The Rise of On-demand home services
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The Rise of On-demand home services

With the instant gratification of the fulfillment of needs through the internet and mobile apps, the on-demand 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 pacing world, where one has mere time to sleep, the on-demand apps are utmost needs of a person.

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 Amercian Home service sector is worth $600 billion. Market research analysts have predicted the growth of 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 of ‘home services-on demand’ 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%. On-demand home services is a multi-billion dollar industry which is successfully providing effective, seamless and positive experiences to the customers.

You can take the example of Amazon Home Services and Handy. Both 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 on-demand home 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.

Crucial 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 scheduled professional services. They sell on-demand 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 target market very well, you can go ahead and establish a niche in the market.

Understand key players:


Where understanding customer’s need is crucial for every organization, understanding of competitors and supply chain is equally important. An in-depth knowledge of these will help you glean 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 promised time. Happy Customers automatically promotes your brand like a wildfire. So, make sure to provide quality service and deliver them at the right time. Depending on the type of Business model you have opted for your business, build a good repo with logistics partner and serve your target audience. For your venture, learn more about Business Models in detail at AppsRhino.

Opportunites in On-demand Home services:

According to transparency market research, the on-demand 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 home service market due to effortless access to products and services, 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, increase in usage of smartphones has also triggered the acceptability of on-demand home services.

Challenges in the way of ‘Home-services on-demand’:

The main challenge faced by on-demand home service industry is their pricing model. As the on-demand home service 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 e-commerce companies like Uber, Dominos, 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 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 the arrival of cleaners lead to the downfall of the company.


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.


On-demand home services will be a  next big thing in coming future. Many companies are disrupting the on-demand home services platform and many are inspired to join the board. With the world having embraced online services it’s a no-brainer that reliability is a key factor to the success of any services offered online.

It seems that on-demand home services have disrupted the home service sector, making on-demand products and services 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 their goals on the mobile platform. Contact us to know how we can help your business to reach the next level.