquired Indonesian startup Kudo to gain reach for GrabPay in Indonesia.
• 2018 – Merged with Uber for operating in Southeast Asian countries.
• 2019 – Emerged as a Super App in Southeast Asian countries.
• 2020 – Won digital full bank license in Singapore in a partnership with Singapore Telecommunications Ltd.
• 2021 – Agreed to list on Nasdaq through a merger with special-purpose acquisition company Altimeter Growth Corp securing a valuation of nearly $40 billion.

2. Grab’s Business & Revenue Model Explained

Book a GrabCar to get to work, deliver gifts to your loved ones through GrabExpress and order your dinner with GrabFood – all enabled by one mobile wallet, GrabPay.

2.1. The Business Model of Grab

Grab is an online aggregator with a straightforward yet cutting-edge business model. It provides an online platform for those looking for a ride and connects them with the appropriate people willing to offer ride services. Grab deducts a specific amount from the fare and gives the driver the remaining money.

With 2.8 million drivers and more than 6 million daily rides, Grab is one of the top on-demand companies providing services other than cab rides. The business has grown over time and developed numerous revenue streams, including platforms for ordering food, hotels, and groceries.

The picture below shows how Grab works:

For drivers: 

For passengers:

2.2. The Revenue Model Followed

The customers or passengers who use Grab are who generate its income. The more demand for cab rides increases, the more drivers will register on the platform, leading to a rise in the number of rides. Grab receives a specific commission for each successful ride.

A commission-based business model is used by Grab. It deducts between 16% to 25% of the ride fare as commission and gives the driver the remaining amount. You need to know the crucial partners who round out the Grab model to comprehend how Grab’s on-demand business operates:

Drivers: The Service Providers

With Grab’s lucrative incentives for drivers completing rides, the drivers earn a sizable sum and are prodded to complete more rides in a month.

A driver who completes at least 60 rides is classified as Silver and is qualified to receive car maintenance coupons. To be listed in the Gold category and qualify for lifestyle coupons and vouchers, drivers must complete 150 rides per month. Drivers who complete 300 rides per month fall under the third category, Diamond, which entitles them to medical and health benefits.

Such incentives persuade more people to sign up for the platform as service providers, ultimately boosting revenue.

Passengers: The Consumers

Like any other business, passengers are the lifeline of Grab. The platform won’t be profitable for drivers until there is greater demand for cab rides. Grab therefore makes a diligent effort to develop a secure and open app that results in a flawless user experience. It uses state-of-the-art technology to locate the nearest available ride and bring the driver on board so the passenger can be picked up within minutes after their search.

Grab guarantees a pleasant ride for both passengers and drivers with strict guidelines. Additionally, it has live-tracking features and safety SOS buttons that give passengers peace of mind while traveling. Such additions attract more passengers to the platform.

Investors: The Financial Backbone

Grab receives funding from big-shot investors. In 2020, it raised as much as $856 million in funding from strategic Japanese investors. In 2021, Grab was listed on Nasdaq through a merger with special-purpose acquisition company Altimeter Growth Corp securing a valuation of nearly $40 billion. 

Additionally, Grab collaborates with businesses for marketing and partnerships that contribute to its revenue source. It, however, does not promote any discount offers for riders and sticks to earning a minimum commitment from the ride fare. 

3. Understanding The Rise Of The Grab SuperApp

3.1. How it emerged as a Super App?

Grab, which started as an on-demand taxi business under the name GrabTaxi has grown out to be a platform where one can hire anything that runs on wheels. The platform offers more than ten types of on-demand ride-hailing services, including taxis, private cars, bike taxis, carpooling, bike pooling, shuttle services, etc. 

The giant expanded its operations in not just the ride-hailing sector but also set foot in new business verticals such as food delivery, grocery shopping, logistics delivery, on-demand video platform, hotel booking, ticket purchasing, financial services, etc.

Thus, Grab started offering multiple on-demand services under one roof, similar to the concept of Gojek, and emerged as a super app in Southeast Asian countries. 

