Millions of consumers and businesses are engaging in a new type of commerce. In this new economy, businesses can deliver products and services in a way that is more accessible and more convenient, while also offering more choices and better prices. This new economy relies on on-demand apps that deliver this new way of doing business to the phones of consumers and service providers.
The on-demand economy might be new, but it is growing rapidly. It grew by 58% in 2017 and is expected to continue growing and moving into new industries to offer an even wider range of products and services.
With the success of on-demand apps like Uber and Airbnb, more companies are looking to take advantage of this business model. As they work towards developing iOS apps and Android apps, we can expect there to see an increasing number of on-demand services in the near future. While most won’t end up being the next Uber, there are opportunities for businesses that decide to start offering on-demand apps.
How On-Demand Apps Became so Popular
Several factors came together to make on-demand apps popular. One of the most significant is the increase in smartphone ownership. In just a few short years, smartphone ownership among US adults went from 35% to 77%. Furthermore, the percentages get higher as you look at younger groups of adults.
With more people having smartphones in their pockets, you have an increasing number of people who can access the on-demand economy from any place they have an internet connection on their phone. Along with that, smartphones have changed the expectations of consumers. With a world of information, entertainment, and shopping available at the touch of a button, people have gotten used to getting what they want, when they want it.
Beyond that, you have also had a few major success stories in the on-demand economy. With apps like Uber and Airbnb gaining such popularity and consumers enjoying the convenience that they offer, it was only natural for businesses to try to translate that success to other industries.
Now there is a wide range of on-demand apps operating in many different industries. New on-demand startups are also popping up all the time, full of innovative ideas and are hoping to find new ways to serve customers better.
Expanding into New Industries
The popularity of apps like Uber might be one of the better-known stories from the on-demand economy, but it is really just the tip of the iceberg. This new way of doing business has spread to several different industries and it is changing the way consumers get a wide range of different products and services.
Consumers do more than just hail a ride or book accommodations with these apps. Along with transportation and accommodations, people are hiring plumbers, getting roadside assistance, booking stylists, and getting their groceries. We are even seeing apps that offer on-demand healthcare services.
Businesses and other service providers are recognizing the advantages that come with being able to reach consumers on their phones. With this business model, products and services become more accessible and consumers get what they want in a timely and convenient manner. With this realization, more businesses are continuing to look into the possibility of operating within the on-demand economy.
A Shift Toward Personalization
The internet has given consumers a taste for increasing levels of personalization in the products and services they use. For businesses moving into the on-demand economy, there are new opportunities to give consumers the personalized service they desire.
With the ability to collect and analyze customer data, on-demand apps can take personalization to the next level. When a business can combine the convenience of on-demand apps with greater levels of personalization, they have an opportunity to serve consumers in a much better way than was available in the past.
If the on-demand economy hasn’t come to your industry, it is probably only a matter of time. The question most business owners should be asking themselves is if they can find a way to integrate on-demand services in with their current business model. If you want to thrive in this changing economy, you need to start thinking of ways you can make this transition now.