On demand services

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On-Demand Economy

The On-Demand Economy is based upon the immediate provision of goods a services through the mediation of technology. Efficiency brought trhough different technological plattforms such as smart phones, manages supply. This new scheme presents a revolution in purchasing behavior reshaping the retail environment.

This article was contributed to by The On-Demand Economy team and, specifically, Tanner Hackett and Mike Dudas.

“The internet makes human desires more easily attainable. In other words, it offers convenience. Convenience on the internet is basically achieved by two things: speed, and cognitive ease. If you study what the really big things on the internet are, you realize they are masters at making things fast and not making people think.” 

— Ev Williams, Twitter co-founder

According to literaty, users of On-Demand Economy talk about the “convenience of delivery”, “time reduction”, “Speed and simplicity”

New models of competition have been innovating in sectors where it was thought to be hard. Industries such as ground transportatrion, grocery and restaurants  are an example. This is the outcome of applying technology on top of existing structures.

Technology is able to locate the comparative advantage straight away (nearest empty taxi, cheapest and closest restaurant deal, etc).

This concept started in the late 90´s with companies like Webvan and Kozmon, nonetheless current on-demands services are more scalable and cost-effective than these ones.

On-demand services are a way in the end to manage surplus in a scarcity environment. Buying through smartphones represents an important consumption change ever.

Where there is a “surplus” of rooms, drivers, restaurants, or 1099 contractors - the on- demand economy takes this surplus and puts it to work for the benefit of the workers, consumers and the communities in which they reside.

One of the strengths of this on-demand economy is its capacity to generate real revenue, instead of clicks, users of visits which was very much tight to publicity.

According to the business insider and On-Demand Economy, $2.2 billion were invested in the last 12 months in on-demand companies 4.8 in the last years. Uber alone has a value of $18.2 billion.


Car services are changing the market rules due to the AoD services. The On-Demand Economy published a study of android and iOs users in major markets where they operate and the results showed that 20% of all respondents recognized the brand. The study recognize a further wave of takeup as AoD services and smartphone use continues to expand.

Moving forward, “The On-Demand Economy” will undergo significant change spurred by the following events:

Larger, more established on-demand businesses, flush with capital, will expand their concepts to new markets while differentiated service providers will seek to target specific customer segments in more mature markets.

Mike Jaconi: "The 'On-Demand Economy' Is Revolutionizing Consumer Behavior — Here's How", Business Insider, 13 July 2014.