3.2. A look into the different services offered by Grab

a/ GrabPay

Grab launched its QR code-based mobile payment application named GrabPay in January 2016. The service is currently available in six nations of Southeast Asia, namely Singapore, Malaysia, Vietnam, Thailand, Indonesia, and the Philippines. This app is used to pay for availing their ride-hailing services, food delivery services, in-store purchases, and fund transfers.

You can use the app for purchasing on e-commerce platforms as well. Also, it devised a strategy named ‘Grow with Grab’s roadmap’ with which Grab has forayed into providing loans to SMEs and insurance services for drivers in Singapore. 

Adding to this, GrabPay extended its financial services towards offering a post-paid and installment payment option in Singapore in the name “Pay later”.  With this option on board, the users can pay for Grab services at the month-end without an additional cost.

b/ GrabFood

As a part of its strategy to emerge as a super app, Grab started offering food delivery services under the name GrabFood in May 2018. The service is now provided to more than 200 cities across several Southeast Asian countries and makes use of GrabPay for checkout. This sector has given a chance for Grab driver-partners to double their income by becoming GrabFood delivery partners. Also, it made use of the cloud kitchen concept to expand its operations in the cities it serves.

c/ GrabExpress

Following the success of GrabFood, the giant launched its grocery delivery service GrabExpress in July 2018, in collaboration with the Southeast Asian grocery delivery service provider, HappyFresh. The users can choose the groceries they need from the range of products listed on GrabExpress. Similar to GrabFood, Grab driver-partners are chosen for grocery delivery in GrabExpress as well.

4. Growth Hacks To Learn From Grab

Grab was able to expand its operations to various business verticals due to the techniques it uses to retain their customer base. Here we have listed the learnings one should gain from the trending super app Grab.

• • Customers see the service provider, i.e., Grab, as the go-to place for all issues that occurred while obtaining the platform’s service. Even though Grab does not directly employ the drivers or delivery partners, they take as much responsibility as possible for problems related to them. 
  • Though many businesses have stopped using word of mouth (WOM) to promote their brand, Grab made maximum use of it by leveraging social media and email marketing tools. Every quarter, they run online and on-ground surveys to track the WOM among its users. 
  • Going hyper-local is their primary strength. They focus on brand awareness and offline marketing campaigns to engage local users. They modify their service or collaborate with local service providers to provide an enhanced user experience. 
  • The giant is exceptionally responsive to its customers not just to their problems, but as a brand. Thus, users turn up to brands that listen to them and take care of their issues. 
  • One of the key USPs of Grab is user safety. Also, it puts a lot of effort into ensuring the quality of the services provided. They partner only with professionals to offer the services listed on their platform.

5. How Much Does It Cost To Build A SuperApp Like Grab?

The cost to build an app like Grab depends on multiple factors which are very customizable. So, the final price of creating an app like Grab can vary in an extensive range. Consider consulting with an experienced software outsourcing company to better understand cost-effective strategies and efficient development practices.

To count the price of the project, it should be divided into compartments such as:

• Design of the App
• App Platform (Android/iOS/Hybrid)
• Development of the Backend
• Web Development (Included or Not)
• Project Management
• Quality Assurance Tests

It is impossible to speak about the cost of a mobile app at a fixed universal price. The price of these factors mentioned above also varies as per the app development project’s complexity and needs. The cost of developing an app like Grab could range anywhere from $35,000 to $100,000.

6. What Are The Best App Features Of Grab?

Before learning how to make an app like Grab or even figuring out the cost of building an app like Grab, you need to understand the digital app solution. The Grab app consists of:

• App for Clients – where anyone can conveniently order a ride.
• App for Drivers – the app for drivers who offer ride service.
• Administrative Dashboard Panel – the control web panel to manage drivers and orders.

Further, we explore the best app features of each of these digital product modules.

