How will the On-Demand Economy Affect Your Business?
“Your Cab is reaching in 2 minutes.”
“Your food will be delivered in 20 minutes.”
“The hired plumber will reach to your doorstep by 4:00 pm”
All such messages have become a part of our lifestyle, all thanks to the On demand business model.
The concept of delivering/receiving products or services in real-time has changed the business landscape. It has not solely added convenience and personalization into the process, but has also paved the way for higher consumer engagement and revenue generation across different industries, be it healthcare, education, transportation, food, or eCommerce.
This has made newcomers show an interest in the idea of On demand app development and get a bigger share of the market which will be valued $335 Bn in 2025. Whilst, at the same time, it has made the entrepreneurs and marketers already having established businesses wonder about the impact of the On-demand economy on their businesses. Something we will be talking about in this article.
But firstly, let’s have a quick look at the current state of the On-demand economy.
An Overview of On-demand Economy Growth So Far
As per the Harvard Business Review, more than 22.4 Mn users spend over $57.6 Bn on On-demand services. This includes spending of around $36 Bn on On-demand marketplaces, $5.6 Bn on taxi services, and $4.6 Bn on food/grocery delivery services, annually.
Also, it has been noted that 86.5 Mn US citizens have used an on-demand service at least once in their lives.
Another report states that 51% of people who offered online services in the on-demand economy saw a rise in their financial situation, while 64% of them are hoping for an improvement in the future.
Such on-demand mobile app economy statistics are clearly indicating the proliferating market scope and encouraging everyone to step into his economy and leverage a wider range of advantages. But, what’s more interesting is the way it is transforming the traditional business model.
Ways On-demand Economy Disrupts the Business World
1. Better Opportunities
One of the biggest challenges that the On demand business model has solved is the friction in the offline purchasing process. This business model has aided consumers placing an order for any product/service online and getting it at their doorstep in real-time. This efficiency and effortless nature of the services have received high-end recognition from the consumers; making them inclined towards on-demand services providing companies.
A result of which is that today, almost everyone is looking ahead to rise in the uprising ‘Uber for X’ wave. They are launching on-demand based startups, be it in the field of healthcare, transportation, education, or retail.
2. Emphasis on Entrepreneurship
The On-demand app solutions are also bridging the gap between Entrepreneurship and corporate career. It is letting employees pick the working hours on their own and get the payments according to the work done. This has streamlined the lives of those who wish to start their own businesses or are doing multiple jobs to survive. Also, it has brought a significant effect on the workplace culture, making everyone respect the Entrepreneurship spirit of each other.
3. Higher Personalization
Thanks to the functionality of gathering and analyzing user data of Uber, Airbnb, Via, Instacart, and other such on demand delivery services startups, consumers have gotten a taste of personalized services. They are no longer satisfied with the traditional way of business processes and wish every company to operate in a way to deliver a highly engaging experience to them.
This has come up as a great opportunity for businesses whose niche industry is still not disrupted by the On demand economy. And furthermore, plan around how to offer the finest of personalization facilities to be the first one in their niche market.
4. More Workplace Flexibility
As shared earlier, the on demand business model has provided employees with the opportunity to pick their own working time and get the payment accordingly. This has introduced flexibility in the workplace; making everyone contribute to their fullest while studying, enjoying vacations, and performing other daily chores. And eventually, ensure higher employee satisfaction and business growth.
5. Increased Scalability
On-demand app solutions are highly secure and scalable. So, when you introduce them to your business processes, you get a highly scalable method to meet the diverse needs of your business.
These pointers have directed entrepreneurs and marketers to accept that the On-demand business model is more profitable than the traditional model and thus, it is imperative to switch to the former one.
However, if you are still confused if this is the right decision for your business or not, scroll down immediately.
What Does the On-Demand Economy Means for Your Business?
The On-demand economy has moved beyond early adopters and has gained huge traction among consumers who wish instant, safe, and personalized experience. Also, as per NTRS data, On-demand services have been touching the lives of every individual. A few pieces of evidence of which is that –
This has made it clear to all that the On-demand economy is reshaping the world around us. A ripple effect of this that even the top established brands have collaborated with on-demand startups to enter this economy and explore better opportunities. Which again indicates that it is necessary to consider the On-demand business model for experiencing sky-high business opportunities and growth.
So, let’s not remain thinking about the same! Let’s look into how you can give a tweak to your existing business model. Aka, introduce the concept of On-demand in your business.
How to Prepare Your Business For On-demand Disruption?
1. Begin with Due Diligence
The very step every business owner must take to make a wise decision related to entering the on-demand economy is to gather and analyze a heap of data. That implies, connecting with managers, workers, targeted audience, on demand app development companies, and others and remaining updated with all the information that further helps with understanding the economy both at the local and global level, becoming familiar with benefits and drawbacks of transiting from traditional to the on-demand business model, and more.
2. Keep a Balance Between Innovation and Stability
When talking about switching to the on-demand business model, entrepreneurs often struggle with maintaining a balance between innovation and stability. Mesmerized by the types of technologies playing a pivotal role in the on-demand economy and associated features, they often end up making multiple changes in their business process at once, which sometimes make them distracted from the core value of their brand or the basic need of the targeted user base.
So, it is again a must thing to discuss your on demand-powered business model with your in-house team and hired on demand app developers to ensure that you could reap better benefits while making minimal changes in your traditional business strategies.
3. Consider Legal Regulations
As already hinted earlier, the on-demand economy enforces flexibility in working hours. Meaning, anyone can be hired for part-time, contract-based, or freelancing job opportunities. Now, since various legal implications are involved in this process, it is again required that legal regulations are followed effectively during the transition. Otherwise, you might end up with misclassifying of employees, which can result in legal penalties, taxes, and interest-based on the same.
4. Collaborate Effectively
Another effective way to shape a win-win business solution by investing in On demand mobile app development is to collaborate with local groups. This approach will not solely aid you to fulfil your business needs, take advantage of their existing network, as well as contribute to their good. So, look ahead to it.
5. Ensure Flexibility
Lastly, when forging the path towards embracing on-demand business models, it is imperative that you remain flexible with your future plans. This will help you to quickly grasp the changing market and user requirements, and make the requisite changes in your business plans.
In a nutshell, whenever an opportunity comes knocking, you must have a digital transformation plan ready with you.
By this point, you would have been acquainted with how the On-demand economy is revolutionizing the business model, what impact it can have on your business and how to prepare for the same. So, rather than taking the back seat now, start with hiring the best On demand app development company and begin working on this idea and make your business outshine in the On-demand services market. Good Luck!
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