Overview of the global online on-demand home services market
The US online on-demand home services sector is $600 billion. It is growing steadily during the forecast period and post a CAGR of almost 49% by 2021 according to a report by the New York Times.
The present generation constitutes the largest consumers of the online on-demand home services since they are also the largest consumers of the Internet. The busy lifestyle of the consumers is inducing them to prefer services right on demand will result in a surge in the market’s growth in the coming years.
The growth of this market is also triggered by the growth and accessibility of the smartphone market by which the customers acquire information and book services. The on-demand home services bridge the gap between the real world services and instant online services to provide efficient services. The on-demand home services can be handyman on-demand, cleaning service app, chores app, home maintenance services and on-demand cleaning services. Since the consumer’s loyalty is dependent upon the service received, the service providers have the need to maintain good quality service consistently.
Competitive landscape and key vendors
The on-demand home service market is fragmented due to the presence of a large number of small vendors and market is intensely competitive. To survive and succeed in this competitive environment, vendors must differentiate their products for the customers through a clear and unique value proposition.
Consequently, the vendors with better interface and design can be easily differentiated by the customer in the market.
The leading vendors in the market are:
- Hello Alfred
The other prominent vendors in the market are Airtasker, AskForTask, CLEANLY, Laurel & Wolf, MyClean, Paintzen, SERVIZ, ServiceWhale, Taskbob, and TaskEasy.
From changing customer expectations to the increasing need for technology—all signs point to 2018 being a key year to differentiate yourself from the competition.
Keeping up with consumers:
As more and more millennials purchase their first homes, the expectation Uber has set for on-demand services is percolating all aspects of day-to-day life. Same day service is the new norm. With Amazon and Google entering the space, one can bet the traditional ways of operating will be redundant in the years to come. The gig economy will take hold of the home services industry in the coming years.
Technology is key to beat out the competition:
As per Forbes, by 2025, 75% of the workforce will be comprised of millennials who have grown up with the internet and smartphones. Every year that goes by, technology continues to be large imperative for small businesses. We have gotten to the point now where one cannot run businesses without the help of software and our smartphones. The companies that are poised to succeed in the coming years are those that are always looking for that competitive edge in the technology while keeping an eye on how to best serve their clients.
Staying in touch with customers:
Stay in touch with clients on regular basis is a must in the on-demand home service sector. Use of emails, texts to use the phone a lot more. According to Kevin Reynolds, Owner, Handmaid Cleaning, “New studies show that 56% of people would rather message than call a business for customer service. That’s HUGE! As professional cleaning service owners, we need to make sure that we are set up and equipped to receive messages from multiple platforms—namely SMS and Facebook Messenger.”
Former luxuries are now necessities:
Millennials are going to run their house like a business. They’re not willing to spend their weekends cleaning. They’re booking snow removal, outsourcing their laundry, hiring cleaners. With increased spending capacity, it’s not a luxury, but it’s a necessity.
On-demand services with its speed and convenience are definitely accelerating trade and increasing profitability for businesses. It has totally overhauled the traditional business methods and techniques, with its immediate resolution to every problem that you may probably face.
The on-demand economy has created an entirely new section of workers that is somewhere between self-employment and working for a specific company. This section was born out of the inefficiency that existed due to gaps between the services desired and the resources available. The on-demand home services prove to be quite resourceful and affordable, thus making it easy for customers to adopt and highly efficient for the businesses.
On-demand home services solution with Yelo
Yelo has developed tons of on-demand solution for many industries, including home services. Our developers are well-versed in developing on-demand apps and are responsible for the uberfication of many in the service industry.
If you are a startup who needs assistance to build your own app, just send us a quick inquiry and our on-demand app development experts will be more than happy to help you.
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