Why Successful Business Owners are Moving Towards On-Demand Marketplace?
“Immediate Provisioning” is the premise of the on-demand marketplace, where the supply of goods is managed through an efficient and intuitive digital network that works on existing supply chain infrastructure. A complex network, the on-demand marketplace is revolutionizing commercial behaviour, offering them immediate order fulfilment, and long-lasting satisfaction.
If you believe that on-demand will transform the way people transact in the near future, think again! It is already happening now. People have already shifted towards on-demand businesses at an accelerated pace.
It all started with a single category, which gave birth to the on-demand space. Today, it is cluttered with numerous companies and multiple industries namely television shows, groceries, cabs services, food deliveries etc. The on-demand services are neither a trend nor a fad; they are here to stay and offer real-time services unlike any other in the marketplace.
Let’s look at some quick stats that tell more about the on-demand businesses
- The on-demand economy spend equals $57.6 Bn
- It has a customer base of around 22.4 Mn
- A lot of firms have raised funding which equals $6.5 Bn
Now, when you look at stats like this, you know you are talking about serious business.
Image Credit: NBCnews
Reason for Rapid Growth in On-demand Services
If you have studied the on-demand marketplace, it is not just about consumers, but also about the businesses. Both are equally involved in this marketplace, wherein one offers resources (could be manpower, goods, extra space etc. ) while the other consumes the goods/services being offered.
Uber is a classic example of on-demand services. It disrupted the entire cab industry with its on-demand cab calling service, which allows passengers and cab drivers to communicate over a mobile app instantly in real-time. Many other companies such as AirBnb, Elance, etc. have disrupted the on-demand business space immensely.
The question that would come to your mind at this instant would be: the reason for such a mind-boggling growth in on-demand services.
As we talked earlier, immediate the premise on which this service works, is what attracts the consumers to it. From email to messaging, everything is instant for the end consumer of the Internet generation. The growing appetite for speed and convenience among the consumer has given way to the on-demand services.
Need groceries? Get the app, call for the groceries, and sit back & relax. Similarly, if you want to watch some good shows on your laptop, all you need to do is open the app and order some. In no time will you be watching the shows. Currently, it is just being adopted by the tech-savvy, who are also the early-adopters of the on-demand service. Give the on-demand marketplace time, and it will cause a paradigm shift similar to what Internet created not so long-time back.
The companies in the on-demand segment are constantly developing new business models that help them innovate and create new offerings. The new business models offer services that are unique in a cost-effective manner, and these models are highly scalable, which is another reason why this economy is seeing a surge.
The idea is to accommodate freelance labor and offer services or goods that can appease the appetite for convenience among the consumers. The services that are derived using consumer behaviour and their purchasing patterns will evolve in this age and time where smartphone has revolutionized the Internet era.
Though the on-demand space is still young, the amount of growth it has observed in terms of real revenue and the influx of capital from the institutional investors indicate the revolutionary force it will create on the economy.
The Future of On-demand Economy
The future of on-demand economy is bright and in-tandem with the consumer needs. There will be large businesses that will expand to new markets and then there will be those that offer unique, niche services, which are targeted to specific consumer segment. Scalability is inherent to the business model, which will help the businesses flourish in mature markets. Consolidation of two or more on-demand businesses will accelerate growth in the segments they are targeting, which will revolutionize the underlying economy.
You will see more complementary, non-competitive businesses collaborating towards better business growth. Currently, the on-demand businesses are solving the logistics and technological challenges, and creating a differentiation; in the near future the design and the business model will help these businesses differentiate.
With such immense potential, on-demand economy is definitely here to stay. You can look out for untapped potential and hidden gaps in the industry that can be resolved with on-demand businesses. The idea of speed and convenience thrills the consumer more, which is why they will prefer on-demand businesses that help them consume in real-time over other marketplaces.
With the immense growth potential offered, and the early growth stage at which the on-demand is at present, this is definitely your time to move ahead with your on-demand business idea. Build a successful business with the apt on-demand business model now, keeping the consumer needs in mind.
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