Imagine a world where everything is available at your fingertips: Welcome to the on-demand business economy.
People these days are so busy with their routine and work-related tasks. They are always looking for solutions that save time and energy. The on-demand economy offers the same. Whether you are looking for a cab, food, grocery, movie, medicine, these apps have it all. Consumers are drawn towards digital solutions and are used to being served instantly.
There also seems to be a shift in consumer choice and attitude; they now ready to pay high prices for the convenience. Technology evolved, and these days we have the facility to avail everything at our doorsteps and even receive it as per our own schedule.
Today, we have apps that let you watch movies; you have apps to get your food delivered at home or offices, have apps to order medicine, and have apps to get your clothes washed. In short, on-demand business making individuals’ lives so easy as it was never before.
If you want to get an attractive yield on your capital, there would be no better option than investing in an on-demand economy. Still, confused? Let’s have a look at the reasons.
Why Startups Must Prefer On-demand Business Model
Living in this connected era, no business can survive without a strong digital presence. Increasing penetration of smartphones and the Internet have forced traditional business owners to move towards the digital platform.
In simple terms, the on-demand business model is nothing but a combination of advanced technology and offline services that provide instant doorstep services at cost-effective rates.
As per the recent study conducted by Harvard Business Review, the On-demand economy is attracting more than 23.4 million consumers, and the spending is about $57.6 billion. This figure itself indicates the on-demand economy is growing and promising a bright future. Here we have addressed reasons that encourage startup owners to invest in it.
On-demand Business Is Boon for Startups
The increasing trend of online services and deliveries is proof that this trend will not be fed soon.
People these days use their valuable time in a productive way rather than wasting it on miscellaneous works. Folks expect products and services to be delivered at their doorsteps within the least possible time, and this approach has given birth to an on-demand economy.
As a business owner if you want to make your business profitable, adopting digital solutions is the best way to increase your startup’s visibility. Let’s have a look at the potential benefits that your startup can reap from an on-demand economy.
1. Offer Convenience
Convenience comes first when we are talking about the on-demand economy.
As we have said earlier, today, people can spend a few bucks more if they are being served promptly. Startups can take advantage of this mindset and offer quick solutions because modern people always like smart solutions to resolve their daily needs.
You may wonder that online food delivery will soon hit the $200B mark, and it continues to grow because it offers convenience to customers. Moreover, they get a wide range of options to choose from. Consumers no longer need to wait for hours outside of restaurants; they open an app like foodpanda and place an order.
This level of convenience attracts people and allows business owners to boost their sales and profit altogether. The major factor contributing to this transition could be hectic work life and having multiple options to order from.
2. Enormous Options
This is another prominent reason that makes the on-demand economy successful.
When you open any on-demand app, you will be shocked to find enormous options for a single service that probably can not be found in traditional business. Whether it is food, services, taxis- on-demand apps have them all.
Such an extensive range of options will be helpful for customers. It automatically increases sales and allows business owners to expand their business reach.
3. Ensure Profitability
The ultimate goal of any business owner is to earn maximum profit by delivering excellent customer solutions.
The on-demand economy has grown a lot in recent times because of smartphone penetration and the Internet in our daily lives. Thus, if you want to revamp your business or launch a new business, investing in an on-demand economy will surely give you the desired outcomes.
Business owners only need to embrace digital solutions in their day-to-day activities; it streamlines and automates all transactions. It saves costs on manual things; eventually, it maximizes ROI.
With the customers’ changing mindset, many existing business owners have started implementing on-demand business models, which is profitable for both parties’ customers and the company.
4. Power Of Technological Advancements
Technological advancements and digitalization have changed the dynamics of businesses. The first step of the digital revolution in the on-demand economy came through the Internet.
The increasing usage of smartphones showed a massive boom. Today, people are more comfortable with smartphones than anything else; it means they easily get to know how to use an on-demand application and how it works.
Placing a food order online is a normal task that people of all ages know and are even comfortable with. As a result, business owners can maximize their productivity as they only need to develop user-friendly applications with the help of cutting-edge technologies.
5. Lower Capital Investment
Last but not least, but a startup does not require hefty capital to launch its business. Mobile applications are the lifeblood of the on-demand business. It means business owners only need to invest in digital solutions such as web and application development.
For instance, if you want to launch an online food delivery business, you have a scalable mobile application and a responsive website to get orders. It saves money spent on rent and other infrastructure-related expenses.
That is why the on-demand economy is gaining popularity since technology, and digital solutions fulfill all the consumer needs of both customers and service providers. Your business idea should be unique that meets customer’s expectations, and you will surely get better results and conversions.
On-Demand marketplaces’ rise has enabled business owners to access a large customer base by pulling out their smartphones.
Popular On-demand Startups Which Reshaped Modern World
Many industries are running successfully by adopting an on-demand economy, and here we have examples of the top on-demand service applications that have reshaped the modern world.
The online food delivery market is disrupted by Zomato that was launched in India. Its enticing features and comfort attract people to place orders online.
Due to constant innovations, Zomato has expanded its services in more than eight countries. The app itself has more than 90K restaurants and offers a digital menu to consumers.
Real-time tracking, push notification, smooth payment system, etc. attracts customers to order food online. Besides, restaurant owners also get the benefit as they can increase online visibility without spending that much amount.
There is no single person in this world who is not familiar with the name Uber. Uber became a link between riders who need a cab and the drivers who want to earn extra money.
Many transportation companies have already embraced the Uber business model in order to increase profit on their investment.
Grocery is the daily need of people. Instacart gets rid of people from standing in a long queue at the mall.
Instacart is an on-demand grocery application facilitating doorstep grocery deliveries and other home essentials across the USA. This technology-driven business model encourages people to order groceries online and get them delivered to their doorstep in no time.
Being considered a leader in the n-demand economy, Instacart has received massive attention and huge funding from different companies.
When we hear the word “entertainment,” we can not forget Netflix. Netflix is a personal cinema that allows customers to watch films and shows as per their preferences and timings.
Due to this flexibility, Netflix is another successful on-demand business model that disrupted the entertainment industry and earned huge profits.
Future Of On-demand Economy
From the above discussion, it is clear now that people are obsessed with these applications as it saves time and allows them to get everything at their desired time.
With the rise of the on-demand trend, we can say that this economy is here to stay for a long time and will shine like the sun in the upcoming years. Some of the benefits the on-demand economy provide to you, and your businesses are:
- Widening your business reach
- Increase customer satisfaction, which results in higher profits
- Allow business owners to connect with customers in a personal way.
On-demand business is redefining how people consume things, from ordering food to ride a cab or online grocery deliveries, the on-demand apps making their way, and offering comfort to people. It makes the customer stay hooked with your business and allows you to deliver a personalized experience.
Every startup owner, investor, or developer wishes to create a solution that eases the user’s lives and adds value to their business. If you are willing to invest in an on-demand economy, this is the right time because people appreciate brands that enable instant access to online services and products.
However, before starting your journey, be prepared to overcome challenges that you may face and come up with a life-changing experience that stunned the modern world and take your business to the next level.
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Deep is a serial entrepreneur and blogger who wishes to support the ground transportation industries with his writings. He covers up all the known and unknown facts around the industry and puts it together to create trending articles across different websites. He also includes details on the latest trends, fun facts, business expectations, strategies, and models to follow to achieve success in the transportation sector.