The on-demand economy is replacing traditional business models faster than we anticipated. The services coupled with a couple of apps empower instant provisioning of goods and services.

What started as the fastest way to hail a taxi, Uberization has changed the way businesses perceive demand, provision the supply, and deliver.

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No doubt, Uberization has become the most talked about business term in the past few years and will remain so until, as Forbes like to put it, “Let’s Uberize The Entire Economy”.

With the emergence of startups like Instacart (grocery), Postmates (anything available locally), JustPark (parking), task rabbit (handyman) and Airbnb (hospitality), this indeed coming true.

Did you know? 42% or 86.5 Million Americans have used one of the on-demand services, a survey report about on-demand economy by Burson-Marsteller, the Aspen Institute and Time indicates.

No doubt investment has been pouring into these startups, trying to disrupt every traditional business model they could and bring it into the on-demand economy.

This may seem like an uphill battle with a business model that has been going strong for more than a few centuries, but with venture capitalist knocking the door of every startup that has “on-demand” attached to its business model.

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We will discuss in brief about all the industries which are undergoing tremendous change due to on-demand economy.

Industries disrupted by on-demand economy

According to BIA/Kelsey, the total US transaction value (fees paid by consumers) of the on demand economy grew from $22 billion in 2015 to $34 billion last year and it’s expected to reach $57 billion by the end of this year. That’s more than 50% YoY growth.

on demand economy travel

The emergence of on-demand services across the globe has facilitated the growth of industry verticals and inspired enterprises to automate their services.

Most on-demand service providers provide their services on the customer’s location as in Uber and Lyft, many offer them device to device in the form of digital content as in the case of Hulu and Netflix.

1. Transportation and travel

Transportation sector owns the on-demand economy thanks to the likes of Uber and Airbnb. This is the sector where majority of the VC funding goes into.

Apparently, more than 75% of funding has gone into to just 5 “on-demand” startups and four of those are into Travel and transportation.

Travel and Transportation

In fact, if we remove Uber and Airbnb from the picture, those big funding numbers will go dry and the whole on-demand economy will look like as if financially crunched, at least to a naysayer.


But you must look at the bigger picture, potential, what these two have achieved, look at them as an inspiration rather than a competitor, and project what an on-demand model, if executed perfectly, could do to your startup.

If your shoulders are already crushed with the pressure of competition against the like of Uber and Lyft, then remember China’s Didi Chuxing that beat the Taxi booking mobile app superpower (Uber) in its own game.

This is not the first time, Uber is receiving heavy challenges from local competition. Look at Ola, the Indian competitor to Uber that is giving it the worst nightmares.

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If you’re concerned about the cost of developing an app like Uber, then we offer a readymade taxi solution that works much like Uber.

YelowTaxi, is an on-demand taxi app, that works on SaaS model and with a little customization and branding could be ready to control your entire fleet and bring it into the on-demand economy.

“Didi had formed a global anti-Uber alliance, which consisted of Uber’s competitors from different countries. As the ring leader of this alliance, it had invested $100 million in America’s Lyft and $20 million in India’s leading app aggregator service – Ola.” –Forbes

2. Food delivery

The last thing I want while driving home after a long, tiring day at work is to wait at a takeaway counter.

In fact, I hate dining at restaurants too at times. I am too lazy a person to cook even on a Sunday.

on demand economy food industry

That’s the reason why I rely upon on demand food delivery app. They are reason of my dinner, lunch and even breakfast every day.

I am not alone. 2016 data from CGA Peach indicated that more than 50% Brits adult population or 28.6 million people have had a takeaway brought to their doorstep in the first half of 2016.

In addition, 1 in 5 Brits (19%) and 2 in 5 Brits (39%) order food delivery every week and month, respectively.

This is just the beginning. Food delivery market stands at €83 billion, or 1% of the entire food market and 4% of food sold through diners and restaurants.

The aggregators, which maintain the legacy of traditional delivery method, leveraging on the digital architecture, merely take orders from patrons and route them to restaurants. The restaurant handles the delivery itself.

On the other hand, the new-delivery players build their own logistics networks, offering delivery for restaurants.

Logistics support lets them cater to fine-dining restaurants that usually don’t provide home deliver as a service.

The new-delivery players are compensated by charging both restaurant and customer for the service.


Managing and maintaining delivery vehicles and drivers is a costly affair, despite that thanks to high demand the new-delivery players attain EBITDA margins above 30%.

These new on-demand food delivery Players include startups that operate globally such as Deliveroo, Foodpanda and Foodora, which are continuing to capture new regions, attract a lot of investors’ attention, and rise in valuation and established PLCs: Just Eat and GrubHub.