Basic Features of Grab Client App:

• Charge Calculations
• Cash Payments
• Cashless Payments
• Your Travel Route In Real-Time and secure
• Client Profile Including Ride History
• Free Call/Chat with The Driver on Grab
• Ongoing Driver Tracking with ETA
• Quick and Easy Registration with Mobile Number
• Select your pick-up and objective, then book a cab
• Access coupon codes for discounts 
• Share insight via Driver Reviews and Ratings
• Transportation/Shipping via Grab Express
• Save frequently visited Locations For Quick Access
• Share your route with family and friends for safety

Basic Features of the Grab Driver App:

• Invitation to Rides
• Start/End Trips
• Quick registration and enrollment
• Start/End of the Day’s Duty
• Collection of Payments (Cash and Cashless)
• Accept/Reject Trips
• Review back The Clients
• Collections and History of Riding
• Can submit a new mobile phone application
• Pick-up and Drop Items via GrabExpress
• EMI Management alternative for the Grab Mobile

Grab Taxi’s Admin Web-Panel Features:

• • Create Sub-Admins
  • Multi-Level Admin Access
  • Complete Dashboard
  • Driver/Passenger Management
  • Analytics & Reports
  • God’s Eye View
  • View Transaction History
  • Block Driver/Passenger
  • Add/Edit/Delete Various Profiles
  • Manage Payment Accounts
  • Offers and Coupon Code Management
  • Reviews and Rating Management
  • Conveyances Management with GrabExpress

7. How To Build An App Like Grab?

Now that you know what the best app features to have in a taxi app similar to Grab are, it’s time to learn how to build an app like Grab.

Step 1: Find The Right App Development Company

If you don’t have an in-house app development team or your team is insufficient in either manpower or skill, you could choose to outsource to a trusted tech partner. So, the first step is to find an excellent app development company that knows how to create an app like Grab.

Step 2: Choose The Right Resources Of The App Company

Let’s say you found the best app development company. Now, any good app development firm will have a large resource pool, more than you need. Hence, building the right team from the resource pool is the next big step.

Being a non-technical founder, interviewing technical personnel could feel intimidating. So, a good practice would be to interview the right project manager, hire a top official or the CTO of the company for this task, and manage your project.

Step 3: First Get The App Design Ready

Once you have your team, the next step in Grab taxi app development is the app’s design. Once you’ve decided on the look and feel of the app and all its screens, the designers will work on them and forward the final version ahead for development.

Step 4: Back-end & Front-end Development

The most prolonged and most significant step in this process is the app development itself. To be specific, the back-end and front-end development of the app. Two teams of developers simultaneously create the back-end and the front-end of the taxi app like Grab.

Step 5: Testing The App

Once the Grab-like app of yours is ready and functioning, it’s time to test it thoroughly. Several other tests are done to ensure that your taxi app is working perfectly from start to finish.

Step 6: Launch & Updating

Once the tests and reworks are all done, it is time to launch the app into the market. Usually, the app development company will launch it for you onto app stores like Google Play Store and Apple’s App Store.

Now the next and final step is to keep innovating and bringing something new. A business is only good if it stays relevant. So, your app should continuously be updated with the latest technology, app design, and features.

8. Outsource Your App Development In Vietnam, Why Not?

Grab has scaled up as a super app by setting foot in almost all business verticals after gaining a strong user base in the ride-hailing industry. You can also expand or start your own business by following the strategies of Grab.  

All you need is a Grab-like app that can be personalized according to your business structure. With an on-demand app on board, you can bring all possible businesses that can be taken on-demand under a single roof. 

In recent years, app development outsourcing with software development companies in Vietnam has been a popular option for companies worldwide. This is due to its competitive outsourcing pricing, highly qualified IT workforce, and top tech expertise.

• According to TopDev’s report, Vietnam has about 400.000 IT Enginners and over 50.000 graduated IT Students from over 153 IT Institutions per year.
• Vietnam ranks 29th in terms of Skillvalue Worldwide in Developer Skills Chart Of Skill Value Report in 2018.
• Top 06 worldwide in Developer Skills Charts Of Topcoder Report in 2016.
• Rank 23rd worldwide in Developer Skills Charts of Hackerrank’s Report in 2016

For over a decade, Savvycom has successfully delivered 400+ successful app development projects for both international and domestic clients in a variety of industries, such as E-commerce, Fintech, Healthcare, and Transport & Logistics. Turn your super app idea into reality with Savvycom right today!

