Important Factors to Consider While Selecting On-Demand Business Model


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On-Demand services focus on facilitating the customer with the instant availability of the product or the services. Businesses in various segments are integrating on-demand services to engage the customer in a better way. The on-demand economy is succeeding in traditional business models faster than expected. A survey stated around 42% or 86.5 Million Americans have utilized one of the on-demand services. Fulfilling customer needs is the best way to remain ahead in the huge market.

On-demand mobile applications like Postmates, handyman, JustPark, Airbnb, Instacart and many more are some of the best trendsetters in the industry. Looking at the present stats there is no doubt that investment done in this sector is boosting the on-demand economy. There is a wave of venture capitalists looking for new opportunities in on-demand for startup and established enterprises.
Factors to be Considered While Selecting On-Demand Business Model
The on-demand economy will effectively navigate through ongoing market challenges. With the fact that the market is successfully emerging with the on-demand services, the growth of the marketplace is getting stronger. The fundamentally on-demand economy in this space across the globe is leveraging the advanced technology to improve customer experience. Here are a few factors helping in selecting your On-Demand business model.

Degree of Commoditization

For on-demand service, the number of factors related to a service or product defines the degree of commoditization. The purchasers have to select those factors while buying something. Therefore, lesser the factors more commoditized a service or product will become. To understand properly let’s consider an example of Uber where a purchaser just choosing the sort of vehicle whereas on the other hand on-demand app Airbnb allow the users to select the date of the booking, location of the listing, number of days, and so forth. Hence, one factor before availing the services directly impact the on-demand service you offer to the customer.

Supply – Platform Relation

These days businesses in various segments are processing the services using consultants or connecting the supply directly. A strong business model may include combining platforms with various supply resources. Connecting and providing the services should focus on the services that are easy to avail of and fast. To sustain the on-demand service pressure the factor of the relationship between the supply and platform is important.

Associated Stakeholders

There are on-demand services where applications deal with the number of stakeholders depending on the type of service is provided. Some on-demand services are dependent on the other stakeholders where some platforms deal with at 2 stakeholders. For example, Postmates doesn’t have their framework, hence they have a third key partner to deliver merchandise services. The associated stakeholders impact the business model.

Pricing structure

This is the most crucial factor related to on-demand services. This is the factor on which the on-demand business model is dependent. The major part is that the price structure should not hike to fulfill the requirement fast. The on-demand service provider should offer a moderate pricing structure to avail the customers.

Instant or Scheduled service

In on-demand services, the instant delivery model requires an enormous investment in technology as well as logistics. Whereas, in the secluded delivery model there is a much huge effect on the demand or revenue of the company. Instant delivery can act as a game-changer but can bring about lesser benefits for the organization.

Final thoughts

In on-demand services, the focus is always on the scale while offering countless benefits to the customer with amazing offers and deals. Providing customers ease and convenience at affordable prices is the main idea behind every business. This results in a thriving current on-demand economy.

Know more about on demand app development services: Which Service industries are driving the on-demand economy-2020

Jyoti Gupta
Jyoti Gupta is a digital marketing expert at Quytech, a well-known Mobile app, AI, Mobile Game, AR, VR App development company. She has been in the marketing industry for 9 years and carries a valuable experience in the respective industry, As a marketing expert in IT Services, she loves to write and share about new technological trends in the domains of mobile, AR, VR and AI.


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