If you own an offline brick-and-mortar home services business, chances are that you have been hit hard by the COVID-19 pandemic. Embracing the power of the internet and the on-demand economy is the first step towards ensuring that your business is ready to take on the challenges that 2021 may bring.
Find success—on demand!
Traditional brick-and-mortar businesses have consistently been at the losing end when pitted against their tech-savvy rivals. When the COVID-19 pandemic caused lockdowns throughout the world in 2020, many brick-and-mortar businesses faced closure or were impacted negatively due to the lack of customers. Taking the example of the Mid-Atlantic region alone, over 50% of firms closed between January and May. This resulted in employment rates dropping by the same number and in many cases, even more.
Walk-ins are passé
Most traditional businesses rely on steady demand from walk-in or regular customers. A lot of these businesses also rely on this demand for cash-in-hand to continue operations. These businesses are hit hard by the lack of demand due to their near-total reliance on payments from customers. The on-demand home-services sector was hit hard, with most traditional stores shutting shop due to lockdowns or lack of demand. Larger companies such as Anago and Bathubatsu were able to pull through due to their large size, positive cash flows, and franchising models, but also suffered from lack of demand.
Why go the on-demand way?
Smartphone sales crossed the 1.5 billion mark in 2019. Newspapers, traditional print media, and yellow pages have consistently been losing readership, making mobiles the king when it comes to searching for information and services. Imagine your business expanding its reach to over 80 million people in the US alone, who account for nearly 42% of the adult population. These people typically live in urban areas and have helped on-demand startups such as Postmates, DoorDash, TaskRabbit, SweepSouth, JustLaundry, Kisafi, Wesabi, and many others overtake their traditional brethren in business volume even during the pandemic. These figures are more than impressive, and traditional print media or yellow pages cannot even come close to this in numbers alone.
How will the on-demand economy help my business?
The on-demand economy helps both providers and contractors. According to a joint survey conducted by Burson-Marsteller, the Aspen Institute and Time, nearly 22% of the adult population has offered their services or worked in the on-demand economy. These figures showcase the staggering untapped potential of the on-demand economy for brick-and-mortar businesses and how they can embrace the power of the internet and mobile apps to ride this wave of success.
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Work on-demand
Provide services through contractors when needed. No need to open your store every day to wait for customers to walk-in
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Earn through your platform
Manage payments online and earn commissions through services provided by your workforce
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Scale on-demand
Reduce or enhance your workforce without financial implications.
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Reduce fixed expenses
As you only pay your workforce when they complete a job, your fixed-cost commitments are reduced manifold.
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Reach a wider audience
Leverage the power of the internet and mobile technology to reach more customers than ever before!
Statistics from Intuit to help you make the switch
- Get a happier workforce: 70% – The percentage of satisfied workers
- Get a younger, dynamic team: 51% – The percentage of young workers (under 35)
- Provide services when customers want: 46% – The percentage of workers happy about flexible work timings
- Get additional manpower on-demand: 63%- The percentage of workers using the on-demand economy for supplemental income
- Improve your financial situation: 51% – The percentage of those who offered services in the on-demand economy and earned more than usual.
Some more facts and figures
- Global online on-demand home services market size during the pandemic: US$281.9 billion
- Estimated growth by 2027: US$4.1 trillion
- Industry cumulative CAGR: 46.7% (2020-2027)
- CAGR of home repair and maintenance: 49.3% (2020-2027)
- US on-demand home services market: $87.5 billion
- Regional market CAGR in USA, Canada, Europe, Africa: 39%
- Total market size: US$500 billion
- Employed professionals: 5 million+ (USA)
How can I scale my business with just an idea?
Uber and Airbnb were innovative ideas that scaled with the help of investor funding and became the unicorns of the on-demand industry. These two well-known names, coupled with international success stories such as Urban Company, SweepSouth, and Jiffy have made the on-demand home-service startup industry become one of the most-funded and highly sought-after avenues for funding around the world.
I love the idea, but is there a future in this?
According to Forbes, yes! As the world continues to reel from the after-effects of the COVID-19 pandemic, investors around the world are betting heavily on the on-demand home services economy to help individuals get more done every day. As people’s lives get even busier while working from home, on-demand home services and the on-demand economy remains their only hope to ensure that daily chores, cleaning, and repairs can be done without having to hunt through yellow pages and calling each provider to get quotes. On-demand platforms offer the convenience of getting the services your customers need from the comfort of their homes in one click!
If your brick-and-mortar business is looking for customers and a scalable workforce, look no further. Let our consultants help you get online, improve your finances, enhance your customer base and get more done! Schedule a meeting with our experts here.
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