On Demand Economy
As much the term sounds complicated, the on demand economy is a simple topic. on demand economy is that industry which provides immediate services or good through a digital marketplace as per users convenience and time. the traditional business is shifting towards this sector as the rise of modern life is taking place. Nobody really has enough time anymore to wait for the services/goods being provided. On Demand industry revolves around the important time of your customer. There are today thousands of company benefiting out of this economy as gig economy keeps on growing. Industries that use on demand economy are travel industry, reservation services, e-commerce, grocery services, logistics management, taxi services, retail services etc.
The on demand economy works by taking a service like food services, taxi services etc and making them available through a digital platform. This helps in efficient accessibility than ever. There are many popular on demand services that are successful today-these include UBER, LYFT, UBEREATS, INSTACART, AMAZONFRESH, URBANCLAP. These platforms focus on the need of the modern customer. Thus, they are on the top of their game.
The main benefit of the on demand economy would be ease and convenience for both the user and the provider. Companies have seen that on demand economies help them with cost efficiency, scalability, profitability, and change of traditional labor system. It would be obvious that big companies have already started investing in it before it is too late. On Demand economy is here to stay and is growing at tremendous rates. On Demand market revenue was 57 billion dollar for 2017 and will grow to 335 billion dollars! this calls for innovators who believe that this sort of industry is the future of businesses. Even the usage by customers has increased to 58% in 2017. These number will certainly grow as 2018 is ending and we enter another year of growth and opportunities. To know more about the on demand economy in 2018, visit this article.
What 2019 brings
42% of Americans have already experienced the use of on demand service. This usage will grow in the next year as digitization takes place at bigger levels. Technology is changing the way we live and people will be more invested in it than before. 2019 will be the year for businesses to target these new potential customers who are stepping into this sector. The number of mobile phone users is going to pass 5 billion marks as of 2019. Adding to this, the fact that 55% part of the civilization is part of the urban life has opened doors for entrepreneurs who are thinking about this industry. Businesses are realizing the potential in diverse industries and consumers are embracing the benefits of this new economy.
Enterprises are trying to find ways to make users engaged with their services. And it is pressurizing as new platforms emerge every day, so personalization of these services will benefit them. Businesses will be forced to connect their customers with personalized effect. The complex user behavior needs to be tackled with enhanced conversations and connection. Better, smarter customer services would be the way to go. Chatbots will certainly be a part of this transformation. The chatbots that are being developed today are getting intelligent than ever. The chatbot industry would help in so many ways in 2019 for the gig economy.
The on demand industry has so many subsets depending on the services provided. There are laundry services, taxi service, tutor services, medicinal services, home services etc-.2019 will be the year of overall gig economy but some sectors will benefit more than others. Taxi market is a very important segment of this economy. Transportation runs the global economy. Hence this incorporates a larger part than other services. Innovators will be able to change the way we travel. Taxi services will be modernized than before. These online platforms are getting a bigger share in the market in front of the traditional rental services. This is causing the investors to focus the most on this sector.
Food and Others:
Food related on demand services is going to better than before. More than 25% of Britishers order food once a week and 50% usually once a month. Even valuations for new food delivery companies is rising rapidly. However, The UK and US aren’t the only markets where the new food delivery services are experiencing growth. Some of the unknown markets where these services are growing at a greater pace are Korea, Saudi Arabia, and Brazil. Trends show that food, grocery, and logistics delivery system is gonna grow in 2019 at bigger rates. this is due to predicted urbanization, mobile phone usage, and better business models. This sector is going to incorporate a huger part of the pie in the next ear.2019 is a year of bigger opportunities for these sectors. The employment this is going to create will promote the on-demand sector as a whole.
Trends are showing that home services system has the potential to grow at bigger rates next year. With our lives becoming busier, convenience and ease is the topmost priority of every other potential user. Services like plumbing, electricity, repairing, beauty services are predicted by experts to help the users of tomorrow. the on demand industry is going to affect the home services sector that will help 2019 to be more productive year than before. Statistics showcase that more millennials and younger gen. are entering the market. the onset of house development is causing the need for faster home services. This digital platform will benefit next year for these services. More of your competitors are sure to focus their home services business for the on demand economy.
Want to be prepared for 2019?
The future of the on demand economy is brighter than before. Thus, you can let the online economy accelerate your business. 2019 will be a year for businesses and enterprises to decide whether to ignore this growth factor or embrace the developments. An idea builds a business. Do have an idea to invest in this sector? Talk to Us!
AppsRhino is an app development company that focus on-demand apps. We help businesses grow and will guide you along the way. on demand economy – looks easy but in reality is not that easy! you would require a focused team who believes in your vision. At AppsRhino, we work hard to make your on demand idea a real success.