The on demand economy – Disrupted by the on demand economy

The on demand economy – Disrupted by the on demand economy

Posted by Torben Rick | January 8, 2017 | Business Disruption, Technology
The on demand economy – Disrupted by the on demand economy

Disrupted by the on demand economy

Businesses deal with disruption in a variety of ways, but those affected by on-demand seem to realize now that these new digital platforms are an actual threat.

The on-demand economy is defined as the economic activity created by technology companies that fulfill consumer demand via the immediate provisioning of goods and services

Tap a button and get the world, sounds revolutionary right. That is what is being promised by emerging on demand platforms emerging in different verticals today.

For the uninitiated, the “on demand economy” (also known as access economy) is built on top of a technology infrastructure that brings the online and offline world together. Demand that is aggregated online is serviced offline either instantaneously or in a scheduled manner. This broad concept finds application in different industries in slightly varied forms.

On-demand refers to services like Uber and Airbnb. Each provides a digital platform to give instant access to a taxi or room rental.

What is revolutionary about on demand economy is how it takes a full cycle approach – search, discover, book/schedule, consume, pay and review – to consumers needs – making it a much more efficient way of consuming services.

The ground transportation industry disrupted by the on demand economy

In January 2016 San Francisco’s biggest taxi company filed for bankruptcy. Bear in mind this is a protected municipal monopoly that up until several years ago faced no competition whatsoever. The heady world of digital delivery changed all that as ridesharing services like Uber and Lyft have taken a serious bite out of long-established businesses.

Cabs or taxis have completely shifted to the on demand model. Many existing taxi companies have launched their own apps making it easy for their customers to book a cab.

Disrupted by the on demand economy - Mind the digitization gap

Apart from cabs, technology driven platforms have made it possible for people to rent their own cars on an hourly basis and car-pooling platforms are enabling people to travel together and save fuel.

The effects of an increasingly digitized world is now reaching into the whole transportation industry! Rapid change is coming to the whole transportation industry.

But it won’t stop here – Industries being disrupted by the on demand economy:

IndustriesOn-demandService
FoodOn demand In store reservations - Online table bookingsOpenTable
Grocery deliveryInstacart
Recipe and ingredients deliveryBlue Apron
Hire freelance chefs to cook and deliver with freelance delivery staffMunchery
HealthcareDoctor visits patient at his locationDoctorOnDemand
LogisticsLocal goods deliveries with crowdsourced workersPostmates, Deliv
Outstation cargo deliveries by hiring drivers who own trucksTruckBuddy, GetWagon
ServicesTemporary staffingTaskRabbit, Shiftgig
TransportationCabs on demandUber
Ridesharing platforms or car poolLyft
Transport vehicles on demand like trucks, vans etc.Cargomatic
On demand valet parkingLuxe

The on demand economy is definitely the future

The on-demand economy is rapidly expanding across the global economy. The size and rapid growth of the on-demand economy clearly shows that consumers are attracted by the user experience, added convenience and other benefits it provides.

The rise of the on demand economy

While new technologies continue to provide the ability to transform business models, effectively engage customers and make business operations more efficient, the majority of organizations were still struggling with the basics of digital transformation.

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About The Author

Torben Rick

Experienced senior executive, both at a strategic and operational level, with strong track record in developing, driving and managing business improvement, development and change management. International experience from management positions in Denmark, Germany and Switzerland.

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