In 2009, it all started with zero which now transformed into $70bn business in last 7years. That is no one else but everyone’s dear Uber reinventing transport and reshaping cities & dramatically bringing Uber for x and Uber like app craze. Trying to transform future of transport, Travis brought the disruptive innovation of on-demand in the market in such way that Uber became the verb for almost all on-demand business model. This wheels of change are unstoppable.
What is an on-demand model?
It is the very genius idea of connecting two type of people user and provider under one platform with the help of technology. There are three basic pillars of it.
- Provider: I am in need of work and I got a request from the customer. I can accept or reject based on my current availability. Customer will be notified of each action of mine like when I arrived at his location, when I started the job, when I completed, deducted invoice, etc.
- Customer: I am in need of some service (be it taxi, plumbing, cleaning, gardening, masonry, electrician, furniture fitting, or any other thing) and I am in search of a provider who can get it done for me. I will create service request mentioning my current location and need, and it will be automatically assigned to the nearby provider.
- Admin: As an administrator, I have the proper infrastructure in place to connect both customer and provider across all the different geography under one roof. I will encourage all independent provider to register for my system and become service provider once I approve them. I will marketize my app among all the related customer with referral and promotion bonus to consume my services. Out of what customer pays to the provider, as coordinator, I will get my or fixed cut off payment and recuperate cost I invested in building technology platform.
So, as customer I don’t have to worry about from where to consume the best quality services at cheaper rate and in a transparent manner at any time, as provider I don’t have to worry about from where to get customer to serve when I don’t have money to spend on marketing because with this on-demand system I can easily get all available provider/customer on already built system with just one click of your smartphone. As an admin, I don’t have to worry about how to provide all the services to the client and just have to keep my infrastructure up to date; rest will automatically fall in place. I will have full analytics of how many drivers or customers registered in which month, request rate is increasing or declining compared to previous month, what could be my expected growth rate etc. based on which I can get answer to my critical questions related to business and can make important decision about what action I should take for which part of geography.
Uber’s model is smartly doing resource integration like King Kullen did for grocery chain- Supermarket. That fast-paced model can be easily replicated, and that’s why it has been adopted by almost all the industries today. Technology is bound to happen whether you are with it or disagree so those not falling with this trend with see difference on their balance sheet in days to come. Just one company brought such massive effect that Uber of X is spreading with incredible pace across all business idea. To know what are the benefits of the on-demand business model and how to get into this economy you can refer my other articles or contact us to start your business.
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