What is the term “On-demand Economy”? On-Demand Economy refers to the contemporary economy activity due to the advancement of digital technology made possible by companies involved with technology that fulfills any customer demand by immediate delivery of goods or services.
It is a recent phenomenon in the world market and has been shaping consumer behavior and expectations.
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Customer are more demanding than before
The customer we see today has more specific demands, lesser patience and this is supported by the on-demand economy. Companies support and facilitate the needs of the local customer by the click of a button. The Internet has revolutionized how we shop or receive news and what we expect. Start-ups are focusing their energies in tapping the ever-penetrating Internet and its unbelievable growth and development.
Going global is easier with technology
Companies like Uber, AirBnb, Facebook are all global companies today with a presence worldwide.
The businesses involved in this economy are representations of the technological advancement in this field. The question no longer is whether the new on-demand economy will change the nature and behavior of consumers and open a thousand more jobs, because all of that is happening. The real question is how far are we from services being adopted by not just tech-savvy professionals but by the masses.
The On-demand economy is a paradigm shift quite similar to the one witnessed in the late 1990’s with the development of the Internet.
Preferences and choices of people have changed drastically. Not just people and computers, but several devices are connected to each other. Experts believe that the Internet of Things (IoT) is going to be the future of technology.
Along with customers, entrepreneur’s interest in on-demand economy is more flexible and adaptable to change.
Businesses are trying to replicate the Uber Model
There is no denying that Uber made the on-demand service popular. Soon many other services like food-delivery services followed and the trend has caught on.
Reviews, feedback, specific demands are easily communicated and changes are almost instant. Consumers of the on-demand economy are used to being fulfilled almost instantly, so now the next challenge is to provide extraordinary services and products in that speed. Though the current on-demand economy is dominated mostly by the transportation and food-delivery services, the changes in consumer behavior has opened avenues for other service providers.
What’s Next?
Next in line to make it big are home services like groceries, home repair, and local events. More people are embracing technology and becoming part of the “tech-savvy” world.
The marketplace for services is also emerging. Companies like urbanclap, housejoy and many others are now a platform for service providers. They can be called the ebay and Amazon for services. This is beneficial for both consumers and service providers, because service providers get more business and consumers benefit from quick fulfillment of their services.
In the 90s, it was the era of fast-food, which required quick service. Now, the demand has gone even faster than that. Everything from delivery of electronics to food to transportation is expected to be delivered at lightning speed.
Consumers are now spoiled for choice, and expect products to be delivered faster than ever before. Entrepreneurs are using this as an opportunity to satisfy this demanding customer with technology that is effective and can fulfill customer requirements.
About the Author: Vinil Ramdev is an entrepreneur, business writer and marketer. He graduated with a Bachelors degree in Marketing in 2004. Since then, Vinil has been involved in starting and growing several businesses predominantly in retail, marketing, media, advertising and on the internet.
