What Is the On-Demand Economy?

Originally posted on the Wonolo blog.

It seems like everyone is talking about the on-demand economy, a form of work in which workers connect with clients to perform tasks as needed on a (typically) temporary basis. Here’s a look at the on-demand economy, how it works, and how you can participate in the on-demand economy to earn a living or boost your existing income.

Definition of the On-Demand Economy

The on-demand economy is defined as the economic activity created by digital marketplaces and technology companies to fulfill consumer demand via immediate access to goods and services. The on-demand economy is also sometimes referred to as the “access economy,” and provides a convenient way to provision goods and services to those who are in the market for them. There are thousands of companies currently making use of the on-demand economy.

With consumer behavior changing to prioritize fast, simple, and efficient experiences, the on-demand economy is growing at an unparalleled pace. Convenience, speed, and simplicity are at the top of the priority list for consumers looking to have their needs met. The ease of filling spare time and picking and choosing one’s hours is also appealing to those with skills to meet growing consumer demand.

How the On-Demand Economy Works

The on-demand economy works by taking a service, such as meal delivery, hairstyling and makeup application, or handyman repairs, and using technology in order to connect suppliers with consumers.

This connection usually happens through a technological service such as a website or smartphone application, with both parties signing up for accounts in order to use the service. Then, when a customer is in need of a service, they open the app, input their parameters, and send a request to connect with a service provider.

The service provider is then alerted through the application of the service request and heads out to perform the task for the consumer. Upon completion of the service, payment typically takes place through the technology company. This ensures that there is no sharing of personal information between parties — as the technology company acts as an intermediary and safeguarder of personal information. Following service, both parties are prompted to provide feedback and ratings for one another, in order to improve the system and ensure the quality of service.

Examples of the On-Demand Economy

Many of the popular services people use on a regular basis nowadays are examples of the on-demand economy. Ride-sharing platforms Uber and Lyft, as well as grocery delivery services such as InstaBuggy and InstaCart are just some examples of services within the on-demand economy.

The on-demand economy is comprised of services in all digitally-based marketplaces — primarily mobile — that provide access to and/or fulfillment of goods and services.

Industries that utilize the on-demand economy include business services, travel, education, delivery, shipping, parking, subscription, pet care, family care, home services, transportation, health & beauty, reservations & ticketing, and P2P goods. There are hundreds, if not thousands of companies currently making use of the on-demand economy, and more and more companies are popping up to meet this demand every month.

Benefits of the On-Demand Economy

To read the rest of the article, head to the Wonolo blog.

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