Are On-Demand Apps Still a Strong Business Model in 2026?

On-demand platforms have expanded beyond food delivery and transportation into areas such as home services, healthcare, logistics, professional services, and local businesses.

From a business and investment perspective, I’m curious about what actually determines whether an on-demand app can become profitable.

Is the biggest factor the size of the target market, customer acquisition cost, provider availability, commission structure, or the ability to achieve enough order volume in a specific geographic area?

I’m also wondering whether niche on-demand platforms have a better opportunity than trying to compete with large general-purpose marketplaces. For example, could focusing on a specialized service with repeat customers create stronger unit economics?

For anyone who has evaluated or invested in an on-demand marketplace, which metrics would you look at first before deciding whether the business model is worth pursuing?