A new age has dawned. Gone are the days when we were faced with the choice of either starting a business or seeking employment and if we chose the latter, it would entail staying with the organization for a long time. The on-demand marketplace has generated a section of society amidst workers that oscillate between working full time for a company and self-employment.
The sole reason for the existence of these strata of workers is due to the gap in understanding the difference between the services offered and what is desired. Large companies charge a fortune for small jobs that might take fifteen minutes to accomplish. A simple quick-fix job like fixing a leak in the plumbing system may set you back by a hundred dollars or more if you use an established service.
Although the inherent cost is low, their scale has caused the price to go up exponentially. These companies also function during regular hours, causing homeowners to be bound by the timings set by them. This gap in expectations vs. offers has effectively been fulfilled by the on-demand marketplace that is the most talked-about trend in the industry.
The biggest reason for the success of the on-demand economy is its inherent capability to make everyone happy. Workers need to add financial stability, which they can accomplish by working as an on-demand worker during their time off.
Their on-demand employers cater to those who are very busy during the workweek and have no time for themselves. This demand-supply based economy has filled a gap that earlier required a large paycheck to bridge.
Consider a market that has been posting a compounded annual growth rate of nearly 30% which is expected to rise to around 49% by 2021. A $600 billion market in the US alone, the on-demand home services sector has grown by leaps and bounds, fueled by our current lifestyle.
With time being in short supply and the advent of the smartphone coupled with the internet, the largest piece of the on-demand home services pie has been served to the current generation. More and more millennials acquire information and book services over the internet today.
On-demand home services help bridge the gap between offline services and services available online, often acting as intermediaries that provide you services when you need them, efficiently.
What was formerly a luxury is a necessity today. From booking home cleaning services online to finding runners for their laundry to finding home tutors and nannies for children, millennials have outsourced nearly every aspect of their lives. High income and stress at work have contributed to this industry that has now become bigger than the businesses we currently are employed by.
The current on-demand home service market is highly fragmented and fiercely competitive. The key to surviving in such a market is the uniqueness of a product and the value that it brings along with providing innovative solutions to problems.
As the age group of customers that need these services is between 20 and 35, they are usually tech-savvy and switch apps faster than vendors can provide updates to them. The result of this need-based-market is that leading vendors offer a better user interface design than the competition.
According to a report from Forbes, over 75% of the workforce will comprise of millennials that find it easier to use a smartphone rather than pliers. This suggests that staying abreast with cutting edge technology and innovative design is the only way to understand what their clients need and how to best serve and retain them.
Staying in touch is important, but the medium is not. With the number of text messages sent in a day overshadowing the number of calls by the millions, it is only natural to assume that most customers would rather text a service provider than call them. App notifications are much more important than calling customers.
A reliable, cost-effective service is the key to success. With more and more people deciding by reading reviews online, positive reviews by actual customers go a long way in ensuring a steady customer base.
The scope of the on-demand industry is immense. Studies prove that as our lives get busier and even more competitive in the workplace, we will need on-demand services that help us find time during our days off. This customer-focused industry is only slated for growth in the near future, as long as your ideas are innovative and your service dependable.