The present state of On-Demand Economy


So, you have ordered something for dinner and it is arriving in a few minutes. Wow. And what about that beauty treatment appointment? Things are happening and taking place in a few clicks, but do you ever question yourself, how? What is the logic and phenomenon behind all of these things? Well, let us answer in a precise way.

The answer is increasing On-Demand Economy. The on-demand economy is described as the economic activity created by digital marketplaces for fulfilling customers demands and needs. There are thousands of companies and firms available in the market making use of an on-demand economy.

As consumer needs are changing every day and so their behavior, the on-demand economy is growing rapidly and fast. A consumer wants fast, simple yet convenient delivery of goods and services in the estimated time.

In short, the on-demand economy is smartly replacing traditional approaches and business criteria. The services are rendered to the customers around through a couple of apps.

Based on the data from the U.S. Census Bureau’s American Community Survey ( , illustratively used by The Harvard Business Review ( has shown that the on-demand economy has over 22.4 million customers annually and around $57.6 billion is spending. If we look at the prospect broadly then the on-demand economy is actually changing due to 4 major reasons. Those reasons are :

  • Introduction of online services and marketplaces
  • More emphasis is given to entrepreneurship. Let us give you an example. UrbanClap is an influential platform that has allowed and given opportunities to service professionals in India. This opportunity has definitely given them a track and a medium for earning. The emphasis on entrepreneurship is absolutely changing the whole scenario of the workplace
  • Flexibility is essential– the concept of the 10-7 job is blurring with time and employees are more likely adopting on-demand requirements. This shows that more people are interested in part-time work or managing their time according to the requirement.
  • More customized work- customers want to get things done according to their needs and comfort. Lots of businesses are working hard along with smartly adapting tricks to provide tailor-made solutions and services to the customers. For getting desired result, businesses hire known and acknowledged app development agency for developing a competitive app.

The above data is relevant enough to show the growth of the on-demand economy along with its popularity in the market. Businesses are taking advantage of it while delivering supreme goods and services to users across the globe. That is why the rise of the on-demand economy is certainly changing consumer habits, supply patterns, competition and process of investment. All of these together making it difficult for the traditional methods to match the needs of today’s requirements. Meanwhile, looking at the demand and changing technology, it is also possible that drones and robots are handling the task of deliveries. It is also possible that consumers are receiving goods and services as per their buying history before they realize.

The on-demand economy does have high growth potential, as companies are stepping forward to match the expectations of the consumers around. Let us focus on its evolution first before moving forward to its present situation and growth graph in the market.


There are various different factors responsible for the evolution of on-demand economy. But, here we are highlighting the two major ones for making the concept more clear and better. Majorly two factors are responsible for its evolution. These are:

  • Firstly. Consumers expect and desire a medium which can save their time along with procuring fast delivery of goods and services.
  • Secondly, innovations are the guiding force behind evolution. Digital app-based technology and e-payment methods together are making things better and easier for consumers.

The economy is absolutely snatching away the power from big businesses and enterprise and giving that power in the hands of people around. Now customers can get things and services according to their requirement in an estimated time through various different apps, be it ordering food, salon appointment, flight booking etc. With it, customers are free and are not dependent on traditional method.

A smartphone is certainly making the life of customers easier and better. In just a click, everything is present to you in no time. If we compare certain things together then middle-class consumers generally continue to go ahead with the on-demand economy. They prefer it more because of quick deals or for comparing prices along with availing good discounts. Let us give you some examples to make it easier and understandable. 6 industries are basically there which are enjoying the on-demand economy-

  1. Beauty– with beauty salon apps, it is now easy to book your salon appointment along with availing services at your doorstep. Examples are-
  2. Glamsquad
  3. BeautyLynk
  4. Bella on Demand
  5. Zeel etc
  6. Food– doorstep delivery of food is quite famous now and actually emerged with a good start in the beginning. Moreover, you get the option of ordering groceries online with an option of delivery. Here is a list of few companies which has shown tremendous growth in this zone –
  7. Grocery delivery- Instacart, Grofers
  8. Recipe and ingredient delivery- Blue Apron
  9. You can hire a freelance chef and cook and deliver with freelance delivery staff- Munchery
  10. Online table booking- Open Table
  11. Food delivery- Swiggy, Zomato, Uber eats

