How the On-Demand Economy is Changing the Future of Service Industry?

With governments imposing strict lockdowns and social distancing norms, consumers find it difficult to step out of their homes to get essentials and things they intend to purchase. But thanks to on-demand delivery apps, customers do not need to stand in long lines of supermarkets, visit restaurants to get food, or go to the roads to get a cab, as they can avail themselves these things by just making a few taps on their phones.  

The on-demand economy is mushrooming at an unparalleled pace amid the COVID-19 pandemic and is fulfilling the increased demand by giving instant access, convenience, and personalized experience to the customers. As per HBR, the on-demand economy attracts 22.4 million customers yearly, and it will also get spending of $57.6 billion (approximately). This has attracted emerging entrepreneurs to established businesses to harness the growth potential of the on-demand economy.

If you are also interested in leveraging the benefits of on-demand innovation into your services, then you should implement a robust on-demand delivery solution into your business. But before you start with your on-demand delivery app development, read this blog to know how on-demand apps play a significant role in reshaping the future of the service industry.      

4 ways on-demand economy is changing the service markets

As the world embraces the on-demand economy, it continues to look for the latest market trends and adopt innovative technologies to consistently optimize the customer experience.

Over the years, the on-demand industry has grown a lot, keeping in mind the increasing requirements of consumers. This is the primary reason the on-demand economy is increasingly gaining new users by the day. But this is not the only reason to build an on-demand delivery app, there are also many others like the following ones:

1.    Profitable opportunities

The on-demand delivery model has resolved the friction faced by the customers during the offline purchase. On-demand delivery service has helped customers to order anything at the comfort of their couches. This efficiency and effortlessness of on-demand service received an enormous response from the consumers by making them inclined towards on-demand service providers. 

This inclination of customers towards on-demand deliveries led the new entrants to launch on-demand startups, be it in healthcare, transportation, education, or retail.  

2.    Contactless deliveries

Amidst a viral pandemic that is costing a thousand lives, delivering essentials to needy customers cannot be compromised at any cost. One of the most effective measures taken by food delivery companies is contactless delivery.

Generally, the drivers are prone to coronavirus as they may have to come into direct contact with customers. That is why food delivery businesses are taking utmost care of their staff by measuring their temperatures, sanitizing delivery vehicles, providing them with face masks and gloves. 

Along with this, food delivery companies are also instructing their drivers to leave parcels outside consumers’ homes and call them. On getting the call, customers would pick up their parcel from their doorsteps. To make this more effective, companies have also started using contactless payment methods such as mobile wallet, RFID, NFC payments, credit cards, debit cards, etc.

3.    Better personalization

Customers expect you to know them. And a good customer experience doesn’t always come from selling and buying goods. It comes from how you are treating your prospects from their first purchase. 

Because of the functionality of on-demand delivery software, you can also show the products to your customers based on their last purchase. Besides this, you can send out personalized messages through push notifications, engage and connect with their customers, send personalized emails on offers and announcements and do more. 

Along with this, you can try behavioural targeting to segment your on-demand delivery service depending upon the user’s demographic data such as gender, product, interests, and buying fashion. By doing this, you can get better customer engagement for your business that can help you generate more revenues.

4.    Higher scalability

When you integrate an on-demand delivery solution into your business, you get a highly scalable method to meet the diverse needs of your business.

It improves the delivery time and reduces the risk of human error that saves a lot of time. The on-demand solution automates the delivery process through which the number of checkpoints decreases. Furthermore, an on-demand delivery solution increases the rate at which raw products reach their last phase.

The above pointers have directed entrepreneurs and marketers to accept that the On-demand business model is more profitable than the traditional model and thus, it is imperative to switch to the former one. 


On-demand apps are rapidly becoming a preferred choice among the new delivery startups as it helps them to serve the consumers better. They will continue to disrupt many industries apart from the usual ones. By this point, we have acquainted you with how the on-demand economy is revolutionizing the business model and how it can affect your business. 

Got a million-dollar thought? There won’t be a better time than this to start with your on-demand app development. Feel free to reach us to know more about how to make a successful on-demand delivery app. Our experts will deliver the top-notch on-demand app solution that can skyrocket your business profits. 


Author – Bio

Kunal Gohil, Product Manager of Gasswift, one of the leading on-demand fuel delivery solutions. He is a highly motivated entrepreneur who drives his organization with his exemplary leadership skills. His aim is always to strive for perfection and to come up with innovative gas and fuel delivery solutions.