10+ Industries Backing the Staggering Growth of On-demand Economy
Seems like yesterday, when we taped our fingers on smartphones for the first time. When we interacted with a mobile application for the first time, and wished to get everything delivered to us with the same swift and engaging experience.
And today, almost every startup and established business has realized the importance of having a business app and have invested in their development and launch. They have taken an effort to understand our expectations and needs and made changes in their business model for providing us the best of all. With one such business model change being the adoption of On-demand business models and thus giving birth to the evolution of the On-demand economy.
At present, the On demand app economy is reshaping the world around us – be it supply chain, manufacturing, training, or healthcare space. It is making a difference in everyone’s lives with ample benefits, such as convenience, scalability, cost-efficiency, and profitability.
However, these functionalities are not the only driving forces behind its unparalleled growth.
Various business verticals are acting as a catalyst for the increasing demand for the On-demand economy, a few of which we will uncover in this article.
But first, let’s take a quick look at some of the on-demand app economy statistics to get familiar with where the future of the industry lies.
With this attended to, it’s time to dive deeper into the industry and see what all business sectors are transforming the economy.
Industries that are Driving the On-demand App Economy
The foremost business space that was in dire need of on-demand solutions and which has been aiding in propelling the on-demand business ecosystem further is Healthcare.
Earlier, patients were required to go through the hectic process of booking an appointment, while doctors and medical practitioners were supposed to maintain heap of medical files. Likewise, it was a must for someone to reach a pharmacy within fixed working hours to get the medicines. All such conditions were making it difficult for receiving/serving the best health and care facilities – especially in the time of emergencies.
But, since the adoption of the concept of on-demand, the complete story has changed.
It has offered a myriad of facilities like real-time appointment booking, home delivery of medicines, instant medical data sharing, asking doctors to visit your place on-demand, and more. This has digitized the whole process, lowered down the cost, time, and errors associated with the process as well as improved the chances of delivering effective and personalized healthcare services to a wider audience.
A result of this is that the number of on-demand health services companies has grown from 4 to 42 between 2010-2014 with a CAGR of 224%. And many more, are expected to join this list with both entrepreneurs, mhealth developers, and investors showing an interest in finding the answers to –
- Is Doctor On demand the Future of Healthcare Domain?
- How much does ZocDoc-like on demand doctor app development costs?
- cost to build a doctor appointment app like ZocDoc?
- How to Develop a Women Health Tracking Application?
The Finance (or Fintech) sector has also played a vital role in aiding on-demand application economy by facilitating efficient, quick, and cost-effective solutions for the existing and established financial infrastructure.
In fact, a wider range of flexible APIs are letting on-demand businesses easily integrate payment processes into their applications, enhance payments, ensure transparency and security, as well as improve the user experience.
[As we have just mentioned about API, you can learn in detail about it in our blog – A Complete Guide to API Development – Its Need, Working, Tools, and Best Practices (& Terminology) ]
This is yet another business sector that is behind the growing On-demand app industry.
Traditionally, the educational services were confined to schools, universities, libraries, and other such institutes. Because of this, anyone who has missed a morning class or wishes to learn more about any topic while being in remote areas could not fulfill their needs. Also, the process of managing tasks, taking examinations, and ensuring security into the process was next to impossible.
However, by merging the power of education and on demand industry, it has become possible to study any topic anytime and anywhere, test skills, collaborate easily, and so on. A consequence of this is that the global online education market is now expected to reach from USD 187.877 Bn to USD 319.167 Bn between 2019-2025 with a CAGR of 9.23%.
4. Food Delivery
The finite working hours and need for cash payments in wholesale stores, restaurants and other eateries outlets have also resulted in the rise in the number of on demand delivery services.
On one side, the introduction of the on-demand concept into this vertical has helped consumers to order delicious food items in no time. While, on the other side, it has provided restaurant owners with better opportunities to sell products and enjoy higher ROI. Something that can be concluded from the following statistics –
Because of this, more startups and established companies have started looking ahead to entering the on-demand food delivery marketplace by finding answers to simple questions like what is the cost of developing an UberEats-like On demand food delivery app or On demand grocery delivery platform, what are the top players in this marketplace, which business revenue model to consider, and more.
5. Travel and Tourism
Travel and Tourism is also one of the service industries that are helping the On-demand economy thrive. Let me explain with an example.
Earlier, users were required to wait for getting a cab during odd hours or on public holidays. Moreover, they were supposed to face loads of hassle and issues when traveling to remote locations.
But, with the arrival of Uber, Lyft, and other such applications, this has become as easy as pie. Now, by tapping on these apps’ interfaces, one can get a cab instantly, get an escape from the instances of refusal for the traditional taxi drivers, pay ride fare even after completing a ride, etc. Something that has brought entrepreneurs’ attention to numerous queries like –
- 35 Best Uber Statistics to Know (2019-2020 Updated)
- How does Uber work? What is its business and revenue model?
- 10 Ways to Design an App like Uber in 2019-2020
- How to invest in On demand taxi app development using Location Based Services?
- How much does it cost to develop an on demand taxi booking app like Uber?
And eventually, get a slice of the On-demand transportation market size, which is –
Another industry that has witnessed commendable changes in their processes and marketplace after the advent of on-demand economy is Logistics.
