Published On: January 31, 2022
Last Updated: March 24th, 2022
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 by offering them with some essential features.
What started as the fastest way to hail a taxi, Uberization has changed the way businesses perceive demand, provision the supply, and deliver.
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 on-demand delivery services like Instacart (grocery), Postmates (anything available locally), JustPark (parking), task rabbit (handyman) and Airbnb (hospitality), this indeed coming true.
As per a PWC report, on-demand apps will touch approximately $335 billion by 2025. From this, we can predict a massive hike in the number of on-demand models and applications.
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.
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
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.
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.
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.
That’s the reason why I rely upon on demand food delivery app. The on-demand food delivery apps are reason of my dinner, lunch and even breakfast every day.
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.
3. Grocery delivery
In the crucial times of the COVID-19 pandemic, it becomes increasingly tough for the customers to step out of their homes to purchase basic necessities. In such times, on-demand mobile apps and mobile solutions for grocery became the boon for the customers as they can let them get daily groceries on their doorsteps.
Besides this, an on-demand grocery delivery app contains some amazing features that has drastically cut down the need to stand in long queues.
Moreover, these grocery delivery app features offered users the convenience of booking grocery supplies at the comfort of their couches.
The demand for services based on grocery created the growth of hyperlocal on-demand business models where local suppliers meet the increasing demand. This model has brought transparency into customer service along with the assurance of quality and trust.
So, if you are operating your grocery delivery business traditionally, then it’s the time for you to shift to an advanced on-demand grocery delivery software solution.
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.
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.
4. On-demand fuel delivery
The on-demand delivery industry has made it possible for many businesses to step out of their traditional ways. 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 the on-demand consumers 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 and an avante garde fuel delivery solution 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 by taking the path of on-demand service app development. Let’s have a look at the one by one.
Booster fuels is arguably one of the leading on-demand service platforms for fuel delivery 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.
As per Crunchbase News, Booster Fuels have raised around $56 million. 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 or an online fuel delivery software for their on-demand fuel delivery business.
5. 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 a convenient customer experience as they can book a new cylinder or refill the old one with just a few taps on their phones.
And to encash the above mentioned profit opportunities many budding startups and businesses are planning to build on-demand gas delivery app that would take their business to new heights.
One industry which was in desperate need of on-demand service apps was Healthcare. Earlier, the patients had to visit hospitals and wait in the never-ending queues to meet the doctor.
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. Here are some of the popular apps to consider while doing health application development:
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.
Nowadays it is hard for the cutomers to take time for self care because of their busy schedules. Maintaining a good and stylish look is the wish of every customer, but very few can fulfil it. Here the on-demand salon services comes to the rescue.
With a salon owned on-demand app for home services, customers can access hair and beauty care services at their own comfort. Because of the ability of delivering great convenience, salon app development is picking up pace.
Moreover, if you build an on-demand salon app solution, you do not need to spend more money on purchasing a shop and hiring a big staff.
Today’s rapid fast generation has no time to waste on doing laundry. Rather they would prefer it to spend that time on pursuing their hobbies or on socializing activities. Both these things played a major role in the inception of on-demand laundry app development.
Customers have to download the respective mobile applications and schedule for the pickup of their dirty clothes. The laundry service will take care of all the cleaning and deliver fresh clothes to their doorstep within a scheduled time.
9. Car wash
All of us love clean and shining cars, but cleaning them well is a tedious and time consuming task. Here the on-demand car washing services are of great help! Online car wash services are comfortable and easier.
Now the customers do not have to stand in long lines to get their car washed. They can just book a superfast car washing service by just making a few taps on their smartphones. It provides a great opportunity to the customers with busy schedules as they can set a time slot for car wash effortlessly.
There is no specific age to learn anything. This importance of learning and education has grabbed the attention of on-demand service providers. In the past, education was limited to just schools, colleges, coaching centres and libraries.
But today, one can learn anything from anywhere thanks to the on-demand learning services.
On-demand learning offers a demo, daily class, exams and valuation, certification, report analysis, and so on. With an eLearning app, learners can select their platform and study their likely subjects for free. That is why digital learning app development is the need for the future.
11. Professional services
Perhaps, the most versatile and broad sector which has undergone massive transformation due to on-demand economy is the professional services.
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,
- Pest Control
- Household work
- Baby Sitting
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. These on-demand service apps cover all the skilled professionals without leaving any of them.
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 on-demand marketplace. It plays a vital role in bringing transparency to the process of selecting a team.
It is an on-demand 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.
12. eCommerce Industry
If there has to be sector which is born because of on-demand services then it is eCommerce.
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.
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.
Courier service providers and other logistics related services have also witnessed a huge change after the advent of the on-demand economy.
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 an on-demand mobile app development company or a reputed mobile app developer and check the cost of app development before moving any further.
If the price is reasonable then you must proceed with on-demand service mobile app development.