5 On-demand Industries That Have Contributed its Major Share in Global Economy

Before a decade, did your smartphone contain apps like Zomato, Postmates, Uber, Airbnb, Doordash, etc.? Obviously NO.- Welcome to the on-demand world.

The modern tech stack is shaping the business landscape over the years, enabling brands to take advantage of digital tools and cutting-edge technology solutions that fulfill customers' rising demands. With mobile apps have become an integral part of people's lives, businesses are coming up with innovative mobility solutions to reach out to their customers.

On-demand apps such as Uber, Doordash, GrubHub, etc., have made their way in the business world and encourage people to order things online.

According to PwC research, it is projected that the on-demand economy will surpass $335 billion by 2025, and it is here to stay for a long time.

Convenience is the biggest reason why on-demand business is thriving. It gives instant access to products and services to customers and allows business owners to leg up with customers' changing preferences.

The Rise of On-demand Economy

The on-demand economy has started dominating the world and disrupted multiple industries across the globe. On the other hand, the world is currently experiencing a smartphone revolution; according to research, it is said that 63.50% of people in the world are using a smartphone. This is due to instant access to the internet.

People's preferences keep changing with the technology innovations, and the inclination towards convenience is also increasing. This is why on-demand apps are so popular these days and will stay here to stay for a long time.

Let's have a look at some impressive figures and facts about the on-demand economy.

1. More than 22.4 million users are attracted to the on-demand market.
2. The global online food delivery market will soon reach $161.74 billion by 2023.
3. Uber, JustEat, Spotify, Netflix, GrubHub, etc., are the well-known on-demand apps.

The on-demand economy works on a simple formula where customers and suppliers meet digitally in order to access products or services. The on-demand economy has transformed the face of various industries. Streaming services, the food industry, the travel industry, and transportation are all forms of the on-demand economy and highly disrupted in recent years.

On-demand apps are ruling the world and have definitely made their way within the overcrowded business world. These apps have gained huge momentum because they offer convenience to people and allow them to get products and services delivered to their doorstep.

Whether you want to watch movies, child care, tutor for your kids, health services, or want to order groceries- all these services can be availed instantly with a few swipes on your screen. Right from on-demand food delivery to appointing doctors, these apps are making our lives easy. Here we have presented the top five industries that are propelling the on-demand world.

Food Industry

Want to have pizza at the office but unable to go out? Isn't it interesting to open a food delivery app and have it on your desk within a few minutes? Yes, this is the way food delivery apps have changed the restaurant industry. On-demand food delivery apps such as Zomato, GrubHub, Postmates, Doordash, etc., have made their way and allow consumers to get food at their doorsteps in no time.

Besides, more and more food business owners are opting for restaurant online ordering systems as it increases revenue and gives a digital touch to the entire food business. Today, people are using food delivery apps for their lunch, dinner, and even breakfast.

According to Statista, the USA's online food delivery market reached $22,073 million in 2019 and is increasing with a CAGR of 6.5% annually.

According to Statista, here, you can see more than 35% of US adults choose to place orders online; they will be splurging on this trend even after things get normal. Moreover, almost all sectors around the globe were shaking. Still, the food delivery sector has experienced a noticeable boom since people avoid visiting crowded places and start to order food online.

Popular food delivery apps also have launched "contactless delivery" and "contactless payment" so that customers can place orders and make payments without any hesitation or fear. To combat loss, many new food business owners will likely adopt a "dark" or "virtual" or "ghost" kitchen business model which doesn't offer a dine-in facility but is committed to fulfilling online orders.

Grocery and Fresh Produce Sector

Another most disrupting sector in the on-demand world is grocery, and it has pushed the global economy towards constant growth. From the last couple of years, there is a sudden rise in on-demand grocery deliveries; apps like Instacart, Grofers, BigBasket, etc., are paving the way for retail business owners.

Coresight Research shows that 58% of US consumers buy groceries online to avoid traffic, crowd, and long queues. With the increasing demand for doorstep delivery, conventional retail owners are now adopting digital solutions to automate business processes and fulfill consumers' rising needs.

Thus, retailers should not wait for a long time in adopting online platforms as it can give a huge boost to your traditional grocery shop.

Health Care Sector

Consumers no longer need to visit clinics at an odd time as now they can "call the doctor at home" and get the right solution for everything. On-demand healthcare apps aim to assist patients round the clock via video or audio call.

According to a recent market report, the global telemedicine market is growing rapidly at an annual growth rate of 19% from 2017-2022. On-demand telemedicine apps allow people to receive instant solutions for any disease without stepping out of a home. Patients can also book appointments online and get medicines delivered to their homes just by uploading prescriptions.

Transportation Sector

You should not forget the fact Uber is the one who has given birth to the on-demand economy. Commuters now can avail taxi at their doorstep within no time. Indeed, on-demand taxi apps have revolutionized the transportation sector and made it easy for riders to book a cab.

Online taxi booking apps have proved that they don't need to own a vehicle to go here and there. Using online cab apps, riders can book the nearest taxi when they need it and also check the driver's status.

Popular apps such as Uber, Didi, Ola, Lyft, etc., have made their mark in the transportation sector and contributed their major share in the development of the economy.

Online Streaming Industry

Media and entertainment is surely the most disrupted industry by the on-demand sector. Popular entertainment apps such as Spotify, Netflix, Amazon Prime, etc., have changed the entertainment landscape. Users can now watch their favorite documentaries, shows, and movies; this trend will continue to grow because it is attracting busy millennials.

Users get instant access to any shows and movies in real-time. If we look at the current scenario, Netflix is the favorite on-demand entertainment app and has experienced maximum subscribers in just three years.

Future of On-demand Economy Seems Promising

Looking forward to 2021 and beyond, the on-demand economy is attracting maximum users and changing how we eat, work, and entertain.

It's all down to convenience.

Well, this is the reason why more and more business owners are coming up with exciting ideas and solutions that makes people's life easy. Above mentioned sectors are highly benefiting from the on-demand economy and contributing a larger portion to the global economy. Along with the above sectors, beauty, education sector, freelancing, home service, etc., are benefiting extensively from it.

Now you should not wonder why the demand for on-demand app development companies are flourishing day by day. May on-demand business models continue to contribute more and more and make the global economy prosperous.