On-Demand business platform: all you need to know
Any business running on-demand requires a good technological base to work and that is why it is important to understand what is on-demand business platform and how it work.
Firms like AirBnB, Instacart, Uber are brilliant ideas but wouldn’t have turned to reality is they didn’t have the technological support to combine offline supply and online demand so brilliantly. This creates the definition of a complete economy build with this value. The on-demand economy, also, is defined as the economic activity drafted by online platforms which fulfil the needs of consumers placed online through instant access of good and services offline.
The potential of on-demand business
It has revolutionized the way in which people are living lives and communicate in the real world. It shown immense growth of on-demand ideas which was simple to realize after unlocking the potential of this on-demand economy. In addition, the technology driven platforms have the ability to enhance the service providers and sellers by integrating networked technology to change how participants work in a particular transaction. For example: service providers sign up on platforms to interact with target customers directly and the consumers have the luxury to avail these services from the comfort of their house.
So, what is a platform?
It is a place which allows interaction between the service providers and customers. Therefore, on-demand business platform works as a robust technology framework to aid consumers and service providers and living their fullest. So, the three basic ingredients of a platform are: community infrastructure and data.
1. Community: Users connect and interact with one another in this part.
2. Technology infrastructure: It offers the framework on which the values can be produced.
3. Data: It matches users and content and manages relevance.
How does it work?
If you look from the outside, it may look simple that an order has been placed by a customer and the service provider fulfils the order. On the other hand, as we dig deep, there are a lot of complexities involved in different stage. And different business models link with on-demand business platform endeavouring to streamline different verticals. Also, once you research, you will find out that no two on-demand business platforms are similar. The business models may look similar but when you implement the technology, it appears to be completely different.
The steps below show a nine-part series which showcases technology modules for on-demand business. Take a look:
This is from the customer’s side:
1. Sign up: The first step is the sign-up procedure.
2. Choose the service: Once the sign up has been done and your contact details are registered with the company, you can choose the service you need.
3. Schedule the service: Once you have selected the service you desire, you need to schedule the time at which you want it.
4. Enter promo code: If you have any coupon code or discount code, you can apply it to fulfil your order at a slashed rate.
5. SP allocation: Allocate the location from where the service provider is fulfilling your order.
6. Interact with SP: In case of any confusion, you can directly speak to the SP and resolve it.
7. Track SP: You even have the option to track your order. Also, whether you book an Uber or a food delivery, you can easily track it.
8. Choose payment method: Once you have received your order or availed the service, you can make the payment in your preferred manner: card, cash or online mode of payment.
9. Review the service provider: Tell others about your experience
This is from the service provider side:
1. Sign up: The service provider knows that you have signed up for the service.
2. Choose the service: From the list of services being offered, he will know the service you have opted for.
3. Schedule service: He agrees to schedule your service at your desired time.
4. Enter promo code: He is ready to serve you with the discount you have applied for.
5. SP allocation: Your order is placed at your desired location.
6. Interaction with SP: In case of any confusion, there is a customer executive team to help you out.
7. Tracking SP: The GPS integration in the site or app helps you track the service provider.
8. Choose payment method: He provides you with a list of different payment modes for your convenience
9. Appreciate the feedback: They appreciate your feedback and take actions against complaints.
5 Factors of a successful On-Demand business platform:
Degree of commoditization:
It refers to the number of variable which are linked with product or services which users want. The lower the number of variables, the higher commoditized a product or service is. With Uber, the commoditization is about the kind of car you want for your trip but for Airbnb, users need to choose a booking date, location, number of dates and other facilities.
Relation between the platform and supply side:
A business platform should total the small business or contract the supply. It gets simple to scale the initial one while in order to contract the supply; you have a platform to fix the regulations.
Price structure:
When you talk about defining a business model, you should also pay attention to pricing structure. Also, when you choose singular pricing structure or not, it depends on your choice. The final call relies on the commoditization degree. The bigger the difference in the product or service quality, the tougher it gets to mark standard pricing.
Instant or scheduled:
One of the major trends which has risen the value of on-demand platform is the convenience it offers. On the other hand, sometimes, it is misunderstood with the instant provider of services and goods. So, scheduled delivery proves to be a great option here.
Stakeholders:
A lot of on-demand business platform have two stakeholders at least. As more stakeholders get involved from the outside world, it impacts the model.
As a result, all these factors could help to reach success in your business with on-demand platform.