The On-demand apps in the logistics sector like Uber Freight, Convoy, and Fastvan have helped companies mitigate various traditional challenges, such as hassle of booking, difficulty in delivery tracking, issues in fleet and warehouse management, and much more.
And this way, generate higher revenue and enjoy other benefits on adding to the list of top on-demand logistics players and investing into the logistics app development cost.
7. Real Estate
As already stated in an earlier article, the real estate industry is also contributing to the on-demand economy growth.
The real estate agents and users are turning towards on-demand application market to find solutions to the conventional challenges and reap the benefits, such as –
- No need for brokers
- Lower cost
- Reducing need for an on-site agent
- Digitized offer-submission process, and
- Ease of buying/selling products.
The On demand app economy has also changed the landscape of the entertainment industry.
Today, there are various video-on demand applications and music streaming platforms that let users explore a wide range of tracks, series, and resources across the globe, get instant access to them in real-time, share their own work, pay seamlessly, and much more.
9. Retail and Online Marketplace
Retail and online marketplaces have also upgraded the on-demand application economy.
Traditionally, the retail industry was operating offline, which was resulting in varied challenges such as higher time consumption, slower processes, lower availability of products, and inadequate processes.
But, with the integration of on-demand and retail business models, it has become much easier to place an order and receive it in a lower time frame, cheaper rates, and higher security practices.
Another service industry that has accelerated the pace of growth of the On-demand app market is Recruitment.
With the changing time, employees are inclining towards the idea of self-employment. They are preferring jobs that let them work both in short and long terms from premises of their choice, decide the timings on their own, live a better work-life balance, and so on. This is again boosting the concept of On-demand recruitment software.
11. Home Services
Last but not least, home services is also one of the service sectors that have undergone disruptive transformation with the advent of the on-demand economy.
The home services sector, which comprises of different facilities like home cleaning, laundry, interior design, repair services, and professional services, has made it possible for professionals to get part-time jobs and enables users to get access to top-quality services at affordable prices. An impact of which is that the on demand home services app market is forecasted to reach USD 1,574.86 Bn during 2020-2024, globally.
Seeing the flourishing on-demand economy landscape and the industries that are going to revolutionize it, various entrepreneurs and investors are focusing on entering this business space and tailoring their services accordingly. They are looking forward to preparing for the On-demand app market in an engaging and profitable way.
Assuming you to be one of those, we will be paying attention to how to succeed your on-demand business in a crowded app market in the last section of this article.
How to Prepare for the On-demand App Industry?
1. Choose the Right Sector
When talking about the On-demand service industry, it encompasses different subdomains. This includes on demand home cleaning, interior design, laundry, construction, house painting, storage, taxi booking, education, and healthcare domain.
All of these subcategories of the global on-demand services market are successful in their individual level. So, it is imperative to firstly decide which of these niche markets you wish to step in and eventually leverage higher profits.
2. Come Up with an App Idea
Once you have decided upon which industry you wish to enter, the next step is to come up with on demand startups ideas. The one that you believe can make your startup turn successful and relish higher outcomes in the marketplace.
3. Perform Market Research and Competitive Analysis
While your app idea might seem a unique and profitable asset to you, it might not fit into the present market scenario or perhaps, come up as a replica of an existing business idea. So, it is necessary that you look into how to validate your app idea by investing your time and efforts into market analysis and competitive analysis.
Besides, this will also provide you with deeper insights about what features are making customers inclined to their brands, what are their pain points, what business models they are preferring, and much more. And eventually, help you with crafting a perfect mobile app business plan.
4. Define the App Features and Tech Stack
With the insights gained, you can devise a mobile app plan while focusing on those features, functionalities and the technology stack behind it. This will aid in surviving in the market.
However, to ensure that your on-demand mobile startup enjoys the limelight, it is crucial to introduce new features and functionalities to your app plan. So, look ahead to that.
5. Pick the Right Business Model
Since the ultimate goal of entering the On-demand economy is to earn money through your mobile app, it is again vital to evaluate the right business model for your startup. Meaning, ways to grow your business and generate revenue from your on demand mobile app startup.
6. Hire a Reputed On-Demand Expert
Even when you are fully sure about the success rate of your mobile application, it is not possible to get the right outcomes unless you have support from the right tech experts. So, it is again advisable to hire a recognized On-demand mobile app development company and discuss your idea.
7. Get an App Development Cost Estimate
On discussing your application idea with on demand app experts, the next step is to get a mobile app cost estimate. This is so because it is mandatory to know how much budget you need to build and launch your application successfully. Unclarity of which can result in halting the project in the midway, or publishing a low-quality application.
8. Test and Launch the App
The next step is to deploy and test your on-demand mobile application effectively and effortlessly. Something which will further direct you towards checking ways to optimize an On-demand application performance and ensuring security, which are considered as the prime factors these days.
So now, as you are not solely familiar with the growing on-demand mobile app economy and the service industries driving its growth, but are also aware of how to plunge into the market smartly and successfully, do not remain sitting on the fence. Look forward to taking the right steps and entering the on-demand economy and reaping higher profits. And in case you need any further help or information, feel free to contact our on demand app developers.
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