In the 90s, it was the fast-food boom, and today it seems like on-demand business models are stealing that fame rapidly. But unfortunately, the current business world has never been more uncertain. With closures and social distancing protocols, many conventional businesses have no choice but to put their efforts into overdrive and shore up their online transactions.
Indeed, the on-demand economy has been flourishing since Uber disrupted the online taxi market, but the pandemic has given an unprecedented boost and brought huge sales increases to retailers across the globe. Moreover, one research suggests that restaurants, retailers, and store owners benefit from the on-demand app boom.
Along with business operations, there seems to be a shift in attitude and preferences; consumers are looking to be satisfied instantly. And smartphones have been the game-changer in this incredible growth. People can now book a cab, order food and groceries, or book beauty services right from their phones. And this level of convenience is one of the reasons why the on-demand business is growing.
The demand for these daily services seems to be increasing daily. And market experts believe that there is an enormous shift to the online way of doing business. For example, ride-sharing apps like Uber, services like Airbnb, and food delivery apps GrubHub and Zomato have been major disruptors to the conventional way of doing things.
An Overview of the On-Demand Industry So Far
The on-demand industry is growing rapidly and doesn’t show any down curve. According to the report published by Harvard Business Review, more than 22.4 million users spend around $57.6 billion on on-demand services. No doubt; this figure is divided into various business sectors such as taxi services, food, grocery delivery, etc.
Another statistic reveals that 86.5 million US citizens have used an on-demand application at least once in their lives. Along with the buyers, service providers also claimed a noticeable rise in their income and order volume. In addition to that, they are also hoping for an improvement in their financial condition.
The above research and statistics reveal that the on-demand economy is here to stay for a long and, clearly indicating the proliferating scope and inspiring everyone to enter into this growing economy. But one of the exciting things about this model is it is revamping conventional business models and evolving the preferences of the people.
Source: Harvard Business Review
Online food ordering, cab booking, online gifting, medicine delivery, etc., continue to rise. As a result, more companies are considering migrating their enterprises to the digital world and are willing to develop an on-demand app for business since the industry is constantly rising, especially due to more people ordering products online.
Fulfilling the rising needs of customers is one of the primary duties of any entrepreneur, and if you think now is the right time to invest in an on-demand business, the below reasons can help you understand this statement more clearly.
5 Strong Reasons Why You Should Get Into The On-demand Industry
As you may have perceived, the pandemic has not slowed on-demand services. Instead, its demands have only been fuelled by it. Globally, consumers are finding it increasingly difficult to leave the comfort of their homes to get the essentials and goods they intend to purchase because companies enforce strict lockdown protocols and shelter-in-place protocols.
Many people are wary of stepping out of their homes, even in countries where lockdown policies are lenient. On-demand economies are proving enormously advantageous in such cases. The Internet has made it possible for consumers to order groceries, gadgets, books, services, entertainment, and more from the comfort of their own homes.
Sales of on-demand services in the US increased by 49% in the early days of the pandemic. In short, this industry is booming, and the below reasons prove why this is the right time to get into it.
1. Online Ordering and Booking on the Rise
Online ordering is projected to increase to exponential levels in the days to come. For example, the online food delivery market is rising rapidly and soon will cross $200 billion. In the same way, the healthcare industry is also getting digital as many patients are now ordering medicines online. Considering this approach and the habits of modern shoppers, it would not be wrong to say that this industry is full of potential. So entering into an on-demand business could be the wisest decision you can ever take.
2. Millennials Prefer Online Ordering
According to the research conducted by BigCommerce, more than 67% of people and 56% of Generation X now prefer to shop online. Along with clothes and electric products, consumers now order food and other essentials online and pay bills digitally. And to make this decision easier, online reviews are also becoming vital to them. For instance, they can check reviews for a particular restaurant before visiting it.
3. Track Your Customer’s Buying Patterns
Keeping eyes on customers’ buying behaviour is the key to better engaging them and boosting sales. This can be easily achieved using an on-demand application that builds with modern techs such as AI and ML. These techniques can help track a consumer’s past behaviour; based on that; entrepreneurs can craft targeted ads that fulfil their needs.
4. Increased Scalability
Security and scalability are key features of on-demand app solutions. By integrating them into your processes, you can provide your business with a highly scalable approach to meeting its diverse needs. For instance, many food delivery companies started online grocery delivery amid the pandemic to grow their small business and reach the rising needs of customers.
On-demand business models are more profitable than traditional models, and hence it is imperative to switch to the former. These pointers have led entrepreneurs and marketers to accept that on-demand business models have more potential.
5. Investing in On-demand Results in More Opportunities
As an entrepreneur, you are looking for a trusted technology partner positioned for growth and expansion. It takes years before you can open your store or restaurant in a physical location, but on-demand apps have more opportunities to grow and increase business reach in their initial days and thus make money faster than conventional stores.
Ready to Step into the On-Demand Industry?
The on-demand economy has much room for improvisation due to its innovative nature. If you want to grow your traditional business, consider investing in on-demand. More people are ordering products online than ever before.
As the on-demand industry grows, it becomes important to get involved. Entering this market can be novel for many entrepreneurs but does not pose any challenges if it is a hurdle that holds you back. Hence, it is time for you to harness the potential of this growing industry to offer your customers the best and stay relevant.
