Starting with the basic meaning of what on-demand economy is, it is the activity that has been created by digital ventures whose basic aim is to fulfill the needs of the customers instantly and provide them with goods and services in the most convenient way possible.
Over the years, with the arrival and success of major players like Uber and Airbnb in the on-demand app industry, this economy has seen a major rise. By 2025, the total revenues from all the sectors are expected to go up to $335 billion that has grown from $14 billion in 2014.
Also, by 2020, 7.6 million people are expected to be working as providers in the on-demand economy. That is almost double today's workers of 3.2 million people. With the market of the on-demand economy expanding to the smallest of sectors now, it doesn't come as a surprise that it will hold a dominance over the traditional ventures in a few years.
Why Do Customers Prefer the On-demand Services?
The requirements and expectations of customers have seen a rapid shift in these years. Being satisfied by whatever they are consuming has become a necessity and the factor to choose the platform for buying anything. And app developers have kept that thought into consideration while providing the services to the customers.
It comes as no doubt that there are a lot of benefits that the customers avail from the on-demand industry. Be it from ordering groceries to booking a cab, from booking a hotel room to buying clothes, everything is just one swipe away. With this level of convenience, there are hardly any people who would prefer to avail the services from the mainstream industry.
Even though it looks like only wealthy households can afford the on-demand app services, the truth is that the maximum revenue is generated by the middle-class households, making it even more likable.
Where Is On-Demand Economy Heading?
Some say that the on-demand economy is just acknowledging the starting of its growth, and it is here to stay for a very long time. On the other hand, others say that there is a bubble that has been created by these startups. For now, it is getting bigger, but a time will come when the bubble will burst.
This sounds like a too good to be true situation, but then the industry of startups have been so far so good in terms of the services they provide. Also, it has been beneficial for the customers in every manner, hence there is no doubt that it is here to stay. By 2016, more than 280 mobile app development companies provided on-demand goods and services across 16 industries as compared to only 76 companies in 6 industries by 2014.
The Industries That Hold the Future of the On-demand Economy
- Transportation and Travel Industry-
Booking a cab is as easy as it can be today, and it is this technology that has led the growth of players like Uber in this industry. Technology has savored the platform of the transportation industry, providing options like carpooling.
App developers use this technology and keep on improvising the apps. Apart from this, customers can also rent their own cabs from the mobile apps. As of 2016, the transportation industry has become the second biggest sector of the on-demand economy.
This industry still has the potential to grow and to achieve more than it has as of now. Because of how easy and convenient they are to use, more and more people are using these platforms, which is marking the growth of this industry.
- Food Delivery Industry-
With so many platforms available for ordering food online, the food industry has broadened a lot. Customers love to have convenience in anything they are using, and with on-demand food delivery apps, they can rely on having food delivered to them at their doorstep.
Not just that, they can also order groceries online and can spare themselves from the trouble of going out to buy them. This is also why they are growing, because of the benefits that customers can avail from them.
- Hyperlocal Industry-
Even though the hyperlocal industry services have not been very much accepted in India as of now, throughout the world, they have and are expected to see a major rise. This industry aims at reaching the local areas and connecting them with the providers.
As this industry aims at providing services to the local areas, their market is growing. But with the growth, the competition is growing as well. Ventures like Swiggy, Foodpanda, Grofers that rule this industry are aiming towards making the experience of users more comfortable than ever.
They lay their focus on quality, and are reaching to focus on speed as well, making it even more beneficial for the users. The number of options that the users are going to make them spoilt for choice!
There is no doubt in the fact that on-demand apps are making our lives easier. It is saving time and making the concept of reaching things easier. App development companies are making sure that they can improve the experience of the users on their apps as much as they can. However, this accomplishment of on-demand apps is somewhere disrupting the businesses of traditional ventures.
This new economy is connecting the consumers with the providers and bringing a positive change in the outlook of our society. Even though there are some challenges that this industry is facing; startups fail faster than they grow, the fact is that the on-demand economy is set to see a rapid growth in the coming future.