this video is the first part of the on demand industry guide a course series
to help budding business owners and entrepreneurs we'll walk through all the nooks and corners
in setting up your own on-demand business in this particular video i'm going to talk about
stats and insights of the on-demand industry hey my name is anurag and i welcome you all
okay so to kick start let's talk about some statistics let's try to die this in some numbers
you might get surprised to know that the on-demand industry is going to rise to 335 billion by 2025
which was mere 1.0 billion in 2019. the on-demand app economy has about
22.4 million users spending dollar 57.6 billion every year to get real-time services
the numbers of this industry are humongous and so are the opportunities of this industry
so what is on-demand economy want your groceries to be delivered at your doorsteps or a smoking hot
pizza want to book a cab to reach to office rent a property for days months maybe years
hire some people for doing a job need a laptop to be repaired and many more services like these are
available at our fingertips today almost each one of us will use a service like that in a whole day
before ending a day every one of us going to use a service like that
this is on demand economy this is the on-demand industry and this is the irreversible change
that on-demand economy has brought about in our lives popularly known as the axis economy the
on-demand economy we also call it as the axis economy it is effective to meet the demands
in quicker convenient and more personalized manner personalization is something that's quite
broadening in the on-demand industry hold on to the thought we'll talk more about personalization
and on-demand services later in the video with the launch of ride-hailing services like uber and lyft
the on-demand concept was all set to reshape the business models but technology also acted as a
game changer so resuming the thought of what the on demand economy is in an on-demand economy when
a transaction takes place there are two parties involved in acting one is a provider and other is
a consumer both connect with each other through medium or mobile apps to perform such an action
and tech companies act as intermediary to handle tech operations payments and other transactions
on demand is considered to be a major disruption the tech industry has observed after the dot
com bubble today is always hyper connected smartphone error and yes all thanks to the
technological advancements which have been the driving force behind the successful model of the
on-demand industry as we see it today but let me tell you the concept is not very new relatively
even in the late 90s our companies like web bank offer delivery of goods to the consumer's places
talking about today let's discuss few of the examples of on-demand businesses that we have
and use today uber lyft lime are providing ride healing services airbnb is providing home stays
grubhub doordash talabath is providing on-demand food delivery online food delivery
zomato provides for deliverance india instacart delivery e-commerce companies like amazon ebay
on-demand media streaming services like netflix amazon prime travel companies
education home services beauty health on-demand doctors the list continues goes on and on the
on-demand economy is customer-centric better the personalization and instantly available services
better is the customer experience talking about customer experience remembering tony
saying customer service should not just be a department but should be the entire company itself
this thought resonates in today's customer centric economy very effectively as consumer
behavior keeps changing or rather say upgrading immediate access to online functionalities through
smartphones has created a sense of entitlement to simple fast and efficient experiences a dramatic
increase in the number of smartphones connected consumers simple and secure purchase flows and
location-based services are a few of market conditions that are propelling the explosion
in the on-demand industry whether it be the ease of ordering food booking cabs schedule deliveries
or corresponding reduction in the time required studies have shown that the on-demand economy's
growth is a product of its alignment to consumers growing appetite for greater
convenience speed and simplicity this is what consumers need today we want quicker deliveries
simple and hassle free transactions cheaper rates i'd rather say convenient rates yeah so
fast moving tech companies are competing in this industry to develop new technologies and products
trying to get better with every passing day for example the ground transportation restaurants
grocery industry are the prime examples of the hyper growth categories in the on-demand economy
car services are one of the most explosive sectors in the on-demand economy and are reshaping the
people's understandings uber's growth is even more remarkable considering the awareness level
of the on-demand car services uber's growth in terms of funding investment revenue generated has
been tremendous steve scoffman says welcome to the verification of the service industry
popularity of uber has given us the uber for x model today we have uber for laundry uber for
delivery uber for trucking uber for baby services ubu for pet services uber for flood delivery and
what not but getting back to car hailing services let's combine with the ride sharing platform also
yes they have seen a setback due to the kovic 19 prices most of the almost all the companies
suffered losses due to the restrictions on mobility almost in every part of the world but
now as the restrictions are lifting the industry is also bouncing back simultaneously as we were
talking about uh on demand and we talked about the ride healing services and we're talking about
uber and all simultaneously on-demand food delivery services are also attacking the 683
billion u.s restaurant industry on-demand delivery services have expanded restaurants potential base
far beyond the physical location now so uh what benefits as a business on demand model provides us
