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

On Demand Home Services (1)

With the growth and accessibility of the smartphone market, customers can acquire information and book services. That is why the on demand home services platform is hot-buzz nowadays for every entrepreneur. On-demand giants like Uber, Handy, AWS, Netflix are a huge success 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, the on-demand apps have become the need of a person and so does on demand home services. As consumers are becoming more comfortable with the idea of booking services through mobile phone, home services appear to be the next big market.

The American Home service sector is worth $600 billion. Market research analysts have predicted the growth of the global online on demand home services market at a CAGR of 49% approximately. With 2.53 billion smartphone users which are estimated to reach 2.87 billion by 2020, On Demand Platform is not a thing to be ignored.

While Amazon is raising the bar for ‘on demand home services’ platform by instigating new technological drifts into their services. With the launch of Alexa, customers can ask questions and get the recommendation of products.

On the other hand, Handy recently has added the feature which allows customers to pay a tip to the service provider through the app. These transforming trends have completely overtaken traditional trends to avail home services.

The investment in the On-demand sector has increased by 316%, making it a billion-dollar industry which 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 the installation of smart home devices. Amazon home services are supported by their Happiness Guarantee which ensures providing quality services to the customers. Failing to which, the company pays compensation to the consumer.

On the other hand, Handy pricing model is based on ‘peak pricing’ model where high prices are anticipated when demand increases. Through its curation of local service providers, Handy acts as a middleman and provides 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 and many more. It seems that 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.

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On Demand Startup Fundraising

Growth Strategies for On Demand Home Services

Understand customer’s needs

Customers are supreme for every organization. So, you need thorough analysis and understanding of customers needs through market surveys, research, feedbacks of the product. A clear goal or target accelerates the growth of your company.

American Companies like Handy and Hello Alfred minimalizes pains of customers by providing quality services for daily chores and schedule 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 2 years of its launch. 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 go ahead and establish a niche in the market.

 Understand key players

When understanding customer’s need is crucial for every organization, understanding of competitors and supply chain is equally important. In-Depth knowledge of these will help you gain more insights into your business strategy.

Your competitors can help you to 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 the 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 deliver 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 which 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 major element in furnishing the overall expansion of the market.

The ease to access 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 certain 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.

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Challenges in the way of OnDemand Home Services

Adequate pricing model and reliable services are one of the challenges posed to digital home services. Another challenge faced by on demand apps is security issues and frauds associated with it.

Pricing Model

The main challenge faced by on demand home services industry is their pricing model. As the on demand home services industry is in a preliminary phase, so there is no standardized pricing model formulated to acquire and retent its consumers to cater to their demands and needs.

While other on-demand companies like Uber and Airbnb focuses on acquiring and retention of customers and provides hefty discounts and offers to lure them.


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

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


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 a no more a secret that reliability is a key factor to the success of any services offered online.

These services have given rise to this sector at another level, and also making on demand home services app is 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 the 5 years of existence, we have been able to help companies realize to their goals on the mobile platform.

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On Demand Economy in 2018