      3.  Transportation– many taxi companies have started their own individual app for Customers. With this, it has become easy and convenient for people to rent a car on Hourly basis along with the option of carpooling. examples-

  • Cabs on Demand- Ola, Uber
  • Ridesharing or Carpooling- Lyft
  • Car rental- Zoomcar
  • Chauffeurs for the personal car- DriveU
  • On-demand valet parking- Luxe

       4. B2B services– B2B is getting famous due to its criteria and approach towards work. It Enables a business to focus on its core functions while outsourcing other aspects. Few of its examples are-

  • Temporary Staffing- ShiftGig, TaskRabbit
  • Corporate Catering- Grubhub, ezcarter
  • Outsourced Consulting- HourlyNerd
  • Corporate Events- Vanuebook

       5. Healthcare – things are changing, so is the healthcare industry. The technology has made things possible for patients as prescribed medicines can be easily delivered to doorsteps. Few of its examples are:

  • Doctor visit to the patient- DoctorOnDemand
  • On-demand Ambulance service- Stat
  • On-demand Medicines- MedPlus
  • On-demand Nurse- Go2Nurse

       6. Services– there are people or we can say, customers, who required professional help. Skilled workers and professionals have started opting for tailor-made platforms where customers can easily look for them. The concept is growing brilliantly because customers are looking for methods which are easy while making payments, booking and searching. Few of its examples are-

  • Home visits by Professionals
  • Team of professionals and manage bookings- Wischen
  • Freelancers and their services- Mopp

There is another data showing that 49% of customers who purchase goods and services using on-demand economy are aged between 18 to 35 whereas 29% are between 35 years of age. Another survey presented by Google showed that those who are using smartphones are 50%

 generally purchase things in real time. “Same day shipping” also grew to 120 percent from 2015 to 2017, whereas looking at the flights today and hotel tonight have grown to 150 percent.  Let us make it more illustrative, Amazon has revolutionized the customer experience by quickly offering two-day delivery and in some specific area, it is 1-hour delivery also. It is also noted that same day shipping has grown over 120% since 2015. (

Though, the on-demand economy is growing very fast, it is also facing some major challenges in the market. Those challenges are:

  • It has to follow some tight rules and regulations laid by the government
  • Most of the on-demand companies have shut their business because of low funds and customer base to stay afloat. No matter what, on-demand economy firms are also required to pay taxes to the native government. But there are many firms available who have revolted against it by arguing that their platform is absolutely digital which is connecting users to individual service providers.
  • There are no health benefits and any other specific perks given to the employees working with on-demand economy firms in the market.
  • Labor law is also showing concern that they do not have full job security or certain kind of protection under current labor law. They generally get low wages and can not demand a high wage.

Putting aside all the things and challenges, the on-demand economy is coming up with major changes and growth. There are certain future trends that are likely to take place sooner for better customer experience.

  • It is indicated by a market analysis report that the on-demand economy has shown prospective growth and is likely to show more innovation while providing services to the customers.
  • The on-demand economy is going to rise, this is the reason, industries need to evaluate their business model and are required to work on it to respond to the upcoming threat coming from the on-demand economy.

Businesses need to understand the upcoming trend and threat together in order to make them stay in the market for a longer period. They need to plan accordingly towards current and future customer bases along with accepting and embracing digital technology.

Though, startups will face struggle and various different challenges in the very beginning to show their iron.

Not just dining, shopping, or other services, technological services are coming in the league for meeting the needs of customers. Companies like IBMs, Apple, Microsoft are offering on-demand products apart from platforms for independent developers for developing new apps or technical products.

Moreover, the day is not that far when self-driving cars, robots, and drones will be replacing humans while delivering. There is no doubt, customers are reluctant to bad services and can turn their back to traditional method at any point. Another important thing here is, as everything, be it on-demand service or product is manageable through apps, businesses need to invest some time while selecting the best mobile app development company.This is the reason, companies need to prepare themselves along with giving more priority to the best in class service to the user.