Have you ever heard of on demand? A technology company offers a service or product to satisfy consumer demand immediately. This description may seem confusing, but it is very likely that you have already made use of this type of tool even without knowing exactly what it is or its importance for the new economic organization of the market.
Table of Content
- Understanding On-demand Services
- On-demand Services Redefine Economic Schemes
- Types of On-demand Apps
- Popular Examples of On-demand Services
Understanding On-demand Services
It transformed the way we experience our daily lives, the way technology has been integrated into them. Now we can inform ourselves, have fun and even work from our phone, and of course, communicate regardless of distance, time, or location.
But in addition, it is transforming the nature of the business at its roots, creating opportunities and reshaping the market like never before.
It is increasingly common to solve everyday problems from the mobile phone such as making payments, checking our bank account, choosing the destination route or buying the plane ticket, the concert, the cinema, booking at our favorite restaurant, and endless etcetera.
The success of mobile apps like Uber and Airbnb is no coincidence. They both identified a problem that affected many people and found a way to solve it: Mobility and low-cost accommodation, just a couple of clicks away. On demand app is a mediator between customers and suppliers: food, home delivery of products, health, fitness, education, transportation or finances.
People now have in the palm of their hand an almost unlimited à la carte service for many of their needs, and when choosing one, they require that they conform - almost to the millimeter - to them, like a tailor who makes us a tailor-made suit.
On-demand Services Redefine Economic Schemes
The logic of on-demand services implies a change in economic and social schemes, which has become popular. If before, the logic was to accumulate and possess, the profile of this new type of consumer is characterized by the need for distribution and interaction between people and the services available.
The growth of on-demand services generates new market logic and creates challenges for entrepreneurs and consumers.
According to The Economist newspaper, in special articles published in January 2015, there are three fundamental aspects of on demand services to be highlighted, which reflect this new definition of economic characteristics.
The first one is the ease of finding services for anything. In the United States, you can find on-demand services ranging from home renovation and services to video channels and movies. Following the reading, you will find examples.
Technology is a key aspect as it enables people to hire services on-demand not only on the computer but also via applications on smartphones and tablets. Therefore, the strengthening of freelance services - through which you can divide tasks and optimize processes - is increasingly visible in this new economy and service provision.
Finally, the order created by the on-demand also participates in social aspects. If, on the one hand, it facilitates access to those who do not have time but has money to hire and gives work to those who cannot find space in the saturated market, on the other hand it puts those who are attached to the traditional structure in check.
Based on this logic, some on-demand services cause controversy and generate political debates about the limits of these practices. It is visible that the consumer gains with this type of service, but what about the economy? Can cable TV productions and services lose space to the detriment of new media audio-visual productions?
If the logic is altered for the consumer, it is also valid for entrepreneurs and employees, who will have to reinvent themselves to face this new market logic.
Types of On-demand Apps
What it is about is to eliminate those little worries in your day to day. Receive your next meal at the door when you don't have time to cook or shop. See your favorite series or movies anytime you want. Buying a book without going all the way to and from the bookstore. The guiding principle of on-demand apps is simple, make life easier and more comfortable for users, avoid complications.
On-demand apps can be:
- Person to Person: This allows the user to request an item from another person.
- From Business to Person: Companies can offer their products and services.
- Business to Business: Provide mobile solutions specifically designed to connect businesses. They can support transactions on a global level.
Popular Examples of On-demand Services
The market for on demand services enables countless business opportunities. The exploration segments are infinite, and creativity and innovation are essential when conceiving an app idea.
Learn about three on-demand services below and see if they can inspire you to take this path.
Netflix app revolutionized the audio-visual market. In addition to showing films online, the company also began to produce its own series, which achieved great success with the public and critics in the world market.
Also Read: How Much Does An App Like Netflix Cost
Uber is an application that provides the service of connecting drivers and passengers to move from one point of the city to another without any labor or union commitment. As the user pays a certain amount to travel, and there is no generation of taxes for governments, the application has been the target of protests, mainly from taxi drivers, and has encountered resistance to its expansion.
Through the platform, guests and hosts can come into direct contact, and you can receive travelers at your home. In the tool, you define the value of the daily and the accommodations and the interested guest can choose your home. The company profits through a commission percentage on the value obtained in the negotiation.
The popularity of on-demand services has been consistently increasing for the past couple of years. Services such as Uber, Netflix, and Airbnb are leaders in this sector. On-demand services have changed the mode of transportation in many cities around the world. The most exciting aspect is that these services can be enjoyed right from our mobile devices' apps.