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In 2016, the online UK food and grocery market share was £10.5bn; it’ll be £17.6bn in 2021, an estimation from IGD suggest how food delivery market impacts the online space.

However, The UK and US aren’t the only markets where the new food delivery services are experiencing tremendous growth.

Some of the unconventional markets where these services are growing at a greater pace are Korea, Saudi Arabia and Brazil.

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3. On-demand fuel delivery

The on-demand economy has made it possible for many industry verticals to step out of their traditional way of doing business. One such industry vertical is the fuel industry. For the past few years, many on-demand fuel delivery start-ups have emerged in different corners of the world. These start-ups enable their customers to refill their vehicles by just making a few taps on the phone.

These start-ups have gained tremendous popularity, especially in urban areas. It’s because the users can now refill their vehicles anywhere like at their home, office, gym, parking lots, or when their vehicle runs out of fuel in the middle of nowhere. Secondly, these on-demand fuel delivery start-ups also save customers from the pain of waiting in the never-ending queues of the gas stations.

The on-demand fuel delivery businesses have provided their customers with a fast, convenient, and safe fuel delivery services which they had never seen before. This is precisely the reason why there’s such a massive reception of these services.

Currently, there are few major on-demand fuel delivery companies that are disrupting this industry. Let’s have a look at the one by one.


Booster fuels is arguably one of the leading on-demand fuel delivery company in the world. This California-based startup has disrupted the fuel industry by delivering fuel to commercial fleets, universities, campus-based companies, and estate owners.

According to the company’s claim, Booster fuels provide fuel delivery services to more than tens of thousands of people working in more than 300 companies which includes Oracle, Cisco, PepsiCo, Facebook, etc.

Booster fuels have raised approx. $32 million in investment funding since 2014 when it was founded. Currently, the startup is looking forward to expanding to newer markets.


Yoshi started its operations in Palo Alto in the year 2015. Later on, they started offering their services in Nashville as well. The year 2016 was a milestone for Yoshi as they were accepted into Y Combinator. This transformed Yoshi from a fuel delivery startup to a service that can deliver everything that a car needs when it’s parked.

These additional services offered by Yoshi includes oil change, car washing, swapping of wiper blades, etc.

In 2017, Yoshi partnered with GM and ExxonMobil. In the same year, they raised $13.7 million in a Series A funding from Kevin Durant, ExxonMobil, and GM Ventures.


Filld is a mobile fuel startup that was launched in 2015 in the D.C. and Bay Area. Now it offers it commercial services in Seattle, Portland, Vancouver, Canada, and Bay Area with partners like Volvo, BMW, Sixt, and Dailmer car2go.

Unlike Booster, Yoshi, and other companies, Filld delivers fuel only at nights. They have adopted this strategy or policy to get rid of traffic. Filld texts their customers two times in a week to see whether they need to refill their vehicle overnight.

If the customer replies with a “yes”, then they deliver and refuel his vehicle in the night. Customer can also reply with a “no” if he wishes to decline the services.

The fuel-delivery industry is still in its nascent stage that’s why there lie enormous opportunities for entrepreneurs which they can unlock by developing an on-demand fuel delivery solution for their on-demand fuel delivery business.

4. On-demand cooking gas delivery

Another industry which has witnessed a similar turn of events as the fuel industry is the cooking gas industry. The on-demand model has been successfully implemented in this vertical as well. Although, one must admit that cooking gas industry closer to adopt the on-demand model as compared to the fuel industry.

It’s because people were already issuing and booking cooking gas in advance. However, the delivery wasn’t on-demand and also customers had to undergo a lot of procedures and documentation.

With the advent of the on-demand cooking gas delivery solution, startups and enterprises can offer their customers which rich cooking gas delivery experience. These services offer utmost convenience to the customers as they can book a new cylinder or refill the old one with just a few taps on their phones.

5. Healthcare

One industry which was in desperate need of on-demand Services was Healthcare. Earlier, the patients had to visit hospitals and wait in the never-ending queues to meet the doctor.

on demand economy healthcare

This sometimes proved to be crucial in case of emergency. Apart from that the Pharmacy would remain open only for limited hours.

With the introduction of on-demand services in Healthcare; it has single handedly dealt and resolved most of the issues. Now medicines are just a matter of few clicks away from the patient.

All you have to do is, click on your required medicine, pay for it, and you would get it on your doorsteps.

Moreover, the app also allows you to book appointments with the doctor and to receive your medical reports.

There Healthcare Service apps provide you with every medical requirement. Some of them are as below.

