When the pandemic hit, every one of us was confined to our homes due to lockdowns and restrictions. During this time, many shops and corporates took their business online, delivering their services through an on-demand model. Everyone from grocers to salons started providing services via this model. Companies like Swiggy, Zomato, Dunzo, and Urban Company saw customers flooding for delivery services. Though on-demand services have been around for quite some time, one can say that the industry reached new heights due to the pandemic.
Even after easing lockdowns and government restrictions, people still rely upon on-demand services for their day-to-day needs. This is because of the ease and quick availability of services and many other reasons that this article will touch on. But before moving into their benefits, let us first answer the question, what are On-Demand Delivery Services?
An on-demand service is a solution that allows people to get real-time services such as food delivery, virtual doctor consultation, beauty services, house cleaning, etc. Usually, on-demand services are listed on a marketplace or a dedicated platform. A marketplace is a platform where multiple services are listed. An excellent example of this is Urban Company. While Swiggy, Zomato, PharmEasy, etc., are dedicated platforms where specific services such as food delivery, medicine delivery, grocery delivery, etc.
Both models are popular, and with people looking for instant gratification, convenience, and fast delivery of services, the on-demand services market is booming at an exponential rate. It is projected that the market volume of Platform-to-Consumer Delivery will reach $302.50 Billion by 2027, growing with an annual growth rate of 7.78% between 2022 - 2027.
Now that we have seen what on-demand delivery services are, let us look at the benefits in detail.
On-Demand Services are known for the speed of services and their affordability. This is because market innovators have developed ways and technologies enabling faster operation. Today’s customers want their orders instantly, if not as soon as possible.
This is possible by connecting all the people involved till the last mile of the supply chain. At the same time, creating efficient, streamlined flows and eliminating any inconsistencies. This is the only reliable way to keep up with the customer’s need for faster delivery of goods and services.
The order management has been simplified and optimized to increase speed drastically. Now every stakeholder in the on-demand delivery service supply line has a dedicated app where all details of the order are displayed in detail. This method allows confusion about incoming and outgoing orders to be avoided, making it much easier to stay in sync with the inventory.
Tracking the order in real-time enables all the stakeholders involved to get a continuous flow of information about where the order is at any given time. This promotes transparency and accountability.
Also, by monitoring the flow, bottlenecks in the supply chain can be spotted, and these areas can be improved to increase the efficiency of the process.
Services of this type are very convenient as they provide the users with instant search, real-time GPS tracking of the order, convenient payment methods, and, most importantly, quick delivery.
On-demand services are more or less special requirements of your customers. For example, having an order delivered within minutes to within a day or the same day. A stable relationship with the customers is developed by meeting those special requirements.
When the convenience of the customers is taken into account and the service provided is also customer-centric, they are more liable to become recurring customers. This is why on-demand services are booming, as they are convenient in today’s fast-paced world.
As everything in an on-demand platform is automated, it reduces most manual dependencies and human-based inconsistencies. To ensure speed and quick turnaround time From the moment an order is placed by a customer to the delivery of that order.
The only time human intervention is needed is when the particulars of the orders have to be updated. can For example, when you place an order on Swiggy for food delivery, the restaurant has to accept that order. At the same time, a delivery partner has to accept to deliver the order from the restaurant location to your location. Apart from these small interactions, all others are automated.
On-demand services open up many new opportunities to expand businesses. Targeting customers, providing customized services at their doorstep, and ensuring they are content with the services offered makes you stand out as a market leader in a niche market.
In short, having a customer-centric approach will attract a larger customer base allowing you to expand your business. Most on-demand service providers start by providing services in a particular niche and then scaling to other services or becoming a marketplace platform hosting other service providers.
An on-demand service can quickly scale to meet the needs of its customers. Since on-demand services can be changed as per market situations, you gain an inherent competitive advantage over your competitors who still have not entered the digital space.
On-demand service providers also have a pricing advantage over their competitors as on-demand services have a low investment in human resources, storage, and store operations.
By investing in the development of online platforms and automation, the dependency on physical stores and staffing is drastically reduced. With the help of an app or web application, you can focus more on your customers directly to care for their needs. This reduction in infrastructure cost will ultimately boost revenue and profit margins and allow for competitive pricing.
With the possibility of scaling to meet your customer’s specialized needs, opening up to new business opportunities, and competitive pricing, on-demand services help you reach a wider audience and increase your customer base.
A key point to note here is that on-demand apps mostly attract younger audiences. They are more open to experimenting with new technology. So when venturing into new opportunities, it is best to keep up with the millennial trends to satisfy your younger audience.
As you take your whole business online, it becomes very easy to collect user data. With this data, you can get to know your customers and gain insights into how you can serve them better. By analyzing user activity, you can easily determine which services are in demand and what are stopping the complete conversion of your customers.
Armed with the knowledge, you can offer more customized services according to your customer’s preferences. Target groups or audiences with specific marketing strategies to get them to order or buy your service. Inform them of offers and upcoming sales and communicate much more to build a strong relationship with your customer base.
Businesses can unlock their potential with on-demand services. There will be continued growth in the on-demand service industry as more and more people seek faster delivery of quality products and services. In addition to providing a competitive edge for a company and increasing its customer base, an on-demand mobile app development solution meets the expectations of modern users and follows economic trends.
Roamsoft Technologies is a web and mobile app development company with over a decade of experience creating on-demand solutions for different industries. We have ready-made, customizable solutions such as grocery delivery, food delivery, and on-demand service that can be scaled to your needs. Should you have your own app or web application idea you want to see implemented, our dedicated in-house developers can also cater to meet your specialized business goals.
Contact us today to get a free demo of our existing on-demand services solution or a consultation on how we can help you build your own application.