The rise of the on-demand services are changing supply chains, competition, regulation, and, most importantly, consumer habits. The on-demand economy is nothing but a digital marketplace that offers immediate access to goods or services to consumers.
A study by the Harvard Business Review showed that the on-demand service is attracting more than 22.4 million consumers yearly and $57.6 billion in spending. That’s huge!
A lot of sectors are being affected by the popularity of on-demand services. Let’s discuss the category of business in which on-demand service is going to explode and take over the traditional ways of doing things.
List of Top 7 On-Demand Services in 2020
1. Food Delivery Service
Who doesn’t like to have pizza delivered to their doorstep after having a tiring day?
The growth rate of this year is approximately 12.09%, which is only expected to grow at a CAGR of 15 percent for the next five years.
It is growing as consumer demand for convenient food ordering. The market has many food delivery players operating on a global level, such as Foodpanda, Deliveroo, UberEats, and more. New on-demand food delivery players are attracting major investor’s attention.
2. Healthcare Service
The healthcare sector comes into one of the largest enterprises, which can immensely benefit from technological advancement.
The biggest challenge of the healthcare industry has been to become accessible to all needy people. You would still see patients waiting in the never-ending queues outside hospitals to meet the doctor.
However, this scenario is changing with the development of on-demand health care services. Now you can have medicines delivered to your doorstep in just a matter of few clicks. You can also book an appointment with the doctors using the mobile application and receive your medical reports.
Moreover, services like Doctors on Demand enables you to have video chats with doctors for virtual consultations.
3. Logistic Service
The on-demand economy has had quite an impact on the courier or logistics sector. It has vastly enhanced its service, thanks to technology. The real-time tracking feature enables you to track your cargo right from the moment when it shipped to the time it reached the destination.
It also played a significant role in bringing transparency to the pricing structure. Other than that, it allows for in-app messaging between suppliers and customers, quick payment gateways, and more.
There are many on-demand applications like Uber Freight, Postmates, GetWagon, and more that are successfully delivering on-demand logistics service.
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4. Taxi Service
Did you know that sector transportation comes in second position with 7.3 million monthly consumers and $5.6 billion in annual spending?
Thanks to Uber and other prominent players in the market like Lyft and Juno, on-demand tax service is highly appreciated today.
The technology has enabled the use of GPS and map navigation that allows users to catch a cab easily.
Besides, taxi on-demand apps like Uber offer an in-app communication system between drivers and consumers. And after the trip is over, both drivers and clients can share ratings and reviews.
5. Home Services
Home or professional service has undergone a massive transformation following the rise in the on-demand economy.
Services like house cleaning, applications, repair, babysitting, pest control, plumbing, carpentry, and more are more popular than ever. You can now use all of these services sitting at home with just a few clicks.
There was a time when these emergency services were not readily available. But with the integration of home service with on-demand services, it has become quick. You don’t have to go from place to place in search of services.
Some of the big players in home on-demand services today are Handy, TaskRabbit, and more.
6. E-commerce Sector
Well, the online marketplace is the largest category of on-demand app development, with 16.3 million consumers each month spending almost $36 billion annually.
If you look at it, there was no E-commerce sector before the on-demand services came into the picture. E-commerce development companies evolved after people started demanding services at their doorsteps.
You can now find everything online, including clothing, home decor items, home appliances, electronic items, and more. On-demand apps enable users to buy and sell online anything they want.
Walmart, Amazon, eBay — they are the giant E-commerce players who have a strong presence in the online marketplace.
7. Beauty Services
Earlier, the idea of having a manicure/pedicure or getting a haircut at home may sound ridiculous. But now, some people use these services regularly.
Companies like Glamsquad allows customers to order a visit from a beauty professional. Another service named UrbanClap lets you book all kinds of beauty service sitting at your home.
Beauty services, including home and freelancer service, the total spending accounts for $8.1 billion in spending each year. You can now imagine how much people are demanding the on-demand beauty service at home.
The on-demand economy can’t be miss. It is growing and will continue to disrupt many industries with new ways of engaging customers. Existing companies will need to embrace this late shift to the on-demand economy and transform their service for their growth.