On Demand Economy Taking Shape of a Revolution

INN/New Delhi, @Infodeaofficial

The emergence of on-demand services has affected a good amount of consumer habits as well as built up an attractive cost and time-efficient platform for middle-income millennial. The advent of economic activity created by technology companies is that they allow to fulfill consumer demand using the Internet as a primary platform. They work on immediate provisioning of goods and services, such as meal delivery, ride-service hailing, home-salon application, or handyman repairs, and other technology driven services that connects supplier with consumers.

The on-demand economy business model is usually referred to as “uber for x business model” or “aggregator business model” as the majority of the companies choose this business model type for their startup. An aggregator business model provides a platform for standardized services by the business partners of the brand but the company acts as the guarantor of the quality.

The on-demand economy is different from another unique form of technological economy i.e sharing economy. Though both the economy models have some areas in which they overlap. However, the fact remains that they have significant differences. Looking past the initial similarities, these economies show distinct areas of concept, regulation, and motivation for functioning in the modern market.

‘On-Demand Economy’ Is Revolutionizing Consumer Behavior:

The connection happens through a technological service such as a website or smartphone application, with both parties signing up for accounts. Later, it is easily accessible through the app, input parameters, and send a request to connect with a service provider. In order to ensure the system and improve the quality of service, both parties may provide feedback. Sometimes, it is also known as “access economy,” as consumers prioritize speed, simplicity, and efficient experiences. It is shifting power away from all type of businesses and giving it to consumers in a more convenient way.

EV Williams, co-founder of Twitter said (in an interview to BI), “The internet makes human desires more easily attainable. In other words, it offers convenience. Convenience on the internet is basically achieved by two things: speed, and cognitive ease. If you study what the really big things on the internet are, you realize they are masters at making things fast and not making people think.”

The on-demand economy is rapidly expanding across the global economy. The expansion of the on-demand economy has introduced companies such as home-sharing service ‘Airbnb’, ride-sharers ‘Uber and Lyft’, used-goods marketplace Yerdle Re-commerce and food services ‘Grubhub’, HelloFresh and Instacart to quickly build brand loyalty and reduce consumer dependence on traditional corporations and slower lines of service. According to reports, more than 280 companies provide on-demand goods and services across 16 industries today.

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