On-Demand Business Model. How does it work?

Where does On-Demand Business model start? Man has been doing business from the time it learned how to light a fire using rocks. For millions and millions of years, the way we do business has evolved from various model to model. Humans innovate the way they do business to find the ideal method suited for the era they live in. On-Demand Business model is one such discovery by humans which has now gained the worldwide interest and most of the startups are thinking on integrating this model to their business.

The best companies in On-Demand Business

There are lots of companies that work with On-Demand Business.


The best company to talk about when discussing how the On-Demand Business model works is UBER. UBER brilliantly identified that there is a demand in the market for taxis which is at your doorstep in a matter of minutes. But before the advent of UBER people had to maybe place a booking in advance for a taxi or get to the road hoping to find a taxi to get to the location. But in a number of occasions, this process may have ended in frustration. However, UBER found the loophole in this market and created a platform for the vendors, or the taxis to meet their customer and customers can depending on its requirement or the destination they have to go to, get a driver appointed in a matter of minutes. Likewise, On-Demand Business Model is a model where the company provides a platform for a certain niche and vendors get to meet their potential customers. However, the customer is the key here as in most cases as the customer gets to pick whether to or not to start the transaction with the vendor.


While UBER is a great example to show how this model works there are a number of startups who are using this model and have excelled in the niche markets they are in. Airbnb is the next best startup which has successfully deployed the On-Demand Business model where the customers can rent spare rooms to houses to apartments from vendors who are using the Airbnb platform to market their offering to the customer. Here the customer has the sole power of selecting a property of their choice depending on the requirement.


Deliveroo is another startup successfully using this model in the food delivery market. Here the customer selects the restaurant and food items it wants to be delivered and the riders deliver the item to the customer’s doorstep. Similar to Airbnb, the customer has the full control of which vendor to choose for their requirement.

On-Demand Business and smartphones

The main reason for the popularity and the rapid expansion for the On-Demand Business Model is the smartphone. In 2018, it was recorded that over 36% of the world’s population owns a smartphone. This means, that more people have access to the internet and various apps provided by smartphones a lot more than how it used to be a few years ago. Using the smartphone, users can easily access these platforms, list their requirement and select a suitable vendor to provide the service.

Why to use On–Demand Business model?

In the present era of doing business, investors too are keen on investing in startups with innovative On-Demand Business Models. The business owners have the advantage of analyzing facts and evident trends in the market they are stepping into to identify the demand patterns of the customer and the behavior of the supply. When investors are presented with these data, they get a clear picture as to whether their investments will be worthwhile or not as the factual advantage present them with the ability to predict the future.

Therefore, as motivated youngsters yearning to start your own startup, On-Demand Business Model is a prominent path in the present era to implement your business in. Customers have increased expectations and there are more and more suppliers coming into play every day to meet this demand. Creating a platform or a marketplace for these customers and suppliers to meet has proved to be very successful by looking at the startups that are already using this model. However, the important factor is to identify the correct niche you are going to step into and the innovative way of building up the platform.

Nowadays On-Demand business is one of the most popular models. It is the way that could help to make business saleable and profitable.

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