Let’s admit it.
We all are same.
When we want a product, we want it right now.
In fact, People are just falling in love with the concept of getting things on their door steps within hours. With smartphones and tablets, it’s easy to find and purchase desired products on internet within minutes.
Though, there were many companies that crashed on the quest of on demand delivery app. Take Kozmo.com, for example. When they started out in 1998, the company promised to deliver any product a customer demands in an hour or less for six markets. But, the problem was, they didn’t had minimum order policy, and people were buying candy bars that costs far less than the cost of delivery.
Soon, when the company announced of adding delivery fee, customers opposed the idea, and soon, the company died.
This is a challenge Amazon faced when they implemented same day delivery option in 2009. The challenge of How to deliver orders without going broke?
Of course, they started slowly, with small amount of delivery charge, and only in seven cities to observe how consumers react. But, by the end of 2014, Amazon were getting 10 times as many product orders with same day delivery. And now, they’ve shortened the delivery time more to an hour with Amazon Prime Now.
However, this is not all. Uber then entered the market with its brilliant idea of on demand taxi service. In fact, Uber was first to identify that on demand economy is large, and it’s getting larger and larger day-by-day. Soon enough, many Uber like app startups were born and followed the lead.
According to National Technology Readiness Survey, the on demand economy is attracting over $22 million of consumers each year, and spending $57 billion in spending. Check out the following graph to know which are the top industries in on demand economy.
The size and growth of on demand economy clearly shows that consumers are attracted to the idea of on demand delivery. And, it’s growing globally as well.
Dropoff, a new startup that offers same day delivery services for local business. Basically, it’s a tech startup that allows customers to submit a drop off request at Dropoff.com or in its smartphone app. Then, a Dropoff agent comes to you within minutes to pick up the package and delivers to destination address. In fact, users can also check the exact location of package while it’s en route.
Startups like Styleseat, Instacart, Taskrabit and many others recognized that on demand economy is too big an opportunity to miss. And, it’s even risky to ignore.
Like all disruptions, the on demand delivery startups are challenging existing companies with new business models and with new ways of engaging customers.
Therefore, the existing companies also need to embrace and transform their service as well as delivery system to meet their consumer demands.
Although, it’s important for companies to make sure that they are accessible, secure, and mobile-friendly while adopting the on demand business model. And, offering on demand services is actually not an overnight process which has been adopted worldwide, in fact it will be more sustainable and reliable in the years to come.