Doctor on demand

It won’t be wrong to say that Doctor on Demand is Uber of Healthcare vertical. This is a leading app when it comes to providing all healthcare services to the patients.

Doctor on Demand always maintains high quality of service which makes them number one healthcare service app.


This app connects 108000 doctors with the patients. This app offers patients to ask questions and book virtual appointment with doctors.

HealthTap ensures 100% security and privacy when it comes to their service.


We can simply describe PillPack as an on-demand app for Pharmacy. This offers 24*7 service for the patients. They can buy their required medicines and pills at any time.

Moreover, they also deliver the packages to patient’s doorsteps in minimum.

6. Professional services

Perhaps, the most versatile and broad sector which has undergone massive transformation due to on-demand economy is the professional services.

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This sector probably has the maximum potential; moreover, it is very exciting & beneficial for the end users. I said it has maximum potential because it covers all the professional services such as,

  • Mechanic
  • Carpentry
  • Electrician
  • Pest Control
  • Household work
  • Baby Sitting
  • Plumbing

It also provides specialized services such as software programmers and designers.

This vertical is exciting as it offers a plethora of options for the consumers. They can hire professionals for all their household works or any work in general.

Similarly, it also offers all the professional with an employment opportunity. The variety of services available on such apps covers all the skilled professionals without leaving any of them.

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Some of the major apps in this vertical are as below:


Handy is an app which is well-known for its wide range of services. It caters all the household professionals and the ones seeking their help. It offers services like household professionals, plumber, electrician etc.


It’s an On-demand mobile development team which provides software development to various companies.

It takes care of everything from, management of team looking after development of On-demand software to Marketplace. It plays a vital role in bringing transparency to the process of selecting a team.


It is an online platform which offers all the household repair services. These services include: appliance repair, electrician, handyman, and many more.

All these technicians undergo stringent screening and scrutiny before they are available for any service.

7. eCommerce

If there has to be sector which is born because of on-demand services then it is eCommerce.

on demand economy ecommerece

eCommerce had no existence before the on-demand services came into the scene unlike other verticals. The success of on-demand services and eCommerce goes hand in hand.

eCommerce is simply an answer to the question: What if we can sell and buy everything online? The “everything” here includes almost all that you can think of; from clothing, home appliances, accessories, home décor, etc.

On-demand eCommerce apps have empowered the users and retailers to buy and sell almost everything respectively.

The most renowned eCommerce on-demand services are as follows:


Amazon is the biggest behemoth in the eCommerce market. As its logo says it has everything from A to Z. Name it, whether it’s Clothing, Footwear, Accessories, Home Décor, Home Appliances, Books; everything is available and that too with a diversity of brands.

Amazon is spread across numerous countries with a separate website for each of them. It eases the management and increases the delivery speed.

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Walmart is a massive chain of supermarkets, grocery stores, and discount department stores. It has slowly started to leave its footmarks in on-demand services.

Walmart comprises a wide range of products and using on-demand services will result in increase in the total number of sales.

The home depot

The Home Depot is an old and well-known firm. It is basically a home-improvement supply retailer company.

It adopted on-demand services quite early in 2000s which resulted in its massive growth.

This step assisted the firm to maintain its legacy and popularity which has been there since its inception.

8. Logistics

Courier service providers and other logistics related services have also witnessed a huge change after the advent of the on-demand economy.

on demand economy logistics

It has made the services more smooth and efficient than ever. Technology has played a huge role in bringing the small players and expanding the sector with the help of live customer notifications and SMS courier tracking.

Even after all this, the delivery time and the booking process remained as one of the biggest concern.

Another factor which the customers were particularly unhappy with was of disparate price structure which was quite prevalent in the industries.

All these issues were solved with the rise of the on-demand economy in the field of logistics. Now it was possible for the corporates to book a truck at any time in order to send their cargo.

In addition, it also allowed them to track their cargo right from the moment when it dispatched to the time it reached at the receiving end.

Now, anyone with an on-demand delivery app builder can set-up a door-to-door pickup, where it’s possible for them to monitor their cargo package until it reaches its destination.

There are many on-demand applications like Deliv, Postmates, GetWagon, and TruckBuddy that have already tasted success with this business model.


The on-demand services will continue to disrupt many industries apart from the usual ones.

With advance technology coming to the play there would be a fierce competition of among the firms to provide service in as minimum time as possible and that too at an optimum quality.

On-demand Apps are the future for most of the traditional industries. So, if you looking to develop an on-demand app you must consult a mobile app development firm and check the cost of app development before moving any further.

If the price is reasonable then you must proceed with the further procedure.

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