The on-demand economy is supplanting traditional business models faster than we anticipated. The administrations combined with two or three applications empower the provisioning of products and enterprises.
With the rise of new companies like Postmates (anything accessible locally), JustPark (parking), task rabbit (handyman) and Airbnb (hospitality), Instacart (grocery), this surely working out as expected.
Did you know? 42% or 86.5 Million Americans have utilized one of the on-demand services, a review report about the on-demand economy by Burson-Marsteller, the Aspen Institute, and Time indicate.
No doubt investment has been filling these new companies, attempting to disturb each customary plan of action they could and carry it into the on-demand economy.
This may appear to be a difficult task with a plan of action for a business that has been going solid for in excess of a couple of hundreds of years, but with venture capitalists knocking the door of every startup that has “on-demand” joined to its business model.
According to BIA/Kelsey, the absolute US transaction value(charges paid by customers) of the on-demand economy developed from $22 billion of every 2018 to $34 billion a year ago and it’s relied upon to reach $57 billion before the current year’s over. That’s more than 50% YoY growth.
Most on-demand service providers give their services on the client’s area as in Uber and Lyft, many offer the device to device as computerized substance as on account of Netflix.
Let’s go through the 5 best industries which are being disrupted by the on-demand wave and how you can make millions (if not billions) of dollars with your own mobile-based stage in one of them.
- Food Delivery Business
The food business has been called an evergreen one. Doorstep food delivery has rapidly turned out to be mainstream among Indian consumers. There are three main ventures to handling food delivery as a business – searching or ordering(either for ingredients or cooked meals), preparing, and delivering. Earlier, one needed to visit a store to purchase groceries. Prepared meals were served in restaurants with no home delivery option. But these traditional models have been disrupted by the on-demand economy completely.
Furthermore, even when it comes to existing restaurants, the on-demand economy has incorporated great with the food industry. It has not quite recently added comfort to clients’ everyday lives, empowering them to order food the manner in which they want but has also helped restaurants in growing to increasingly geographical locations without investing in infrastructure.
Today there are platforms that empower people to order groceries online and have them delivered to their doorstep. Presently, there’s no compelling reason to dress up and drive to a restaurant to have food as anybody can have their most loved food delivered to them with a tap on the phone call. Moreover, If a family wants to cook, at that point there are platforms that provide a new recipe with fresh ingredients delivered at their home. What’s more, indeed, if one needs to go to a restaurant and appreciate sustenance, at that point, there are stages that encourage table appointments.
Today there are platforms that enable people to order groceries online and have them delivered at their doorstep. Now, there’s no need to dress up and drive to a restaurant to have meals as anyone can have their favorite meals delivered to them with a tap on the phone. Moreover, if a family loves to cook then there are platforms that provide a new recipe with fresh ingredients delivered at their home. And yes, if one wants to go to a restaurant and enjoy food then there are platforms that facilitate table bookings also.
This industry has come a long way in terms of technology. Here’s a list of some new business models which can be adopted in the on-demand food industry with examples of successful companies already running on them:
This industry has progressed significantly as far as innovation. Here’s a list of some new business models which can be embraced in the on-demand food industry with instances of successful organizations effectively running on them:
- On-Demand Delivery
- Instacart (Grocery Delivery)
- OpenTable(Online Restaurant Table Booking System)
- Cooked Meal Delivery
- Postmate, Doordash (Aggregate restaurant that doesn’t deliver on our platform and offer logistics and customer to them.)
2. Transportation and Travel
The transportation sector possesses an on-demand economy thanks to the likes of Uber and Airbnb. This is where the dominant part of the VC funding goes into.
Apparently, over 75% of financing has gone into only 5 “on-demand” new businesses and four of those are into Travel and transportation.
Taxis or cabs have totally shifted to the on-demand models. Many existing taxi organizations have launched their own applications making it simple for their customers to book a cab. However, other ground transportation organizations have not been taken advantage of yet. Apart from the cabs, innovation-driven stages have made it possible for people to lease their own car on an hourly premise and carpooling platforms are empowering people to travel together and save fuel. Such stages have checked in heavy financing from investors for further development. Here are a couple of verticals for business visionaries who are interested in participating in an on-demand transportation business:
- Lyft(Ride Sharing app)
- Uber(Cabs on demand)
- Zoomcar(Rental Platform for cars)
- Luxe(On-demand valet parking)
With an increasing number of people using such platforms, ground transportation as a business will accomplish extraordinary height as far as customer base and income.
In case you’re worried about the investment that goes into setting up the IT foundation and related applications, at that point we offer a readymade taxi solution that works like Uber.
3. Healthcare Industry
One industry that was in urgent need of on-demand services was Healthcare. Prior, the patients needed to visit medical clinics or hospitals and hold up in endless lines to meet the doctor.
This sometimes proved to be crucial in case of emergency. Apart from that, the Pharmacy would remain open only for limited hours.
The presentation of on-demand services in Healthcare; it has without any help managed and settled the majority of the issues. Presently medicines are simply a question of a few clicks from the patient.
You should simply, click on your required medication, pay for it, and you would get it on your doorsteps. Besides, the application additionally enables you to book meetings with the doctors and to get your medicinal reports.
There are applications that furnish you with each medical requirement. Some of them are as below.
- Doctor On-Demand
- HealthTap( Doctor appointment Booking app)
- Pillpack(Online medicines delivery app)
4. Homecare Services
Talented service experts don’t trust that customers will call them any longer. Customers searching for expert help have also stopped depending on the Yellow Pages or other online catalogs to discover telephone numbers. Skilled Labours have, thus, quit posting their telephone numbers across various different websites and channels also but instead select to enlist on to customized stages where customers are actually looking for them i.e. the on-demand platforms.
The primary purpose behind customers shifting to these stages is that they are tweaked to make the searching, booking, and making payments simple. Some live instances of on-demand models in the service business include:
- VenturePact (A platform connecting customer and skilled software firms to develop software updates.)
- Mopp(Aggregate freelancers and sell their services to customers.)
- Wischen(Hire a team of professionals and manage bookings.)
Irrespective of regulatory hurdles surrounding the business model, I believe the on-demand economy will steer through the challenges and emerge successfully since the fundamentals on both sides of the marketplace are strong. Expect to see many entrepreneurial initiatives in this space across the globe and traditional industries leveraging the on-demand technology to improve customer experience in the next five years.
Subscribe to our newsletter
'Jungleworks Entrepreneur's Den' to get access to the latest industry & product insights.