An Introduction of On-demand Economy
You must have heard about this term one time or the other. Well, as the name suggests, the on-demand economy is a task-based workplace system in which clients and vendors connect only when a particular project needs to be delivered.
It is also called access economy, here, digital and technology companies cater to customer demands by offering immediate access to products and services.
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Convenient, fast, and efficient, the on-demand economy is gaining ground at a rapid pace. As per statistics, annually, around 22.4 million consumers are opting for this system – incurring spends at a staggering amount of around $58 billion. (Source)
In the online sector, approximately 16.3 million buyers spend about $36 billion annually in this marketplace. So the scope is vast, and this is why even on demand, apps are rapidly gaining ground.(Source)
So, what are on-demand apps?
On-demand apps offer that much-required interlinking between businesses and clients. Available over a gamut of sectors, these software tools are used by buyers to gain instant access to multiple products or services. When you come to the service sector, on-demand apps are penetrating this market at a fast pace.
Some of the services covered here are grocery, laundry, food delivery, car rentals, or personal health. You need is a smartphone, and one can access these services within the click of a button.
And hence, online platforms are using the software not only to establish their reach and reputation but also to increase their customer base.
The benefits of on-demand apps are unlimited. With so many vendors developing these applications, you have access to a wide range of customized mobile app solutions.
This also means that you have several apps that offer a variety of features. All you need to do is to do the proper research so that you invest in the correct mobile app for your company to increase ROI and enhance value addition.
On-demand Economy & The service Industry
When do you think about the on-demand services market, which are the names that first strike your mind? Uber, Netflix, and Airbnb, among others, right? Well, adding to these names are multiple other service providers that take the help of on-demand app development services.
Implementation of this technology closes that gap between customers and vendors and leads to minimizing friction, especially in the digital world.
So, which are the on-demand service sectors that can benefit most from the on-demand economy?
1. Transportation and Travel Industry
If you speak about which service sector dominates the on-demand economy, then it is no doubt the travel and transportation industry. Examples?
Uber and Airbnb. And maybe, if you are thinking of launching a company similar to these ventures, you can take inspiration from their model.
Taking a cue from Uber is none other than China’s Didi Chuxing and India’s Ola. Again, another example is Yellow Taxi, the on-demand app that follows a SaaS model, coupled with a little bit of customization and brand renovation.
2. Food Delivery Sector
The next entry on our list is the food delivery industry, which has been reaping immense benefits from on-demand delivery apps. Currently, the busy consumer does not have time to wait to take away counters or cook elaborate meals.
So they opt for food delivery services that bring the kitchen to the doorstep. There are currently 15.3 million employees in the restaurant industry.(Source) In an on-demand economy, on-demand app providers take the order from customers and route them to several eateries.
The restaurant then takes care of the delivery process. Other vendors have their network to organize the entire delivery logistics. As a result, they can connect to any restaurant, which does not have its delivery network. Those with their delivery logistics can garner revenue by charging both the eatery and the customer.
3. Healthcare Industry
Currently, yet another industry that’s taking advantage of the on-demand economy is healthcare, with patients no longer needing to visit hospitals, stand in long queues, or panic when there’s an emergency.
On-demand apps in healthcare enable patients to buy medicines online and get them delivered at their door.
It offers additional provisions to book online appointments and get reports delivered in no time. Some of the leading on-demand apps in the healthcare industry are Doctor on Demand, Healthtap, Pillpack, among others
4. Professional services
Even the professional services sectors had undergone massive transformation by reaping the benefits of the on-demand economy. Some of the services covered here are mechanic, carpentry, electrician, pest control, salon services, household tasks, babysitting, and plumbing, to cite a few examples.
This not only generates additional employment options but also allows customers to choose the best professionals to get the job done. Some cases are Handy, Venturapact, Serviz, etc.
Of course, how can we miss out on e-commerce from this list? Nowadays, we buy almost everything online, ranging from clothing, home appliances, and accessories, to home decor items.
On-demand apps have given the option to retailers to cater to a gamut of buyers. To cite some examples of e-commerce giants who have used on-demand apps to the maximum include Amazon, Walmart, The Home Depot, etc.
All of us have used courier services one time or the other. With the rise of the on-demand economy, even the logistics sector is applying for its benefits. Live customer notifications and SMS courier tracking enable buyers to keep track of their delivery.
Companies can now book a delivery vessel any time of the day and set-up a door-to-door pickup. Some of the popular on-demand apps in logistics are Deliv, Postmates, GetWagon, and TruckBuddy.
On-demand apps are becoming the preferred choice rapidly among digital platforms because they are practical and efficient, offering services to consumers directly.
You can choose any facility within the click of a few buttons, and hence, this business model is extremely convenient. In the coming years, we won’t be surprised if several new services opt to use the advantages of the on-demand economy.