How does the Grab app function?

• Book Ride: With just two taps, the rider can easily book his rider. To get an estimate of the ride fare, they just need to enter the pick-up and drop-off locations.
• Get a Driver: The Grab app will assist the user in locating the closest driver.
• Track The Driver in Real-time: Users can track the driver's location in real-time and view the estimated time of arrival.
• Arrive Safely: For added security, a rider can let their loved ones know where they are going and the ride details.

How to make money using an app like Grab?

An app like Grab can be used to generate income in a variety of ways. Here, we've listed a few strategies you can use to make money. Check out each of these approaches.

• Base fare 
• Drivers' commission
• Trip costs paid by passengers
• Costs associated with canceled travel
• Booking fee (or safe rides fee)
• Premium transportation
• Brand partnerships and advertising
• Leasing to drivers

Which are the key features of the Grab admin panel?

Here are some of the key features of the Grab admin panel that you can also take into account when developing your own Grab-inspired app.

• Users/Drivers Management
• Driver Tracking in Real-time 
• Payments Tracking Module (Cash & Online)
• Ride Tracking & Management
• Reports & Analytics
• Pricing Management
• Offers & Coupon Code Management
• Reviews & Rating Management
• Deliveries Management With GrabExpress

• Check out these ideas to find your best match IT Outsourcing company in a non-English country.

1. Significant language and cultural disparities

One barrier to an effective outsourcing experience is the very real difference between a typical employee in the U.S. and even the best offshore personnel. There are significant language, cultural and educational disparities between the English-speaking countries and the developing countries where outsourcing projects are often sent. These disparities have a marked impact on the ability of many offshore teams to fully understand the nuances of a project and to execute effectively.
While some software engineers may have learned English and been trained in their areas in English, they may still not understand English colloquial terms or design concepts that are, in fact, foreign to them. The difference in culture and upbringing can also be an issue, especially if they know English only in technical terms.
In some cases, companies will have an employee whose first language is English working with the staff on-site in that country in order to resolve any communication issues. This person can be the translator, so to speak, when questions arise or to be sure that ideas are conveyed clearly. Yet, not many companies are likely to hire them only for communication issues.

The differences in language and culture between English-speaking and non-English countries are important barriers that you need to consider before choosing an IT Outsourcing service. (Source: Internet.)

2. An extremely difficult working environment

Despite the fact that outsourcing can often provide quality labour at a drastically reduced cost, there are sometimes moral issues that accompany this type of labour.
Software development service providers offering IT Outsourcing often operate on a non-24/7 basis, potentially hindering their success if they cannot provide timely assistance to clients. Consequently, employees engaged in outsourcing projects may find themselves facing unfamiliar overtime demands, also known as OT. In cases where projects fail to meet client expectations, overtime becomes a routine necessity. Workers may also endure exceptionally long workweeks, up to eighty hours per week, including weekends due to timezone disparities. Additionally, the demanding workloads frequently spill into employees’ personal lives as they strive to meet deadlines.
This has a significant impact on health, family and social relationships. Spending most of their time to complete the tasks has them no time left to take care of themselves, not even their close relationships. Working overtime might gain a large amount of money, yet, some shameless companies do not pay adequately for OT. It is definitely something to consider when it comes to making long-term working decisions for people who want to be a part of this industry. Supposed they choose to barter time for money, how long would they stick to the job that exhausted them?

3. Security and trust issues with IT Outsourcing to a not native-English agency

When you outsource your IT to a third-party, you depend on them to comply with security and regulatory measures. Cloud computing services share their resources with other tenants. This sharing helps to save on costs and makes the IT scalable, but it does mean that other companies will be using some of the same servers and the same devices. This creates security concerns that need to be addressed, especially if the company has strict compliance requirements.
Some IT outsourcing companies in non-English countries are unreliable partners, because of the conflicting situation and political in their nations. For example, Ukraine is in a state of war, and it has a serious governability problem. This fact carries with it a number of implications to Ukraine’s capacity for sustainable infrastructure use. Hackers and spies are everywhere. What company would put its intellectual secrets in a harmful way, just to save a few bucks in the short term? Internet infrastructure is not as good as the EU, US, Israel, Australia, New Zealand and other English-speaking countries.
Hence, to choose an IT Outsourcing company that can assure your security requirements, remember to check out their background, certificates such as ISO 27001:2013 (as Savvycom achieved) and do not forget to ask them to sign on the NDA (non-disclosure agreement).

