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What is the on-demand economy?

The economic activity created by any technology company which directly fulfills consumer demands by immediate provision/access to the goods and services is called the on-demand economy. Such economy has created efficient platforms which makes efficient use of existing but unutilized infrastructure or assets.

Fundamental principle: The sole principle is access and not ownership. It relies on hiring freelancers than full-time employees as service providers.

Companies which are nailing it by using this model: Uber is undoubtedly one of the best examples to explain the success of on-demand services. Other companies which are just making a mark in the market by using a business model of on-demand services are as follows:

  1. Jugnoo i.e. Uber for Auto-rickshaws
  2. Urban Clap: For Local services
  3. Laundrapp: For Laundry

Because of the four factors like investor interest, access to capital, changes in consumer behavior, technological advancements and new methods of supplying services, the stage for the on-demand economy was set. Now, even the start-ups are turning to on-demand services.

The on-demand economy works on three things which are majorly related to technology, business model and operations.

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