i mean what benefits do the business owners of who use the on-demand model leveraged from them first
one is the customer satisfaction any business you are in you want your satisfied customers
and this is the most sought after and also the most important benefit that the on-demand
model gives for any business because it helps ultimately in customer retention
today because today consumers do research analyze compare and are able to make informed
decisions about any product they want to buy think of an example if you want to buy a smartphone
you know about the configurations of the phone you check on various websites you consult with
the friends and then you go maybe you buy from the store or maybe you then go and buy online phone
so that's the amount of research and the informed decisions customers today can make so they are
more sophisticated now they prefer instant and personalized experience so how is this advantages
to the consumers let's talk about that they have multiple service providers to choose from
one thing easier quicker and convenient purchase process the second thing multiple payment options
the third thing rating and reviewing the products that they are being offered the fourth thing and
leveraging the personalized services this is one more thing the on-demand industry the on
on-demand model of the business provides the personalized experiences to the consumers let's
return back to the discussion that we start in the very beginning about personalized experience
people some people are still reluctant to use the personalized experience because one way or
the other it is costly it becomes costly when um when the services offered by the companies which
are you know the providers of the services they offered personalized experience to the consumers
so because it's sometime it's time taking some time it's maybe it's
quite instant that way it becomes costly and people are sometimes reluctant to use
it apart from consumer satisfaction one more thing that is scalability and cost reduction
cost effectiveness of the on-demand business model is also a prominent benefit it helps
businesses to start and operate at a lower cost compared to the traditional business models
with help of technology solutions from third party it is easy to start a business we will certainly
discuss more a lot more about the tech partners in the later sessions of the series technology
also eases the scaling process as you can build an online presence with the help of sas model
and ad resources on demand satisfaction cost reduction and the third thing is opportunities
newcomers in this on-demand industry can leverage the advantage of already existing marketplaces
which will allow them to take advantage of the already existing customer base instead of
creating and investing and funding and all those things in a new customer base if a newcomer joins
an already existing marketplace kind of thing he can you know leverage those existing customer base
moving from the advantages that we discussed about the on-demand model that provides us you
know there are a few myths that needs to be busted many ask that if this is shot if this is a bubble
or this is this a short-term trend or the hyper growth that we're seeing today going to end soon
categorically and unequivocally the answer is a big no the new on-demand model have opened
the door to a real-time fulfillment of goods and services which consumers have embraced the
frequency that's unprecedented the question is no longer if the on-demand economy will revolutionize
the way people transact or create thousands of jobs it's already happening but the question is
when the services offered by the on-demand will be utilized by the consumers outside the tech savvy
and the early adopters group when any new service offered by the on-demand service the on-demand
industry comes up in the market the early adopters the people who are tech savvy they are
involved just within few months but there is also a group of people who are not adopting few of the
technologies feel the services that are being offered when all those groups combined together
that's the question that we are left with the growth of the companies competing in this industry
in terms of the revenue generated influx in the capital from the investors are sure indicators
of that the on-demand economy is going to be the driving force for the years to come
there's no issue about that checks to keep in mind their fuel checks that should be kept in
mind while you know we are you know talking about the thriving of the on-demand economy
is to create successful models which can satisfy the needs of the consumers in a more cost
effective scalable and efficient manner we'll end with what you can go forward with a few examples
we all know and talk a lot about the big dogs in the market like airbnb uber doordash grubhub
etc these are so very well established companies in the market i'll give you names who have made it
in recent times and have shown a very significant growth made the funding part or revenue generation
i am giving you these names just for the assurance that you do not need to be uber
or airbnb to succeed in the on-demand industry the names i'm going to give you they've followed and
implemented things that we'll be discussing throughout the coming lesson of the series
okay here come the names mowgli x b2b e-commerce for industrial products snap pass
a food delivery platform apna a networking and jobs platform pay tree a match-making platform
lower a home loan marketplace last one versa collaboration and deployment platform
for front-end developers so these are the names this few names the list is big more
we can provide you the list as a separate pdf but these are the names who have made so much
significant growth apart but they are not uber or airbnb but apart from that also they have
succeeded so very well in the market so i'll leave you guys with this thought and let's connect in
the next lesson of this series till then take care goodbye thank you so much for joining the listen