Never forget asking for NDA before discussing your ideas and projects. (Source: Internet.)

4. Quality of work could suffer if you do not assign tasks to a reliable agency

All of the benefits that come with outsourcing jobs to a foreign country go away if the quality of the work is not up to your standards. When IT outsourcing to a non-English country, most of them might locate really far from you. A contract would be signed through emailing, Skype without seeing who the third-party company really is.
Taking India for instance, if you look at the number of outsourcing companies in India, you will have your head reeling. There are too many of them, while only a few of them provide quality work. If the quality of work must be at par with your expectations and business goals, don’t simply go by what their websites say. What is on the social network might be exaggerated to attract more clients.
One must always discuss the quality requirements before agreeing to a software outsourcing relationship. If you do not receive the expected quality, then there must be some avenue of rescue that you can follow to ensure the problem gets fixed. Without these protections, the outcome for specific tasks may be quite underwhelming.

5. How people in Savvycom overcome IT Outsourcing challenges?

Founded in 2009 and run by Ms Van Dang – a brilliant and ambitious businesswoman, Savvycom has steadily grown and become a trusted partner with worldwide companies and organisations.
Since our potential clients are international, Savvycom is one of the first IT outsourcing agencies in Vietnam using English as our official language at work. As a result, we are positively confident to comprehend your ideas and transfer them into a satisfactory product in numerous fields. Many of us had the chance to work or study overseas, therefore, we fully competent in working in different times zones globally and can account for fluctuations and time shifts. With 92% of returning clients, Savvycom has strived constantly to delivery more mobile applications worldwide.
In terms of working culture, building a strong relationship among members not only as co-workers but also as good friends is also an important thing to increase our teamwork ability as well as understand each other’s strength. Therefore, we can determine and arrange the best match developers for clients during the projects. Applying Agile method in all departments is a way to reduce a lot of operation costs in Savvycom. Agile software development methodology is strictly used in Savvycom software producing process to make sure that every in-charge persons can get involved and distribute their comment and ideas to improve the quality of the software products.
Although the IT outsourcing to a non-English country issue will be argued back and forth until the technology is no longer relevant, Savvycom has steadily improved the working environment of the employees to deliver more successful applications to clients. What seems to be trendy in business strategy isn’t always a good strategy, especially in the non-English country. However, with all of our achievements working with over 100 international clients, we believe that every dollar spent on outsourcing at our company will worth.

Point of sale (POS) technology has significantly benefited from the advancements in online and cloud-based systems in recent years. With the increasing mobility of tools, POS platforms have embraced this evolution by offering mobile payment solutions that operate independently of fixed terminals.

However, despite these advancements, many companies still rely on their traditional, stationary POS terminals, preferring to maintain familiarity and the status quo. It’s crucial for businesses to understand the distinctions between traditional and cloud-based POS systems to make informed decisions that align with their needs. Let’s explore the variances between Traditional POS Systems and Mobile POS Systems, particularly from the perspective of a software development company.

Traditional vs. Mobile POS System

Traditional POS System

Traditional POS System

A traditional POS system, also known as “on-premise” or “legacy”, runs on closed networks and the data is stored on local servers. A simple analogy of this is storing your family photos in your computer at home, which cannot be accessed from anywhere else.

What Is A Mobile POS System

Mobile POS System

The Mobile POS system, also known as cloud-based or Software as a Service POS (SaaS-POS), operates via the web and is hosted on a cloud service, enabling online data accessibility. For instance, all your data is stored in a centralized location such as Google Drive or Dropbox, allowing for access and sharing from any internet-connected device. This exemplifies the convenience and flexibility offered by software development as a service.

