The COVID-19 pandemic has bought on a new trend where customers prefer their orders delivered on their doorsteps. Such On-Demand services are on a rise and have taken over every industry by a storm. It has revolutionized the way people do business and consumers get their products and services.
Table of Content
- On-Demand Industry and Some Facts and Figures
- What is An On-demand Business?
- How Is On-demand Culture Affecting The World Economy?
- Who Are The Leaders of This On-Demand Economy?
- Wrapping It Up
In this post, we are going to discuss the impact of on-demand businesses on the world economy in the year 2021. We are going to talk about the unique ways it has proved influential during the coronavirus pandemic. You can figure out more information and get to know a lot through this post. Keep on reading to find out more.
Let us start by looking at some numbers:
On-Demand Industry and Some Facts and Figures
- According to Technavio, the on-demand home services market will grow by $1,574.86 billion during the period 2020-2024. It is growing at a steady year-over-year growth rate of 32.14%.
- According to their study, 38% of the growth will originate from APAC regions. India, China, and Japan will lead in the online on-demand services. Their growth will be faster than compared to developed nations like North America and Europe.
- According to QuickBooks, 9.2 million Americans will work on-demand jobs in 2021. This number has increased from 7.7 million in 2021 and almost doubled from 3.9 million in 2019.
These numbers show the impact that on-demand home services have made on the world economy. Within the last two years, the progress has doubled and will continue to do so in the coming years.
What is An On-demand Company?
It is an establishment that works to provide timely goods and services to the consumer. It uses technology and online marketplaces to get orders delivered to the customer’s doorstep. A smartphone application or website connects suppliers to consumers.
This is a trending way to business in the modern-day world where everyone is on their mobile phone constantly. There are thousands of organizations already working on this model. You too can contact a reliable mobile app development company to create an eCommerce solution just for your business.
How Does the On-Demand Economy Works?
First, we take a business that is offering some service like food delivery, the repairman, makeup, or styling business. Then, we use technology to connect the supplier to the consumer. It is usually through a website or a mobile app.
Both parties have their unique version of the same application. Each needs to sign up and create a login id and password in their respective portal. Now, when a consumer wants to purchase a service, all they need to do is open the app and type in the parameters. The application will send a request to the service provider.
On the other side, the service provider gets an alert on their mobile. They have a choice to accept or reject the request. Once the service provider accepts the request, the app sends a pingback to the consumer, notifying them of the duration and details of the serviceman.
Once the task is complete, the technology company transfers the payment to the service provider’s account. This way the personal details are secure between both parties. The technology company acts as an intermediary to protect your personal information. Finally, a feedback and rating form is sent to both parties to improve services and the system.
How Is On-demand Culture Affecting The World Economy?
There are multiple ways on-demand businesses influence the world economy. Here are a few pointers:
- Convenience
- Fast Services
- Multiple Offering
- High Quality of Service
- High Return On Investment
- Secure Payment Method
- Contactless Delivery
- Convenience
It is the primary advantage of the on-demand economy. You get all the essential and non-essential goods delivered to your doorstep. All you need is to click a few buttons and order at any time, from any place.
You can even get custom services and a variety of options available in the market. No longer the need to go to retail stores and stand in line to pay your bills. You can order anything you want from the comfort of your home.
- Fast Services
Gone are the days where a customer had to wait for days to book an appointment. Now, you can benefit from on-demand services to get your repairmen to do a home visit at the time that you choose. They will be punctual to get better ratings from the customer.
- Multiple Offering
A consumer can pick from unlimited options available on the internet. You no longer have to waste your time hopping from store to store to buy that one dress. Instead, you can book it, buy it, rent it from the comfort of your home.
You can even get to know if an item is in stock or not. This will save a lot of time shopping for something that is not available in a store.
- High Quality of Service:
You can expect an on-demand business to compete with prices, time of delivery, and quality of service. It is essential for them if they want to stay ahead of the competition and get a high rating from customers.
- High Return On Investment
Through an on-demand economy, everybody wins. The customer gets goods and services at competitive rates; the supplier gets paid digitally for their services, and the technology company benefits from monetizing the app. This results in maximum ROI or Return of Investment for the investors.
- Secure Payment Method
The method to transfer money is secure and gets transferred directly into the serviceman’s account. The technology company takes care of all this. There are multiple ways you can pay for the services that you received.
- Contactless Delivery
Because of the coronavirus pandemic, there is an important trend that is on the rise. WIth contactless delivery, you need not exchange goods by hand. The delivery person places the package on your doorstep. This reduces the spread of the virus. The same cannot be said for shops that constantly have foot traffic, and one cannot be sure of their cleanliness standards.
Who Are The Leaders of This On-Demand Economy?
Here is a list of the four industries that are responsible for this on-demand economic growth:
- Food Delivery
Because of the coronavirus, most consumers have been ordering food online. This gave many restaurants, wholesalers, and big food giants an opportunity to increase their revenue. They partner with delivery men who are part-time workers or freelancers to fulfill their orders.
This has made everyone happy. Consumers get delicious food delivered at their doorsteps, the delivery partner gets limited working hours, and restaurants get an alternate source of income.
- Healthcare
With the coronavirus mutating and spreading across the globe, it is important that the elderly and other patients get the healthcare they need. It is possible through the on-demand businesses that send out their healthcare workers to their homes to check on them regularly.
Now, you can book an appointment with a doctor to visit your home through an app or book a consultation online. You can even buy pharmaceuticals at any time and from any place. You can high-quality services even during peak timings or during weekends.
- Logistics and Transportation
This is an emerging trend in the on-demand economy. It has been helping improve the bottlenecks in the logistics and transportation industry to create a seamless process. You can now book freight, monitor route, manage a fleet, and warehouse problems all through a single application.
- Home and Personal Services
There are a lot of services that you can get online from the comfort of your home. You can book a repairman, maid, beautician, stylist, or interior designer at competitive prices. There are many service providers that ask their employees to wear masks, clean, and sanitize the place before they leave.
Wrapping It Up
The on-demand home services have a great impact on modern-day society and the world economy on a larger scale. You too can be profitable by creating a web or smartphone application for your business. You can take help from the eCommerce Website Development Company to create a solution that is ideal for your business. This way you can reach a larger audience and be profitable at the same time. This post covers the who, what, and how of it all. Read about it and get ready to invest in a venture that is sure to make you successful in the near future.
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Author Bio:
Rohit Bhateja is heading the Digital Marketing & Business Transformation team at SunTec India and loves helping people & brands plan, optimize and implement strategies. He has spent the majority of my career gaining experiences in areas such as strategy formulation, technical know-how, team management & leadership and enjoys reading, researching new technologies, and sharing knowledge.