The insights of the US on-demand marketplaces businesses
3 min to read
In the past twenty years, we've transformed the way people buy goods online, and in the process created Amazon, eBay, JD.com, Alibaba, and other e-commerce giants, accounting for trillions of dollars in market capitalization. The next era will do the same to the $9.7 trillion U.S. consumer service economy, through discontinuous innovations in AI and automation, new marketplace paradigms, and overcoming regulatory capture.
The service economy lags behind: while services make up 69% (source) of national consumer spending, the Bureau of Economic Analysis estimated that just 7% of services were primarily digital, meaning they utilized the internet to conduct transactions.
Interesting stats about on-demand service marketplace:
* Around 45% of consumers who utilize on-demand marketplace platforms are millennials. * Video streaming apps have a greater response in the US as 82% of Americans use Netflix. * Uber holds 69% of the share market in the US. * On-demand home service market is expected to grow $1500 billion during 2021 to 2025. * 44.1 million Smartphone app users are using at least one food delivery app on their phones.
The services sector represents two-thirds of US consumer spending and employs 80% of the workforce. The companies that reinvent various service categories can improve both consumer's and professional's lives — by creating more jobs and income, providing more flexible work arrangements, and improving consumer access, and lowering costs. You can imagine a marketplace for every service that is regulated, with unique features and attributes designed to optimize for the customer and provider needs for that industry.
We think the next era of service marketplaces has the potential to unlock a huge swath of the 125 million service jobs in the US. These marketplaces will tackle the opportunities that have eluded previous eras of service marketplaces and will bring the most difficult services categories online — in particular, services that are regulated. Regulated services — in which suppliers are licensed by a government agency or certified by a professional or industry organization — include engineering, accounting, teaching, law, and other professions that impact many people's lives directly to a large degree.
We fully expect more Airbnb- and rideshare-sized outcomes in the service economy. That's exactly our area of competence. Eager to learn more - please find a link below.
Co-founder, Business development specialist at CookieDev