Want to book a cab? Open an app
Want to appoint a maid? Open an app
Want groceries at the door? Open an app
Want a tutor online? Open an app
Now you must be wonder how the solution to all problems lies in an app. Well, that’s how the on-demand economy works. The on-demand business is growing and has replaced traditional business models in a blink of eyes. The increasing penetration of mobile phones and the Internet is making on-demand apps popular as it makes people’s daily lives easy as it was never before.
Besides, the consumer’s attitude and behavior also have shifted in the last couple of years. These days, consumers are ready to pay anything for convenience as they are living hectic lifestyles. With the advanced digital solutions, people now fulfill their daily tasks online, whether it is food, cab, handyman, grocery, or even doctor.
The on-demand business model can also be known as the “gig economy” as it fulfills the demand for goods and services instantly. Not so long ago, Uber disrupted the taxi industry, and today serves more than 78 countries across the globe. Other than Uber, many on-demand companies are successful in the market, such as Instacart, Udemy, Zomato, Airbnb, etc.
If you are unaware of how the on-demand business model works and why it got so popular in a short time. This post is for you.
What is On-demand Economy
The on-demand economy differs from the traditional business model. The on-demand business model enables people to order products and services using their smartphones with immediate access to goods and services.
In simple words, the on-demand economy is an advanced technology that fulfills user’s needs through digital platforms in real-time. Look at some on-demand business fascinating figures that will shock you.
- A report released by Harvard Business Review, the on-demand economy is attracting 22.4 million people yearly who spend $57.8 billion.
- The annual growth rate of the on-demand marketplace is supposed to grow at 6%, which will result in a market value of more than $25B by 2023.
- The online food delivery market will hit $161.74 billion by the year 2023.
- More than 280 companies are associated with the on-demand service sector.
- The rise of the on-demand economy is expected to reach $335 billion by 2025.
The above-mentioned facts and figures show that the on-demand business model is here to stay for a long time. With the launch of Uber, the on-demand concept has reshaped many industries. Moreover, advanced technologies and digital tools act as a game-changer.
The always “online” and the digital era are key factors behind the successful models of the on-demand economy.
Mobile Applications Are the Heart Of On-demand Business
A strong customer base is always the backbone of any business model that can not be overlooked. No doubt, the on-demand business model is successful, but the sole reason behind its success is user-friendly apps. Usage of on-demand apps is increasing because it fills the gap between consumer and service providers digitally.
Entrepreneurs are developing custom apps that ensure a great user experience. Make sure your app should have modern features that guarantee success and allow you to connect with more people. Features such as:
- Real-time tracking
- Smooth payment process
- Push notifications
- Ratings and reviews
- Integrate features based on your requirement
No matter in which sector you are associated, the features mentioned above will encourage your consumers to use your app again and again. According to the latest
PwC report, the market for on-demand apps is estimated to reach $335 billion by 2025. Hence, investing in on-demand business will give you a promising return in the future.
Why Do People Love Using On-Demand Apps?
With the extreme usage of social media and technological advancements, people now have the facility to order everything at their fingertips. It means on-demand apps have the power to satisfy user’s needs, wants, and desires in real-time.
As per the report from HBR, more than 59% of consumers use on-demand apps, out of them, 22% are baby-boomers, and 29% are GenX. The following are some reasons why people love using on-demand apps.
- Extensive range of products and services under one roof
- Attractive deals and discounts
- Saves time and money
- Customers can track order status in real-time
- Faster access to products and services
- Personalized experience and best customer services at affordable prices.
Above are the reasons that are contributing to the overall success of the on-demand economy. For app development companies, delivering the best user experience without any glitching should be the priority.
Significant Industries That Have Flourished On-demand Economy
Undoubtedly, mobile apps have made people’s lives easy as they can access anything with just a few clicks. Right from on-demand education to doctor to food to groceries, these apps have transformed the world. Let’s have a look at major industries that have flourished in the on-demand world.
The online food delivery industry has always been growing as people now preferring online food ordering instead of dine-ins. The online food industry will hit the $200B mark in the coming years, Forbes said. Besides, more and more restaurant owners are developing an app like UberEats with modern features in order to get a higher return on their investment.
The healthcare industry is becoming digital as more and more advanced healthcare apps help people to meet their needs. With the help of these apps, people no longer need to commute long routes as they can consult doctors online as per their needs. Due to these apps, people now can identify symptoms of the disease at an early stage. Several apps allow people to order medicine online and get it delivered at their doorsteps.
Numerous learning apps help students to solve their queries in no time. These on-demand apps are helping students and making learning more interactive as it was never before. If students feel hesitation in classrooms, they can use these apps. Exciting videos, quizzes, keep students hooked to lectures, and make learning easy.
Uber was the first on-demand taxi booking app that has made its mark and gave birth to the on-demand economy. Transportation is another sector that has undergone several changes in its processes as now consumers book flights and taxis online. The trend of mobile apps in the transportation industry is massive because you can ride with a single mouse click.
Successful On-demand Apps That Have Shaken The World
Now you must be clear about how the on-demand economy works and why people are using it. Now let’s see a few on-demand apps that have shaken the world and allowed people to access products and services faster.
When we hear the word, “on-demand” the first name that blinks in our mind is Uber. Uber is a popular ride-sharing app that allows commuters to book or schedule a ride as per their preferences. It offers various types of services that are affordable; people can also choose the vehicle as per their choice.
TaskRabbit is one of the best online marketplaces that connects service providers with consumers. This app allows users to book household services such as cleaning, repairing, and maintenance.
Netflix is another popular on-demand app that entertains people with the flexibility to watch shows and movies whenever wherever they want.
Wrapping It Up
With access to every single service using a couple of clicks, the on-demand business model has made its way. If you are a startup, then adopting this business model can be a proven goldmine for you because who does not like to enjoy services at their doorstep by sitting on their couch?
Deep is an aspiring entrepreneur and Co-founder of Elluminati Inc. Deep having led 75+ startups on the right path with their information-admiring entrepreneurial skill and guidelines. Along with that he loves to craft content on topics including on-demand economy, entrepreneurship, technology trends and many more.