Comparison between Traditional and Mobile POS Systems

Data accessibility

Traditional:
The data can only be accessed on-site, meaning that you have to be physically present in a business facility to make any changes to the menu or items, to check employee clock-ins, to see sales report.
Mobile:
Many newer POS platforms include dynamic data analysis and reporting so you can assess the data from anywhere, anytime. The manager can monitor all of the reporting in real-time from anywhere with internet access using any device such as desktop, tablet, mobile, or laptop. Moreover, he can make any changes online, giving remote accessibility and eliminating the need to be there in person to do everything.

Cost efficiency

Traditional:
Traditional terminals are the excellent cash register and help collect sales data, but not much else. Traditional POS systems usually have high upfront costs. In addition, they require a maintenance fee because it performs remotely, which requires additional labour and time. Additionally, in case the system crashes, the cost of re-installation can be expensive.
Mobile:
On the other hands, Mobile POS is often cheaper because the installation is not as complex and it can be installed on existing computers, tablets or smartphones. The software is also updated automatically by the service providers, in which the cost is already included in the monthly or yearly charges. However, in the long-run, the cost may be as expensive as traditional POS because the size of the business can affect the cost of the subscription.

Frequent updates

Traditional:
For many legacy systems, the server needs to be updated manually on-site. These legacy systems need to be updated manually, so the POS software is only upgraded once per year at best.
Mobile:
For SaaS POS systems, the provider implements the updates automatically and remotely, meaning there is no need for on-site visits to update the system. They usually update more frequently than the on-premise systems, and it updates in real-time, ensuring that you are always utilizing the current version of the software.

Innovative Hardware

Traditional:
The hardware of the traditional system is usually quite big, bulky, and heavy. Additionally, POS terminals are sold separately. The most common size of the traditional POS screen is 15 inches. It is not portable but it may prevent theft.
Mobile:
Cloud-based POS, unlike the traditional POS, uses portable devices, such as tablets and mobile phones and has very few hardware requirements. Moreover, SaaS POS system such as Ambur let you install their services on any internet-connected device, and allow for integrating credit card readers, receipt printers, and other tools as you need.

Integrated Systems

Traditional:
For on-premise POS systems, it is often difficult to integrate new modules, and features, and updates. This makes it harder to customize the system, and the business has to use it as is.
Mobile:
In the case of the SaaS POS system, it is possible to fully integrate higher functionality modules and connect with third-party software programs to customize the POS according to the business’s needs. Moreover, advanced cloud-based systems feature CRM for restaurants solutions that allow owners to influence loyalty programs, online ordering, and email marketing based on historical customer data.

Crave Vend case study for Mobile POS System by Savvycom

Traditional POS terminals are not going away anytime soon, however, mobile POS systems are an excellent alternative for a small business in need of an agile and comprehensive point of sale solution. The needs of each business are different, but each business should have a POS system that matches their requirements and values. Taking these POS systems into consideration, Savvycom has designed and developed the Crave Vend app, which enables users to discover fantastic deals while promoting local businesses in the era of digital technology. Crave Vend allows a lot of helpful functions such as locate food merchants, view merchants rich menu, securely order for delivery or pickup, save favourite items and restaurants. Here are some features of Crave Vend:

• • Ultimate Online Ordering. This feature helps increase sales, productivity and reduces waiting time for customers: A win-win for customers & merchants. Online orders go directly to your POS system to confirm and print to the kitchen printer. No more call from a third party, or customers during the busy time.
  • MercuryPay. This is the fast, reliable, secure payment gateway. Moreover, Mercury accepts the most common payment types and card brands, while enjoying reliable uptime, real-time transaction viewing, same day or next day funding capability and promotional payment options.
  • Flexible Menu Management. Crave Vend provides easy, quickly add/ remove items, one-touch disable/ enable items. All menu information is synchronized to the cloud for coordinated changes across the entire system including the online menu from a single device. This facilitates merchants to control inventory, get the real-time email and push notification alert.