Our world will never be the same. And it is not only about Covid-19 – the whole world's economy transforms and flows. A lot of things changed since the early 10` and many predictions fail, but sharing/on-demand economy growth prediction not only fulfilled but also exceeded all expectations. This new economic model has become a phenomenon, with revenues in the automotive, hospitality, finance, staffing, and media streaming sectors alone projected to grow from $14 billion in 2014 to $335 billion in 2025. Following strong uptake by both workers and employers, investment in on-demand platforms such as Uber, Airbnb, and Deliveroo has been enthusiastic. From transportation to accommodation, the on-demand model disrupts every sector it enters – and has also created new ones. Let's glance through some bulletpoints of the topic :
The On-Demand Economy Is Already Here
Nearly 162 million people in the US and EU are engaged in some form of independent work. In some instances, the transition to the on-demand economy has been subtle for the worker. Just 35 percent of U.K. on-demand workers are familiar with the term "gig economy" – perhaps because they do not see their part-time job as part of a high-tech business revolution.
On-Demand Is handy
Being directly connected with service-providers by a digital platform – whether it be a handyman or a private lender – cuts out the middle man. Having services available at the moment of need is convenient and reduces waste, creating an attractive and competitive marketplace for customers.
The Rise Of The Flexible Opportunities
The growing number of workers joining the on-demand economy has been fueled by a rising desire for flexible working arrangements. This is being led by digitally-savvy Millennials, a key component of the on-demand working population, and a generation used to managing their lives with digital platforms. With each worker more in control of the jobs they accept and when they are available to carry them out, the on-demand economy appears an ideal environment to offer an improved work-life balance.
Great Investment Environment
To be successful, businesses in the on-demand economy need to achieve scale – and fast. This means frequent and substantial funding rounds. Before the first half of 2014, on-demand startups had never raised more than $500 million a quarter. Since then, that figure has shot up to $1.5 billion – a sign of increasing maturity in the sector.
The model poses many long-term questions: as more people move to freelance roles, what will be the impact on employee engagement? How will traditional benefits – such as health insurance and pension and retirement planning – be impacted when workers are no longer full-time? How will technology impact other sectors?
Even with such unknowns, whether by a swipe or a click, the on-demand economy seems to be delivering something new: a world in which the customer owns the experience. With technology as such an enabler, perhaps organizations should begin to think about how to disrupt their own models.
Co-founder, Business development specialist at CookieDev