On Demand in Demand: The Economy of Tomorrow

FUNDAMENTALS OF ESTABLISHING AN ON-DEMAND BUSINESS

  1. Target the right market niche: As each and every market segment is in disarray due to the pandemic, picking the right market niche is half the battle won. A market niche ,where there are lower barriers to entry and key areas of service are not being served by already established business providers, makes for an exciting and lucrative opportunity to establish an on-demand business.
  2. Integrate next-gen technology: As millenials are the driving force for the accelerated growth of the on-demand industry, using next-gen technology as the main touchpoint to attract, engage and convert customers is indispensable. Platform leveraged should be feature rich and should provide an enriched consumer experience.
  3. Strategic Pricing: Pricing of the service should intuitively highlight enhanced value vis-a-vis established and trusted service providers. While setting up the pricing model, convenience and speed of execution of service should be factored in.
  4. Offer multiple Services: As consumer demands are very dynamic, offering multiple services of similar nature can provide a safety net for the service providers and help capture a wider market share. It also ensures that players in adjacent markets, building upon their success, do not undercut you when expanding into your niche.
  5. Share the spoils: Looking at the other side of the coin in this two side market business model, executors of your service such as the food delivery persons, repairmen, cab drivers leverage your access to larger network of potential customers for their livelihood or as a source of supplemental income. Your success is their success and their success is your success. Passing on and sharing the captured economic value generated by your success and increased market share, will further attract and widen the pool of providers and executors and improve the quality of your service as a consequence.

Conclusion

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