On Demand Home Services- Growth, Strategy, Opportunities and Challenges

Updated On: August 24, 2022

Updated By: appsrhino



With the growth and accessibility of the smartphone market, customers can acquire information and book services. The on-demand home services platform is hot-buzz nowadays for every entrepreneur. On-demand giants like Uber, Handy, AWS, and Netflix are huge successes and have changed their fate by joining the on-demand platform.

And why not? In this fast progressing world, where one has mere time to sleep, on-demand apps have become the need of a person, and so do on-demand home services. As consumers are becoming more comfortable with booking services through mobile phones, home services appear to be the next big market.

While Amazon is raising the bar for the 'on-demand home services' platform by instigating new technological drifts into their services, customers can ask questions and get recommendations for products with the launch of Alexa.

The investment in the On-demand sector has increased by 316%, making it a billion-dollar industry that is successfully providing effective, seamless, and positive experiences to the customers.

Read this Technavio Report to know more about On-Demand Home Services Market.


You can take the example of Handy, TaskRabbit, and Takl. These let customers buy, review and schedule professional services varying from routine cleaning to installing smart home devices. Their Happiness Guarantee supports Amazon home services, which ensures providing quality services to the customers. Failing to which, the company pays compensation to the consumer.

On the other hand, the Handy pricing model is based on the 'peak pricing' model, where high prices are anticipated when demand increases. Handy acts as a middleman by curating local service providers and providing the customer with the nearest and most available business to take care of one's needs.

Handy provides various services like plumbing, deep cleaning, installing smart home devices, etc. These services have disrupted the on-demand paradigm, making on-demand products and services as easy to dial-up as an Uber ride or a GrubHub meal.


Growth Strategies for On-Demand Home Services

Understand customer's needs

Customers are supreme for every organization. So, it would help if you had a thorough analysis and understanding of customers' needs through market surveys, research, and feedback on the product. A clear goal or target accelerates the growth of your company.

American Companies like Handy and Hello Alfred minimalize customers' pains by providing quality services for daily chores and scheduling professional services. They sell on-demand home services like Cleaning, TV mounting, installation of smart devices, and many more. These ventures are attaining a high level of customer satisfaction.

So, Handy has earned a total revenue of $1 million per week just after its launch two years. On the other hand, Hello Alfred has raised around $1 million within one year of its launch. So, if your goals and targets are clear & you have understood the target market very well, you can establish a niche in the market.

Understand key players

Understanding customers' needs are crucial for every organization; understand competitors and the supply chain. In-Depth knowledge of these will help you gain more insights into your business strategy.

Your competitors can help you quickly understand the trendiest features available in the marketplace. By optimizing your supply chain network, you'll reach your customers in the quickest possible way.

Deliver services on time

Keeping in view the root of the emergence of needs of customers, your products should be delivered at or before the promised time. Happy Customers automatically promotes your brand like wildfire. So, make sure to provide quality service and have them at the right time.

Opportunities in On-Demand Home Services

According to Transparency Market Research, the home services market is fragmented into North America, Latin America, Europe, Asia Pacific, Middle East & Africa. North America and Europe are two key territories that dominate the home services market due to effortless access to products and services, the advancement of technology, and faster payment options.

Increasing demands of customers to get a variety of services ranging from medicines to watching movies from the comfort zones of their homes offers many blooming opportunities for new companies to cater to these demands. This has been a significant element in furnishing the market's overall expansion.

The ease of access to products and services has boosted the technology to build a bridge between consumers' needs and service providers. It has enabled customers to get high-quality services at a specific price through the on-demand platform. As stated earlier, the increase in usage of smartphones has also triggered the acceptability of on-demand home services.


Challenges in the way of On-Demand Home Services

Adequate pricing models and reliable services are challenges posed to digital home services. Another challenge faced by on-demand apps is security issues and fraud associated with them.

Pricing Model

The main challenge faced by the on-demand home services industry is its pricing model. As the on-demand home services industry is in a preliminary phase, no standardized pricing model is formulated to acquire and retent its consumers to cater to their demands and needs. While other on-demand companies like Uber and Airbnb focus on acquiring and retaining customers and providing hefty discounts and offers to lure them.


Another factor that you need to focus on is providing reliable service. Constant, dependable service is required to keep customers coming, repeatedly buying services from your platform. Many on-demand home services ventures have failed by not providing reliable and quality services to their customers.

Take the example of Homejoy; when customers were not happy with the quality of services, last-minute cancellations and delayed arrival of cleaners led to the company's downfall.


On-demand home services will be the next big thing in the coming future. Many companies are disrupting the platform, and many are inspired to join the board. With the world having embraced online services, it's no more a secret that reliability is a critical factor in the success of any services offered online. These services have given rise to this sector at another level and also made on-demand home services apps as easy to dial-up as an Uber ride or a GrubHub meal.

AppsRhino is a mobile app development company that develops an app for entrepreneurs, small businesses, and large enterprises. In its five years of existence, we have been able to help companies realize their goals on the mobile platform.

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