What is On-Demand Service?

As we are well aware, in traditional businesses we are being served products as well as services. Products are mainly the sale of physical goods we can touch and feel. Services are the fulfillment of our requirements mainly using human intervention. For example, while sale of cars is a product, a taxi service is a service. On-demand business is rapidly replacing traditional business model. As a result on-demand services play a major role in taking this type of doing business to a very successful context.

Do you want to understand what an on-demand service is? It is to offer facilities to customers mostly using a technical platform depending on the demand and highly suitable for the requirements of the customer. The customer has the power to customize and present the requirement and choose among a variety of choices available to fulfill its requirement.

On-demand service – Airbnb

For example, Airbnb which has gained enormous popularity all around the world in such a short period of time is now the number one site people use to rent properties for customers to use during their short stays. The customer enters the details they are looking for such as the locations, the property type, amenities, etc. and Airbnb populates a list of properties that best suit the requirements. From this list and also considering the reviews left by previous tenants, the customer decides on a property to stay in during their short stay.

This is one of the best examples currently available in the on-demand business context to explain the on-demand services.

On-demand service – Uber Eats

Uber Eats is also another great example to that manifests the qualities of an on-demand service. Even though this business delivers food to customers, which is a product, they are actually performing a service, which is food delivery. The customer has the ability to select among multiple restaurants around its area and select food of its preference.

Uber Eats has gained enormous popularity among customers in a very short time. The main secret to its success is because the customer gets the service delivered to its doorstep, without the hassle of having to cook or go out and fetch food after a long tiring day of work.

Why on-demand services are gaining popularity?

There are multiple reasons why on-demand services are getting huge popularity over traditional services. Mainly, the customer is given the power to make the choice. It can choose from a number of service entries to select the service that best suits its requirement.

The service platform is readily available as a mobile phone application or a website where the customer can easily access, the customer has the ability to compare and contrast the prices to the services offered and select a service that best suits its requirement and the list goes on.

What is the future of traditional business?

While on-demand services paint a pretty picture to the customers, it is heavily becoming difficult for anyone with a traditional business or wanting to start an on-demand business to step foot in the sector due to increased competition.

The main reason being the customers are no longer willing to step out of the comfort of their homes and get services from traditional business. They are also reluctant to try new on-demand services without firsthand experiencing the quality of their service.

Therefore anyone trying to enter into on-demand services must create a bulletproof plan before entering into the market not only to capture the attention of their potential customers but also to deliver excellent services so that the customer would return another time and most importantly, will recommend your service to another person.


Whatever said and done, on-demand services are capturing the way we do business as a storm. Moreover, almost everyone starting a business and wants to be successful are considering on-demand business model for the obvious benefits such as accessibility to the customer. For instance low cost of setup and low cost to run, etc. While the benefits are prominent it is, however, important to weigh in the risks as well and compute a bulletproof strategy to gain customers and to retain customers.

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