The on-demand app economy has taken over the traditional business models by providing people with what they want. In fact, it has become the most talked business term in today’s competitive world. The technology sector is fast growing, as a result of which apps have become the mainstream. Since the inception of the App store, app development has come a long way. Every business needs an app and the demand for apps has led to the creation of an industry that supports the need of enterprises.
History and Current status of on demand economy
The on-demand economy is a glimpse into the changing future. To understand the future of on-demand economy, we first need to understand know the history and current status of on demand economy. Today, consumers’ exhibit interest in different type of service provision, as much as the service they want. Consumers are looking to be satisfied, after the success story of Uber and Airbnb. Smartphone apps have changed the entire game and the convenience it has brought is unprecedented. People are hiring service providers directly from their smartphones through mobile app.
Industry experts believe that this is an enormous shift in the way of doing business. More and more entrepreneurs are discovering the potentials and consumers are embracing the benefits. However, there is still a lot to get from on-demand apps. People see opportunities are starting to find ways to incorporate on-demand into their current business model. They are also finding new ways to leverage their distribution channels. New trends are beginning to take shape, as we look into the future of on-demand app economy.
Which new markets and business will be disrupted by on demand apps?
On-demand apps such as Uber, Airbnb, HomeAdvisor have the ability to disrupt new markets and businesses. We have identified a few new markets that are likely to be disrupted by the on-demand apps. Some of those are – vehicle repair and maintenance, car sharing, self-storage, tech support etc.
If we see the car sharing apps, they have become the next wave of auto industry disruptors. These apps are attracting the consumers who want an ultimate driving experience without the need of car. These apps are flexible in terms of rental terms and pricing adjustments. Such apps threaten the car rental companies indirectly by creating a fleet of unused vehicles. To some extent, these apps threaten the auto manufacturers also.
Self-storage market is another domain that is disrupted by on-demand apps. There are plenty of self-storage apps that could be useful to the consumers who need additional storage space. More than 30% of Americans with two garages have one room for vehicle, as they use their garages for storage. To increase the reach, these companies are offering the best quality space-sharing apps.
Most of the apps in the market are creating a competitive edge by ensuring quick response time. In this regard, tech support apps allow users to chat with a technician to complete routine maintenance and show where the problem is. Apps in this industry allow consumers to search for a particular technician nearby and conduct payment through the app itself.
Apps in the above categories could disrupt the new markets and business by exploiting the business model vulnerabilities. App developers can enhance the consumer experience through better app design and greater customer service. Success is not guaranteed if these on-demand apps are not executed properly. App development companies still need to draft a feasible business plan to overcome the market barriers and succeed in developing on-demand apps.
New ideas on old apps
Mobile apps are no longer meant only for entertainment. There are a whole slew of apps that serve the purpose, making your life easier. On-demand apps are the ones that are useful for those who dwell in metropolitan cities, where simple tasks can become complicated. Here are some of the new ideas in the app store that are help to eliminate day-to-day stress and keep your lives running well.
a.) BloomThat
If you want to send stylish flowers to your beloved ones, BloomThat is a perfect app. This app offers its customers a number of privileges that traditional companies fall short on. It offers selection of time on limited selection of carefully curated blooms wrapped in burlap. Your recipients need not to wait for delivery at the window, as they provide on-time delivery with great accuracy.
b.) Washio
Want to skip the laundromat and avoid standing in lines at dry cleaners? Washio is one of the best on-demand apps with advanced features, serving thousands of customers. Recently, it launched a new service that provides on-demand pick up service in as fast as 10 minutes and a turnaround time of 24 hours.
c.) Luxe
The days of circling the parking area for parking spot are gone. You can employ the multi-faceted app called Luxe that saves time and money by hiring a personal valet to park your car. Customers can use this app for safety purpose as well.
Pains of on-demand
On-demand apps are easier, as they make the life of consumer much easier. On-demand businesses are subject to failure like any startup company, despite of significant investment in on-demand economy. Due to the thin margin of on-demand services, companies are generating fewer profits per transaction. The pain of on-demand is that it requires lot of manpower.
In a study, it was found that more than 80% of US workforce doesn’t want freelancers to complete their task. For this reason, on-demand employers are offered competitive packages to attract skilled professionals. Having contract employees is a good way to limit the costs and improve thin margins.
Communication is another biggest challenge of on-demand. When the customer needs something in minutes, on-demand experts keep them waiting. A complex network is needed for on-demand service. Additionally, hiring representatives in every city for operation can be expensive. Profitability needs significant scale in areas with dense population.
Despite of the above pains, the blossoming economy is providing a variety of tools that make the journey of startups much easier.
Conclusion
The behavior of consumers is changing at the speed of thought. They want everything instantly with just a single touch on their smartphone. Since the concept of on-demand app is tied with basic human behavior, venture funding firms are also looking at the validated ideas.
No doubt, the niche is competitive and there are many players in the industry that created the best on-demand apps. A good on-demand app can definitely beat the competition and start bringing profits.